[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

October 3, 2010 - 9:14 pm

 It also must be remembered that home loan interest is added and compounded DAILY.  Is a savings account compounding daily? 
Cheers![/quote]

Sorry JacM – Isnt home loan interest calculated daily and charged monthly which is the same as most savings account calculating the interest daily but not paying until 1st business day of every month or quarter (in some cases).

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September 29, 2010 - 9:22 am

Hi Andrew,

Thanks for your post.

When I have more news on the progress I will update the thread. I have found a builder who can either manage the whole project or just do odd handyman jobs I need. I will get some quotes on both options before I make any decisions. One benefit of him managing the whole reno as it will likely mean more convenience as I will be in Sydney by the time we get access, however it will likely come at at premium.

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September 28, 2010 - 8:55 am

Quick Update…

Building & Pest are fine.

Negotiated a new offer of $200k with a 40 day settlement and early access. Previously was $210k and 52 day settlement.

I have offered to pay for his legals as he cant afford it and this help with me getting a lower sale price. Overall, very happy with the outcome.

Looking forward to starting the reno's!!

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 28, 2010 - 8:52 am

Hi JSR,

I live in Wagga and have 1 IP and another offer on an IP in Wagga accepted . Lived here my whole life so know the area well. Happy to help if I can. PM me your questions

Jac

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 27, 2010 - 8:10 am

Hi Television,

Just in relation to a couple of your questions.

I self manage 1 of my IP's and you CAN actually qualify for Land Lord Insurance. I use EBM Insurance Brokers and they are very cost effective and offer comprehensive cover.

Also in relation to the FHOGs. You need to live in the property for at least 6 months of the first 12 months of ownership. I previously had a tenant in one of my IP's for 6 months then I moved in for 6 months and now it is leased again.

I have used PM's before and I will continue to do so on some of my properties but I managed to find the tenant myself and got all the work sorted so I didnt feel the need paying 7% management fees if I could manage it myself. I have built quite a good relationship with my tenants and no far so issues at all.  

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 26, 2010 - 8:57 pm

I will speak to a builder and hopefully I can knock out the wall. I dont see the point in paying money to renovate the kitchen and tile the area if I then decide to knock out the wall and I would be left with a small kitchen and then the area needs retiling etc.

I have checked out the floor boards under the carpet and it is in very ordinary condition. I dont see a polish making it look any better either. What about those fake floor boards? Would that be cheaper? I plan to hold this property after renovating it not selling straight away so my concerns are getting something that is cost effective but also durable so tenants cant destroy it!

If all goes well with building & pest report I will get some before pic's of the property and try and post them up.

Thanks for your advice Catalyst and Graeme.

I am sure I will have more questions to post when the reno's begin! I am very much a 'rookie renovator' so I appreciate all the help I can get! haha

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 25, 2010 - 11:26 pm

Hi Cataylst

Did you mean to say you *wouldnt look at the wall being removed? 
 
My main concerns are there are 3 bedrooms – 2 with built ins however one is really small but has buit in robe. What minimum size can a bedroom normally be?

The kitchen and dining area are really small where the loungeroom is quite large so I thought it might be good to open it up so I could use more room for the kitchen and dining area.

I was thinking of ripping up carpet in the dining area and putting large light tiles throughout living area to make the place feel bigger and not so dark. There is currently ugly carpet in all rooms and old lino in the kitchen. Would this be expensive to do? My other unit has large tiles throughout kitchen and living area and a developer did this so I thought it must of been pretty cost effective and added value to the appearance of the property. I will keep all bedrooms carpet though.

I plan on cleaning up the yards (they are about knee high in length!) , ripping out the carpet and repainting during early access period. The owner would of moved out of town before that starts so at least he doesnt see the finished product. I have a friend lined up to do the kitchen just have to get him in there to give me a quote. He said he can normally do it cheaper & better quality than bunnings flat pack kitchens.

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September 25, 2010 - 2:03 pm

Thanks Graeme,

Its seemed like a good place to start for a renovation as I know the area well and half the work is already done.  Estimate on rent is $320 – $330 p/w post reno and would appeal to a family. I will speak to a builder on Monday to ask about the wall. I first have to get pest report and building report done so I will try not to get too ahead of myself!

It has a double carport – by converting into 2 LUG's does it increase in value by much or is it not worth it?

 

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September 22, 2010 - 8:02 am

Mick,

I just checked out your site and did a few searches and it did not come up with any properties? I probably wouldnt be promoting it until it is ready.

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September 4, 2010 - 2:23 am

Good point Banker.

Similar to gearing with a Managed Fund.. I have a margin loan attached and when the market is on the rise so is the value of my managed fund but when the market takes a dive, the value of the fund sure takes a hit.

I would think when your portfolio grows it would get too risky to rely on approval from Mortgage Insurers as they normally have a max total holdings they will cap it at?

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 4, 2010 - 12:34 am

Thanks Terryw/Jamie, I will probably go with the 10% deposit capitalised onto the loan. I dont intend to use any of our own cash savings, will be drawing all costs from LOC. I'm keen to accumulate IP's within a short timeframe so I think its beneficial to pay the LMI.

Appreciate your help guys!

Jac

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 3, 2010 - 10:40 pm

Thanks Jamie and fredo_4305 for your comments.

I have paid LMI on my first property as i did not have the 20% however what your saying Jamie is that it is worthwhile to use it in the early days to get ahead quicker?

When I have enough equity to be drawing 20% deposits + stamp duty for IP's is that the way to go as it minimises your risk?

I have $100k LOC available and I am tossing up whether I use this for for 2 x 10% deposits + costs (as I dont think you can do 5% on IP loans anymore?) or just a 20% deposit + costs.

I know they lend up to 95% on O/O loans – so I guess there is away around it if servicing still is satisfactory, and then the property can be later leased out etc?

Cheers,

Jac

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 2, 2010 - 9:12 pm

Hi Jamie,

What is the companies name? I can look into it.

If you can email the disc voucher that would be great. 

Appreciate you offering.

Jacqui

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 2, 2010 - 12:14 pm

Is it worth paying for a QS if my unit is older than 1985 but the internal has all been renovated? Its a 2 bdroom unit and I need to arrange it ASAP as I have a tenant moving in in 2 weeks time. I dont mind forking out the funds for a QS report if it will be worth it for my tax.

Cheers,

Jacqui

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September 2, 2010 - 12:08 pm

Sorry if thats hard to read, I didnt know how to copy in Quotes properly!

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

September 2, 2010 - 12:06 pm

marsmac wrote:

Hi all,

Apart from the HC suburbs, what do people think about Lake Albert?

My parents own a 4 bdrm brick home with views of the lake, nice area mainly consists of familys.

I'm looking at a fibro 4 br house near the lake and the shops. It's on a big piece of land….something like 800sqm but then again most of the properties in the area are on large blocks.

All the blocks are a decent size. It all depends on how much your paying for the property. Majority of the houses were built in the 70's/80's and most are brick. If you advise of the street I can let you know more details. I know of a few streets which are near the shops which are mainly fibro, not saying they are bad areas though.

Does anyone know if the shops have finished building and how busy is the shopping centre? What services do they have there?

By shops I think you mean the Lake Village Shopping Centre – they have a Food Works, butcher, bakery, chemist, take away shop, stichery etc. The only build I can think of when they changed the Food Works to a builder area in the complex. There is also a corner on Main St near Lake Albert Public School (My old stomping ground

Does the lake itself play any part in the value of the area? Is it more attractive for people to buy in the area if the lake if full or if it's low?

I think it does play a part in the values where the properties have views of the lake. It is in good condition at the moment and is nice and full but there has been issues in the past during the drought etc.

Is Lake Albert a suburb where people want to rent because it's a little out of the city?

Its affordable for families and the houses are generally 3-4 bdrms with decent backyard unlike some other areas.

Anyway, share your thoughts as I'm not a local but am looking at investing in the area.

Marsmac

Hope this helps, only the basics. You can contact me via PM if you have any more questions.

Jac

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

August 29, 2010 - 12:31 pm

Sorry that was meant to read home loan AND LOC for investment purposes against the same security

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

August 29, 2010 - 12:29 pm

Hi Garry,

When you say must not be linked do you mean they have to be separate loan facilities or not crossed collaterised?

Eg. I have homeloan with LOC both with the same security but have IO investment loan another bank? Would that be suitable if I applied for a ruling?

Can the wages/rent just credit the home loan offset account and not get directly paid onto the loan? Or would the ATO not like that as you are technically not reducing the principal only saving on interest?

Thanks,

Jacqui

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August 29, 2010 - 5:48 am

Hey,

Can anyone provide any information on other property search engines/software that is more reasonably priced which offers similar options as real estate investar? I have checked out their membership fees and they are pretty pricey.

realestate.com and domain can do my head in as I feel I waste alot of time looking at properties which not match my investing strategy.

If anyone has found some better search engines or softwares I would love to hear about them!

Cheers,

Jacqui

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

August 28, 2010 - 8:10 am

rachelthelegend,

Do you mind advising which insurance provider is your preferred?

Regards,

Jacqui