Forum Replies Created
Hi Tonju,Have lived in the area for 22.years.Had one IP in kallangur .It was a cosmetic reno and had good income ,but fairly low cap growth.Kallangur is an older suburb originally part of pine rivers shire,now moreton.Median price $350K;1/4growth -.4 12months 0.Three yr 3.9 Five yr 7% Ten yr 12.2%.Med rent $330/wk.Bridgeway is the newest premium estate,most of its competition comes from North Lakes which is the fastest growing satellite mini city around.Donot count on the rail,its been coming for the last 100yrs and locals are expecting it to be axed to pay for the floods/cyclone.The biggest driver for Kallangur is its 5min proximity to North Lakes,with Westfield,Myer etc and still close to rail ie Petrie,close to highway,and industrial estates.Have IP'S in D/bay and Kippa-ring which are nearby suburbs both are providing good income and reasonable growth,though we are still in a declining market here.Do your due diligence and research good luck.Al
Hi Bexs,you mentioned you had agood relationship with your sparkie.My sparkie can buy everything cheaper on his trade account than i can,believe me i tried.How i save money is working with him as his t/a running cables,covering cables with the plastic assembling fans under his instruction.He doesnot add any % to purchases and only charges an hourly rate for his time and is local ,so no travel fee.Works with my plumber and chippie too.good luck
Woodie,put your steve mcnight hat on.Try and take the emotion out of it.As scott said it will be 10 -15% below par with others.Being walking distance to station will offset noise.You said it is in a good area.Do your research,whats happening in the area.Find outas scott said whats happening with the line,are the trains increasing etc.Culdesacs are a positive with young families.Check out how far to daycare,schools etc.Or think what type of tenant would rent it,then how far to pub ,gym etc.Then building inspection ,are their body corporate or other fees on t/h?You said it needs some renovations.visualize,cosmetic,not structural can be cheap,but makes a stunning difference.How many windows are towards the rear.Is it designed for outside use at the back,deck ,patio.Double glazing works and makes ahuge difference.Put in an offer knowing it wouldnot appeal to 80% of people as their PPOR.Crunch your numbers,work out $ spending on renos,how much you will rent it for.If offers accepted you could possibly do the reno in 6mths then rent it out if its not suited as your PPOR.Good luck
REInv thats a valid point .The 3rd family that rented my first IP have been there 7.5 yrs and though we have had some disagreements,have been able to discuss the issues and work through them.We must both be doing something right.Friend sent me a quote."BEING A PM IS THE EASIEST JOB TO DO BADLY AND A DIFFICULT,BUT REWARDING JOB TO DO WELL.
Hi iball,my neighbour had his old driveway resurfaced.As long as it is a solid base they clean it first,repair any imperfections then respray it with anew membrane.Some are concrete based and others are a flexible polymer.There is a heap of products around,do some research then go down to your local resurfacer,they will have a display of different finishes.My neighbours cost a quarter of a new driveway Al
Hi wannabe,have a friend in northside brissie in similar situation,he sold his 1st home that he had cosmetically renovated and had rooms rented out.Bought 2nd home 3brm with approved granny flat and rents the 3 brms out.L shaped house, granny flat attached on end of L, but separated by breezeway.Separate entry and driveway,carport.He says its working a lot better with the relationships with boarders and financially.I don't think he declares the rent and is looking at buying another IP next financial year.Good Luck Al
Morning SF,my eldest son has similar ideas to you and i congratulate you on your plans.One of the more experienced forumites may be able to help you with the structure finance set up with your Dad.I will be helping my son with some equity .Re FHSA which we've just opened.You can do it in 2yrs 2wks ie min $1000 3rd wk jun2010.reg savings plan jul2010-jun2011.min$1000.same jul2011-jun2012.then deposit min $1000 in jul 2012 and you canwithdraw it with FHOG to purchase your 1st home.Also some changes made in fed budget;if circumstances change the savings can go into a mortgage which is in your name not your super and as you said must live in for 6mths PPOR then rent IP.Good luck Al PS was told it is messy and costly to change title deed names and try to buy a 2brm studio not 1 better capital gain and resale
Karen,people do rent these types of places out all over aus.I rented one in newcastle 22yrs ago.Floor to joists war 2250mm,but it didnot worry me, i was single,studying,part time working,it was cheap rent.Scott is correct,it would have been illegal,i donot know why people spend $$$ turning downstairs into living areas and not spending xtra $to go the correct height,it seems shortsighted to me.Also because it is not legal insurance would be aproblem and there could be a myriad of legal problems if things went wrong.But people still do it,my brother in law was sub letting out downstairs,which was arental,floor to ceiling only 1990mm[short people in nth qld] it covered over half his rent and told PM it was his brother in law staying.PS Scott my neighbour and i buy repairable write-offs from the auctions,repair them professionally and safely and legally drive them and sell them,but i like your analagy.Al
lopetha wrote:Anyone?Hi lopetha,everyone must be shy,if its any help i use the professionals for my IPs on the northside.From my experience though PMs vary from office to office even though theyare part of the same group.I believe it comes down to the senior person running the rental division,re communication,how quickly they address tenant problems,payments ,landlord issues etc.Good luck Al
Brian thats a sizeable reno at 250k
Hi Pete,property investing isnot always easy people love to talk about their successes,but not so much about their failures or break evens,thats the nature of most people.1.buy steves book or attend seminar$40.2yes. 3.your local property finance broker.good luck
Hi Leharna,welcome to the forum.My alarm bells would have been ringing way before 6mths for a property inspection.My property manager does checks every 17 wks and any questions i have things i ask for are promptly replied to.It can be difficult to find a good one.Obviously you're in vic and a property manager does have a duty of care and responsibilities.REIQ inqld would be much the same.But not sure of the legal implications in your case.May have to consult a specialist solicitor who deals in that area.Good luck Al
Lilo,we bought abank repo or mortgagee in possession house in '99 in brisbane.Found out it had been on the banks books for 8months.No one wantes it.An 'ugly house' with potential.Did the building inspection 3 times with building inspector and twice more with two building mates.Made a ridiculous offer and agent rang back 1hr later and they;d said no,raised it 2.5k they said yes.Has been our best IP after 2yrs of part time blood sweat and tears.Different economic times now.good luck. Al
Hi Ryno,I remember our tax depreciation/capital allowance person had a guide she worked off.But why not ring your lender and ask for a valuation.Not a drive by,but a room by room.Most do a free one per year,if not mention you're looking for an IP,and are seeing how much eqiity you now have and are going to borrow through them again.good luck
Hi James,it's perfectly normal to think and research the worst case scenario and then try and plan for it.Our IO loan was only 5 yrs standard bank policy and our IP needed some major work so i renegotiated the loan,but could only get 5yrs.Have since found some lenders do 10 yrs as Richard mentioned.With most lenders you can still pay in extra on IO.We once had some extra $$$ paid it in to our IO account reduced the principal then redrew it later for a deposit on an IP.So IO doesnot always mean interest only.ANZ used to have a policy where you could put a min of 500 extra in upto amax of 10k per annum,but believe they have waived this now.Each lender has slightly different criteria.Good luck ;do your research ,due diligence,manage your risk,do the numbers,it is a big step Al
Hi Rosemary,It's a great idea going over there as Jason mentioned earlier.Jason and Nigel have both made good comments.Personally as a procrastinating conservative investor i wouldn't invest o/s or as a novice either.Best friend lives in Fresno California and he came home for Christmas,has lived and worked there for 8 yrs.Grilled him for a while.These were his condensed thoughts.There are 3-4 aussie companies buying foreclosed at auction,repairing,renovating and selling to investors.Do some research,they are in different areas and states.1 or 2 houses are selling from 12000US to 50000US.Majority are selling for a lot more.Most do need work from minor renos to major repairs and as mentioned earlier you cannot inspect them before auction.In areas like Detroit most of 1 suburb is foreclosed slum area.Unemployment is high.You need a stable working tenant.Do as much research as you can before you leave.Good Luck
