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@cjaysa great kitchen and great install cost there, getting the install under 1k is much harder in our areas but if you can do that you will almost always get a great outcome. My cheapest install ever was 700 so you are winning!
BuyersAgent | Precium
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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
all in all it boils down to the individual client and their goals and objectives.
I am sure Site Manager will convince himself the Upper Coomera has some redeeming features but it is not for me.Totally agreed everyone needs to set their goal and work backwards. FYI I don’t in any way peddle the area just noting to the OP that a major westfield might finally see some injection of life there after years of under delivering. There is a big risk people come on here to convince themselves of the plan they already made in their head, I don’t know how many actually think things through and come with a totally open mind, but a lot wouldn’t.
BuyersAgent | Precium
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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 All,
As a beginner investor, I’m looking for investing under $300k property for Cashflow Positive / High Yield property in VIC state, it can be any type House/Town House/Apartment, it must be existing one as I do not prefer to buy new OTP or H&L package.
Where about that you’d suggest me to invest ?
Note: From Steve McKnight seminar, he mentioned that Ballarat VIC 3350 is one of his property investing location, so I guess he can’t go wrong in selecting the area ?Hi @sitemanager to just answer your question for decent yields in VIC without too much risk I would consider Ballart, Bendigo, and Wodonga as viable options. Mildura possibly at least the vacancy rate is tight but I haven’t checked the economy there recently to know what the current vibe is.
BuyersAgent | Precium
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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
It was touted as an area to invest by one of the so called INVESTMENT CONSULTANTS touring canberra
Hi Gaurav
Nice speaking with you this morning :-)
Those consultants are glorified real estate agents flogging overpriced off the plan properties for massive commissions. Steer clear.
Cheers
JamieThis is some very good advice.
In terms of the area historically it has been a gonna gonna for a long time, but the Westfield might finally turn it into a real growth area. I like the corridor from Bris to GC as a whole, first invested there 13 yrs ago, but due dilligence and finding value is the key.
A very quick pass shows established options cheaper if you want them – eg hypothetical something like this?
http://www.realestate.com.au/property-house-qld-upper+coomera-121067138BuyersAgent | Precium
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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
Cheeky banks, how could they ever be dishonest???
BuyersAgent | Precium
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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
@adriannqld good advice.
BuyersAgent | Precium
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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
Thanks @xenia-alexarealestate I have been here for a while too, another valuable community and a different group on the whole. Steve has had his critics over the years but on the whole I really like his style, methods and ethos too.
BuyersAgent | Precium
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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 @stevehank this is a common issue, it takes a while to get the feel of different data sources, some measure house vs unit, others only the total market, and still others by the bedroom. Personally I have a few paid data sources and I like to check them against each other, not that one is always correct, but the more source points I have the better picture I get. For example your suburb:
One data source had the house median at $370k at end of 2014, it has fallen a bit but on a very small sample so that could mean low stock and statistical anomaly or falling market with no buyers, all based on actual sales.
Another has Lower Quartile:$306k
Suburb Median:$388k
Upper Quartile:$424k
but this one doesn’t differentiate between units and houses.Another has a median list price (current for sale not sold) of 3 bedroom homes as at $355,500
Again, small sample size, low stock levels can mask median figures and make them very difficult so alone it isnt a magic number. I agree buying below median is a good way to reduce risk when investing but so is knowing your market. If you really know the area and your gut tells you that nothing is listing below a certain price and the market is strong then your median ballpark might be ok. Another way would be to cross check the medians of nearby larger suburbs because their data set is larger leading to better statistical validity. If you know that suburb x is 3 times bigger, and around the same price, then look that the median over there to check against your suburb.
BuyersAgent | Precium
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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
The big question is what are your goals and does this help you reach them? Each purchase should fit the strategy that should fit your goals.
Region is ok but deal not super inspiring. How many beds is it and how big?
That strata is high, and could go higher if its a big complex, generally if buying in Southport I would buy a small walkup block, no lifts, within 2-3 streets of water (unless you want to spend for waterfront) strata under 50pw.
BuyersAgent | Precium
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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
@madison889 Firstly I will just say please consider getting good advice from an independent experienced accountant. This is a specialised area and it is always worth getting good advice it will save you in the long run. My thoughts are potentially worthless but should get you started at least.
Secondly I have no knowledge of how capital gain events are applied to the pension, this is important and worth checking with the accountant as per above.
Thirdly the cgt will depend on your ownership split, you will pay a little less if it is 50 50 and from your wording I will assume this is the case.
Fourthly the cgt 50% reduction is the biggest policy you need to know about for properties owned over 12 months. Basically half the total gain is taxed.
Fifthly renovations can be added to the cost base, repairs claimed, so either way if you sell you wont pay double tax on the blinds or gain.
Sixthly the mortage total isnt deducted, the ATO doesnt care whether you bought for cash or had debt, just that you made a gain, but mortgage discharge fees will come off the taxable gain and sale costs do to.
Now – for a laymans rough check over this is what I would assume in terms of cgt numbers are very rough you will need to work them out properly
85k purchase, sale 300
total gain 215000stamp duty and costs at purchase 3000
reno 5000
sale costs 8000
taxable gain 215000-16000 = 199000
50% reduction due to length of ownership leaves taxable gain = $99500
ownership 50 50
total taxable gain each = $49750 (amount to be added to your pensions)NOW – If you are considering selling due to tenant problems, can I ask why don’t you terminate the lease at next review, put in the new carpet and blinds and put a better tenant in? It would save selling altogether and keep the rental coming in. Of course if you need to sell or want to for other reasons, then go ahead I just wanted to ask.
BuyersAgent | Precium
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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 Thanks for the response. Yes you are right that they take commissions etc… What I am looking for specifically is feedback on their financial services (I am looking at Financial Services as whole investments, growing your wealth, property, insurance, superannuation, health insurance), I am not particularly looking at Property alone, though I am keen on property.
With RegardsMuraliIf you want a good financial advice company there are plenty that do it well and don’t muddy the waters with property sales commissions. You want to be the one paying them as much as possible, and you want to know they have a track record. Separating the property choice keeps it cleaner. I have discussed mutual clients and heard good reports with boutique firms like Canopy Private (Sydney CBD), and The Wealth Connection (Thirroul)
If you want an all around accountant who is actually a property expert (personally and via thousands of clients) you should call Dave Shaw from WSC Group (offices in several cities – Your IP Mag award winner) I know him personally and find him to be excellent in all regards. (No I don’t get a commission for saying that)
http://wscgroup.com.au/articleGroups/newsletter-march-2014/message-from-david-shaw,-ceo?subSiteId=1BuyersAgent | Precium
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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
We are thinking of moving to Umina beach and rent out our PPOR. But is this tax wise a good idea? Is it maybe better to sell our PPOR and buy another house to live in?
No – not really.
You’ll have a large non deductible debt (Umina) and a small deductible debt against your previous PPOR (now IP).
Might be best to sell the PPOR (CGT free) and then place the funds against Umina (perhaps in an offset just in case you decide to rent this place out later).
In any case – talk with a good accountant about your options.
Cheers
Jamie^^^ what he said.
BuyersAgent | Precium
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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
Paint is the biggie, then floor coverings, then some street appeal with garden tidy/new mulch etc. Next is a reverse cycle airconditioner. Particularly in more extreme climates and with shift workers this will add rent.
BuyersAgent | Precium
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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 Nandita Rao, Did you finally go with Spring Financials can you provide some feedback on them? What are the drawbacks?
RegardsMurali@ilarum unfortunately many come to ask a q but don’t stick around to learn and participate. As you can see above the companies that take commissions for recommending new properties and advertise as financial advisors or investment gurus are in a conflict of interest. Some are in trouble with ATO for a range of blatant problems, others not but still a conflict in my opinion. At least sales agents are (mostly) honest about the fact that they work for the vendor.
BuyersAgent | Precium
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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
Couple of tips:1. Search the forum before posting https://www.propertyinvesting.com/topic/4995222-new-investors-yale-property-solutions/2. don’t use your real name (I assume it is an alias)
Cheers Ivan@jonothornely 2 great tips there from @redwood. There is a huge property spruiking/marketing industry that has a lot of problems to it. In my view it is worse than used car salesman because at least someone selling cars won’t promise the car will make you rich. There are lots of dishonest players, proceed with caution.
BuyersAgent | Precium
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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
thanks i believe a good broker is vital, because I’ve only had one so far but since then I’ve learned i could get better deals elsewhere. its all a learning process, the more knowledge you possess the more power you have.
Correct @cs_rlewis – having a great team speeds things up and make them easier. Overall it is a balancing act between LVR and DSR. You want growing equity (LVR goes down) and growing income (DSR goes up) if you can balance these two with every purchase you maximise how many you can buy. To further speed things up you add some equity and cashflow yourself through market growth, renovations, extraordinary deals, or developing (or any combo of those). I see too many people buy 1-2 or maybe 3 capital city newish properties all together in one market with no value add potential and low income and they don’t see the wall coming but it comes, and then they have to stop and wait a whole cycle before buying again. Spreading things out (location and property type and value add method) gives you more diversity. Finance is a critical component of the equation but also so is the property selection, and price paid. Get either of those things wrong and you will be stuck.
BuyersAgent | Precium
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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
One for the accountants and brokers but here is my 2c. The loan purpose is with your bank, this is different from the 6 yr ppor rule which is about your capital gains tax liability with the ATO.
Re the ATO – yes you are allowed to have a ppor, then move out (say away for work like you stated) then rent it out, and as long as you dont buy another ppor you can hold the property for up to 6 yrs, then if you sell it (say after 5) ALL CAPITAL GAINS ARE STILL TAX FREE.
Re ongoing tax claims – yes you can rent the property, which then has to be declared as income, but you can claim interest costs and management fees. The issue you will need to check with your accountant is (depending on how your loan is structured) whether you have a nice neat way of actually claiming and tracking these things.
With the loan, the original loan was set up with the bank as ppor, most likely as principal and interest payments. If you want to reduce your cash costs, many investors would choose to go interest only at the point so you might want to call the bank and request interest only payments. I would be less concerned with the interest rate and more concerned with getting the right set up, but whether you can leave the original loan in place with the lower rate after you have moved out I will leave that to the accountants and brokers.
BuyersAgent | Precium
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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
@lblanden As you can see even from a few posts above people have very different viewpoints. Personally I am in love with property and it SUITS ME JUST FINE that many folk aren’t. If everyone was into property the competition in the market would be so much fiercer. If you stick something (anything) out for long enough you become better than all the jonny come latelys and making profits get so much easier. For me property is that thing and after 15 yrs it gets to be more fun every year. @benny has got good advice above too so read that twice!
BuyersAgent | Precium
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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
The mining sector as a whole is being hit pretty hard right now. I have been doing ok in mining/resource towns for around 10yrs, and will continue to invest in them at certain points but be very very careful. Unless you have real knowledge about what is being mined and why it will do better than the rest in the next few yrs you are just asking for pain. I would say more pain for iron ore and coal in the short term, so no point buying into those markets. Lithium perhaps? Timing is everything for those markets and getting that wrong can mean heavy losses. I am also of the view that property is only worth a bet on a solid trend with a mine, if you want faster buy and sell trading stocks are a better fit to make a quick buck. I recently bought a few stock in a gold miner that was finding high grade ore, they found some more and prices jumped 50% in 2 days, but with the current down trend over the last month I still haven’t made any money!!! Research and education is the key.
A summary point for me would be its ok to have some exposure to mining town properties but this should be a small percentage of your total portfolio and you should know what you are holding and why.
BuyersAgent | Precium
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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 putting my 2 cents worth in – I found Depreciator great to deal with. Reasonable pricing and they give a discount for more than one property and for each consecutive property you purchase.
@leoniey5 they are good aren’t they? Scott for prime minister I say.
BuyersAgent | Precium
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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
