Forum Replies Created
Its my understanding if settlement has not taken place and the caretaker has moved into your flat then the caretakers rent goes to the developer.
I would not worry about curtains till you’ve settled. If there are no curtains now then is the palce really in a state to be occupied.
And another thing if its a NEW unit, then I would be concerned about why you now have a tenant. Did the developer at least discuss it with you. sounds like he did. Did you sign the 5 yr lease?
If you have a disputes, then resolve them with the developer and your solicitor and try and find out common practice to support your case.
How far from Gore is it? I spent a few yrs living in the UK about 14 yrs ago doing the aussie thing in London. I lived in a house with a girl from Sydney and 6 kiwis. Mostly from down Sth Sth Island.
I have only been as far Sth as Hamilton. I was supposed to to travel down there but fate got in my way. I met my wife in Canada and stayed there longer and had little time before i had to get home for xmas.
A few of them really cracked me up. One of them used to go to the market in thongs and a T-shirt and reckons London was like Gore weatherwise.
They were great days. Why do we have to grow up, marry and have kids? Stop complaining – got nothing really to complain about. But i do have fond memories of those days.
Imagine how rich I would be if I did not discover pints and travelling.
Probably intolerant, bored and naive like my mates who have not travelled.
My guess would be to do it separately. If your business fails then maybe your properties are protected from bankruptcy.
I believe there are penalties if you have to end up paying the ATO the tax back when you do your income tax return at the end of the year.
So you need to be conservative when estimating your likley deductions and decide on how much extra you want in your monthly pay.
I have a few negative geared and neutreul greared properties. Once all expenses are deducted I get a good tax refund as I am on the highest tax bracket.
I understand you can fill out a form 221D (or something like that – only going on memory) and you can have your tax deducted at a lower rate every pay packet. It does help cash flow but there are penalties if you stuff up your calculations.
Its probably why I am one of the few who look forward to doing his tax return.
I dont do it. I use it as compulsory savings. I am using my tax refund this year to take the family to Canada.
I would do neither.
For about $250k to $260k you can buy a 2 bed unit in Mentone, that is walking distance to beach, shops and station that will rent for about $200 a week.
One in my block sold for $250k a few months ago and I get $205 a week for a unit in the same block.
In the 7 years I have had the unit, I have never had any rental problems and not lost any rent except for the week or so between tenants.
In my view its worth a look before Clayton and a serviced apartment in Richmond.
I jsut missed out on a commercial deal. It would have been my first experience.
It was a take away and factory on one title. It returned 8%. Yes a good deal compared to a negative geared property I have.
I got it valued by bank. Came back $25k lower than asking price $270k.
Factory lease to expire June 2004. Takeway lease expires June 2005, then 5 yr option if they wish.
I got cold feet as I was worried about the takeway and whether it was a long term tenant. If they walked and I was unable to find another tenant, then I lost my half of the investment.
It was a good experience going through the process. I am sure one day I will get a commercial property.
I spent 12 months in the US in 1999. Thats when I first started to look at investment properties and looked at their market.
– The cash flow is better in the US mainly because they do not have negative gearing. Investors here in Aust are prepared to pay more for quality property because they can factor in the tax benefits.
– The US has more slum areas. ie areas you may feel uncomfortable if your car breaks down. Therefore someone may inherit a place and just want to get rid of it for any price. You may even get the property NO MONEY DOWN for the asking price.
– In the US people can claim the interest on their own PPOR.
– The US has a population of around 260m people. So there market is larger and more opportunities may abound.
– Most of the US land space is populated too. Many towns, many opportunities.Just my thoughts.
Its what all the property experts and journalists have been saying for some time now. Are you really surprised?
I think I would probably sell the apartment and keep the property in the burbs. The apartment could keep going down in value.
Well Done. Are you looking at postive cashflow for all purchases? How many more do you think you will have in 6 months? Are any wraps? How much time do you have to invest? Have you been travelling alot?
Hux
What have you done since Nov? Have you acted yet?
Interesting problem?
Have you given ASIC a call to validate what the vendor says? You could explain in broad terms what is going on and they may be able to give you some feedback. Maybe ASIC is investigating the Company! Maybe they need to lodge many years of returns to be re-registered again!
What does your solicitor reckon?
Good luck
Are they the ones who advertise on radio in Melbourne as being the 10 year guarantee people?
If they are, I would be very careful. I dont like rental guarnatees as these are built into the price you pay. I must hear that add very morning and evening on the way to and from work. Advertising costs must come from somewhere – ususally the price of the properties.
My advice is if your interested in property buy from a local estate agent (do your research of prices etc), find a solicitor and find an accountant who can help you navigate the property acquisition path. Sure you pay these accountants and solicitors but at least there are no hidden charges from an investment/property developer and you are buying at real MARKET price.
Just my two cents worth
FW
I totally agree. When purchasing a property, you also need to consider the type of tenants your property attracts.
That may also be why you may get a better return from some properties over others. I for one would rather get a lower rental return knowing that the property will attract better type renters.
Just another consideration in addition to the 11 sec rule.
Where is Wanka
What do you want from your investment? Thats what I would focus on. You need to look at more than the numbers.
Here are the numbers as I see them.
Rent $5720
Interest $55k at 7.07% $3888
Rates (guess) $400
Water (guess) $200
Agents Comm at 7% $400
Net $832Thats not allowing for any repairs or increase in interest rates either.
Other considerations.
1. Where is Roma, how far from Brisbane is it?
2. How large is the block?
3. What is the history of capital growth in the area?
4. What was the place worth say 3 years ago?
5. What is the general state of the outside?
6. How is the general area like?
7. What type of renters will you get? Single parents on social security.
8. How much effort will there be for you just to get a return of $832.
9. What do you think the place will be worth in 5 years time.
10. Is this a population growth area?Anyway, just my two cents worth. If this is a rural area. I would not proceed as I only invest near where I live and I invest for capital growth.
If you expect the place to be worth double in 7 years, then I would proceed. If not $800 does not allow me to sleep at night if i have to borrow $50k and the place is hours drive from where I live.
If I was the owner of the property, I would find this is totally unacceptable behaviour on the part of the property managers.
I would demand the keys back or at least use of the spares till you open the door. You have been kind enough to let the sales reps through for inspections.
Go talk to the Sales Rep selling the property and demand he fix the issue or at least have a go at this rental department.
He has a vested interest in keeping you (the tenant) happy – get him to fix the issue.
You cannot compare property investing with its property cycle and all the effects of interest rates, population growth, eceonomic effects, tax policy etc to baker making chocolate cakes.
Sure there are successful bakers and the average baker. Just as there are the successful and average property investors.
But give me a property investor who is successful and been in the market a long time. Then I may go to the seminar.
I have no interest in sourcing cf+ properties from other people. If the deals are that good, then surely (I know I would) do my damnest to close the deal myself.
There is more to property investing than just the numbers.
