[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

January 6, 2010 - 3:00 am

Yep, that's what I thought. 

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

January 5, 2010 - 9:58 pm

Terryw wrote:

Terryw wrote:

Brisbane Andy

Hope you haven't got assets and a business under the same trust – could be risky.

Hi Andy, sorry just read your post up the top. Your businesses will be run by companies with the shares held by the trust so that should be ok.

Morning Terry,

just woke up and read your first reply and had a little freak-out moment!  Each of the businesses will be Pty Ltd with the shares owned by the trust so I'm happy with that amount of risk.  I had considered setting up two trusts, one with businesses and the other with property but it made it just a little bit too inflexible with moving profits and getting taxed.

Thanks for your comments though, really appreciate them as I'm just a young(ish) self-made guy and there's only so much you can research and teach yourself!

Cheers,
Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

December 2, 2009 - 4:31 pm

"subject to valuation" is a pretty dangerous clause if that's all it says.  In your case bank values it, the valuation comes in $10k short, but so what since the clause only says a valuation needs to be done, not satisfactory or to contract price or anything.  Unless there is more wording we're missing than this is an empty clause.

As for the finance clause without specification of borrowing institution, I know if QLD the vendor could force you to proceed with the contract since you have only been declined by one lender.  Personally I always use the clause "subject to finance approval to buyers satisfaction" and if you're really picky "subject to finance approval to by commonwealth bank for $285,000" as some lenders will not decline you but say you are approved for $x less than you were seeking.

Hope your other finance is arranged ok for you and good luck,

Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

December 2, 2009 - 4:23 pm

I'll probably be shot by my friends for saying this but a good broker is worth their weight in gold (that is a GOOD broker, a BAD broker will see you want to recreate a scene from American Psycho!). 

I was a big bank lender for 3 years and can say that in the branch network where I started there were 16 lenders of which only 8 had ever owned property!  The other 8 lenders had never even gone through the stress and headaches that is half of the property purchases that happen. 

No matter who you use though (and I still use my bank lender friends) please, please, please ask them "so how many properties do you own?"  If they say none politely thank them for their time and walk out, it's not worth the risk of your settlement being totally bollacksed up and/or given a totally inappropriate loan.

Good luck,

Andy

PS. There are some situations a good bank lender can really pay for themselves though.  I've had unconditional finance approval with signed mortgage docs just 3 hrs after signing the property contract once because I knew who to talk to and the lender knew what they were doing.

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

December 2, 2009 - 4:13 pm

Dave,

totally agree with the others, the easiest way to NOT do something is tell others how excited you are!  $80kpa and your first property under your belt, well IMHO you've already jumped the first and hardest hurdle – you've got an income and a place to live.  Your 2nd property will be a lot easier to get than your first and all going well your 3rd will be quicker still.

I won't go into details as to what I think you should or shouldn't do but let me just say that I'm 28yo and have taken the last 6 months off work and the only way I could afford to do that is from the income I make off my properties.  Stick with it as most likely you're just on the cusp of making it and as they say, it's always darkest before the dawn.

Good luck,

Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

December 2, 2009 - 4:07 pm

Hi Karen,

I used to live in Edens Landing which is a suburb just beside Beenleigh and can give you a little bit of insight (but I warn you I'm a bit of a snob!).  The suburb is half way between Brisbane and the Gold Coast which agents talk up but residents say it just means you're too far from either to be convenient.   Another common joke is Beenleigh is right where the highway goes from 100km/hr to 110km/hr and there's a reason!  It can be a rough place but it is certainly full of working class families and things aren't as packed as inner-city suburbs.  There are some nicer estates and areas for sure (although I can't think of the bloody street names at the moment) and generally it is better to go west from Beenleigh (Bethania and Edens Landing) and not east (Eagleby) to get away from some of the bad elements.

As far as investments and price ranges go I'm sorry but I've been out of it a bit too long to give any advice although I know API magazine constantly talks it up as a diamond in the rough.

Sorry I couldn't give any firm details for you and for the downward tone but I'll be honest and say I'm biased (got harrassed and beaten up a few too many times).  Hopefully there are some current owners and residents who can give you some of the good points.

Best of luck to your sister,

Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

December 1, 2009 - 9:00 am

Great start on the blog and already doubled my knowledge of the US foreclosure market

Keep it up!

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 30, 2009 - 10:04 am

Would love to come but not able to at the moment, will have to be content with following online.  Post lots and post often!

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 30, 2009 - 2:36 am

Well my advice would be to turn around and ask how to make money slowly and consistently with property but that's just my 2c.  Most of the methods available to make money quickly in property unfortunately will also include a high risk of you having even worse credit and even less money! 

Although to answer your question my quickest profit was just buying a 2brm apartment in Brisbane; inspected the property at noon, gave a first-and-final offer at 12:05 and told them they had till 5pm to accept.  By that night I had bought a property that was $50k under what it's neighbor would sell for 3 weeks later.  I needed a place to live fast as I had just broken up with my partner but I didn't let that influence me into paying too much or giving up the power in the negotiations.

Not sure how quickly you want to make money but $50k equity in 3 weeks was good enough for me

Hope that helps a little bit,

Andy

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November 29, 2009 - 1:19 pm

I think marina berths can be a lot of fun but that's a personal opinion instead of a professional one

In the past I have been involved in two marina purchases; one was bought by a friend who just used a line of credit secured by his PPOR so was 100% leveraged.  The second was a business client who went through with a business loan that the CBA had arranged specifically with this marina development.  The LVR was only 60% and obviously at a higher rate.  Both of the purchases are cashflow positive but I must say my friend got a much better deal which he found himself from a local boatie.

Hope that helps a little and I would love to hear from other peoples experiences as this is one luxury I would happily spend money on!

Cheers,
Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 29, 2009 - 1:31 am

Hi again Act,

further to my comments I have to agree with Tracey and Richards warnings about complexity vs ease of finance.  I should have mentioned I used to be a home and business lender so can push things through my network that might not be an option for most people.

The corporate trustee vs personal trustee is an obvious sticking point.  I have decided on the corporate trustee as there are businesses under the trust and all together the legal risk profile is increasing all the time (the number of small business people that can get sued and nuisance lawsuits is sickening!).  The setup costs aren't as bad as you may think but only because I have done it myself and the entire setup was about $1500 for 4 entities.  If I had used my lawyer it would have been $4k – $6k.  The ongoing costs aren't fun either and I know I'll be spending over a grand pa just on filing fees but for me this is well worth it for setting it up right (for me) from the beginning.

Good luck and hope this helps a bit more,

Andy

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November 26, 2009 - 4:27 pm

I'm at the same stage aaabbbccc and the only advice I can give is be careful as some banks won't allow trusts/trustees to use the normal personal accounts, only business accounts.  I've been looking at BankWest although I still haven't decided and would love some advice as well

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 26, 2009 - 4:22 pm

Hi Act,

I'm literally in the middle of setting up my new structure so am happy to share.  I currently have two properties (PPOR and a +ve cashflow inv) in my own name.  The only reason the IP is in my name is I had to move quick on the settlement and couldn't set up the trust in time.

Now though I am setting up a family trust with a pty ltd trustee (with me as sole director and shareholder).  The trust will be used for my next property and all subsequent one's.  I'm also setting up some businesses and these companies are being held in the trust as well (well the trustee owns the shares on behalf of the trust but you get my point).  The businesses are only paying me a living wage and all profits are retained within the company of paid to the trust to offset any losses.

Going with this setup it's unlikely I will own anything again in my own name except for future primary residences.

Hope that helps and as an aside I'm using cleardocs.com to setup the companies and trust.  It's fairly straight forward (as long as you don't want to talk to someone!) and very cheap.

Good luck,

Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 15, 2009 - 1:08 pm

Never heard of them being for sale or as an investment although it sounds logical.  I know I've thought about putting up billboards along the highway of our family farm but haven't investigated it at all.

First step I think would be to call some of the advertising companies directly (they all have their names at the bottom of the billboards).  Might not get past the receptionist at most but is worth a shot…

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 15, 2009 - 1:05 pm

Excel

(I know, so original!) 

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

November 1, 2009 - 4:02 am

Not sure about specialised agents as I did my property searching a bit differently.  I went looking for uni's that had big growth plans then just did a search for properties available nearby.

I've heard mixed reports about unilodge from other investors and students so do your research and this sort of property you need to bargain HARD to make the most money.

Good luck

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

October 31, 2009 - 11:28 am

G'day TLC,

I personally love student accommodation as an investment although it does add an extra thing to research ie the uni/college that the students are attending.  I have one student acc townhouse that I bought for $188k and rent for $620pwk although I pay all outgoings. 

Your example above sounds good to me as long as you're not paying their outgoings (power, phone, internet, etc) but personally I would avoid any investment property that couldn't also be let on a normal lease basis and I personally can't stand some of the studios currently available and felt claustrophobic just inspecting them (unilodge goes down to 18sqm!).

One word of warning though, don't count on any capital gains; it's even possible for them to depreciate over their lifetime so make sure the cashflow is worth it.

Good luck and hope that helped a little,

Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

October 21, 2009 - 5:36 am

Warning: my reply is based on generalisations from what I have experienced.  No offence intended to you or other owner-builders!

There are many reason that banks avoid them, at least the one I worked for.  In 2.5 years I saw all of the following; builds constantly going over-budget; the construction plans being changed without the banks consent (as the clients think they only need to convince their wives to any change!); the clients income dropping significantly while they focus on the build; increased risk of the completed build still needing modifications and repairs for certificate of occupancy; and lastly that some clients only know just enough to get their OB certificate and give up after 3 months.

In the end my office starting referring ob inquiries to our competitors as they weren't worth the time and hassle.

The only recommendation I can make is adding a big safety margin to your construction budget and timeframes.  There is nothing sadder then being $20k short of final occupancy and the bank telling you no more.

Good luck with it,
Andy

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

October 7, 2009 - 12:01 pm

Agree wholeheartedly with Kylie's answer although very few people know about the change of entity option and is rarely seen.

[BrisbaneAndyParticipant@brisbaneandyJoin Date: 2009Post Count: 45]

October 7, 2009 - 11:59 am

I'm sure the other lenders on the forum will have experienced this even more than I have but, without knowing the specifics, this is quite common at the moment.  There are a couple reasons behind this (at least with my former employer), the banks have been getting much tighter on their lending criteria for the last 12 months and one way to tighten up is to be much less optimistic on valuations.  Also the information the banks and valuers compare against is completed sale prices and so there can be a bit of lag if the market has moved recently. 

Lastly I wouldn't recommend getting your own valuation as I would be surprised if your lender even looked at the report (in my job we would be instantly dismissed if we used an external valuation on any basis).  This may be different with your bank but anecdotally it is getting harder to use externals.

Sorry I can't be of more help with this one but hopefully some of the other peeps can help.

Cheers,
Andy