Hi MT,

I hope you have done your numbers on $150/week and not $20K per annum as the annual difference is around $12K.

If the previous owner has been unsuccessful finding a ‘top dollar’ tenant for three years it is possible that there is no call for such a ‘property’ anymore – I would prefer to have researched the availability of a possible…[Read more]

I don’t have stats to back it up but popular thought/anecdotal evidence/myth is that these properties do not appreciate at the same rate as standard properties due to the issues with finance.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Absolutely – your lender will organise one for you – assuming you are accessing a traditional lender.

If you intend accessing finance from the developer/seller then certainly get an independent valaution. If this is the case then it reinforces the fact that serviced apartments are too risky for most banks and they do not recognise them as…[Read more]

Hi Dave,

As the others have said the hastier you get the bigger risks you take.

I would also recommend you do some more reading – there is a list of recommended readings in the ‘Heads Up’ forum that will round off your education.

There are many ways to invest in property and extending your existing knowledge will improve you chances of success…[Read more]

Hi Paul,

Don’t be seduced by the attractiveness of a guaranteed rent – someone is paying the guarantee, often it is you in the purchase price.

You also need to find out how the gurantee is secured. I distinctly remember seeing a rental guarantee provided by HIH.

It seems to me you are pursuing a cashflow positive scenario and you’ll need to be…[Read more]

Yes – you can pay some off and then refinance.

You can also refinance either with the same bank or if they get niggly move onto another bank.

Some I/O loans also permit additional payments being made during the period of the loan.

As to what is best for you – it all comes down to your investmen…[Read more]

Hi Paul,

Serviced apartments are considered riskier due to their limited security. Income streams can be variable and costs can be significant – while the figures may stack up during the research stage the ongoing success is dependent upon the quality of the management structure.

As management rights can be bought and sold on the open market the…[Read more]

Make sure that you fully understand the terms and conditions of the managemement agreement and look for the outgoings which can be on the ‘high side’.

Financing can be an issue and as such these types of properties can suck up more of your cash/equity than a standard lend. As such their long term prospects are questionnable due to potential…[Read more]

Originally posted by Redhaven:
The agent said he gets people ringing up saying they’ll pay up to 170 for a place, but he rents them places for 120 and 130 because that’s all people are asking for them.

Hi Redhaven,

Naive me – I thought the PM was employed to look after the owners interests. It seems this ‘bloke’ is also falling down on the…[Read more]

Hi Rick,

You will also need to contact the relevant authorities in Victoria (don’t know who they are [dunce]) as rooming houses need approval, licensing and special insurance.

I am sure someone will be able to fill in the gaps for me.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Original question deleted – topic locked

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Hi Royalty,

There are a lot of people who put a lot of time and effort into answering questions and providing comment for individuals. Breaking the question up into parts makes the initial question easier to read and responding easier and far more beneficial for you – as such Dazzling’s advice is ultimately aimed at providing you with a better…[Read more]

Hi Trainmad,

The formula remains the same – the key point is that suitable ‘off the shelf 11 sec properties’ are difficult to find but they can be ‘made’ with some creativity and extensive research on the part of the investor.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Hi Geoff,

This facility is known as ‘subscribing’ on this forum and is available where you see the ‘little envelope’ either to the right of the discussion heading or underneath the message reply box.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

The critical point is the ability to finance these – lenders will not finance at 80% and as such growth and resale prospects are somewhat limited.

Don’t let the attractiveness of 7.5% seduce you into an investment that doesn’t stack up in the long term.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Hi Garry,

Sorry[bigeyes] no can help with Newcastle – other than to say that a good accountant doesn’t necessarily have to be around the corner.

Simon (Mortgage Hunter) may know of someone.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Hi Andy,

The process you are talking about is easily completed – there is no need to use an accountant for PAYG employees.

I do mine all the time and walk through the process with other people frequently. If you have ever done your own tax return and have a depreciation report it is pretty simple.

But in answer to your question also look at…[Read more]

HI Royalty,

PK has covered a great deal of the important and relevent points.

To that list of ‘things to consider’ I would also add that you do need to factor into the ‘sums’ the loss of your income as you take time off work and also the cost of your labours. Once these numbers are put into perspective the potential for a ‘quick gain’ can be…[Read more]

Hi Zen,

Suffice to say they were better then than they are now.

Five years ago (and without facts at my finger tips to back the statement up) I’d say about 1.5X what the return is now.

Derek
derekjones1@bigpond.com

Property Investment Support Available.

Hi Cruiser,

Haven’t done it but have a look at http://www.onlinesuper.com.au for ideas. Maybe a google search using SMSF may be informative.

Derek
derekjones1@bigpond.com

Property Investment Support Available.