[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

February 21, 2007 - 1:28 pm

Thanks again for the help Julie. I called a council town planner and was informed that in Bris the land must be at least 3000 m2 to put townhouses on. I didn’t actually ask if the same rule applies to duplexes.

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February 21, 2007 - 2:53 am

Thanks Julie.

We’re in Brisbane so the zoning codes may be different. The block is zoned Res A, which doesn’t mean a whole lot to me. I will ring up Bris Council and ask for a town planner. There are other townhouses in similar locations on the same street, though the blocks are slightly larger. The block is larger than the 1200 i mentioned as it has an easement driveway though that’s not usable land.

We can’t afford to develop on it at the moment, so are considering purchasing and looking for someone to partner with.

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February 21, 2007 - 2:51 am

Thanks Julie.

We’re in Brisbane so the zoning codes may be different. The block is zoned Res A, which doesn’t mean a whole lot to me. I will ring up Bris Council and ask for a town planner. There are other townhouses in similar locations on the same street, though the blocks are slightly larger. The block is larger than the 1200 i mentioned as it has an easement driveway though that’s not usable land.

We can’t afford to develop on it at the moment, so are considering purchasing and looking for someone to partner with.

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February 16, 2007 - 6:26 am

I’d see what it looks like on your figures. Though I would be aiming for 18 months.

Given the current rental market I’m curious as to why the 3 x 1 year lease, rather than 6 x 6 month to account for the rising rental investment market. 2 small rises in rent over 12 months is more manageble for a tenant that 1 big one after 12 months, and you have additional opportunities to reasses the market more regularly. Obviously this is a case by case situation as the $ rental return isn’t the only consideration.

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February 8, 2007 - 3:39 pm

LW – If you could track down the number for your floor polisher it would be much appreciated.

I’m also trying to find a good painter to paint the outside of the house. The paint is in poor condition and needs to be stripped and redone, though i’d prefer to get someone else to do that than try it myself as a newbie.

I’m also keen to find any good fencer’s who would do a cost effective picket fence, a good electrician and a good plumber. And maybe even someone to install the kitchen (I think i’d be able to do it, but my wife isn’t so sure) We’re looking at flat pack kitchens as an option and they don’t look so hard.(i’ve built ikea furniture before from half baked photocopied instructions, so its probably not a bad introduction )

It’s our first reno so we’re well and truly green, but also don’t have huge wads of cash to throw at it.

Any extra advice would be great.

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February 6, 2007 - 3:38 pm

Thanks LW. I might estimate $30 per m2 into the budget.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

February 5, 2007 - 2:50 pm

Thanks for the suggestions guys.

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January 23, 2007 - 2:30 pm

I subscribed to the email list just to see what’s going and for ideas. I did notice a couple of places advertised that I was already aware of myself. One was a unit on the Gold Coast which had advertised large rental returns, though from my figures was based on the potential holiday letting of the unit with a very high occupancy rate, which just doesn’t happen in reality. The other was brand new units about 2 kms from a brisbane university which was clearly designed solely for OS students. For those who know the area the location wasn’t particularly good and the block would see limited capital growth given the asking price and surround properties. I also believe the advertised return was somewhat overinflated. It seemed to me the units were aimed at interstate “investors” looking for something in QLD.

However, there is still some merit in looking closer at some of the places they advertise, but only within areas you have already familiarised yourself with. IMO anyway.

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January 5, 2007 - 2:53 am

Put it towards the deposit.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

January 5, 2007 - 2:40 am

Hi,

We were in a similar position; buying our PPOR in Nov 04 though for slightly less and a slighly smaller loan, we have similar savings, though in shares, and a similar joint salary. We are now also looking for our first IP.

The best advice I can give that has made all the difference for us, is pay as much as you can on your homeloan and, depending on your loan, either put your savings into shares or onto the loan, whichever you feel most comfortable with. We have been paying twice our minimum repayments for the last year, cut back our spending on consumer rubish (though we still ensure we can enjoy ourselves), spent some money on our home that we felt would give the best ROI to the value of our house, and in that time have built up enough equity to get a loan for an IP at around the same price as our home cost when we bought it. We plan to buy the IP in the next couple of months, with a view to buying another in 12 months depending on the market.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

January 2, 2007 - 6:38 am

Hi Tanya,

What state is the property?

You can list it on owner.com.au and sell it privately. I would only do this if you are confident in your sales skills as the money you might save not paying a REA may be lost in not getting as much exposure to the market and getting less for it.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

December 5, 2006 - 2:16 pm

Thanks Richard. I will see what I can find out but it doesn’t sound hopeful.

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December 5, 2006 - 4:02 am

Well that rules that out. But what is the situation with me going directly to a broker or bank who is based in the UK? Or is it the standard situation with income being in the same currency?

Thanks.

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December 4, 2006 - 1:56 pm

You indicated “(not legal)” which tells me you’d need to do something ‘under the table’ to get the $690 total rent.

Is this one near Brisbane? If so, you’ll find that its leased against Brisbane City Council tenancy laws, which causes insurance issues and other problems.

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November 18, 2006 - 5:03 pm

Great achievement DLPP. We have similar goals re trying to get away from the rat race and are on the hunt for our first IP.

What state was the recent purchase and is it near a capital city or developing town?

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November 14, 2006 - 2:43 pm

Hi Hotshot,

I too have considered looking at the investors club to source property but there are a few things to keep in mind. I haven’t got any first hand experience, only some factual information I’ve been able to gather.

My concern is that they are a club that has a private enterprise at its core. A business which has relationships with developers and a real estate agency. Neil Jenman’s website has a number of articles available on the club that are worth a read. Neil is known for his ethical approach to property. The articles can be found from http://www.jenman.com.au/NewsQuestions1.php?id=176

The actual club part of the organisation seems to be quite possitive (i’ve subscribed to their newsletter), though its the businesses at the centre that are a bit dubious. Particularly given that its titled a club, which generally means, not for profit.

It would be interesting to hear some first hand experiences though.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

November 14, 2006 - 1:55 pm

Thanks trajik. That makes sense. The only issue with that is the (200%?) FBT I would get reported at the EOFY. I assume that would then increase the impact on my Medicare levy (haven’t got health insurance for myself only my wife at this stage. Though the plan is to do it June next year.)

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November 14, 2006 - 3:45 am

Thanks Celeste,

It’s more clear with both your and Bo’s explanation.

I guess my next question is, how do you incorporate stamp duty and other purchasing costs into the equation. Is there a tax benefit on them for the first year or no benefit at all?

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November 14, 2006 - 3:11 am

I see. So to work out the tax I’d get back, I need to subtract the new tax on $68 199 ($16,943.58 tax) from the original $75000 ($17,850 tax) and I get $906.42 tax back?

I used the ATO basic calc and it said that Tax on $75000 would be $19800? Therefore $2856.42 return.

Thanks for all your help.

[KuadeMember@kuadeJoin Date: 2006Post Count: 84]

November 14, 2006 - 2:39 am

Thanks Bo,

So does that mean I can claim back 30% of 50% of the $13602 for my wife, and 42% of 50% of $13602? Alternatively 42% if it was entirely in my name and therefore get back $5712.84?

Sorry for all the questions. I just need to be sure that we can actually afford an IP.