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I also did Roy Macdonald’s course. Happy to chat offline
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This reply was modified 4 months ago by
Graeme Freer. Reason: Typo
Graeme Freer | Freer Property and Finance
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Hi Justin
Checked out the free property analyzer developed by Czech student submitted as part of his Masters Degree. Useful, for US property. For Aus property I use PIA developed by Ian Somers, of Somersoft – Jan Somers husband. Very powerful property analysis software an reasonably priced around $500 with no cost for annual updates for first few years. PM for example and no I don't get referral fees/kickback in case your are wonderingGraeme Freer | Freer Property and Finance
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You could also consider using your cash deposit to be released to the developer for an off-plan purchase. Provided the developer has a good track record, you can get an advantage by locking in the pre-release price and getting a return on your cash up until settlement. Risks are that the developer could go broke and loan interest rates could soar over the build period, so that your cash flow doesn't look as good as expected. Independent Financial advice recommended, but this is a strategy that I use and also have recommended for cashed up clients looking for a better return than on a Term Deposit.
Graeme Freer | Freer Property and Finance
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This is where the Developer is paying interest on an upfront deposit (released for seed capital). Win /Win as long as risks are explained by an independent financial adviser. Developer has access to cheaper funds than if borrowing private finance and investor gets a return higher than if money in a term deposit. Loan document needs to give comfort as to strength of the guarantee .
Naturally the track record of the developer needs to be scrutinised. I like to see 10 years experience and conduct extensive due diligence on the location.Graeme Freer | Freer Property and Finance
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I agree with Scott No Mates. Tassie has had a great decade but unlikely to be repeated due to slower pop growth. Same thing happened with regionals in NSW & Vic. Urban areas get too expensive so OO's and investors look for a more affordable option outside preferred city/state. Too late in the current cycle for Melbourne/Vic. I was recommending Melbourne from 2005. For a countercyclical play I like Brisbane/Qld . Not too late for Sydney, but need to be selective.
Graeme Freer | Freer Property and Finance
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Sandtrackers wrote:Wow, all this is interesting – its been a while since I have been on here. – So wouldlike some advice also.,
I currently have approx 350K equity in my PPR and am building an investment worth 370K (Altho this wasnt my real choice of investment but got stuck with a block I bought before the crash). My sister is moving in with us and we either want to invest in another property or sell this house, down size and then buy a couple of investment properties. She has approx 200K in bank – no house.
Do you normally look at a 80% lend for investments to avoid Mortgage insurance?Do I sell this house and buy one for say 200K less to secure more cashflow
Keep this and buy another 1 once my building investment is complete (The bank says I cant borrow any more til this is done)I am also considering using a property finder – is there anyone here that is looking in WA? Preferably +CF as I believe this will allow me to borrow more money in the long run? How much do you charge to find a decent property?
thanks all
Borrowing 80% secured against purchase property will avoid lenders mortgage insurance (LMI) . The remaining 20% plus costs secured against your PPoR (you could use an LOC for this, but note dates and monthly interest amounts for tax purposes ).
If you have an offset account your sister could park her $200k and it would save you interest. She could invest in two or three affordable off-plan projects where developer pays interest where the deposit funds are released. I know of one in NSW where the interest paid is 10% pa – which could be taken as cash, or for greater tax effectiveness, offset against the balance owing (effectively reducing purchase price). Check this out with your Financial Adviser.
The Industry standard charge for Buyers' Agents is between 2 & 3%. As I am a sole operator with few overheads I only charge 1% or 20% of discount to list price that I am able to negotiate (incentive for outperformance!). I can also provide a couple of WA BA contacts
Graeme Freer | Freer Property and Finance
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Afraid that you will have to pay for owner/contact for each property on the registry, Sam. Pricefinder offers this info under their premium service also, I believe. Regards, Graeme
Graeme Freer | Freer Property and Finance
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Never had the situation Sam. Imagine that you still have the right to exercise an option to buy, but definitely check with Mel or Tony C. Unless Terry W wants to weigh in …..
Graeme Freer | Freer Property and Finance
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Townsville houses recommended on NRAS deal due to vibrant economy, growing population and likelihood of Townsville becoming admin centre. ie. good CG prospects as well as reliable rent/tax breaks. Defence housing with less management cost (still high due to compliance requirments) . Avoid units due to approx 6 month overhang at time of posting. PM me for details
Graeme Freer | Freer Property and Finance
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I have watched the US market fairly closely since 2004 when the overbuilding began (and coincidentally, the lending standards became more lax). Resisted the opportunity to buy multi family a homeunit block in Texas when the weakness in US housing was becoming apparent (I thought the market had bottomed in 2006 and still wondering if we are there yet!) . Glad that I didn't jump in when there was much further falls to happen. Big differences between the US and Aus ppty market persist. Largely around management (Aus ppty mgrs are more active and effective) , use of non-recourse loans (less commitment to hang on to the house and owners find it to easy to walk away creating a snowball effect, with falling ppty prices) and static population growth. 'Bargains' can prove be expensive in the long run. These days I stick to fundamentals and recommend the same for my clients
Graeme Freer | Freer Property and Finance
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Residex tips Ettalong for outperformance. Ferry option to Palm Beach and then an hour or so on the 'express' bus to Sydney CBD for committed commuters. Some rezoning which allows Dual Occupancy near water towards East Gosford (recommended) . Property values in The Entrance seem quite volatile . Places here took a big hit and are now recovering. Holiday homes get sold off first when margin calls occur during periods of share market decline.
Graeme Freer | Freer Property and Finance
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Hi Sam
I have experience with options for property in Sydney – Mel Ciampa 's contact details: 02 98177727. [email protected] .Graeme Freer | Freer Property and Finance
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Were there 7 credit scores or were they merely 'scenarios' that were rejected? Looks like you are desperate to banks . My business partner is a lender and we have good finance contacts – happy to discuss options for cheaper rate. Email or phone me if you would like our help. Graeme 0414816408 [email protected]
Graeme Freer | Freer Property and Finance
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Save your money for deals. Read…. and network here, guys. PM me for opps and contacts. eg. I support Phillip's recommendation of Mel Ciampa from homeandhoused in Sydney, Mention my name. Graeme Freer. Let's network. Any for a small development in Atherton in North Qld ? Or Yamba for NSW?
Graeme Freer | Freer Property and Finance
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I have had good experience with student accommodation, but you need to look at the NET return. Resale and capital growth will be better if not exclusively for students. Happy to run numbers and provide comparisons
Graeme Freer | Freer Property and Finance
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Congrats on paying off your home, Rob!
Just don't ask the bank for your title deeds back as they are safer left with the bank (i was a Westpac bank manager in Sydney CBD for several years- but don't hold that against me) . Read the Jenman article on Perth House scam: it’s a case of “I told you so” http://ow.ly/2NwaQ .
Sounds like you may be more comfortable paying down the investment debt (at least while you are both working). This is where the Viridian style LOC helps. As previous posters mention, you need only borrow 80% of purchase price for the IP against that security. You draw down on the existing facility for the remaining 20% plus legal and stamp duty costs.
Your accountant will likely suggest that you quarantine investment expenses (ie. don't use the LOC for other purposes). Structuring the finance in a way that is appropriate to your needs is as important as finding the right property.
Graeme Freer | Freer Property and Finance
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For more affordable waterside property try Chelsea 35k SE of Melbourne. Smallchange suburbs like Epping to the north or Footscray, Kensington, Brunswick for inner city burbs undergoing gentrification. I have bought and sold properties in these locations with some success
Graeme Freer | Freer Property and Finance
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I was approached by Capital360 Director Pino Tedesco to work for them and had the opportunity to meet their team. Very professional and competent.
Graeme Freer | Freer Property and Finance
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Coal mining towns with diversified economies like Singleton, Maitland, Cessnock in the Hunter recommended. Also West Dapto in the Illawarra. Shoot me an email and I promise to respond within 48 hours (not so reliably on line here. Can connect you with JV partners, sites or discounted off-plan opps (no stamps)
Graeme Freer | Freer Property and Finance
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Chan and Naylor (accountants) recommended for innovative trust structures for investing in property. Happy to discuss my personal experience here and that of clients I have referred. I was employed as BDM for a firm of propertty specialist accountants based in Melbourne and know of numerous accountants and financial advisers if you feel that these guys are too expensive. You get what you pay for
Graeme Freer | Freer Property and Finance
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