Forum Replies Created
Hi Jack
There is some thought to keep all your lending at the one place and there is some thought to spread it around, so that is one choice you have to make !!
I do not see any advantage in using all your LOC money to buy a new property and then just put it back into the LOC. later.
The disadvantage could be that there will be a different interest rate for your LOC as against a stand-alone loan. Plus you may like to have a offset account attached to it and leave the rents in that account to pay the debt, and transfer the remainder if it is positive over to your LOC after the repayment is transferred.
I would suggest you use only 20% and you might also find stand-alone loans are easier to obtain, maybe less initial hassle.
We have used the depoists only from our LOC unless we wanted to hold the deeds for some reason and then we have used the lOC for the whole amount.
Cheers LenSweet,
This subjecty raises it’s ugly head every now and then and the same things always come up– people still keep saying that there are opportunities out there but you cannot rely on the websites for your opportunities .
Get out there and look face to face –Sure you may have to go to the sticks and you may not get the capital growth of the larger places but people still have to live somewhere in these medium out of the way places.
We tend to stick to places of around 9000 to 11000 residents and we have been blessed so far.
Have had several opportunities that we have been able to latch on to and have just now settled on small block of 6 * 1bdrm flats for $155k . looking to spend no more than $20k to renovate and have 2 tenants in now whilst reno are under way and paying $80/wk.
That is 6 * $80/wk = $480/ wk. for MAX outlay of $185k (inc legals etc)
Interesting that this place was not on the r.e. books and after viewing other properties, we asked if there was anything else around —even if we had to spend some money on it??
“Well the owner has been “umming and ahhing” about whether to sell”
On a similar topic but looking at Capital Gains— A house that we had a look at in May 2004, when we first got interested in this positive investing stuff, we could have purchased for $95k returning $165/wk, but being the tight arse that I am I offered only $90k and it was refused—However somebody paid the $95k requested and now it is back on the market at $150k.Don’t know what the rent is currently but not a bad capital return for a country town.
Close to 50% growth in less than 2 years. And a major point –not a lot of money outlayed
Just another example of not putting too much faith in the INFAMOUS “11 Second Rule” I believe it was only ever meant as a guide. Keep looking but go for a drive and check it out on the ground and keep asking.
Sorry if this is waffling but
Here endeth the first lesson.
Cheers LenWhilst I do not even come close to attending if your meeting is for under 30’s, I would like to remind those people in Sydney of the Sydney Meeting Group. We are having an informal get-to-gether at Petersham RSL 29th Jan at 4pm and then something more organised on the last Sunday of each month. We have had several already and are now establishing a routine of the last Sunday of the month
We have a mixture of ages and expertise and experience and have good feedback from these meetings, so if you feel you want to come along then be there.
All and any are welcome.
Cheers LenHi nikki,
My apologies—-
I received your email and did not reply straight away!!!
Sorry again!I know that it was KEN something —I think—- see why I did not reply can’t you???
However I think Roy at GPS arranged it and he should know.
Cheers and Look forward to seeing you 29th .. Len29th 4 pm Petersham RSL sounds Good to me /
See you there and all those friends we haven’t met yet
Cheers LenHi craigsed,
You may be disappointed to hear I have no thoughts on this matter but could not let a chance to say HI go by the board .
It has been a while since I have seen you on the forum–that could be my fault also– so just thought I would say HI. There that’s it. Are you also aware that the Sydney discussion group is still meeting????I was going to change this message if no one had replied because I realised that 29th is a long weekend for some being Australia Day on Thursday prior but we can see what happens from here and stay with 29th. If it does not effect/affect others.
Cheers LenGreetings All,
I am also going to the somersoft meeting at Glebe ,,—and can meet there ,—- However I would also like to suggest we have a very informal gathering late January –say–Sunday 29th , if there would be other takers for just a general discussion and keep the morale up and moving. Timing is pretty flexible for me so anybody else interested , like to put their 2 bob’s worth in for time and venue ????
Cheers LenNice One !!!
What else can one say !!!Greetings All,
Perhaps Simon is one of the better brokers around !!! However we were not given the chance to find out because we still haven’t heard back from him after emailing sustantial info to him and speaking to him face to face at a somersoft meeting at Glebe. And this was 23rd September last.So although may be you don’t need heaps of brokers to talk to, you do need to at least approach more than one.
And as Derek said if “he stuffs up” we all hear about it. And now you have !!
BUT because it is all a game to have fun at, I have it all off my chest, gone to another broker who I am really happy with and am moving on.
The psycological damage caused to me when people fail to reply to Inquiries (or is it Enquiries-never know for sure) has Affected me (or is it Effected me —never know with that one either) is just short of being irrepairable, but being the soldier that I am I will go forth to fight yet another day. God bless America.!!!
See how sane I am . I even have a note from the asylum to say I am now alright.
Cheers for now Len
Hi kriscot,
Maybe depends on how comfortable you are with the broker you first see. I think they all have their preferences on who they might prefer to deal with at lend institutions from past experience. As you will as you buy more more properties etc .
And remember you can speak to a few anyway before commitiing your self and can ascertain how the various deals stack up.
You are not fully commited anyway until you accept the loan. Even the initial signature is only for the application to say that the details provided by you are correct and see if the lender will cosider the loan. No money is exchanged so it may not be as awesome as you think. It is after all a game between players.
Do you not get some quotes on “say”- car repairs before you go ahead???
Cheers , good luck and have fun !!!
LenI believe that the most important “last job” would have to be the carpet .
This means the last person to walk on the brand new carpet is you on the way out the door and you then know it is in top condition for the new tenants.
Cheers LenTry Rolf Latham,
at 0414 788 229 or [email protected]. I listened to him speak at a meeting and he seemed to know what he was talking about and he is also a contributor at the somersoft forum.Cheers LenHi wazl,
It is now today and I wonder how your potential solution panned out???
However although the council will not allow subdivision at the current height– Can you “fill” or can you leave it as one block and develop Town-houses or units with car parking space under. I believe building is allowed on flood prone land but no “livable areas” can be under the designated flood height. You may consider this avenue.
Cheers and Good Luck,
LenGreetings,
With the premise that the only dumb question is one not asked– my example is —
Land to be bought very soon with sole intention of putting house on land to sell asap but certainly within the 12 mnths.(Intention,Note)
The builder we will use is partner in the development and his company is building to “fixed price”
(incidentally we are doing 2 at once side by side but not duplex)
So the dumb question is __ How is the GST and CGT calculated if at all..
Thanking you LenIt is true that some banks (maybe a few even) will pay break costs to secure your business.???
Westpac offered me $600 per loan to pay break costs from existing financier. That would enable me to transfer in some loan and take toatl borrowings with Westpac up to in excess of $250k in loans and qualify for a special package !!!??
Might be worth a look giddo and I believe the rate was 6.62%Cheers Len
Hi giddo, Do not really have the time to wait—looking to finish full time work in 12 months–and also do not want to wait–looking forward to keeping busy doing other things beside working . At the moment it is only 4 days per week and that is 2 days too many. Cheers Len
Okay giddo,
the aim is to build and sell-yes.
I believe the return is there and still doing sums and realise that doing for less than 20% return is waste of money so on those figures and that advice have found 2 blocks of land for 2 separate house builds. Know land price and build costs to be clarified , now am wondering about other costs, eg CGT etc. Any more info please??
Cheers LenHi alee,
Depending on where you buy, many areas are flood effected/affected (never remember which it is ), but depends also on what you buy . We have a house in flood area but it has been raised with financial help from the council. (well it has actually been raised with steel posts but with council finance contribution). We checked that there was no trouble with insuring building etc -fire etc only of course no flood- and we have another house that could have 100mm of water thru it in a “50 year flood”. That is another thing , generally there is a 20 yr flood , 50 yr flood and 100 yr flood heights . However in these situations the water rises slowly and then dissipates slowly and the people in this town are used to it. They simply call the carpet layers and have the carpet removed and stored and then replaced when the water subsides. Therefore the tenants also know what to expect. My qualification at the start saying “depends on the circumstances” means to me that there is little else wrong with our properties and the returns are there. If other contributing factors apply then tread warily but if that is all (flood area) then check out what is actully meant and go for it.There will also probably be advice as to stay well clear which means you really will be back where you started before you asked the question.Good luck.
Cheers LenHi jenwren,
Patience, you will note that very little happens on weekends around here.
Good Luck, Len
