Forum Replies Created
Thank you Steve for such a positive thread.
Firstly, my parents. They had the courage to do things in the area of property investment when it was not in vogue. That is, before the internet. They had to learn by their mistakes. Thanks for teaching the kids (us) how to do all that stuff at the dinner table and on trips in the car.
Second, Mr Warren Buffett. I must have read "Snowball" 20 times. The amount of research done is a true inspiration.
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
Bob – although sound asset protection is valid most forum members would not be happy discussing setting up structures with the intent of trying to hide assets from creditors. Having said that I have a feeling if any party could show that there was an intention to do this then the creditors or spouses could use "tracing" provisions to access these assets. I would seek clarification on this.
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
John – also if you are selling something like this get onto rp data and do the comparables for every sale for the last 18months for your postcode. If you want to be thorough do a postcode check on a nearby but aspirational suburb to see sale prices in the better locations.
You will be able to compare listing price with sale price and this will be a good tool to help you pick an agent.
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
John – my personal experience is that otp sales are harder just because some buyers and agents cannot visualize the project, that is, what it is going to look like. Your designer may be using revit or another program that is going to help you build 3d models etc but it may not give you the correct renders and art work that you would need for a full marketing package.
You will have to budget this in.
Is your market cold – warm – hot? Do you even need an agent. Are you building something similar to another project that is already on the market?
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
Todd – as the others have said there is no issue with this. NRAS would be an example – or a property that simply pays for itself. Depreciation is always a great reminder to me that it is our land that is appreciating and not the building we own placed upon the land. Bradley could speak to this but getting reports done on older properties is probably less common that it should be.
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
Okay, have not really been on the forum since march. This was a huge conversation starter(not). Few things have changed since then. What about now? Who is willing to reveal the burbs that are paying for themselves?
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
James – does he work in Japan or work in OZ?
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
Would have to agree with Kristin on this one. Generally, it is better to go for a specialised policy. Probably the most significant risk to a landlord is loss of income from illegal occupation. This happens when a tenant for one reason or another decides that they are not moving out and also not paying rent.
You would want a specialised policy to cover this.
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
In addition to the options mentioned above have been having success recently using 6 months business banking statements rather than bas returns for low doc clients. The annualised income from the last 6 months will need to reflect what you declare. As stated not a lot of info to work on here. Rate is better than most lenders standard variable at the moment. Some consolidation when refinancing acceptable.
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
HI Zehra – you have mentioned that due to certain circumstances your cash flow is a bit tight. If you are considering refinancing for this reason it is important that you sit with someone you can trust to have a look at your cash flows now. Why are things tight? Is is just the mortgage or do you have other financial pressures that are causing the issues. This will probably help you turn the corner quicker than shaving a few points of the mortgage (not that there is anything wrong with that). If you are a prime client with eligible loan size your broker may as suggested make a pricing enquiry on your behalf to obtain discounts over advertised rates.
If things have been tight for you it will be critically important that your current facility is in good conduct at the moment if you intend to move to another lender to take advantage of a better deal. Perhaps check your Veda file as well to make sure there are no nasties there that you did not know about. These could be the result of the actions of another party such as a spouse or someone else you have shared credit liability with.
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
Firstly what are your capital growth expectations for your location. That is, why did you buy there in the first place and what will make the area grow. Capital growth is the end game and the cash flow of your portfolio is merely the fuel that drives the car.
On an IO loan depending which institution you are with you could probably save around 1% by switching at the moment or go to your existing lender and see what they are willing to do for you. Talk to your broker.
Review your rent. Is there room for an increase? Would the tenant pay extra for chattlles such as a washer and dryer. You only have a small gap to close here which is very doable. Sure you can put in the taxation variation but it does not plug the hole.
Do you have enough equity to build a secondary dwelling – granny flat etc to increase value and maximise the cashflow. Think outside the box -once again it is a very small cashflow gap to close.
Could you release enough equity to purchase another income producing asset of another class outright that would balance the cash flow?
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
The answer to that question will probably depend on your investment goals and strategy. The main issue with NRAS that I believe is most critical is how much of your equity or cash you will need to use to get into the investment – what lvr is on offer (of course you would not even be looking at the location and property type unless the fundamentals checked out so that part goes without saying) followed by finding a property that is going to value up. Valuation is the most common reason nras finance deals fall over. This can be overcome with the right lenders.
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
I think 25bps is a good call. Leaves the RBA plenty of room to move on monetary policy. Don't forget we still have the highest cash rate (in the world?) or up there at least.
There is still a lot to do in the area of fiscal policy reform and a downturn may speed things up in this area, who knows? Not that we would wish it.
Company tax rates need to be overhauled and there are a lot of restrictions and barriers to entry in many businesses and industries. Look at groceries etc. We need less regulation, more competition with fewer rules but harsher penalties for those that do break rules.
We should not just look to monetary policy as the only brake and accelerator of our economy. It does not really work because the lead/lag times are to great. We need more competition to control prices and inflation and more spending on R&D to development world class technologies not just (relatively) short term infrastructure projects. We can only hope.
However, nothing gets the property market moving quicker than a new port, road or rail line.
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
Its a good one – I just got an email yesterday that they are back in the studio market but i think the property mentioned here is just too small. Maybe for Kirsty L find a better property ( one that makes better use of her equity ) combined with that product or something else might get her going on the right track.
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
Richard – do you think the cba property share might help – sep loans over the same security. Can't seen them doing 30sqm though?
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
Yes Terry and people who could be significantly worse off because they are still being told to "leave information out" of applications by accredited fp's and brokers because it seems to suit at the time. It is still happening. Craziness. I am getting a couple of these a week ie people who say they were advised to omit facts from applications. There are simply so many options there is no need to taylor the scenario to the lenders policy. If only we could get these people to the right lenders first (that is the ones who's policy fits their scenario) before all the credit inquiries start racking up.
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
In the current market ( and really just to throw in a short commentary and not get to involved) when seeking cashflow it is critical to ask:
1) Is the property CF+ (cashflow positive) because prices are falling in real terms. Are asset values falling adjusted for inflation?
or
2) Is the property CF + because you have a situation where adjusted asset values are stable or rising and real income is rising. IE, properties are going up and holding their value and rents have risen due to supply shortage. ( This is to over simplify rental price pressure of course)
However, just MHO but unless you have capital growth potential you should not consider at it.
Applies for NZ or Australia.
What is the reason you think the asset will go up – find it – tick that box
Now – where are properties that pay for themeselves.Not best to do it the other way around.
Don’t forget about small commerical as part of an entire portfolio.
To qualify: At least for your first 5 to 10 properites in a portfolio.
Cheers
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
Qlds007 wrote:By the way we charge £995 as a sourcing fee for the UK which is circa $1400 AUS.Richard a sourcing fee of 1400 is very reasonable for that type of work (given how much effort goes into getting contacts and starting things like that up) particularly if you can get direct access to vendors. Think you are on a winner with your uk venture. A lot of the stuff we see here in forum is MLM but if you can create a scenario with vendor – you – buyer there should still be value. What are holding costs on some of the lower priced props?
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
Last time we painted out an IP we did it ourselves because the tenant left early and we only had few days to do it. The paint was really cheap – but for a reno (sale)? i think best to get at tradie on a fixed price unless you are a gun painter. They might give you a level of finish from 1 to 3 in their quote and detail the number of coats etc and the type of paint. Seen lots of new homes get sprayed but for some reason this never seems to look good when people try it in the older homes. Not sure why?
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
The person I would recommend closest to newcastle is in cessnock. Too far? Otherwise I can organize a quote through our online service for you.
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
