Forum Replies Created
Ty,
My understanding is…yes and yes.
Cheers,
Dazzling
“Go hard or go home”
Generally speaking no…however,
In the middle of settlement process with a Steptoe and Son type industrial place that has 6 units on it…The vendors occupy 2 units – obviously no lease there, 3 are on verbals agreements only and have been for the past 15+ years….joy – I’m looking forward to introducing them all to the reality of formal, written industrial leases…and the 6th is on a lease that isn’t worth the paper it’s written on.
Picked the place up for less than land value…so not too concerned, so actively applying this problem/solution thingy…still yet to be convinced there is actually a profit at the end of the rainbow though.
Cheers,
Dazzling
“Go hard or go home”
PK,
Easiest way is to formally request in writing to do the 6 week inspection with the minimum notice period applicable for your state. They’ll be in there shuffling the hydroponic systems like nobody’s business.
Your lease should have a clause there stating the tenant is not to conduct any unlawful activity on the rented premises.
Failing all that, go for the “The ‘insert Authority here’ notified me as Landlord about an emergency and hence I have the right to enter the premises to check on the emergency – or better still send a tradesman over to do the inspection for you.” Works every time….not that I’ve had any experience with any of this…
Cheers,
Dazzling
“Go hard or go home”
Well,
Bit of an update…
We are having a bit of a gathering of forumites over here in Perth shortly and the Social Director has agreed to attend, so hopefully this shall expose her to all sorts of like minded ladies.
Oh, and the executive summary has increased to 5 minutes…this is how long it takes to fold the washing up together…yes, I’m learning too !!!
Small steps at the start leading onto giant strides later…for me that is. Now if I could only learn to iron the clothes, I’d have a captive audience for over an hour !!!
Cheers,
Dazzling
“Go hard or go home”
Pen,
Just went to an Investors Club meeting, where the head honcho stood up and told everyone that these CF+ props were a fantasy and to get back to the good old fashioned solid CF- props.
I nearly coughed my dinner up.
I’ve currently got 19 on my list that are all seriously CF+, with another two that came in this afternoon, one which easily gets under the 11sec guide…
There’s lots out there – keep looking.
Cheers,
Dazzling
“Go hard or go home”
Marisa,
What are you calling big $ ??
The suburbs you mentioned in Perth currently have many preoperties that I am evaluating that screen very well.
I am reluctant to look at Karratha as there are too many good deals down here.
My only hurdle is the bank….in terms of properties, there’s oodles that qualify.
Cheers,
Dazzling
“Go hard or go home”
Wylie,
I’m with you. Glad to hear some people have been doing it by themselves for a long time. Of course, I’ve spoken with many older people who have managing by themselves quite large portfoilio’s for donkeys – but aren’t computer literate so you seldom hear from them on forums such as this.
Seven years ago my wife and I arrived at a property we bought in pristine condition the year before to find it trashed. We received a report overseas the month before to say the property was excellent and the tenants were paying their rent and looking after the garden well.
When we inspected the house was trashed, the garden was extinct and there were 3 dead cars upturned on their roof in the front yard. 3 unemployed young guys using the house as a chop shop for $ 50-00 cars. The PM standing next to us was speechless. No comment was offered. The reports sent to us previously were obviously outright lies.
Anyway, enough of me whingeing, problem fixed by running the PM off.
At the end of the day there is only one person who is interested in your wealth.
Now that the wife is a PM – I know first hand how much attention owners get for their money. I’m staggered at how much faith most forumites have in their PM’s ??
Wish I could find one who even showed the remotest of interest…
Cheers,
Dazzling
“Go hard or go home”
Jan,
I’ve found alot of people get tripped up on the frontage before. The REA advertise as duplex or triplex ‘potential’….WOW – watch that word very carefully….but then when you front up to the Council all of the sobering facts come out and more often than not the ‘potential’ turns into a flat NO…or at best it turns into a maybe, with enough headwork fees to sink the project.
Don’t want to put a damper on things, but many of the ‘potentials’ out there are just that and never come to fruition.
As a specific example, the Council I deal with alot have a blanket rule that unless the property has more than 25m frontage, it can only ever be a duplex – no more. Even if you buy 3 acres, they’ll only allow 2 dwellings max if the frontage is 24.99m or less. Most people reading the ‘potential’ ads aren’t aware of this number.
Cheers,
Dazzling
“Go hard or go home”
Rudy,
OK, I missed the second part of your question.
The ATO simply asks the question “What was the purpose of the loan and, if it was for investment, does the investment generate assessable income ??”
In your circumstances the loan’s intent is for purchasing an income producing property and hence all of the interest component for that particular loan is deductible…although in all of the official ATO literature, they always quote it as “may’ be deductible. Legally covering their bums just in case there is something squirrelly about the individual tax payers circumstances I suppose.
Cheers,
Dazzling
“Go hard or go home”
Rudy,
G’day and welcome to the forum.
I would recommend you have a look at the properties as an entity….what you have there is the classic ‘cordial mix’ that the SS Qld lady often refers to…have a read of some of her books.
Unless the new +CF is outrageously positive, the overall net effect of all of the properties will still be a loss.
Over-riding all of this, I’d be far more concerned about the large Land Tax burden you are setting yourself up for with all the others in your name only. (See separate thread on this subject).
The small positive cashflows will be absolutely swamped by the extra burdens imposed by your State’s revenue office. For this reason alone, I would humbly suggest – if you are the highest earner – to place the property in any ratio other than 100% in your name only. 99/1 is OK, 98/2 is OK etc…’tenants in common’.
On the same theme, I’d also have a serious look at how much you pay for Land Tax vs stamp duty to switch them over to a better % structure.
Make sense ??
Cheers,
Dazzling
“Go hard or go home”
Hi,
Sometimes the tenant may ‘do up’ the premises specifically for their business operations. This renovation can sometimes be quite expensive, and there is an agreement put in place between Lessor and Lessee that the Lessee can have reduced or no rent period in lieu of having rejuvenated the Lessor’s premises at their expense.
It’s simply a way of protecting the Lessee’s investment in the Lessors property.
You’ll also find that many Govt Dept’s, especially Fed Govt agencies will insist on being recognised on the title as part of the standard Commonwealth’s Solicitor General’s leases. These by the way are pretty harsh compared with normal Comm & Indust. leases.
This is one of the downsides to having Govt as your tenant.
Hope that helps…
Cheers,
Dazzling
“Go hard or go home”
Sana’a Yemen
It’s a bit higher than the peak of Mt Kosiousko – air is pretty thin and dry up here.
I have the bin Laden clan as next door neighbours…on the other side are the CIA watching the bin Ladens…the same chaps who activated that drone aeroplane and killed a couple of people two years back…we don’t have street parties.
You’re welcome to visit anytime – bring your AK47.
Cheers,
Dazzling
“Go hard or go home”
Excellent thread Yack, well done for pushing it…
2004 :
1. Recovered from a fairly average position in Feb, where we found ourselves with no job, no home, no car, no school for kids, no bank accounts. Lost waifs in a big bad world.
2. Found rotational employment overseas.
3. Got the kids back into school.
4. Moved 6 times…a tad stressful.
5. Found a home.
6. Bought a car.
7. Accumulated 2 more IP’s.
8. Lost 14kg of fat, gained 4kg of muscle.
9. Celebrated 10 years of happy marriage.
10. Met the bin Laden clan, currently my next door neighbours.
11. Ate in a crowded restaurant where I was the only one not packing an AK47.2005 : May as well make it specific – cannot hit a fuzzy target…
1. Get a job back in Oz.
2. Live permanently with my wife and kids again.
3. Buy 3 more CIP’s or IIP’s.
4. Lose another 5kg of fat and put on another 5kg of muscle.
5. Eat in a restaurant where no-one has a gun.
6. Celebrate 11 years of happy marriage.
7. Teach my eldest to do Maths.
8. Teach my middle one to read.
9. Teach my youngest to talk.
10. Let my kids teach me how to have fun.
11. Start volunteer work.Cheers,
Dazzling
“Go hard or go home”
KJW,
To specifically answer the questions you posed;
1. No you are not.
2. No you should not for screening purposes, but obviously yes for actual accounting purposes once you have bought.
3. Instead of starting the question with a ‘where’, swap that word for a ‘what’.It’s probably driving you nuts because you are confining your search into too narrow a band.
Are you containing your search to normal / median / average residential houses within easy driving distance of where you live ?? If so…and you are not prepared or not comfortable to broaden the scope, I’d get comfy in that straight-jacket, it’s probably going to be on there a while.
Cheers,
Dazzling
“Go hard or go home”
Marisa,
IMHO Mandurah has some remarkable attributes (beach / esturary etc) which are driving it’s growth.
Being contrarian investors we decided to go the opposite end of the spectrum and bought a lil’ ol’ shack at Guilderton which is the meeting point of the beach and the mouth of the fresh water Moore River. Lotsa growth here too, but still undeveloped….and best of all no awful smells.
All of the Toffs have just discovered it, and are prefering it to the Mandurah alternative.
Unfortunately it’s too small to register on the national register, compared with gold coast and the like, but it’s growing it’s little socks off.
Best thing is it’s on septic only, and the council has restricted the lots to only 440…no more. So…with pent up demand, you cannot just build another canal…there is only one reaction, and thats the $’s go skywards.
It’s the most comparable alternative to people looking at Mandurah…without the stench.
Cheers,
Dazzling
“Go hard or go home”
royalty,
As per my previous feedback that you flippantly brushed off as being an English lesson, you shall struggle to glean intelligent responses to a clutch of statements / data / questions all thrown together into one massive, 25 line sentence that is impossible to comprehend.
Unfortunately, all we have on this forum to communicate with is efficient reading and writing skills. If you choose to ignore the feedback, I suspect you shall struggle to receive helpful contributions.
What exactly are you asking the forum members to help you with ??
Royalty,
I apologise profusely but I only have one star….therefore my comments are probably not relevant.
Could I suggest (remember it’s only a one star suggestion) that you itemise your data into a readable format and clearly enunciate your specific question. Vagaries don’t hit the mark.
Without question that would have to be the longest and most confusing sentence I have ever perused.
Hi 3MR,
Only you can answer that question….IMHO it will depend very much on exactly what the following entails, which you haven’t detailed;
“our family” – does this mean wife and one child or 7 kids plus granny ??
“our money” – does this mean $ 20K or $ 2MM ??Given that you say you have no experience and don’t know where to start, I’d recommend you rent until you become more familiar with ‘things’..
Cheers,
Dazzling
“Go hard or go home”
Unannounced,
I don’t have the time or inclination to question why State Legislatures make up the laws, or what the over-riding intent was regarding drafting the laws.
As investors, isn’t it best to simply find out what the relevant laws state exactly and then devise your investment strategy in accordance with those written laws ??
I fail to see anything that is sneaky. Certainly no loopholes either…’playing the game’ exactly as the laws are written.
Good hunting to you….
Cheers,
Dazzling
“Go hard or go home”
Dan_76,
I presume this is a bog standard O&A format.
If so, how about wrestling control from the vendors agent and actually writing up the offer like you want it…after all, that’s why they call it an offer…it’s an offer by the Buyer to the Vendor.
Don’t let the Vendor’s agent dictate to you how you construct the offer. That line of thought ends with the Vendor offering the Vendor whatever they want ???
Another tip for you – don’t let the Vendor’s agent write the offer up either. I did this for my first 3 houses, and got stung with clauses in there that I had to fight at settlement.
It’s your offer, you write it up, and you put in it exactly what you want in it. If the vendor doesn’t agree, well, back to the negotiating – if you still want it, but please, doesn’t let the Vendor’s agent push you around..
How do you tell you are being pushed around when you are starting off…listen very carefully for phrases like;
This is how it’s always done
Our standard format is to…
Normally buyers just…
The vendors policy is to..
The accepted practice in this state is…Good luck and happy offering…
Cheers,
Dazzling
“Go hard or go home”
