Forum Replies Created
Hi guys, read your contracts, I think you will find that they state (the QLD REIQ one does definitely) that insurance is the responsibility of the purchaser from 5pm on the next business day after signing of the contract.
Cheers
CDCastleDreamer
I don’t think its should be a matter of putting aside what SIS has or hasn’t done. SIS racks up multiple posts on the forum offering advice, chuckling in the forum fun areas with colleagues, and such.
For one who has such a “presence” (read number of posts and physical time spent on the forum) its only fair that he back up his claims with some facts that support his credibility. SIS??
I to bought my first house at 20yo, so that of itself is not unbelievable, but your answering some of our questions goes to your credibility amongst the forum members SIS. Your response?
CDCastleDreamer
Yack, whether or not I subscribe to a magazine bears no relevance to my ability as an investor or otherwise. Who cares who subscribes or who buys it at the newsagency? Yes its a great magazine, but its only one source of information. I wouldn’t base my life’s investing on it.
CastleDreamer
Hi elysium, have you done this? When you read the wording of the grant I am sure it says that you are not eligible if you have ever owned residential property previously – irrespective of whether it was an IP> Can you give me your reference?
Cheers
CDCastleDreamer
Ginamarree, you can also try searching this site using the search function on the left side boarder. Try looking up some of the key terms from your post and see what other people have to say.
CheersCastleDreamer
If you have a mortgage on your own home, pay that off first – as interest repayments on that are nondeductible. Do IO on the investment, and put the P bit that would have been on the Investment onto the home loan to pay it down quickly
Cheers
CDCastleDreamer
Hi Ginamarree,
welcome to the forumManage yourself or use a PM (property manager)?
This will depend on how comfortable you feel, and how much information you will want to gather. If you chose to manage yourself, you will save around 6.5-8% in management fees, but you will need to do your homework in case something goes wrong. I recommend going to the residential tenancies website for your state and having a read about responsibilities of landlords and tenants – lots of information about leases, notice periods, mediation etc etc etc.
Managing your self can be great if all things are going well. Would you be prepared to go and speak to the tenant about rent in arrears? Tell them to remove their pet dog which is not on the lease but is chewing up your carpet? evict them? Rentals managers can take the brunt of this for you. If you get a manager, still take the time to get to know your rights and those of your tenants. You should still check in with the PM on occasion to see how things are going. To a certain extent Real Estate can be set and forget, but you can’t ignore your investment – still needs your involvementAvg cost of PM fees – 6.5 – 8% of rent plus postage and petties, other sorts of costs such as advertising for new tenant, relet fee generally one week.
Take out house and contents insurance – this should have public liability cover in it. your responsibility is to provide a safe place to live for your tenant – so probably would not cover you if you were at fault knowingly leaving an unsafe problem unfixed – eg exposed electrical wiring.
4. Yes you can do your own repairs and maintenance, you can have your PM contact you whenever there is a problem, and instruct them whether to get it repaired or let you do it.
5. Your insurance covers you even when there is a reasonable gap between tenants (most do, check the fine print)
Cheers
CDCastleDreamer
If its a family trust, you can set it up to say any family you like I think. Check with your accountant or lawyer.
Cheers
CDCastleDreamer
Yep your right, I guess I read the quote in my post as meaning really ‘don’t try and rent out the renovators dream!’ let someone elses skanky unrenovated dream be the property that sits vacant. Yours aren’t skanky renovators dreams anyway Mini, you did them up and now they are cute little properties with Cash Flow AND capital growth!! All power to you…
CastleDreamer
Hi Mitzu,
feel free to PM me any time. If I can’t help, I’ll ask someone who can…
Cheers
CDCastleDreamer
1993 – Brick and tile 90K Logan. Rent 150/wk, interest around 11.5%. Sold in 1996 to take a year off work – sold for on paper loss of 10K: (see…. if I had bought positive cash flow I would not have needed to sell it!!!!!!!
It all makes sense
CastleDreamer
Nice blue page. lots of information (not) who are these people?????
I emailed them to: “Who are you? What do you do? There are no connections on your site???”CastleDreamer
“His advice to property investors is to keep your investment property occupied. He says it is important to buy a unit or house that is low maintenance and does not require a lot of money to be spent on upgrading it.
“Buy a place that is not a renovator’s dream. You want a place that is attractive to renters”
Makes sense doesn’t it? If you have a place that tenants want to live in, they’ll choose yours over the skanky feral option down the street!
And people take the x#$% out of +CF property…
CD[nowords]
CastleDreamer
Hi there,
I am also after Wealth Guardian if anyone’s selling second hand!!! Maybe I could check on ebay !!!!!!!!!
CDCastleDreamer
Hi KBH, yep that’s my understanding – if you buy it to use as an investment then you don’t get the grant.
However, (this is not financial/investment advice, you need to check it out with your own accountant) I have heard that you only need to live in the place for six months. That six months has to start within the twelve months after you buy it. So ….(theory for you to check out…) in theory you could by your home, leave tenants in it for 11 months and some days, move in on day 363, live there for six months, and then move out and put tenants back in…….Food for thought…
Cheers
CDCastleDreamer
Hi Martin where did you hear that about commercial property and not being able to buy in own name?????
CastleDreamer
Hi James, for simple straightforward conveyancing, try conveyancing works in Brisbane $295.00 plus outlays. My properties have cost around 5-600$ tops for purchases.
Cheers
CDCastleDreamer
Hi Ozboy,
NZ agents I have dealt with have all wanted a 10% deposit when contract goes unconditional. You could get a deposit bond for that deposit, but the 20% I am talking about is the 20% “cash/LOC funds/whatever” that you put into the deal so the bank only lends you 80% of the purchase price of the property. My understanding is that a deposit bond is simply for the deposit, so not for the actual cash down at settlment
Cheers
CDCastleDreamer
Matt,
lender is Westpac, but if you try the front door, they will tell you that they only lend to O/S investors who put down 50K per property – which is not much good if you intend to purchase a 40K property!!!! Its also not much good for chewing up deposits.I am happy to give you some specifics about my NZ lender if you PM me.
Cheers
CD[computer]CastleDreamer
Hi Mitzu
I agree that a property manager is probably a good thing.
Someone suggested that you could have a go managing yourself, and then change to a property manager if it didn’t work out. I wonder how you would know it wasn’t working out (apart from the obvious of missed rent – I think you’d notice that straight away!!!) I have four properties in NZ now (well shortly will once they settle!!) – planning using property managers so that I can concentrate on other matters in my life…I have competitive finance in NZ with 20% deposit paid from my money in Australia – the 80% lend done with an NZ bank.
When I purchase, I factor in a month of vacancy to allow time to source a good tenant. If you plan for it, the costs don’t seem to be as bad. You should also be putting a clause in your contract to allow you access to the property anytime you like after it becomes unconditional. This would allow you to show the property to prospective tenants before it settles!! Hopefully NO down time rent wise!!!
I too was told that there are no really specific landlord insurance options in NZ, but I don’t believe that yet, and am still checking it out.
How do you purchase a few properties in only a couple of weeks over there? Lots of research into the area first before you go. Talk with agents and arrange appointments before you get there. Have your finance already sorted out. Have a building inspector chosen. Just do all of the hard yards first, then the looking is easy.[bike2]
CastleDreamer
