Hi all,
I am new to this site and am looking to get an IP early next year.
I am doing some info gatjering and seeking peoples thoughts on the following –
Using property investing companies such as APS growth or Oz invest?
New vs established for a 1st IP
Really very new to this and would appreciate any info that can be provided.
Thanks
Well we only started last year.
Can give you our opinions on these topics:1) Using Investment Companies – Not a big fan. Heard stories of companies going under and taking investor $$$ with them. Generally prefer to be in control my own money and decisions.
2) Big fan of off the plan purchases (Plenty of research and careful buying of course)
– Have the term of the build without paying much outside of deposit. On all 3 occasions the finished product was worth more than we paid.
– Max depreciation income tax benefits
– Minmal Stamp Duty $$$ costs
– Brand New House.my plan is to bye something negatively geared and when it gains enough capital gains sell it and use the equity to purchase something positively geared and then use its equity to purchase another negatively geared property and repeat this process over and over again
assuming you have your own home to use as security…..
using an investment company is OK some offer a rental and maintenance guarantee which can be peace of mind, you will pay for this service but is a tax deduction but remember they have to make a profit as-well ie sale price ,,,,,,,,, i use a company called
WHITE HOUSE FINANCIAL SERVICES 1300363738
GOOD LUCKPC_Melbourne wrote:Well we only started last year. Can give you our opinions on these topics: 1) Using Investment Companies – Not a big fan. Heard stories of companies going under and taking investor $$$ with them. Generally prefer to be in control my own money and decisions. 2) Big fan of off the plan purchases (Plenty of research and careful buying of course) – Have the term of the build without paying much outside of deposit. On all 3 occasions the finished product was worth more than we paid. – Max depreciation income tax benefits – Minmal Stamp Duty $$$ costs – Brand New House.Hi, mind if I ask where you bought the 3 off the plan places that were worth more than you paid. I only hear negative things about OTP. Like them being worth less and people not being able to get loans etc. Would love to hear some positive ones.
blocka wrote:my plan is to bye something negatively geared and when it gains enough capital gains sell it and use the equity to purchase something positively geared and then use its equity to purchase another negatively geared property and repeat this process over and over again
assuming you have your own home to use as security…..
using an investment company is OK some offer a rental and maintenance guarantee which can be peace of mind, you will pay for this service but is a tax deduction but remember they have to make a profit as-well ie sale price ,,,,,,,,, i use a company called
WHITE HOUSE FINANCIAL SERVICES 1300363738
GOOD LUCKHi, just wondering how this will work. You'll buy a place and lose money for years while you wait for it to go up then sell it and buy a positively geared place that will go up also. That could take MANY years. Why not just buy the positively geared one (under market value) and keep buying?
Is this a strategy the white house people are advocating? I wouldn't touch a rental guarantee with a barge pole.
You don't need and investment company. Speak to your bank and find out how much you can borrow. Work out yourself how much you can pay and start looking. Do your due diligence on the area and your figures on purchase. Jump in.
Catalyst wrote:PC_Melbourne wrote:Well we only started last year. Can give you our opinions on these topics: 1) Using Investment Companies – Not a big fan. Heard stories of companies going under and taking investor $$$ with them. Generally prefer to be in control my own money and decisions. 2) Big fan of off the plan purchases (Plenty of research and careful buying of course) – Have the term of the build without paying much outside of deposit. On all 3 occasions the finished product was worth more than we paid. – Max depreciation income tax benefits – Minmal Stamp Duty $$$ costs – Brand New House.Hi, mind if I ask where you bought the 3 off the plan places that were worth more than you paid. I only hear negative things about OTP. Like them being worth less and people not being able to get loans etc. Would love to hear some positive ones.
Hey There,
I had heard lots of negatives aswell, but just like everything else, there are differences depending on circumstance.Locations
1) 3 Bedroom Townhouse in Newport VIC = Purchased $520K Valuation on Settlement $580K. 8 months later. Valuation =$650K
2) 4 Bedroom House in Diamond Creek = Purchased $525K. Valuation on Settlement $600K
3) 4 Bedroom Townhouse in Newport VIC = Purchase Price $510K. Not settled yet, but I am expecting at least $600K if the 3 bedder already up to $650.These are my opinions on OTP =
Most horror stories are derived from OTP high rise units.
These bad boys are way expensive for what you get (size wise), that have real long settlement times.
The dip in valuation often comes from the sheer volume of units being built therefore valuation accuracy is all the more difficult.
One also runs the risk of the builder running out of money to complete the build and going under. More unnecessary headache.I would also buy units, but only the smaller boutique ones, where there is max 8-16 units on the same block.
We generally stick to OTP for Townhouses in known area’s.
Valuation Research on these finished products are a relatively easy Guestimate, because there are similiar places advertised in the area, and there is not usually a huge volume of them. Naturally we err on the side of low advertised prices.We meet the builder, see what other projects they do in the area (as a reference benchmark for quality), and then proceeded to make an offer.
3 out of 3 so far, and it hasn’t been so bad. (Worst part of the whole process is certain builders are extremely late, however we don’t pay anything until settlement so who cares)Thanks to those for your input. ATM I have time on my side so a bit of time to research and attend some seminars which I will be careful to take info provided carefully. There certainly seems to be a wealth of knowledge here and it appears the common theme is knowledge is power in these forums. Thanks again and prosperous investing!
Hi Adrian
i appreciate this is your maiden post so i will be gentle with you.
You might like to read the Terms of the Forum in respect of advertising your ser vices as it is not allowed and clearly a breach of membership.
The forum is a place to exchange ideas and views and to contribute and share knowledge.
Certainly you can have your contact details in your profile signature however blantly suggesting a member call you to utlise your services is not in the spirit of the forum.
Maybe you can post some free information which might be of use to Gabbin instead.
Richard Taylor | Australia's leading private lender
Hey PC_Melbourne
Well done on the OTP purchases – you've done well.
You do hear horror stories about OTP and there is an element of risk (as there is with any investment) but buying in a growing area coupled with a long settlement can often reap some pretty tidy rewards.
I know a lot of investors that do well with OTP purchases here in Canberra.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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