[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

August 17, 2014 - 6:13 pm

Yes, as Corey said If you speak to the others and find out who is interested then approach some developer yourself you can add many thousands by cutting out the middleman.

Developers pay big bucks to people who source deals for them.

• This reply was modified 9 years, 9 months ago by  Catalyst.

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August 16, 2014 - 11:18 am

I would look at BInvested as well to see if that suits you. Nathan helped me get started when he worked for Right Group. He’s the nicest, most honest person you’ll ever meet.

I’ve sent you a private message (check up the top of the page).

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

August 11, 2014 - 6:09 pm

I meant the right hand side of your block.
if the driveway is owned by council (or energy company) then really they should pay.

I would get the neighbour to contact them first and see if they ask you for a portion.

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August 11, 2014 - 2:41 pm

Is the moral of the story never buy with family?

Yes, and friends.

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August 11, 2014 - 2:36 pm

Ok. That’s clearer. If it was on the right hand side I’d say your calculations were correct.

It’s probably easier to assume your calculations though.

But- Who owns the driveway? Does your land finish at the fence or at your boundary?

If the energy company owns the driveway then they should pay for the fence as it’s half on their land and half of the neighbours. ie they should pay $3500 and the neighbour pay the other half.

If it’s a shared driveway (as in you both own it) you may need to pay half.

• This reply was modified 9 years, 9 months ago by  Catalyst.

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August 11, 2014 - 11:51 am

Great advice above- just to add.
Be careful that these studios are not serviced apartments. They look very attractive but ongoing costs are very high.

When looking at buying in inner Sydney in 2008 we looked at many studios and apartments. Yes those serviced ones sure did look great and sounded SO cheap. But I’m glad we steered clear of them. We bought a TINY 1 bewdroom instead for the same money. It has gone up in value by 60% since then. The others have gone up considerably less in that time.
Also there are often so many of them that demand is never higher than supply, thus keeping prices down.

As with anything- if it looks great and you find yourself saying 2. Why are people not snapping these low cost (150-160k) deals up?

Then there is more to the picture. Good on you for doing your homework.

Keep looking. The right property is out there for you.

• This reply was modified 9 years, 9 months ago by  Catalyst.

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August 11, 2014 - 11:43 am

That must be heartbreaking for your parents.

I doubt the daughter would leave and default on her loan. It sounds like she wants her money. Without strata titling it sounds like thy would have little option than to sell, unless they can borrow the money to buy her out. This may be possible as the rent would help but it may not cover the buyout ($460K?).
Don’t let it get to a mortgage sale. If they have to sell then do it before it gets to that. As they have no mortgare at least they’ll have decent amount to buy something else.
I hope it works out.

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August 11, 2014 - 11:33 am

I don’t know of any council that will approve a triplex property.

Maybe convert the garage but I doubt you’ll be allowed to do 2 new dwellings. As mentioned garage conversions are tricky because the slab is not usually built to be a habitable room. The dewling on top of the garage is a great idea if you can’t convert the garage though. Speak to your local council about their rules.

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August 11, 2014 - 11:29 am

Hi, you are in a great position.

Have you read any property books? If no, start now (and read property forums). If you have, what type of investor do you want to be and what strategy do you want to start with. I say start with because lots of investors start simple then progress to more complicated ventures.

Firstly I would speak to a goopd broiker (not all brokers are created equal).

He/she will help you with what you can borrow and the best way to structure. I’m not a broker but the way I would do it would be to put your cash into the PPOR (Principal Place of Residence) and therefore have a smaller loan on that. Or better still put your $150K into an offset account on your PPOR. A broker will explain the advantage of this.
It’s always best to pay down non deductable debt (such as your home). Then borrow the maxmum for investing. Once you find out your borrowing capacity you can get started. Decide what type of properties you are interested in then start looking. I’d set up a LOC against the PPOR to use as deposits then borrow 80% attached to the Investment property. As I said I’m not a broker but that’s worked well for me. He/she may advise differentlty but avoid Cross Collaterising IP’s with you PPOR AT ALL COSTs.

Regarding companies beware. There are some good ones but there are MANY that just take your money.
This group is in Sydney and helped me when I got started. They are a buyers agency (as i they source properties for you) but they run fortnightly meetings near Parramatta for only $10. They or not pushy and don’t sell properties so won’t try to push you into deals. The meetingsd are informative and the topics are relevant and current. It’s also a great way to network with other likeminded investors. I think they are a great sarting point (even if you don’t want a buyers agent). You can talk to them and they will sit down with you and discuss your personal situation. There are a few good brokers that attend the meetings that you could talk to also.

Get there at 6.30 to chat before the meeting and hang around afterwards. Networking is THE key to success. Learn from others.

http://www.rightpropertygroup.com.au/

Good luck on your investment journey. Be careful it’s addictive. LOL

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August 9, 2014 - 2:15 pm

You need to decide the purpose of the property BEFORE you buy it. Not, I may do this, I may do that. Be specific about why you are buying
THAT particular property. Some may be to rent out, others may be to sell.

It’s purpose will determine what entity to buy it in.

For example- if I want to buy a property to rent out I may put it in both names (husband and wife) as in the next 3 years neither of us will be working, so we want to share the incvome.

If I buy a property now to reno and sell we will buy it in my husbands name as he is not working so less CGT to pay.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

August 9, 2014 - 2:08 pm

Who paid for the fence? Were quotes given before hand? Did you nost discuss it beforehand?

If someone else built it, how much are they asking for?

Your post is a bit confusing.

• This reply was modified 9 years, 9 months ago by  Catalyst.
• This reply was modified 9 years, 9 months ago by  Catalyst.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

August 5, 2014 - 4:49 pm

I did the run around for years with financial advisors and gave up. Any I went to pushed managed funds. Even when I specified property they didn’t really get it. Still kept talking shares or just agreed with what I said about my portfolio and where I should go..

Maybe try a property group in your area. They may give you some insight.

• This reply was modified 9 years, 9 months ago by  Catalyst.

[CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404]

August 3, 2014 - 11:55 am

As Jane said- What bits are you renovating? Kitchen/bathroom (replace or do up)? etc etc.

One thing for sure is- you need to start the bathroom early. It takes time- strip out, plumbing, waterproof, tile, grout, put in fixtures. You cannot do it in a day like they show on TV.
Also- unless you want a flatpack kitchen, order that as soon as you exchange. It can take 6 weeks.

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August 3, 2014 - 11:51 am

waydo77 wrote:

Im guessing the valuation of the GF would be better also if it has its own separation from the existing property? e.g its own seperate car parking area and fenced or gated. making it almost like its own self sufficient dwelling. not sure if council allow fencing and whatnot like this but i would think it would make a difference.

Yes, I agree.
If you have a granny flat but have lost all the yard, maybe not so good. But, positioned correctly and not creating too many negatives for the original property the value should be there.

A separate entrance and yard would have to add the greatest value I think.

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July 31, 2014 - 6:59 pm

Yes of course you need council approval (for ALL of it).

You need to get plans drawn up and get approval to change your house from one dwelling to 2 dwellings.

You will most likely need a firewall between the 2 residences.

If you want to charge each side for water and to have their own electricity you will need separate meters for each.

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June 19, 2014 - 5:55 pm

Do you get the stamp duty exemption on every house you buy as a PPOR? I thought you only got it on your first one? (I”m not up on Qld laws).

You MAY be able to get away with the 6 months as it is still classed as your PPOR. Check with your accountant.

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June 19, 2014 - 5:51 pm

There shouldn’t be a reason why you have to use a particular agency. The fees sound about right. You may be able to get 7%?

Why not ring some of the local ones and talk to them, get their rates and ask about their service. It’s not always about the % fee. You want a good agent. Check out their adds to see if they use photo’s their wording etc. Do their adds make you want to look at their listing?

If one agency takes care of “all” the rentals maybe it’s a good idea to use someone else. Especially if there’s a lot for rent. Why would they push your one over somebody elses?

Speak to a property accountat to make sure you get the proper tax deductions you are entitled to. Also check to see if you need to get a valuation on the property for when you later sell (for CGT purposes). If you do not buy another PPOR you can use the 6yr rule where you don’t have to pay CGT.

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June 17, 2014 - 2:05 pm

tom123 wrote:

Also if there was a scenario where i wanted a 12 month delayed settlement but there are tenants living in the property and i wanted to be able to have the rent paid to me instead of the home owner for the 12 months. how would i go about wording that?

Why would you get the rent? Are you going to pay the owners mortgage for the 12 months?

You don’t own it until settlement!

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June 16, 2014 - 11:12 pm

It’s good that you are thinking of your end goal but- Are you aware of the differences in costs along the way?
There are differences in land tax exemptions and lots of other things.
You may end up paying a lot more in the first 10 years to “hopefully” have a postviely gearedd property at the end. You may not even keep the properties long term, negating all the extra costs along the way.

As others have said, do your homework.

BTW- I would not be happy with a property that was negatively geared for 10 years. IMO that’s not a strategy that will see you retiring on rents any time soon. And I don’t put any cash in. I borrow ALL the costs.

• This reply was modified 9 years, 11 months ago by  Catalyst.

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June 14, 2014 - 9:07 am

Hi, if you google company title you’ll find more.

You say the property is $40K under market value but I’m sure you’ll find it’s $40K under market value for a strata title unit, not a company title unit.
They are usually priced lower. Some of the reason is the inability to get finance. so when you sell your buyers will have the same problem so you’ll be selling under market also. Also not having a stand alone loan will limit your abiolity to move forward if you intend to build a property portfolio.

I don’t like them. The reason is you don’t actually own your unit. You own a share in a company. There can sometimes be restrictions. As it is a company “they” may put restrictions on you which you don’t like (unlike a strata where owners may have more autonomy).
I’ve seen some which forbid renting therefore you have to live in it (rare but it happens).
Notice I’ve used “may” a bit as they are all different.
Read the contract AND the company rules and regulations before you go any further.