Forum Replies Created
Rajesh,
I think it depends on where you are looking. Land is valuable when it is in scarce supply… but if you are looking say, in a rural area, then an apartment/unit could be more feasible. Generally, body corporate fees can be a killer in a lot of newer apartments, but in some places, units can be far more attractive. Units only really came into being some time in the 60’s, so you can get an idea of their age just by looking at them, often. If the BC rates are too low, it might be that the block is neglected. Too high, and you are paying for pools, lifts, common areas, gyms, cafes etc that may be attractive to tenants, but are they necessary for your IP?
Paying BC fees can be ok though, if there are problems with the IP- because all tenants have to pay, whereas with a house- you have to pay by yourself.
Make sure, if you are buying an IP, that there are no special levies coming up- these should be proposed in the last BC AGM meetings.
Land does not always appreciate- depends on where it is. But houses are considered to be a “fundamental” of investment, in my opinion, because land often *does* appreciate- in good locations.
So many things to think about re buying an Ip- perhaps ask some more general questions, and people can provide you with some more specific ideas.
kay henry
mtairs,
I’d be calculating it on income minus price + expenses. Simple. If you have a buck in your hand after all of this, then that is your positive cashflow. But you’ll have to pay tax on the buck
kay henry
Yep, I agree with the others- get out now whilst there’s some certainties- about amicability, and market viability.
Breakups are a vulnerable time- any certainty at all is a bonus. Foretelling future values of the property is a risky business. It may be worth 600k in 12 months time… or it may be worth 500k- noone can tell.
I’d take the money and go and buy a new girlfriend [biggrin]
kay henry
heya Jeff
I was just gonna say that I think calling it anything Maori or even plays on Maori is a bit… umm… well, a lot tacky. I reckon that picking up on the trinkets and baubles stuff has a lot to be desired- unless, of course- you’re a Maori yourself- which changes things.
Why not just play on the Kiwi accent and call it a “Bickpickers”? hehe.
kay henry
wezwaz said:
“Show people … that you don’t need the money to fund your investment program. Tell people exactly why you are doing this.”
wez, I think I know where you’re coming from here… but the most annoying thing I have heard is when seminar presenters say, “I don’t need to do these seminars- I make [insert fabulous figure here] per hour, and I am only doing these seminars to HELP people.” I think that is insincere rubbish- the seminars are held to make money for the presenter- of course they are. To suggest otherwise is a marketing ploy.
If people want to present seminars and can find an audience for them- well, if they have found a unique product- no issue there. But it is the tales of “I don’t need your money, I am just doing this seminar to share the bucks around” stuff- I find that to be embarrassing.
I reckon presenters should wear a Trump hairdo- that’d pack ’em in. [biggrin]
kay henry
loan,
I have to agree with Nat here- I kind of wanted to laugh when I saw Kiyosaki being spoken of in relation to economics. I guess if he knew about such things, his first book would have been titled, “Neo-Liberal Economy, Political Economy” instead of Rich Dad Poor Dad.
I doubt there will be a global recession, personally- just thoughts of a laybear here- but I have been reading some interesting articles on the American RE bubble lately. I hope people are considering an exit strategy, or it will be foreclosure city there in a year, I reckon.
kay henry
I would accept the $1 if the property I was selling to you, jewel, was $10. I would accept $100 if the property was sold for $1000- ya know- 10% of purchase price.
I can’t believe this area of property transactions is not more regulated. If a purchaser messes over a vendor, then the vendor is entitled to the deposit- which in this case, will be $1… How can that be?
not sure of other people’s solicitors, but I know that 10% of purchase price has always been demanded by the vendor’s solicitor in any transaction I have made, and my bank will not allow for less than 10% to be paid either.
Actually, i have no idea why no money down deals are so popular- your return is not gonna be on the $1 you paid as deposit, jewel- it is gonna be on the 106% you borrow (as per your other posts).
kay henry
Welcome back, C2! [hair2][king]
kay henry
Dazzling said:
“I suppose I was asking – other than legal means – what has worked for Landlords in the past.”
Sorry, Dazzling. I know you’re frustrated, but asking people for illegal ways of dealing with tenants is not helpful to the Forum. I’m locking this thread.
kay henry
I think you’re doing fine, Simon, but some of the old mods might come back (sis!!!!!!!!! PG!!!!!!!!!!!! Chan!!!!!!!!!! *screams* etc etc) Sell off your shares and come back to property, you boys! Actually, I miss Derek too
Posters might also realise it’s not just up to mods to delete inappropriate stuff- posters can also be careful about getting into fights with each other that go on and on forever- people can always argue in private if they like it
Simon- it should be a group effort, but thank you for taking so much of it on.
kay henry
G7,
A few reasons I can think of:
* A ppor might grow equity (but maybe not for the next few years) leading to the possibility of further IP purchases
* Security of not being chucked out of a PPOR
* We all know how landlords like raising rents, so we don’t wanna be old and still renting in a deregulated environment
* A PPOR finally gets paid off- a property we rent never does.
* a PPOR “my own home” is one of those emotional, “aussie dream” things that appears to be some measure of “success” from times past.As a person with no PPOR myself, i hear ya, g7, about the costs. But I also get a bit sick of subsidising my tenants’ lifestyles when theirs is better than mine! I pay for their pool and tennis court etc, when I don’t have those conveniences myself. If buying was as cheap as renting, I would might buy, but I do like the taxable aspects of investing, and would probably still chuck the bucks into IP’s instead of a ppor.
kay henry
Rob said:
“As for being impartial, I think you need to look up the definition of the word moderator or relinquish your moderator status to post freely.”
Rob, when Steve asked me to moderate, he asked me to do two things: to remove advertising and to remove posts or threads that I found to be offensive. That’s it- that’s the entire job description.
This place can become mighty boring if it is a bunch of Stepford wives. the moderators all have opinions- so what? who doesn’t? forget the red stars and just focus on what people say.
My interest is in real estate- many things about it. And I have opinions, and I express them- relinquish my stars because I have an opinion? Don’t be silly, Rob. how is that going to assist in removing ads, etc. I have no “power” issues about being a Mod on here- I don’t look at who has stars and who doesn’t- it’s not really an issue.
kay henry
Noone has ever suggested I am impartial. Not Steve, not anyone, and I am entitled to make posts on here about any matter, as is any other member or Moderator. I would hardly be bothered being a Mod on here if I thought that would force me into an ideological labotomy.
Rob, if it’s fine for you to make many posts about the Investor’s club, and to liken yourself to Jenman… then surely, you can accept that people can make posts about Derivex- shegodfather (as my old aunt used to say).
I thought the closure of hte derivex site was significant. But asking for this thread to be closed down- when you scream about harsh moderation if your own threads are closed down).. well, if peopple lose interest in the thread, no doubt it will close itself organically.
And yes, I think anyone representing a company who has a hissyfit, is behaving inappropriately. I think anyone who says they will not launch a product because people have questioned the product- i think that is strange and unprofessional behaviour- but i’ve always thought that – professional behaviour will always provide a better reputation than will tantrums.
But if you critique other companies, then I imagine you would understand if people critique Derivex. As a policy analyst, it makes perfect sense to me to critique stuff, and to have my own thoughts and words critiqued.
kay henry
Simon,
I do not know anything others don’t… all I am saying is i would not be giving over my financial details to every Tom, Dick and Harry, and I think some people involved in Derivex were very strange and unprofessional in the way they conducted themselves on here, Somersoft, and other forums (pretty much the olny places that Derivex were promoted, weirdly…) I didn’t see anything trustworthy about Derivex, and yet people were called naysayers when they questioned the whole thing!
Our financial details are incredibly private, i think, and I wouldn’t have passed them onto Derivex- i am not sure they deserved the privilege.
Having said that, Simon- i know you were involved in Derivex, and you and I had discussed investing and my own finances some time before that in a private capacity. It’s not you I am concerned about here- it’s that i feel the company and product was dodge.
kay henry
As for me, I ceretainly thought the whole event was interesting- ridiculous, but interesting. Robert- you certainly had more than a fleeting interest in Derivex- you were on the management team!
I think the more dangerous element of all this were the applications that were put in… the mistake was for people to disclose their financial and personal details to Derivex- ugh- i hope there are no implications for those who did that. Obviously, there were some who were so depserate for the latest, biggest thing, that common sense went out the window, and they handed over private details to those who ought not to have them.
Ahhh, well- we live and learn. Or do we?
kay henry
upandcoming,
I think credit is offered to people who have a lot of transactions- not on what they can afford to pay. I just got oofered an unsolicited credit increase (there was an article about unsolicited credit offerings recently in the smh, i think) and there was a box that asked me to tick if i could afford the repayments… thing is, I can’t, so I am not going to take up the offer. No such thing as free money, unless one chooses bankruptcy as an option, and doesn’t pay it back (some bankrupts do pay back their debts, btw).
If I racked up, say 30k on credit cards, and could not pay it back, and chose bankruptcy, I would lose my IP’s, lose my car, and lose hte opportunity to borrow from mainstream banks- sometimes, for a few years, but sometimes forever. I’ve seen this happen to people before.
I know you sound as if you are happy not to borrow from banks, but in terms of OPM, they provide fairly low interest rates and are not overly-involved in your life. Give me that any day over a private lender.
Thanks for telling your tale, upandcoming- it certainly is cautionary.
kay henry
Interesting topic! [thumbsup2]
In a way, it’s been true what’s said about what we talk about- if we only talk about how much money we’ve made- ugh- that sounds kind of lame- and the worst bunch of all are the nouveau riche- old money tends never to mention money- go figure.
On the other hand, I spent the weekend with an ex of mine- and we spent so much time discussing RE and plans, and exchanging ideas about our futures… and we both loved it! I think it really depends on one’s audience- noone loves a bragger, really. Forunately, I have little to brag about, but it’s an important thing to know.
That’s what boards like this one are for- to retain the passion of what we do amongst others who care or want to learn further. I think another thing is that… just because people aren’t interested in our fabulous wealth stories, doesn’t make them losers. There’s many roads to a happy life.
kay henry
I think a chat room would be great. It’s been asked for for so long- c’mon Steve- have a heart [hair2]
I don’t think any advertisements for tradies etc will be helpful- sorry Colin (1 post?) I am not sure we want this site looking like the yellow pages.
Steve, all I can think of is changing the background colour- perhaps some kind of blue or something? Khaki is ok, but it might be nice to have a change.
As far as navigation goes, this site has to be one of the most navigable (?) I have ever come across.
kay henry
A few comments here. I know of a woman who vbought a property 3 years ago in sydney- camperdown- negatively geared- and is now selling it as she has no tenant- and the highest price she hasbeen offered is 500k- a 100k loss- boom boom! (the basil brush boom boom- not the real estate boom). It’s a myth that ALL property has to double every 7-10 years- it’s just a marketing way to sell books and talk up RE as an investment proposition. Some property will triple in a few years, and some will decline. In decline, some people will say they have been ripped off or two-tier marketed… reality is- RE is just another market. Compare a ken done with a Norman Lindsay…
The Investors Club seems likes it;s been around a while, and started off as investors who hung out with other investors and sold properties- not sure what the harm is in that really. Buy and sell? well, i guess we all do that. They just got together and recruited others. My feeling is, it isn’t the most shonky thing I have heard of.
Never sell? well, that used to be the vogue notion. The whole beginning notion of negative gearing was buy and don’t sell. Now, there are just newer ideas on the market. Remember reading those stories of people years ago who would say “I wish I had never sold… I bought a property for 2 and 6, which is now worth a squillion blah blah.”
Some people will make money in RE, and some will lose it. I just see the IC as a buyer’s agent or spotter type thing- flogging off their own properties. Remember, the IC was around before RE.com.au was in vogue… now most of us find our own properties. But i think the IC was for more localised buyers in Qld who wanted support and more localised prices than two-tiered marketing which was rampant at the time.
As for me, I am not a “clubby” type and I find my own ways of doing things, but on here, people are always talking asbout joint ventures and building alliances to make money- not sure there’s much difference between what many people have been doing and the IC.
kay henry
John,
I’m sure you know this was a legitimate question to you. On $650 rent (in karratha??) for a 425k property, it seems negatively geared to me. Neg gearing is all about depreciation and tax return. The reason I was asking is because it sounds like a negatively geared property wrapped in CF+ clothing.
On the face of it, 650 X 52 divided by 425k is slightly under 8% yield. I work out yield not on LVR but on total purchase price.
Wanna help out here, John? I’m not advertising for you- I don’t do that- it just seems like we might be calling apples pears here.
kay henry
