Forum Replies Created
Just relised your staying with parents how about just pump your loan with as much finds as possible and then you I've back in you will be allot more comfortable
Jpcashflow | JP Financial Group
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Hi,
Maybe before you just rent out your home do the following (up to you)
1) maybe talk to a broker (Terry, Richard or Jamie) and see if changing or reviewing your loan structure will help you, not just for now but for the future.
2) Try and see an accountant and see what you can claim while renting your home out and ensure its set up correctly
3) organize Insurance (This will be a cost for you)
4) Also since you have an apartment, You might want to see who is liable for your body corporate / rates, You or the tenant.
Also you might want to look at a back up plan, What if your apartment is vacant for a few months? Can you afford to pay your rent + your loan on your apartment? (maybe have some spare funds to cover three months worth of rent
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi devil
How much capital gains tax you will pay ,will depend On what price you bought the home for what price you sold the home and how many years you have had the ip
Like the guys said its one account just offsetting another
if the property drops and you use the equity that means your overall net position is still less
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Add rates, management fees, accounting fees, insurance, repairs
See if it is positive gear or negative
call the local council for rates
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi
I used to sell a number of homes for a BANK (cant mention who) in the Werribee area (Melbourne), Most banks will elect a local agent or vendor advocate to sell the home on their behalf.
Just be aware that allot of the homes that are controlled by the bank usually achieve a high price because of the amount of interest they get.
EG: This year a block of land (600sqm) with a home that was barley standing was on the market by the bank at $200,000 with a rundown home. I went to the auction to have a look the auction was only 5 houses down, at the end of the auction the land was sold for 310,000 – This guy probably paid 60K more then he should of.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi ray
the best thing to do is get an accountant to look at your figures
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Shell,
Totally agree but I think if you look at most industries and occupations, you will find their are lazy people every where.
I guess this is why some people get far in life and some simply don't.
I know allot of agents who dont return calls "etc" but if you want the home just hunt it down…
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Thanks for the feed back guys
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Why such long hours? Because most people work and the only time they get a chance to sign contracts or let some one view a home is after hours.
You need a new agent!!!
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Why such long hours? Because most people work and the only time they get a chance to sign contracts or let some one view a home is after hours.
You need a new agent!!!
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
That is a good point Jamie,
It’s also a mechanism of fear, scared to commit or do a mistake
But I think in life their so many options that people are just confused,.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
It will drop by .25 points
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
I have but my wife would kill me, the amount of hours lol
I love what info for a living now but I always find time for some thing else
the standard of most agents is very poor
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi joe
possibly as a side project but working with certain people who are experienced in certain fields
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Jewel,
I have only done three RENO deals and let me tell you I still get uncomfortable at times, To me this is very important, I usually perform better when I am nervous or uncomfortable.
With costing the best way to learn is to do it on paper, Look at a few houses on the market and take some photos of your own.
Once you print your photos, try to vision what you think you would improve if you bought the house, Then do your research,
I think being conservative is great, With budgeting you can never be 100% right or accurate,
I am not a trades person so I also found it very difficult to estimate at the start but one thing I would like to share is this….
Before you buy anything, try and make some connections just in case you need help….
What part of Melbourne you are looking in???
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Jewell,
Well thank you very much for your positive reply, I was working in the real estate industry at the time and I spent almost 8 month’s finding the deal.
To get a “bargain” is becoming more difficult day by the day because there are allot of people who are looking for these deals as well.
I think you need to find a motive for why the person is selling their home, In this case it was a divorce. I try and talk to the vendor while I inspect the home with the agent.
I used to sell allot of homes “that where controlled by the bank” and I usually sold these properties above the asking price, When people found out these was a mortgagee they would think that the bank would sell the home for nothing, Which is not always true.
The market is very messy at the moment and even though some people may be desperate to sell they will not sell for free.
Another thing to think about is this: If the property you looking for suits all your boxes and you think you can make some good capital growth out of it “etc” it is sometimes worth to pay a bit more to get the property (in my opinion) the current market conditions don’t justify this action!!!
There is a saying that my grandpa told me THERE is money to be made out of SHI%.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Jewel,
Good luck with your venture and if you need anything were all here to help.
My wife and I (I was working in real estate at the time) did our first RENO project last year, We settled in our IP on JAN 2011 and we sold the property in JULY 2011.
Our net profit was 20K after all expenses, taxes, reno, agent fees, settlement "etc".
The biggest lesson I learnt was this:
• Most of our net profit was generated from "not from increasing the value of the IP through RENO" but from the purchase price.
• The property was listed for 280K through an Genmen agent and i managed to by the property for 220K in the hoppers crossing area.
• Doing research on the property it was realistically worth 250K. We spent 10K Renos and we managed to increase the rent from 250 to 300 a week.
• At the start my wife and I did allot of the work, but their are some very good tradies out there who need like anyone else the extra cash, We bought our Kitchen from bunnings and a trades person I knew installed it for $300.00. We saved allot of time and one by out sourcing
Rather than spending money on RP data "etc" just go to opens in the local area, See how many people go to the open, compare each home, compare renovated homes to renovated homes.
I live in deer park (Melbourne) and I go to a few opens every month just to keep an eye out on the market, One thing I have noticed in this area is this, just say I saw 10 houses in the area, 5 where renovated and 5 where original, the price difference between both types of homes was much of a mucheness, The reason was this; most people in the area are in the process of renovating their homes, so there are allot of homes on the market that have just been renovated but then on the other hand the houses that are not renovated are selling quick, houses in deer park usually sit on large blocks and the house usually sits in the middle, So what people are doing in the area is knocking them down and building three town houses instead.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Jewel,
Good luck with your venture and if you need anything were all here to help.
My wife and I (I was working in real estate at the time) did our first RENO project last year, We settled in our IP on JAN 2011 and we sold the property in JULY 2011.
Our net profit was 20K after all expenses, taxes, reno, agent fees, settlement "etc".
The biggest lesson I learnt was this:
• Most of our net profit was generated from "not from increasing the value of the IP through RENO" but from the purchase price.
• The property was listed for 280K through an Genmen agent and i managed to by the property for 220K in the hoppers crossing area.
• Doing research on the property it was realistically worth 250K. We spent 10K Renos and we managed to increase the rent from 250 to 300 a week.
• At the start my wife and I did allot of the work, but their are some very good tradies out there who need like anyone else the extra cash, We bought our Kitchen from bunnings and a trades person I knew installed it for $300.00. We saved allot of time and one by out sourcing
Rather than spending money on RP data "etc" just go to opens in the local area, See how many people go to the open, compare each home, compare renovated homes to renovated homes.
I live in deer park (Melbourne) and I go to a few opens every month just to keep an eye out on the market, One thing I have noticed in this area is this, just say I saw 10 houses in the area, 5 where renovated and 5 where original, the price difference between both types of homes was much of a mucheness, The reason was this; most people in the area are in the process of renovating their homes, so there are allot of homes on the market that have just been renovated but then on the other hand the houses that are not renovated are selling quick, houses in deer park usually sit on large blocks and the house usually sits in the middle, So what people are doing in the area is knocking them down and building three town houses instead.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Nigel,
Great post!!!
I remember when I was working with a real estate firm in Werribee, I had allot of Buyers agents come in and try and find a deal for their client.
Some buyer advocates where very good but allot of the buyers I knew had very bad experiences.
The first thing I used to ask a buyer agent was this, Have you ever worked as a real estate agent before? Some would say Yes or some would say no, the ones that said no would automatically say, Why is this important?
I personally think that a good buyers agent is someone who has experience in selling a home on behalf of a vendor and also negotiating a deal with the buyer.
I also think allot of people these days do not have enough time to do their own research so if they are paying someone to do their job, pay someone who is not only good but the best in their field.
HMMM maybe I should get into this business, I just love negotiation
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
We bought a house in chile, well my wife did before she met me lol
we are planning to go to chile next year and buy a couple of properties
The returns are 8% to 9% and of course there is some risk
For me the Oz market is really flat, returns are not crash hot and increasing cost such as insurance, rates etc are far overtaking the retina
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
