Hi dc99,
If you bought a studio and it happens to be in one of those art deco buildings with 12 to 13" ceilings, you can build a mezzanine like bunk bed. With permission of course.
If you're not sure what I mean, you are welcome to see what I've done to one of my IPs.
You can contact me on 0416261931 for viewing.
Take care.
Angel
How how did the mezzanine cost you to build?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi All,
I have a question in regards to purchasing properties 10 to 20% under market value. Who would sell their property for less than what it's worth on the market? If a property is sold through a real estate agent (which most of them are) and that agent sells below market value then he is not doing his job. If anyone was to know a property's value then that would be the local real estate agents as they see properties bought and sold every week.
Would you source these deals through deceased estates? Are there websites which show these sales?
I would be keen to hear peoples views on this.
Cheers
Hey Fergus
I have just started my journey towards being a property investor and am very much starting to research intensely into areas / places of interest
From what I have gathered, through my own research, and the words of some more seasoned investors, these sort of deals don't just 'crop up'…
It is all about being creative with your investment strategy and your solutions that you bring to the table. Being pro-active in letting agents/sellers know what you're looking for. Going to lengths greater than just looking at realestate.com.au
Fact is, people do sell below market value, for whatever reason that may be. You just need to know where to look and you need to be proactive about finding those deals.
When I get closer to buying my first property (i.e. have enough capital to start putting overs out), I will be blogging about it with almost complete disclosure – i.e. what I thought of places etc etc.
Hope this helps!
There 2 type of under the market value property:
Renovations:
Most common type because it’s not “DONE UP”. ie
1. Require a bit of TLC
2. Repairs, paint work, renovations.
3. Doesn’t look as good.Risk:
1. The home might have some “building issue ” after a building report is done
2. Strata issue – common Ie high strata.
3. Stigma related to the home – Someone might have died in the home, the property is near a known ex-criminal etc..Most sellers, would NOT sell under the market value- but if the 2 above conditon exit then you may get your self a bargain….but will require some work/ Time.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Lets get real here, 10 properties in 3 years doesn’t mean squat. It’s not like you will actually own these 10 properties outright in 3 years, it just means you will owe the bank a heap of money. Then add in 10 x vacancy rates, 10 x repair bills, 10 x land tax etc etc, you are suggesting people gear themselves to the eye balls in the hope we get another property boom. Without the next boom, hah, you will just get 10 x the stress. Wake up people, look at whats going on around the world. Price / market corrections.
For the record, I personally suggest a more realistic (less heroic) approach. We have amassed 4 properties in 11 years, all paid off. Not as impressive as 10 in 3 years, but hey we own them, actually have the title deeds.
Johnny clap clap i would say the say…buying 10 prop in a short amount of time is not to everyone’s fort’e.
However i personally would pay out a IP properties outright, unless im over 50 and going towards the retirement age etc….Because buying IP using bank’s loan is considered as an “good” debts –1. Interest payable is tax deductible
2. Ability to grow faster financially – capital growth etc..
3. Save your own cash for “emergencies”
4. Leveraging powerBut i have to agree 10 prop in 3 years, is possible not def NOT for everyone. there’s are such thing as having too much “good debts”
Doesn’t hurt to Dream- that’s what life is about
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Firstly, congrats John for owning those properties outright, no easy feat for sure!
Secondly, consider the people that have done what Steve has done… 130 in 3.5 years.Now, I'm going to take a punt – without any other information, just based on what we know right now – that Steve is financially better off than yourself.
That is only one example though – not saying that either approach is 'right' but cutting one down completely is a bit silly
Hi Shape,
Mine cost only $3,500 to build 6 years ago. Labour and materials included. Materials were thick pine. Bolted to the wall. didn't try to save on materials as the last thing I want to happen is the tenant crashing down. The whole thing was done in a day. Allowing for inflation, I should think this simple design will set-up back $5,000 (if you have a good handyman who will not fleece you).
My design was simple. Double bed on top, a small landing at the top of the stairs so tenant can put some stuff down like a book or cup of coffee. Underneath the bed is a living space.
Others do it slightly differently, and more costly. They will put in a built-in a wardrobe underneath. Since my studio has built-in wardrobe, I just opted for an empty space where tenant has their three-seater sofa and coffee table.
It was money well spent as it immediately increase rent by $70 per week.
I hope this helps.
Angel
WOW!! that’s cheap as chip!!! must have been an Asian builder lol
Angel, ill PM you; as im very interested in this sort of property.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Not Asian builder, Turkish. One of my best mate.
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