Forum Replies Created
There is absolute merit in designing and siting granny flats so they they can be interchanged as either an investment earner but also as a family’s backyard cabin, teenage retreat or guest accommodation. It pains me when an investor buys a property which simply has bad separation and bad geometry. This I must agree is the destruction of a rear yard. It makes me cry- I simply refuse to do approvals on blocks which aren’t spatially ‘right’.
Have to agree that design is the key. If you are looking at a refinance of your granny flat loan after completion it is important to ask are you using the right bank – who is doing the valuation and remember that the valuation (whether favourable to you or not) is entirely and completely separate to the true market value. Valuations are based on historical comps (as mnentioned) and when you sit your property on the market to sell you need to see what the market will pay for it. If you have done a good job (great job really) then the market will respond as you have added equity and cash flow. Now in most peoples language that is a good outcome. But if you haven’t – well you haven’t and the market will tell you that at sale time. Valuations are just a finance tool. Another one of the tools we use as investors to get things done that we need done. Probably a good idea to respect them but not get to hung up on. Robert Schiller says that finance is the technology of getting things done. Nothing more and definitely not rocket surgery. Often times, what people are doing with a granny flat strategy is converting properties that leak cash into properties that add cash. Now I have been banging on about this since I joined the forums and been in a couple of heated stouches over that back in the day. If something is leaking then plug the leak.
As for the Northern Sydney versus Western Sydney debate. Well I look at it this way. Some things are generally more saleable than others before we throw the grannys into the mix. As a starting point its good to ask a due diligence question, “Is the property whether it be out west or some other place a good idea before the granny flat. If yes proceed. Is the granny flat is the key to making the deal a good idea – avoid! A great property that has had a value add strategy applied to it will be great plus have some income. A dog property will be a dog property with or without the GF on it. When I am investing for myself I always ask the question, “If I am not around can this property support itself.” If it can’t then the exit strategy has to be pretty good to justify a purchase.
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This reply was modified 9 years, 8 months ago by
Don Nicolussi.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Mentors – such a hard question because it goes back to how you learn. If you have had any workplace education lately you may have come across learning styles debate. Peter Spann is someone I have read widely, I read everything Steve has published as well which is extremely valuable but again not new at all. To be honest I was very surprised about Steve’s negative blog on using smsf to purchase property. I mean after 2008 who would want to be approaching 60 and have a portfolio full of paper assets. At least with paid off property you have rental income to sustain you (plus tones of other property strategies to turn equity into cash) . It felt a bit like that was taking us all back a dozen years in terms of strategy and thought leadership in the are of property education and can’t really understand the thought behind it – and then other things I read from him seem to be spot on. I have a feeling Steve may change his ming on that one in his next book ( being cheeky now) Like Nigel said it will come down to doing deals. Nigel has been on these forums for years perhaps give him a ring.
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This reply was modified 9 years, 8 months ago by Don Nicolussi.
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This reply was modified 9 years, 8 months ago by Don Nicolussi.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Agreed it keeps us busy
– currently doing 7 property portfolio with 4 cross coll to a major with those 4 in 5 different security combinations with numerous facilities. Pretty common. Just curious Roxy how did the broker position that structure to you. Was there a reason?Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
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This reply was modified 9 years, 8 months ago by
– currently doing 7 property portfolio with 4 cross coll to a major with those 4 in 5 different security combinations with numerous facilities. Pretty common. Just curious Roxy how did the broker position that structure to you. Was there a reason?
