hello to all,
Today i have offically become an property investor !!! YEAH FOR ME
it is not +ve geared but is very close to it, bought for $88,000 with a 12 mth lease for $135/wk with a increase in 6mths, i might be getting ahead of myself because i still have not signed the final docs yet but i can not see any hic ups happening. i need to know what do i do now! how do i go about getting the most depreciation, being that i have purchased it sight unseen, is there anything i should do to cover myself?
any and all information will be greatly accepted
very nervous but excited PROPERTY INVESTOR
Hi kingB, and congratulations
I am only a novice, but the first thing we were advised to do was get a Quantity Surveyors Report. This helps your accountant with getting the most back on depreciation. Keep in mind though that our properties were brand new. I'm not sure how this applies if it is an older property.
Hope this helps a bit.
Organise an insurance covernote ASAP, once contract signed BEFORE settlement.
Then organise quantity surveyor – even if it is an old property, there still maybe some writeoff in it, and the QS report is also deductible. Great finding KingB. Did you have help with other agents viewing it for you, and a building inspector etc?congrats kingB , was the property is SA?
Make sure you have Landlord's insurance as well. You should be able to get a cover note over the phone today.
If you don't have an insurance broker, try CGU, or Property One; your Bank may even provide it.hi all,
i did not get anyone to look at it but have organised a building inspector and pest. i know that it ais a very risky thing to do (buying a house with out looking at it) but it is more then 2000 kms away from me, and at the end of the day, i have to trust my gut, even thou everyone around me is saying it is too goodto be true and that i should put the brakes on. i have done almost everything i can from a distance,eg town search, council search, employment in town, average rental in area, location within town ( good side, bad side) unfortunately it is in the bad side of town and the tenents have a bad history in rentals but on the up side it is least by a community group that pay for all rent even if vacant, and any damage done also, (it does sound too good doesn't it)
once i have settled i will be more then happy to share location and any thing eles also but for now at this vulnerable stage i'm not even telling my mates.
thank you for the congrates, because as the saying goes "the first step is the hardest" and i have now made that first step and stopped just looking on and hoping.
Hi KingB,
Congrats on your purchase.
I am looking at something similar to yours.
This will be my first IP of my own, I own a IP as a joint venture with my family in NZ but I want one here in Australia for tax benefits.
Its 85k with a rental income of $110 a week which according to the agent I could raise to $140 after a good paint and maybe a new kitchen. Problem is its a very long way from me and its not in a great area.
I would be buying sight unseen also although I have visited the area a few months back so I know what its like.
Plus I would be getting a 100% loan so it would not be CF+ for a few years.
How did you do it?
Did you save a big deposit or use minimal cash of your own?
Any tips would be appreciated,Cheers,
Emmahi kingB,
just wanted to say congrats to you on your deal!
I'm very new to investing… I'd also keen to know how you went about it, with the loan and cash down?
Thanks.
hi all,
i have been saving for a year or so and saved up about $12k, i have put down 5% deposit, or $4,400 plus all legals buying costs of around $5,000. budget of $10,000 covered it. i offered $82,000 and when they refused i asked for the rent on the lease to be increased by $5 after 6mths so it would cover the increase to $88,000 (or at least close enough). i had a very nice sister tell me that when buying a house for investment you have to realise that if you don't get this property for what you want ou will find another if you keep looking.
now the property that i bought is not in a CG area (small country town (7500 population) north west of NSW) but it is the worst property on the street so with a little money it will make CG but until i save enough to do the renos and don't have the lease in place (or at least have no tenents living in property) i will spend $10,000 or so and use increase in value to buy another until i an part of the 2% of investors who have more then 5 properties.
i am starting small so i can learn the pit falls of investing with out beaking the bank, buying in a different state and buying sight unseen is because of the benefits of the property (rent and damage guaranteed & with some cosmetic improvements needed) but the thing i have learnt is that great deals are out there if you spend some time looking and think out side the box
quote of the day,
anyone can do anything, from where they are, with what they have, as long as they want it bad enough.Jason
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