Forum Replies Created
Hi There, the vacancy rate is on the higher side. Maybe you could do further research to work out which type of houses and areas are attracting long term renters, etc. You can do this by asking the agents. Try 2 or 3 different agencies and this should give you a good indication. You could also “beat” that average by buying a property that is already tenanted however has got potential for making the tenant happier (i.e Split system, carport, etc).
Happy Investing
Hi Faith
As an investor you want to build a relationship with a solicitor. Maybe you should start now rather than later…
Happy Investing
Hi Guys, my bad, sorry, Richard is correct, 60% LVR on Lo-Docs under a trust structure for ANZ. I got mixed up as the last two I have "written" using ANZ were full docs.
However St George does 80% LVR under trust structure for lo-docs. Dave, around 8.6% at the moment , not the cheapest one for sure.
Happy Investing
Richard, I personally have ANZ lo-docs at 80% LVR with a corporate trustee… I also have lo docs with St George – 80% LVR…
BTW, no one mentioned Pro Pack, or any pack for that matter.
Happy Investing
Hi Dave, sure mate, ANZ, St George just to name a couple. Lo-Docs, 80% LVR, trust structures, no worries.
Happy to help, please feel free to contact me if you have any further questions, etc..
Regards
Hi there, $3000 to set up a trust is very expensive; I paid around $1,000 for each of mine (3 so far).
There are a lot of “good” banks out there that will lend you money using a trust structure; you just need to work with a good broker. I get loans for my clients and myself with the “better” banks ALL the time. It’s not hard at all.
In regards to asset protection, tax benefits, etc, it depends on your personal situation, go see a good accountant as it would depend on what do you want to achieve.
Happy Investing
Hi there, based on your numbers you have around $60K in equity (80% LVR) that you could use to purchase another IP. You have not mentioned if you have credit card debt, car repayments, etc, etc, however with an income of $120K you should be able to borrow to purchase another property.
$60K is 20% of $300K for example…
Happy Investing
Hi TQman, I recommend you “device” a plan based on what do you want to achieve and then your plan will tell you if the CBD investment is better than the house on the suburbs, etc. Property investing is just a vehicle to get you where you want to go.
Apartments are “cheaper” to hold, however offer little or no possibilities of adding value and grow at a lower rate than houses.
Happy Investing
Here is what I think:
1. The property is not really positive cash flow as the interest charged is still the entire amount – you have just avoided paying some of it in the first few years. Cash flow is determined by income, plus tax breaks, less expenses. Your 'expenses' are still the full amount of the interest charged. You are just deferring payment of it.2. Reliable information about the tax deductibility of capitalised interest on an investment loan is a grey area. If you are using one of these loans, there is a high chance that you will not be allowed to claim the increased interest as a tax deduction in future years.
3. Most importantly, the scheme relies on rising markets. You cannot predict future growth. If you don't get capital growth, you will end up with a loan higher than the value of property. In short, you will have dug yourself into a hole of negative equity.
Happy Investing
Hi there, with Brisbane being a bit “hot” at the moment, you could be looking at around $1,250 x sqm. I could be wrong. I had a property in the Toowoomba area that had potential for sub-division, development, etc and after getting a few quotes for developing, the numbers did not stacked up as the local builders were so busy that they were over quoting and telling me to ring them back in six months, etc, etc. I even got some at $1,500 x sqm !!!!
I know Toowoomba is not Brisbane, however good luck and let us know, I am curious to see how much builders are charging these days in Brisbane.
Happy Investing
The US is going to continue to print some more money to help with the declining property market and the also “declining” consumer sentiment. So the $US is going to to be worth less, at least in the short term. I suspect professional traders will continue to make a killing on silver and gold shares.
Happy Investing
I think L.A Aussie (Marc), sums it up very nicely. Just by reading, one can tell he has been there…done that.
I would follow his recommendations; and especially the most important one: never ever "downgrade" a property from 3 to 2 bedrooms…
Throw some work – parties (beer and steaks) at your new place with your mates and get them to help you out, you will also inspire them to get in the game. There is a lot you can do in six months. Enjoy your new property
Hi there, Robyn Grinter, from Gems Properties, is the ‘equivalent” to Steve McKnight over in New Zealand, 303 properties in 3 years, last time I spoke to her, which was last week. A great property investor and also a personal friend and mentor. She runs property investing courses in New Zealand, etc, send her an e-mail: [email protected]
Keep that energy up
Hi al221
Congratulations on taking the first step. Fixing your rate will give you that peace of mind. However be mindful that when you fix, you have restrictions when trying to pay down the loan as you are planning. There are products that allow you to fix a part and have another portion variable, pretty much the best of both worlds like pete suggests.
In regards to the banks, I would choose one of the major banks for now.
Happy Investing
HI Shaun
It seems your bank no longer wants to work with you. Time to look form those that do. Very likely the person that told you to sit tight and do nothing has no property and can only dream about the returns you are getting from your properties. Do not let them slow you down.
Keep it up mate, the returns you are getting are awesome,
Happy Investing
Hi MCGJ,
A lot of areas in Sydney are for sale now; your intuition is serving you well. As for investors, sophisticated investors are buying like crazy. By the time you hear “investors are back in Sydney” that is the moment you should be taking profit, I will.
Happy Investing
I have a few other properties with similar characteristics; I was just off loading … another one…
The property is gone now, another happy customer. When you leave something on the table for the person after you, the results can be great.
Thanks for the feedback.
The selling agent rang me yesterday saying there is another party interested in the property. Also, the cool thing is that I always have an exit strategy when I buy, for this property is to get a tenant in and it will be cash flow neutral. This property has also development potential (950 sqm) with rear lane access, etc.
It is good to have choices and to be able to afford adding another property to your portfolio without having to start chopping trees down (or bowing to requests from a stooge).
Happy Investing
Hi There,
– If you sell, do you have a better place/investment where to park your profit?
– Depending on your financial “position” you could use equity from this investment to buy another property.
How’s the cash flow from this property? Is it “cramping” your style or can you sleep at night no worries?
I don’t know Kevin Turner, however I do know that areas with all the fundamentals in place hold value better. The mythical 10% growth per year quoted by the gurus has hurt a lot of people. It AVERAGES 10%, over the long term, however it doesn’t grow 10% each year. Growth in Brisbane during 06 was around the 4%.
Take Sydney for example, the 10% “rule” is not applying… at least in most areas. This is a good thing though.
Just some thoughts
Happy Investing
Hi Jambv, We have done this in the past. If your area has got “big” companies (mining), just prepare a little proposal (photos, location features, etc) and go talk to the gatekeepers in these companies. I have spoken to HR managers and they seem to be the decision makers. Be flexible on your approach as sometimes corporate tenants require fully furnished properties, etc.
This is what I have done:
Option 1: no furniture, all maintenance/repairs included, including looking after the lawn, etc..
Option 2: Fully furnished + maintenance + cleaning.
Option 2 is where it gets really good as you can have great leverage.
Remember the key here is not to go and buy the stuff first, the key is to sell the “package” first to the company and then get the furniture, etc.
When selling focus on location, super quick maintenance and repairs turnaround, etc, etc.
Good luck
