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The accountants that post a lot on here are some of the cleverest too – check them out.
First: Revisit your goals – clarify your vision of where you want to get to. Write down your desired portfolio.
Second: Pursue good finance and tax advice – to make sure your next steps are ok
Third: Do the refinance as soon as you have enough equity
Fourth: Purchase 2nd IP and try to repeat what worked (ie purchasing under market or into a rising market or with value add potential. Ideally all 3 of those things!)
Fifth: Improve your ownership systems so you can handle more property. Make sure your property manager, other team members are all top notch.
Sixth: Go back to 1 and repeat the process.BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I think the important thing is to get an overarching strategy for your portfolio. You have a strong income and some equity to begin but you don’t want to buy overpriced properties that won’t grow in value and rental income. You should spend some time doing a bit of work on the bigger picture so you have a very clear picture of what kind of properties will work together to achieve your income goal. Negative and positive gearing are just the cashflow and tax results of buying certain kinds of properties in certain areas. In addition to these you have more diverse strategies including development, different markets to buy in etc etc. I do a strategy session with any new clients so they understand why they are doing things firstly, then visualise the outcome and then reverse engineer the portfolio to reflect that. Momentum is the most important thing once you begin so you need a good sense of what you are doing, why you are doing it, how to get it done and have a good team around you to help when things get tough. All the best with it!
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi Zen,Have you attended your meeting with Spring FG and if yes, can you please share your experiences? We have a session booked with them next week and I would appreciate your feedback before we decide whether to see them or not.Thanks,Denis
As per the answers above please proceed with caution and read the old posts in this thread there is a history there. Anyone who claims to represent you as an investor but gets a commission from a builder/developer is a double agent and you are not the client you are the stock on the shelf being sold to the true client (the one who pays the fee).
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi gurus
I’m keen to know what are the best Property data and prediction reports/tools that investors are using. I’ve reviewed RE.com.au, Residex and Propertyvalue.com.au however are there better tools out there? I’m prepared to pay of course. Ideally I would like to use / develop, a formula / technique to narrow down searching across Aus. Even better would be a tool that crunches all the data (including ABS) and alerts you when something meets your criteria. Perhaps it’s a pipe dream but I thought I would ask.
Cheers
JimGday Jim
A tool like that sounds amazing, but I am not aware that it currently exists. All data is inherently backwards looking not predictive, because everything that is measured already happened. Its up to us to measure what we can and make decisions about the future. Any long term economic predictions are to be taken with a grain of salt and be aware that even economists on huge salaries with masses of data and analysis in front of them still make errors.In terms of property data its a little easier but the tool landscape is still piecemeal. I use a combination of free and paid tools, I have been using pricefinder for many yrs as a property analysis cma and mapping tool, and I still think its one of the best. I like it so much and got asked by many forum members over the yrs to set up a proper discounted group membership which I have done so if you want cheaper access pm or email me. Other tools all vary in specific strengths and weaknesses and what they actually measure. What kinds of things do you want to measure?
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Sub 2% vacancy – easy
6% gross yeild – not quite so easy but may be possible – do you mean for houses only or include units?
10-20% cg – no one can guarantee this. There are plenty of indicators for potential growth that can be measured but I never promise.More info about your brief, your goals, and your willingness to do things to achieve this outcome are needed. Most of the properties I have bought for myself or clients that ticked all these boxes were problems. IE they needed some cosmetic work, or they were in rough but gentrifying areas, usually both.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Latest update: I can also now confirm I can offer monthly payment plan for the first time (it is still a 12 month commitment, just with a credit card purchased that deducts in 12 equal payments) – after a few people advised me they wanted to join but did not have the full amount up front available. It just took me a while to work out how to do the recurring payments tech is not my first love!
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
@retireyoungfree somersoft was the original ozzy property forum it is where many of us got our start (including me back in the early noughties) and from memory Nathan B was also first educated there. This forum and the somersoft current replacement are still amazing locations full of knowledge, learning communities with helpful people sharing their experiences and wisdom with each other. It seems from your posts you have done some of your own research but are still unsure how to proceed. I would suggest to clarify what questions you a really wrestling with, rather than just asking “is guru x ok?” as with someone like Nathan you will get all kinds of different responses I have had clients who came across who were unhappy but many others are happy with the outcomes. If you know what you know, and you know where the gaps in your knowledge are, then you will know how to find the missing info and take action. Its the action that makes the difference in the long run.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
You should let the goals dictate the strategy – so plan how many properties you intend to purchase and how to pay down the debt on them (either through cash flow via rent or job or capital gain via sales). Its a fairly short time frame over all so you don’t want to screw it up. Personally, if you are already heavy into Melbourne market perhaps consider somewhere else, but I would avoid tiny country towns as they are too risky for your life stage. Houses or duplex pairs could be an option but you need to balance cash flow with growth unless you are happy to just pay them off with your job income and then retire on the rents. Definitely avoid highrise units in Melbourne in areas of oversupply that will kill your retirement plans and I would also be very wary of house and land packages where there is unlimited supply of land too.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi, Just wondering what does everyone do to conduct their own suburb due diligence? I focus on renovations/developments and I find myself spending a considerable amount of time doing up a big spreadsheet in an attempt to track trends in supply and demand for that suburb. Is there an easier or quicker way? I know there are companies (eg: RPData, AMP, SQM & Residex) and commentators who sell this type of research but as a professional property investor, should one take their research as the gospel truth? Thanks in advance.
There are loads of moving parts to my system. It has been developed over more than a decade. There is no quick easy way to just magically understand everything and know all. Regarding Data – there is no gospel except the gospel, so you need to accept it is good but not perfect. There are several paid options which are debated and reviewed on the forum (see group Pricefinder access thread or PM me if you want to pursue that software). Measuring all your own sales records manually is just not feasible unless you have loads of time and covering a small market.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
If it is in NSW and built to the BCA then it might be doable – I would go to http://www.grannyflatapprovals.com.au/ and contace Serge – he is pretty much the man as far as I know for retro GF approvals, if it is in a state other than NSW sorry Im not sure.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
First question: How does Patrick Leo get paid? If they get a sales commission from the developer/builder of new stock BE VERY CAREFUL. This means you are not the client, you are the stock on the shelf being sold to the real client who is the one paying the bills.
Learning the jargon and the who’s who in the industry is vital if you want to avoid sharks and rip offs. These guys may be good at what they do or may not, but my problem with buying brand new properties for investment (for most people) is that there is no opportunity for value add or negotiating discounts to market, so it is the slow boat to china in terms of capital gains usually. There are times where new makes sense but this is primarily for very high income, very busy execs who want to soak up tax and have zero effort/time/input in the journey. Average punters usually do better with 2nd hand property bought at fair or slight discount to market, plus some basic cosmetic value add strategies like minor renovations. It all depends how fast you want to grow your equity.
Secondly, if you are considering locations and markets generally, there are loads of things to consider, but it would seem you need to actually go back a few steps. What are you trying to achieve with this property? In what timeframe? Start with your big picture goals, then you look for markets that have the right metrics to fit that. There is no one perfect property or market for everyone. It all depends. In general hunt for proximity to infrastructure, jobs, major projects, lifestyle destinations, areas with limited land supply, close to water etc etc. Low vacancy rates are essential but there are heaps of other metrics to consider too. Just my 2c – All the best!
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Just an update to this post – over the last month I on boarded the existing members who wanted to stay. There were a few spots left, I and had some PMs from people so those are all taken now, but I had a couple of extra requests, so I asked Pricefinder for more spots. They just said yes and so if people want access they just need to PM or email me and I can arrange.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I cement bagged my own place – it was easy but messy and cheap as chips. I would not however render it is an art and getting a really good result that lasts is the difference, so I would personally pay a pro to render, or consider doing it myself if just bagging.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
PS I think it is about intentions, ie if you bought raw land with intention to subdivide it won’t be cgt it will be income no matter how many yrs it takes. If you can demonstrate it was primarily income producing investment and subdivision is an afterthought I think it might sway the other way but don’t take my word for it I am NOT an expert on that.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I agree with Terry see a good property accountant and lawyer. (he is one of the good ones btw) But I had an investment for a few yrs ago and did this and I didn’t get taxed at income, I got to use CGT discount and apportion the amount of profit based on the percentage of the property that I sold (ie around half). It was a few yrs back not sure they have changed any rules recently but my brother got the same advice doing same thing with different accountant so look into it.
This might help, at least for background reading.
http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdfBuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Ballerina I sent you PM.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
What type of property is it and what approx price range?
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
There are a few each have their strengths, if you have a custom plan you could call RP or APM Pricefinder and ask them for a custom solution but it aint gonna be cheap. For just 1 property purchase this wont work you don’t need a mass solution, the benefit is in looking for yourself. If you want free then combine a bunch of sites like sqm, yip mag, api mag, residex etc and take the time and you can get most of that data. Paid property data versions simplify and speed up the process a little. If you switch from renos to subdivsion/ property development you will get much more value out of pricefinder.
Be aware that stock and speed are only a part of the equation for successful flipping. If you have the wrong metrics in the suburb you will sell it fast but still not make any money.
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This reply was modified 8 years ago by
BuyersAgent.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Consider a buyers agent?
:) But make sure they are not bad dudes too. PS great post benny.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
P.S. I would say 9 IP’s and 14 renos is more than low level success well done! Have fun deciding on your niche.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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