Perhaps u need to decrease the cash required. Have u considered:depreciation, increasing the rent, decreasing other costs, refinancing.

The thought of loosing $15K would hurt, but as you said the unit is in a relatively good capitol growth area so u need time to increase the value.

hrm

Outgoings are rates, insurance, water, body corporate ie. all the thing u normally pay with residental.

u need to check out the lease to make sure they are paid by the tennat.

As the prop is a going concern (has a tennant), my understanding is that GST is not applicable for the purchase. If u are registerd for GST ( u must register if…[Read more]

hrm

I think that you have half of the formula: you’ve worked out what prices the house configurations could fetch….why not use the same source to get unit prices, ( or talk to local REs) then

Go see the local council and see if dual occ is feasible.

hrm

I think u can get the info from the State Revenue Office under Vic Gov web site. U can get a copy of title for a fee (less than $30 i think)from their website. U could have the info in minutes.

Good luck.

hrm

Do a search on this forum, you’ll find some threads on DHA.

hrm

I understand your concerns when buying some distance away. I have bought several properties sight unseen by using people I can trust: people who live near by, RE agents, building inspectors, etc, or recommendations from friends or people on this forum.

A good property manager is essential for sound sleeping at nite.

hrm

You could search the RE sites on the net to give you prices of whats for sale, and some RE sites show past sales info too. You could do this for one and two bedders.

hrm

Have you considered units in the Brisbane CBD. I think there may be some good buys.

hrm

Cool looking house.

From the pics it would appear the the garage was converted in to the flat!

I would convert the flat back to a garage if possible and give the place a good lick of paint. This should be less than $10K, and
for a modern look what about rendering the front?

Other option: do the garage and lick of paint and possibly…[Read more]

I have a dual key unit in Spring Hill, Brisbane. A dual key unit is basically two studio appartments with their own front door. I bought them as apair.

These unit were targeted for corporate customers on short leases. They are fully furnished. I purchased them for $330K, and they rent for $280 each per week.

Over the two years of…[Read more]

I too get regular alerts from Domain and others.

I have noted lately that they are using emotive (e.g realisation sale etc.)words to get our attention.

I don’t think there is anything wrong with the word liquidation.

hrm

I think you and the wlfe are in a fantastic financial position.

Your super payments from 2011 looks great and you will have substantial equity in your properties too.

I concur with KP’s comments.

I would suggest that you seek advice from some Financial Advisors.

Good luck.

hrm

I’m one for claiming all the depreciation I can.

This helps the cash flow but when you sell the amount of depreciation claimed on the property over the years is deducted from the original purchase costs to give your base cost for CGT calculations.

I think its better to take the deductions when you can (now) as the rules could change…[Read more]

I had a creative tennant in my Maribyrong townhouse who attempted to convert the tandem garage into a bedroom.

Checked with local council who advide that it’s a no no due to building regs, insurance etc.

hrm

They are the backbones of our investments same as employees at work.

I treat all people as equals till they prove differently , no matter their colour, race , religion etc just like my staffie (he will lick anyone to death).

There will always be some scum bags around but they are a very small…[Read more]

You have received several suggestions for the first property, but your responces do not appear to have covered any suggestions given, and

NOW you are jumping to another fire!!

No wonder you haven’t received any responces to your latest post.

We are here to help, but you gotta help yourself.

hrm

I don’t think hmckay realises his wife & kids are a needless luxury! LOL

Sparky

Sparky,

I could be offended by the above.

Could you please expalain what you mean?

hrm

Thinking spare bedrooms, maybe $100-$150 a day, for 10 days $1000 – $1500!!!!!!!!!

Hmmm.

hrm

Congrats on a great profit.

The are tax issues that should be considered too.

Who claimed the tax deductions?

What is the CG?

Recommend you both see an accountant.

hrm

Good story good lesson.

You never know when you need insurances.. Good management that you had it in place.

I wonder if the person who did the building report could be held responsible? Did they recommend that the HWS be removed ASAP?

I’d appreciate you advising us of the outcome from your insurance company.

Hope you get a tennant soon.

hrm

I think using the FHOGs to buy a property is an easy way to start.

I note thet you are single so perhaps you could get others to share the costs of the property.

You would have to live in the property for at least 6 months.(corrected thanks Simon)

AND. who knows when the grants will stop!!!!!!!

hrm

The wife and kids are secure in the vehicle.

Could be worth $10 a week!

hrm

When and where please.

hrm

Anyone know what is planned for the purpose built accommodation after the games.could this be an opportunity!

Tools: Perhaps a good time to take a holiday for $5K

hrm

hrm

I think you need to ask your local council about these issues.

hrm

Answers:

Offering $20K less, you don.t ask you don’t get. Make the offer and see what happens.

Depreciation. 2 types: building @2.5% per year, and fixtures like floor coverings, cupboards, appliances, light fittings, swim pool, security etc. variable rates.

Perhaps you could PM Scott at “Depreciator”, he’s a member on this forum and I…[Read more]

Can’t recommend any REs but can recommend Astorb for help with Qld props.www.astorb.com.au

hrm

I would request the agent send me a copy of the report before I dismiss it. Lots of props have termite damage.

hrm

Don’t forget depreciation. This could be significant for a fairly new building.

Also, Interest only loans help.

“everything I find is $20,000 too much”

Try offering $20K less!

As you have mentioned add value to increase rent.

hrm

What you are suggesting here is Vendor Finance I think.

The bank lends you $80K under a first mortage, and you seek the vendor to provide finance for the remainding $20K over what ever term you agree on.

Vendor finance would cost more perhaps about 2 percent above bank rates.

By financing the property this way would save on Mortage…[Read more]

I agree, great site heaps of info, and some very willing successful investors with diffent strategies, and alot more info than the S site.

Thanks to all concerned.

hrm

Perhaps this deal could suite a builder. He / she may be interested in the block at the back or the lot.

You could:

Email or fax a heap of builders,or

Advertise in the Saturday paper under investments/ development, or

Seek agents who have builders on their books and are looking for such properties.List with afew agents (conjunct,…[Read more]

Only suggestion I can offer is to contact the bank. There could be some extra charges with paying out your loan early.

Also,. Mortgage bal.=135,000, so if I payed 3000 per mth the balance would be zero in 45 mths.
You would have to pay interest costs too.

hrm

I bought a townhouse in Rimfire Walk Maribyrnong about 2 years ago for $333K. I tried to sell recently but could not get any offers above $300K.

This area appears to be saturated with a heaps of townhouses from a few developments that were completed in the last year or so.

Your development sound a bit different and may have water…[Read more]

110 foot shed wow!

Storage sounds the way to go if there is demand. Perhaps Melbourneites could store their water toys, caravans etc.

Surely others on this forum could make some suggestions!

Perhaps this post will put the topic near the top to recieve some attention.

hrm

What about a simple Stat Dec signed by your tennants stating how long they have been renting and the amount they pay?

hrm

You may be able to find the data required in a REIV property update booklet. I have one for june 2004.

Give REIV a call on 03 9425 5555.

hrm

I read your other post on the creative way you managed to purchase the property. Congrats , well done.

It sounds like a sought after retirement area.

Sorry can’t suggest anything about the 100m for plantations. You’ve tried the local council but they say put in an application and see how you go but you are concerned about costs. I…[Read more]

I like it!

Momentum…..Just Do It!

So true in every day life situations.

You want something done then give it to a busy person.

hrm

Have sold a few lately. Qld agents tend to stick to the recommended commission. Vic REs are negotiable.

Advertising fees seem to be their cream at the moment. They insist you pay $1000 plus, negotiate this fee, or pay only on sale.

Hope this helps.

hrm

What about a building inspection to find faults / quality of the internal reno, and to check out the exterior. You could use this as a basis for negotiations.

Perhaps make your offer for a long settlement say 5 or 6 months.

hrm

Sounds great. I had a 3br unit on the Gold Coast that I bought in 95. The sell speil was to accommodate uni students at Bond. It was fully furnished, crock and cullery stc. all except linnen.

I found that overseas uni students were not kind tennants, they paid very little care to most things, like slamming doors, drawers, lots of…[Read more]

I too sold off 4 IPs in the Brisbane area this year. I did this to reduce my LVR and the amount of debt and to cash in some CG. I will have a big tax bill for 04/05.

You want to sell because they have moved to -ve cash flow, if you are prepared to give the figures on all props then some wizards on this forun may be able to give some…[Read more]

hrm

Well just goes to show knowledge + doing it + equity growth = success. Congratulations.

Where do you see your next buy (bakers delight)?

hrm

Am doing a 3 unit development on a standard resi block in Wantirna at the moment.

I assume that you are talking outer east Melbourne.

I suggest you could approach the local council first to get their views on how many units you could get on the block. or

Engage an architek. I can recommend a very good one, PM if interested.

hrm