Forum Replies Created
Hi,
some builders might have a square meter rate you could use as a guide and then just add your p.c items( toilet, fittings)? Also make sure the waterproofing is legit and all works should come with a warranty of some kind also the builder will need to guarenteed their work for 2 years non structural
I read a book by Jan somers and there was a “rule of 72”. Where you times the growth rate by x amount of years to equal close to 72 (70-74) and that is how many years it takes to double in value. Obviously it’ll change as the growth rate changes. Again I read it from a Jan somers book and it’s my understanding
Yep that’s exactly what I mean thanks heaps.
Hi everyone,
Thecrest you said
You mention $300 rent return on $200K = 7.5% gross rent return.
What’s the math equation to work this out. It’s got me beat as to how you did it. Thank you
Good idea but no it’s just me and him. The best solution is for him to keep me on the books for 6 months. Getmy loan then I’ll contract to him.
ive worked for the same builder all through my apprentichip and in july i turn tradesmen and ill be contracting to the same builder. However there is an 80/20 rule that applies and i have to contract to another company 20% of my time. Although im guaranteed work every day the banks still regard me as self employed. i have enough for a deposit now but because of my wage at the moment i can only borrow half of what i can as a tradesmen.
Hey matt are you sure you can get your FHOG on your second house?
Ok so at what point do u pay stamp duty? When it becomes an investment?
As long as you live in the house for a minimum of 6 months within the first 12 months you can
Keep your govt grant and rent it out.I’m young too and I research heaps of books about property investing. Join forums as youve done
And talk to people in your area that are experienced. Get to know your area it’s not to early to start looking at houses. Start getting an idea for value for money so when you are ready you know what ya lookin for. Don’t be worried about asking a stupid question Cas one day well be the ones helping young people.Jake
Thanks for Everyones help. Its great everyone who obviously has experience gets on here n helps everyone out.
So the big thing I’m understanding is there’s numerous options u can choose from and each has there pros n cons. I cant wait to get my first house but I’ve gotta wait until the bank will lend me the money as I’m self employed. Which is a annoying but it gives me longer to save more money.Makes perfect sense thank you. Again I’m really just starting out I’m going to research alot more before I do anything. Thanks for your help
Thanks for Everyones reply. They are really helpful.
Xdrew, yeah I really wasn’t going to be a developer as such. Until I have a bit more equity and a bit more cash behind me or borrowing power I was just going to stick to the 200-250k mark (as you said). And work my way up from there. The “appreciation trap” is this a bad thing? Just waiting for enough equity to make another move could be frustrating.
Catalyst you said I wouldn’t have to negative gear it if I do a good Reno, but I thought it was good to negative gear as you got tax benefits. Or am I misled? But your method of using equity to accumulate property is really what I’m leaning towards. Do you think though by doing this way I would be wasting money on interest?
Again thank you for your comments. Much appreciated
If it’s an IP and your earning income on the property can you claim renovations on tax? Is it the same if your negative gearing?
Also is it true there’s a difference between replacing what was there and improving? Where is the line? Isn’t any kind of repair work improving the property?I’m not saying there different. I just meant
I was going to try stay away from quickly
turning over property for quick profit to avoid
capital gains tax. Instead using the equity to invest
more and build a property portfolio. Am I on the right
track there? Yeah ill let the pros touch the electrics
and plumbing but I’ve got enough experience on every
other trade to fully Reno a home so I’m lucky there. At the
moment I plan to buy an old house. Renovate it pretty quick and
start renting it out and negative gear it and just wait on it until I
can do it again. Does this sound like a good idea?Finspec wrote
At least one applicant will occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or construction of the home.
So does that mean if you fit the criteria You can purchase property, claim the FHOG. Rent it out for the first 11 months then move in and live in it for a minimum of 6 months and keep the grant. Or does the 6 months have to be within the first 12 months?
