[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 22, 2013 - 5:04 am

Hi Jamie

No I am not wanting to sell either. I'm just not feeling great about the Canberra apartment market at the moment with the number coming online…. There will be competition for quite a while…

Question is… do I cut my losses and run, or reval and hold (and hope??).

Would I consider a vendor finance or rent to buy….. I would have to look into that for the Canberra market…..

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 10, 2013 - 3:41 am

Jamie

Great spreadsheet. Could you please update it so 2013 is the first year and it goes past 2016 (say to 2020 to give us some room). Please update us here when the spreadsheet is updated.

Cheers

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 8, 2013 - 11:00 pm

Many thanks everyone for the comments, plenty to consider.

Appreciate your comments Scott, since my neighbour is the one pushing for the fence (our tenants haven't complained/commented about it), I will get them to do the legwork and paper signing, if the deal falls over then I know I can come back to it later as this is the second time they have approached us about it in 6 months.

As the comments have suggested, I need all parties to provide written agreement and I appreciate the comments about invoicing separately so no-one is left holding the balance (I was going to leave the payment to the tradie with the neighbour wanting the fence changed so they can chase up as needed).

If invoiced separately, I would only be claiming the depreciation on the $300 or so invoiced to me (or on the otherhand if the invoice was addressed to the neighbour, then I wouldn't be able to claim at all??) 

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 8, 2013 - 7:10 am

Hi Jamie and Shahin

For the purpose of others watching this post, could you expand for if Carson was looking to purchase multiple properties through his equity.

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 8, 2013 - 6:50 am

Many thanks Terry,

You jolted my memory about capital improvements. Could you please expand on the capital improvement and any implications from a tax point of view? 

The neighbour is organising the fence replacement so the quote (and receipt) will be in their name. Since I will be keeping the invoice/receipt to add to the property costs (even though the total cost is $800-900 and my cost around $300), wouldn't I need the invoice in my name??

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 8, 2013 - 6:30 am

Hi Sarah

I am interested in your comments here. Have you (or are you currently) doing these courses? Any other comments greatly welcomed!

Cheers,

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

February 2, 2013 - 9:15 am

Agree with Darryl here, while you are sorting out your finances, take this time to research the areas you are interested in, strategies and everything else there is to know about investing!

Being in your situation where you can't dive straight into the investing might be a blessing in disguise as while you are ever eager to get into the game, you can use this time to research and learn from others, then you will know how to recognise the deals, then how to manage them!

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

January 12, 2013 - 5:42 am

Hi Waydo

I'd like to re-open this post by eccoing Glen's question about the course you did. Keen to keep finding about renos, costings, research etc etc

Cheers,

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

January 12, 2013 - 5:19 am

That's huge Terry!!

All the best for the 6 month goal!

Would be good to check in again in June 2013 or so to see how everyone is progressing (or give a slight kick… if people need it….)

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

January 1, 2013 - 1:13 am

Opps, wrong tangent there….

I look in the back of YIP or SPI for the median 12 month growth for the area you are looking at (I would think the calculation will always be a 'point in time' calculation – not something you could calculate now and come back to months down the track).

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

January 1, 2013 - 1:08 am

Net Cash flow x Expected growth x 100

              Cash down                          1

Using a property I was looking at recently, my calculations are

(18720 – 17190) x 6  x 100

           53200

= 17.36%

From this, I would be interested in people's comments – would you have kept walking based on this calculation, or would this warrant further investigation (I realise there is sooooo much more to investigating a potential purchase, but I'm interested in thoughts about this calculation).

Hopefully I have added to this thread rather than sabotaged it!

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

December 21, 2012 - 10:42 pm

Good points Jamie and JP….

The fear of 'what happens if'……

I think Robert Kiyosaki sums it up well in his final chapter of "rich dad poor dad' – fear will hold you back everytime, but education and mentoring and taking that next steps will help that fear

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

November 6, 2012 - 5:49 am

Out of interest, how far in advance are you needing/wanting to do the pre-settlement inspection? Few weeks, a month? More?

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

October 26, 2012 - 9:08 pm

Another great idea DWolfe. 

After reading a few books about successful people (the Millionaires series is one I'm reading at the moment), I found a common trait is that they sat down and worked out what they wanted (their goals), then stuck their goals in highly visible places so they were reminded of where they want/need to get to.

I realise this doesn't help the analysis paralysis situation when it comes down to looking at deals but once combined with the other great ideas through this post, it all adds.  

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

October 14, 2012 - 6:28 am

Many thanks Derek

Possibly a longer look at the PDS and more detailed questions to Terri Scheer people.

I am wanting to confirm that others agree that 6 weeks is a little too short for expecting insurance companies to complete repairs (particularly if the property is made uninhabitable). 

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

October 14, 2012 - 12:14 am

Hi all

I am going to revamp this thread to ask about Terri Scheer LL insurance. As I am about to settle on an apartment and house (2 separate purchases) and reading many positive comments about TS insurance, I called TS who provided a competitive quote, however in talking further with them, they advised that loss of rent is only covered for 6 weeks.

This rang alarm bells for me as in 2010, a tenant had a dryer fire (always make sure they clean out the lint filter!) and after 8 months of to-ing and fro-ing, the apartment was able to be re-let. After reading the TS PDS, if I was covered under their policy, I would have been eating bread and water for the 6 months that the loss of rent didn't cover! Those LLs who have Terri Scheer policies, have you made a claim that included loss of rent?? Am I reading the PDS incorrectly? 6 weeks seems very short, especially when dealing with insurance companies.

My other question is that I have been reading when choosing an insurance policy for apartments, you should choose the company who insures the building (QBE in this case) so the company only has to argue whether the claim is paid for through the building or LL insurances, rather than 2 companies arguing between them who may pay……

Appreciate any comments here

Cheers,

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

October 7, 2012 - 11:49 pm

Hi Simple

Out of interest, where are you looking at for the 9% returns – regional or metro?? Are you able to find properties meeting this 9% return on purchase??

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

October 7, 2012 - 11:47 pm

Great thread and many thanks for your insights Terry and JacM. When buying that CF+ve house on today's figures, I am sure many investors don't remember that we are at very low interest rates currently and what happens when the interest rates are back up to the high levels they were a few years ago. While it is easy to just 'put up rents' if the area can't support those higher rents then you have a black hole to support, possibly with the prospects of not breaking even on the sale price either (if employment prospects in the area have all but gone). 

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

September 27, 2012 - 10:06 am

If you do a search on "positive real estate" on this forum, you will find a few previous posts about the company

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'

[ChrisA1Participant@chrisa1Join Date: 2011Post Count: 172]

September 26, 2012 - 10:56 am

I heard through the grapevine that some developers had rented land to build project homes to sell on. Apparently there are information sessions at CIT (Bruce campus??) about it. From my very vague memory, there is an option down the track to buy out the land where you would own the land and house outright (I'm sure the ACT gov't wouldn't want to hold onto these blocks of land forever…). I may be quite off the track here, but it didn't sound as ludicrous as I initially thought, if I was looking to build a house. 

ChrisA1

Persistence is 'to keep on keeping on, no matter how hard the going may be'