I am very fortunate to have a CF+ house in Quinns rocks but i was lucky as i bought it in 2002 with the FHOG and now owe $90K with $310K Equity
I need to find my own apartment to live in as i am living at my parents place
Does anyone know where to find a 1 or 2 bdrm CF+ apartments in Perth?
I have read from this forum that the real estate internet boards and newspapers and even buyers agents are not the best way to go if one has time on their hands to do it themselves.I have taken interest in reading that i should drive around the preferred areas i wish to live in and contact the real estate agents for their listing or look for private sale signs? Most apartments i have interest in sell for about $250K which is out of my range.
I have also read "Rich Dad Poor dad" book and it says to make lowball offers. Does the real estate agent have to take this to the seller legally? How do i know if they have presented my offer to the seller? Do i need to fill out an R/E agents offer form?
I figure i can only afford to borrow $180K. ANZ LOC $50K (plus expenses) and Liberty $150? I am self employed with low income.Does anyone out there have creative ideas they have used in the past besides finding places to renovate or buying in regional areas. I am looking for areas within 30K radius from the city NOR in Perth.
The house market is falling here as the Australian Property magazine says but what about apartments? I have read many American books such as Robert Kiyosaki, Donald Trump and even Australian Steve McKnight plus others but seem confused due to the fact that the market has changed a lot as i write August 2007.
I have heard that auctions are a good way to find foreclosed properties. I have not as yet seen any apartments at auction in Perth?
Sorry for the many questions but i am at preapproval stage for a LOC with ANZ for $100K and it will be just sitting there until i can figure out what to do with it. I have asked for a sub account to seperate personal and investment but i am told it is an extra $150 p.a. Total annual fees is $300 for the ANZ LOC
Would really like to get the ball rolling to see how investors have used their creativity to invest in more CF+ properties without being high income earners if this is possible?
Thanks a lot
I am very fortunate to have a CF+ house in Quinns rocks but i was lucky as i bought it in 2002 with the FHOG and now owe $90K with $310K Equity
I need to find my own apartment to live in as i am living at my parents place
It's the cheapest rent you'll ever find, but as you know; it comes at a high emotional cost. Of course; we love our parents dearly (just can't live with them).Does anyone know where to find a 1 or 2 bdrm CF+ apartments in Perth?
If it is to be your PPoR, why do you need to find a cfp unit?
I have read from this forum that the real estate internet boards and newspapers and even buyers agents are not the best way to go if one has time on their hands to do it themselves. These are the main tools to use for finding properties. If you have more time, then you can door-knock and ask people if they want to sell. Buyer's agents are good for time-challenged folk, but you pay a fair bit for the service, and I think their fee wipes out a lot of the cfp possibility.I have taken interest in reading that i should drive around the preferred areas i wish to live in and contact the real estate agents for their listing or look for private sale signs? Most apartments i have interest in sell for about $250K which is out of my range. The ones you are interested in are $250k, but what about any other units that are in your price range? If not, we can't help you a whole lot.
I have also read "Rich Dad Poor dad" book and it says to make lowball offers. Does the real estate agent have to take this to the seller legally? How do i know if they have presented my offer to the seller? Do i need to fill out an R/E agents offer form?
Low balling can sometimes work. Agents are required by law to present all offers, but you need to be realistic about what the Vendors might accept. The worst answer you'll get with a low-ball offer is 'no', so nothing to lose. If there is any positive response to your offer you can then fill out the Contract of Sale form.
I figure i can only afford to borrow $180K. ANZ LOC $50K (plus expenses) and Liberty $150? I am self employed with low income.If you can only borrow $180k, and the cheapest place is $250k, we may be wasting everyone's time until you can save some more money and/or decrease the loan on your PPoR and/or make a low-ball offer that is accepted.Does anyone out there have creative ideas they have used in the past besides finding places to renovate or buying in regional areas. I am looking for areas within 30K radius from the city NOR in Perth.You may need to move into your current I.P and make it your PPoR, then you may be able to use the equity in it to purchase another I.P. Your current loan balance is not overly high, so it won't be a massive burden if it is not tax deductible.You may even be better to re-finance that loan over a new 25 year term to make the repayments way less. The new I.P will have a new tax deductible loan, and the rental income is considered by the Banks towards your loan servicability.
The house market is falling here as the Australian Property magazine says but what about apartments? I have read many American books such as Robert Kiyosaki, Donald Trump and even Australian Steve McKnight plus others but seem confused due to the fact that the market has changed a lot as i write August 2007. Do your own research on the Perth market and watch what is going on. The books you mention will be a bit general in nature, and if you are going to be a serious investor this will be something you need to become proficient at anyway.
I have heard that auctions are a good way to find foreclosed properties. I have not as yet seen any apartments at auction in Perth? Bit of a myth in my opinion. I've been to a few, and everybody goes mad and bids it up to near market value in the end. I know in the USA there is money to be made in foreclosures, but their system is different to Aus and more involved.
Sorry for the many questions but i am at preapproval stage for a LOC with ANZ for $100K and it will be just sitting there until i can figure out what to do with it. I have asked for a sub account to seperate personal and investment but i am told it is an extra $150 p.a. Total annual fees is $300 for the ANZ LOC
Would really like to get the ball rolling to see how investors have used their creativity to invest in more CF+ properties without being high income earners if this is possible? In this current climate it's hard to find cfp in cap cities. The best way to get the numbers close is to buy properties with good 'on-paper' deductions such as depreciation, and/or the ability to add some value somehow to increase the rent return and the cap growth. The property needs to be built after 1987 to maximise this, or have had a recent renovation that you can use for depreciation. You also need a pretty good rental return as well; something at least the same as the current loan interest percentage. If it's around 5% return you are wasting your time.
Thanks a lot
why not move into your ip & then rent the other bedrooms out…
maybe you could do a few things to the place if they need doing also while you're there…
then when you wish to rent out again you may get a higher rent per week…
just an idea!!Thanks Marc for the valuable information. It is great to find a forum such as this one and have such a positive response from people like yourself.
I am new to investing and it is opening my eyes to new possibilities. Despite having a degree in Accounting but not working in this industry, i have no clue about structuring finances for investments as we were never taught this! I guess i need to teach myself and learn from others in this forum!
I hope it can also help all the others out there who are looking to buy their first PPoR. As the rental costs in Perth are getting out of control, i figured i could try and find a CF+ property and see how i go if i move into it so if i couldn't make the repayments in a year or so due to the upcoming interest rate hikes or my fluctuating income goes down then i would have to go back to my folks place and rent it out as CF+
I have considered moving back to my PPoR (3 bdrmHouse) and then rent out the apartment like you mentioned although i figure the rent from the house can be increased every year at a higher rate than a 1 bdrm apartment and the depreciation (House built 2002) and interest can be claimed. As i am still new to all this i have read that others have an interest only loan and offset account so i could structure it this way. My current ANZ loan is P&I and no offset. The apartment would be built pre-1987 and as my price limit to buy is $180K, i could not claim any depreciation on the building except for the internal fittings etc. The advantage is having an IO loan to claim the interest. I still need to do some calculations to compare the benefits of moving into the PPoR but your advice on refinancing is exactly what i needed to hear.
The reason is that i contacted Ratebusters the other day for a line of credit of $100K and am told i would need to refinance my existing house loan $90K from ANZ over to them to release it from the ANZ bank and use the equity. The LOC at Ratebusters is really not a LOC but an offest account to reduce the total loan balance ($190K less $100K offset) so the interest payable is the same as LOC. Feeling confused i looked around on the net to see if there is any advice on all this. Furthermore i am told all loans at Ratebusters is Mortage insured and the upfront fees is in the thousands, however, the interest rate is lower which i calculated would be better off than the banks in the long term. My reason for not going to Ratebusters is my concerns of them increasing their interest rates at any time (i know the banks can also do this too), not knowing who they borrow their funds from (US market?), no branches and they are in Adelaide and i am in Perth. I know now, from this forum not to borrow again from the ANZ bank if i buy the apartment as i would be cross collateralising or is this only if you have more than 2 properties with the same lender without future investments in property being financially messy?
I figure as well that a 5% return is too low as for an investment property. My calculations show that the house i am currently renting out is only cash flow positive at 11.5% because i am a low income earner and depreciation/interest deductions dont make much difference to my tax. The house is rented for $220p/w and i owe $90K. Loan repayments $165p/w plus annual rates $850, water rates $550, landlord mortgage insurance $330, property management fees 8.5% plus gst. i try to look for a 8.5% return on the apartment and then hope for capital appreciation and increase in rent returns.
I guess finding an apartment at the auctions is out of the question so i keep trying now to go out into the market and keep sourcing.
Thanks again for the informative advice.
Robert
Hi Mackar,
Good idea. My house is in Quinns Rocks about 10 minutes from Joondalup and Edith Cowan University
but has 2 tiny (2.5m x 2.5m) rooms and 1 large master bedroom (4m x 4m). I would need to sleep in the kiddies room if i rented out the rooms as no one would want to live in those two rooms. Also, no built in wardrobes.I bought the house off a plan with the bare essentials so it is not the typical 4 bedroom everyone else has.
I had a friend staying in a share house in North Perth which has 4 bedrooms plus 2 sleepouts and the landlord came through the house and starting cleaning up and bursting through the doors while showering and getting changed and well as trying to collect rents from all the tenants when they took off shopping on the day she arrived. The locks on the bedroom doors had to be changed as people came back and took stuff. This turned me off heaps so i figured i would not do it this way in the future.
I guess if i lived in it this would not happen ThanksRobert
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