[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

May 10, 2007 - 9:41 pm

Hi Bex,

Any reason you're fixed on Sydney? If it's because you live here why not look a little further north? The Hunter region is, in my humble opinion, ripe for investment pickings. There are some suburbs with consistent 10%+pa 10-year average growth, affordable prices and decent rental returns. Jump onto a couple real estate websites, do a search of the region, call a couple agents up there and you're sure to spot a couple potential bargains.

Good luck,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 17, 2007 - 6:51 am

Hi,

I've had a look and can't find my spreadsheet but it may be on the old computer so I'll have a look.

Basically what I did was to put the various companies at the top and then features in the left hand column. The way I built it was to go through the first PDS and list all the features it offered. I then repeated for the second PDS, adding any additional features as I went. After the first two or three PDSs I had a pretty good view of the full gamut of features offered.

I've got a day off tomorrow so I'll have a look through the old computer. If I can't find it I'll see if I can't knock one up on Excel and then post a link to an uploaded version of it if anyone's interested.

In fact, that's an interesting idea. I'm sure there are tons of us out there that have various homemade spreadsheets and miscellaneous templates for IP-related stuff (I've certainly got a few). I wonder if we could convince the powers that be to work out how to store this kind of stuff linked to the forum so it can become part of the community resources here. I'll post in the suggestions section and we'll see what happens.

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 16, 2007 - 9:23 pm

Hi Mall,

When looking for Landlord Insurance I went over the PDS of maybe 6 or 7 companies. On a spreadsheet I wrote in what each company offered for each service (if at all) and the total cost of each. It was a pretty long list and took a bit of time but in the end the choice was clear for us. Setting everything out on a spreadsheet was a bit time consuming but in the end it gives a really clear picture of what's on offer and helps with an easy visual comparison of policies.

What's right for the goose is not necessarily right for the gander. Take all suggestions put to you and then closely examine the frontrunners to see who offers you the best deal.

Good luck,
Art

ps. we went with NRMA NSW

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 15, 2007 - 9:57 pm

No worries Frohike,

While it's true that properties like this may have sat for a long time because they're duds, it may also be true that they sit for a long time because people can't be bothered finding a worthwhile angle for them. I'm not saying that this particular property is going to be a winner for you, just that it's often worth having a poke around to see if you can't find some lusture under the dirt.

All the best,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 14, 2007 - 11:25 pm

Hey Frohike,

How does the cost compare with similar blocks in the suburb? If you have access to a service like RPData or the like you could check land value against similar sized developed blocks if there aren't any vacant in the area. I would also give the council a call and see if there are any plans in place for modifications to the rail line.

You say the block is on a 15 degree incline. I assume the slope is toward the street rather than the railway line but this also makes me feel like site works would be costly in leveling the land for building.

Have you been at the site while the trains are passing? Can passengers (I'm assuming it's light rail) see into the block? And what is the noise level like? Whenever I'm on the train and am passing people's back yards and windows I always think to myself 'Geez, I hope they're paying low rent'. I don't know how it affects rent but I can't imagine it would be good. Maybe a call to a couple agents in the area and get their opinion?

If you get serious about buying, maybe have a look on RPData or Google Earth and see if there are any other developments with a house built at the back of the block near the line. If there are you could research them and see what kind of impact the line is having rent and value wise. Maybe send a letter or drop over for a chat if it's convenient.

Good luck in your investigations. This is certainly a case where some creative due diligence will be absolutely necessary.

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 14, 2007 - 11:08 pm

Hey Blogs,

You say the paperwork has been sent out but have you signed anything? Has any money changed hands? If your broker told you one thing and the paperwork says another do you have anything in writing from your broker stating the original terms and conditions?

I guess what I'm angling at is that your broker may have a legal case to answer.

Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 13, 2007 - 11:10 pm

Yep, that one worked.

Without seeing the space it's a bit hard to offer suggestions but I guess the biggest thing to think about is the plumbing (ie. don't touch it!). The minute you start moving showers and basins your costs go through the roof.

My suggestions would be to check out a couple new vanity cabinets from big hardware barns, reno stores and auction houses. If the basin is in good condition but the vanity is clapped out it's not too expensive to just slide a new vanity in around the basin. You can also get some decent new taps and that lifts a bathroom more than you would think. Likewise, new showerhead and taps work wonders in the WC.

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 13, 2007 - 10:55 pm

Hiyya Nats,

What a drag! There was a good feature on fences in the API mag a couple issues back. I think I've got a copy I could scan and email to you if you're interested. Send me a PM if you want me to.
 
Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 13, 2007 - 10:44 pm

Hey grazy, want to try your post again?

Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 13, 2007 - 10:42 pm

Daryl wrote:

We intend to subdivide now and keep the block for 12 – 18months before selling.

What can we do to / on the land to derive some cashflow in the interim?

Any sugestions would be appreciated…

Hi Daryl,

I'm a bit unclear on what you're asking here. Do you mean cashflow aside from the rental income from the existing house?

Once you have the DA approval for subdivision you generally have 5 years in which to execute the plans…you don't have to subdivide straight away. You can get your approval and then sit on your plans, earning rent on the large single property, until you want to push the 'go' button and execute your plans.

In the meantime are there any simple cosmetic renos you could knock off to increase the rent? We have a property similiar to yours (though it's in Newcastle) and while waiting for DA subdivision approval we did a few simple renos on the exisiting place which increased the rent by $60pw. Here's the link to a rundown of what we did: https://www.propertyinvesting.com/forums/property-investing/value-adding/25663?highlight=artaud

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 9, 2007 - 9:45 pm

Hi Lei,

We had a building inspection come up positive (given the age of the place we were buying) but discovered in our own inspection that the bath was almost totally blocked. A quick look under the house revealed that the plumbing was rusted through and had to be replaced.

Bear in mind that building inspectors are just that…building inspectors. They are not plumbers or electricians. Either get a second report from each of these professionals or, as L.A. Aussie says, check what you can yourself.

It's a good idea to take something like a little plug-in nightlight to check all the power points. And if you can, time your inspection for a day it's forecast to rain or after a rainy day (everything looks okay on a sunny Perth day but rain is the great leveler).

Best of luck,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 8, 2007 - 1:02 am

Hiyya Dan,

Geez, you don't mess around dropping the big bomb questions do you?

I guess the question for you is: What do you want from an investment property? Getting your head around this question will help you to begin to focus on how to go about looking for and buying one. For instance, for our first IP we wanted a property that could be subdivided and developed down the track and this helped us frame not only our searches and research but also our approaches to brokers and our accountant as well.

Personally I would have a think with your partner about what it is you want from an IP and why you want it and then have a look around the forum for some archived posts (use the search feature) or ask some more specific questions. This will help you to focus the questions you could then take to your financial team (broker, accountant etc).

Now, specifically addressing your question above here are my thoughts (and feel free any other forum members to add your thoughts here) …

1) A Broker will generally help you to find the best loan product for your circumstances (including drawing equity from your unit). They will also help you to work out how much a lender will be prepared to lend you (this will help to focus your IP search in terms of cost). They are generally pretty good at helping you to understand the loan market and the jargon and may very well be a good first port of call providing their services are obligation and cost free (most brokers get their fee from the lender once your loan has been approved so it costs you nothing from your pocket).

2) Your Accountant is an invaluable resource when figuring out how investments fit into your financial/tax structure. They will help you to understand what tax implications your investments have and how best to organise yourself in these terms. I'm no expert but I would think that unless you're nearing retirement your accountant would most likely say 'An investment property? Go for it. Just make sure you set yourself up like this…' Personally we have a sit down (or an email conversation) with our accountant before every significant financial decision just to make sure we're not walking into a minefield.

3) Generally speaking Financial Advisers are stock market oriented and are great to talk to if you're looking for a managed fund or the like but not so useful when looking for an IP. We have only ever consulted a financial adviser when looking to buy stocks.

Dan, I encourage you to do lots of research and ask lots of questions. This forum is a great place to do that because there are lots of people with good experience here and you can ask any questions without feeling as though you're asking something 'dumb' (after all, it's probably something we've all wondered at some stage) but always, always consult professionals before making any big moves.

Best of luck,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 4, 2007 - 10:52 am

Hi Elkam,

Yes, this is the case. Should we proceed we will insert a clause whereby we can unconditionally terminate the lease with 6 months notice. Given our development time frame there is no way we want to be locked into a potential 6 year lease. However, under our subdivision plans the existing house will remain after subdivision so there may be a bargaining point there (ie the DoH can have the 3+3 lease but we reserve the right to subdivide and develop).

Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 3, 2007 - 4:52 am

Hey noclue,

One thing to watch when you're asking around for a quote in NSW is that you make very clear (as you have done in this post) that you want a price per SQUARE METRE and not a price per SQUARE (which is, from memory, 10 square feet).

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 3, 2007 - 4:42 am

Hiyya,

My understanding is that painting and repairs done while a tenant is in place do count as deductions in the current financial year (rather than being treated as capital costs). Perhaps there's a tax buff out there who could confirm this?

However, painting with tenants in place can be a real pain. It's difficult for the painter because of all the furniture and movement (it's really hard to use an airless gun with furniture around you) and difficult for the tenant because of the intrusion and inconvenience (think of all the cleaning, preparing, sanding the walls generally have to undergo). My suggestion, should you proceed, would be to use a good quality paint (to reduce odor) and maybe even to offer the tenants a reduction in rent while the work is in progress (you can always raise the rent at the next review period and recover your loss over the following period, not to mention the potential tax break).

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

April 3, 2007 - 4:33 am

Hello Nathan,

NSW real estate law bites. I'm no expert but from conversations I myself have had with the Office of Fair Trading it sounds to me as though the seller is entirely in their rights (legally, not necessarily morally).

By all means follow up with REINSW and the Office of Fair Trading and also check out this NSW Office of Fair Trading info page: http://www.fairtrading.nsw.gov.au/realestaterenting/buyingselling/buying.html

Best of luck,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

March 31, 2007 - 5:01 am

Hello all,

Thanks for your comments.

Truth be told we are leaning towards taking up the DoH lease provided they agree to a couple tweaks in the contract (more or less like those suggested here already). Our current tenant is a DoH client with part of her rent being paid every month by the DoH and I have to say that she's been great.

Cheers,
Art

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

January 30, 2007 - 9:12 pm

Hello,

Thanks for the info you two. I’ll have a poke around the ‘Net tonight.

I’m interested in SA as a possible target for our next investment and I’m trying to follow a couple lifestyle/infrastructure leads. If either of you are from SA and are interested in chatting about the place please feel free to PM me. I’ve driven across the state a couple times and got lost on the peninsula trying to find a particular surf pot but aside from that my knowledge of the State is limited.

Cheers,
Art

‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

January 30, 2007 - 12:36 am

Hey Marc,

That’s some sound, hardball advice for a difficult situation. I’m going to bookmark this thread just for that bit of info. Hopefully I won’t need to act on the info but it’s good to have in the knowledge bank.

Cheers,
Art

‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein

[ArtaudParticipant@artaudJoin Date: 2006Post Count: 97]

January 29, 2007 - 11:16 am

No worries. I haven’t used Residex personally but from what I can tell they have a pretty strong reputation. I’ve heard their CEO, John Edwards, speak a couple times (and interpret data) and I have to say that if I was looking to narrow down suburbs within a certain State I would give serious consideration to purchasing their data. I think a State profile is around $150 or so and that’s a small (tax deductible) price to pay if you ask me.

The thing about the realestate.com.au data and the data tables like the one I’ve scanned for you is that they only give you raw figures with little or no interpretation. Unless you have a couple other tools up your sleeve (like historical data, council planning data and the like) these figures can’t give you the whole story. The money you pay to the experts (be they online or not) is going towards the time spent interpreting and decoding the data for easier investor digestion.

On the other hand, if you are still debating dipping your investing toes into the real estate world I can sympathize with being wary of dropping cash on research based purely on spec.

I would suggest looking through the forum archives (painfully slow though the server might be) and then asking a couple, more specific questions of the forum.

Here’s a previous Residex-related thread: https://www.propertyinvesting.com/forum/topic/17371.html
And an older one on researching: https://www.propertyinvesting.com/forum/topic/12780.html

Cheers,
Art

‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein