Forum Replies Created
My guess is :
annual loan (private and investment related) repayments (including P & I)
divided by
annual after tax income (wages + rent + dividends)
[biggrin]
Live, Learn and GrowLifexperience
A. Look at the potential reward of investing in property and similar (motivation and goal)
B. Consider the worst case scenario with each step (risk analysis)
C. Never give up (basic success formula)
D. Smile (Very Important)[
]
Live, Learn and GrowLifexperience
There are strong inner city suburbs in Melbourne still getting 10% capital growth annually.
The rental yield is about 3.5%.
I would negative gear these properties if I had half the chance.
These babies are making money. You only need about a half million to get in.
Live, Learn and GrowLifexperience
Deposit bonds are like loans, in that they have a few requirements before being approved. (like approval of your first mortgage before they will issue the bond.)
And in my experience the bank doing the mortgage aren’t very good at meeting deadlines for approval.I’d suggest you have bare minimum 14 day period clause in which to obtain a deposit bond before sale goes unconditional.
There can be problems with a deposit bond if you are purchasing in a trust/company structure….beware.
Vendors usually prefer cash deposit over a deposit bond and this may weaken your bargaining power somewhat with a bond.
In my experience they can add a little to the stress of purchasing a property and in future I think I would try to use whatever cash I had available as a deposit instead.
As for brokers, They all promise the world when you first meet them, but only a select few good ones can select the best loan for you and deliver on time. I’d follow up a referral from someone too!
Live, Learn and GrowLifexperience
…………how about the list of empty houses. Can you imagine what it would be like to finda vacant one of yours on the list?
Live, Learn and GrowLifexperience
Maybe consider a “Listed Property Trust” shares with your money.
Good returns and capital growth.
Otherwise $10k won’t get you much, maybe a $60,000 investment property which might be cashflow positive…just…if you can find one. But you may not get capital growth.
You could combine with FHOG to get something to live in yourself. You might get a $150,000 house to live in at a 95% loan.
Or you could find someone to guarantee a loan for you …parents?
I wouldn’t dismiss negative gearing so quickly. It will always make more money through capital growth than any other strategy.
Maybe, you could find a house that after depreciation and tax only costs you a little bit per week. This might give you a bit of the capital growth you wan’t without hurting your pocket each week.
I’d read some of margaret lomas books.
Don’t go into property with an ignorant attitude, the mistakes you make can cost you many,many thousands of dollars and can set you backwards years.
Live, Learn and GrowLifexperience
I use Quickbooks – Property Management ed.
It is pretty good as it will prompt you when rents or bills or bank payments are due. And can regenerate past entries to popup every month/week/fortnight. This saves you retyping things.
It can also print out in an instant profit and loss/balance sheet statements or any other info you could possibly want.
Very handy and professional.Once a week I just cross reference with online banking and get all the paperwork out of the way.
I also keep a file for each statement as it comes in after reconciling with Quickbooks.
I put all petty expenses (repair items, etc) in a folder and enter them in every quarter.
I keep a file for each property and put all info in there that won’t be needed for tax.
Get a filing cabinet if the files start getting big.
Find out what your accountant uses, if they prefer quickbooks or MYOB or whatever, and use that program would be my advice :0).
Live, Learn and GrowLifexperience
I got caught out by an agent showing tenants through hours earlier than they sheduled.
I was half crawling out of my swag which was in the kitchen and putting pants on, hair fluffed out like an afro, paint flecks all over and some clothes and tools and paint brushes everywhere……
The tenant took the place.!
One other time I got caught out in the middle of changing in my car from workclothes witha baseball cap and into a suit and tie to meet some prospective buyers for a wrap.
At 26, I must have looked like a kid playing dress-ups. And got some funny looks.
Live, Learn and GrowLifexperience
I’ve heard that if you get a bit too creative with your tax deductions, and then get audited….. that your accountant can easily stand to the side and say that “they were never told about this” and “Oh, my client didn’t give me full details about that.”
Leaving you , the investor, high and dry.
Live, Learn and GrowLifexperience
Dazzling, I would have thought that a man with your “don’t let anyone/thing stand in my way” attitude would use a 12gauge shotgun to blow a door out of the way………..
I find it funny that you would fumble around in the car for a little plastic gismo button.
:0)
yeah,yeah, I know, it’s for the wife![cool4]
Live, Learn and GrowLifexperience
Terry, I know ING Bank(Australia) sting the borrower for their legal service fees on top of application fee (and all the other stamp duties/titles office fees etc)……yep, they outsource.
I was surprised a bank this big would do such a thing.
It’s hard to argue after the event, and I got almost no warning that I would be charged such costs until close to settlement.
It worked out to be quite a few hundred dollars.
Live, Learn and GrowLifexperience
ah….dammit.
The site now has a
“flood control activated you can only post every 60 seconds” lock that stops jerks like me causing trouble.
bah!
Live, Learn and GrowLifexperience
it
Live, Learn and GrowLifexperience
I thought each star was a warning to pull your head in……….
…But if that’s not the case then,,,,,,LOOKOUT!
I also have to own up to some very short consecutive posts that boosted me up to my second star.
Take 67 posts off me for credibility. I found that the moderator at the time removed my thread with multiple posts but the extra star remained.
Try it if you dare, (apologies in advance to admin if everyone tries and crashes the system).
[disguise][hides under table]
Live, Learn and GrowLifexperience
Aha but oh-damn moment in one. I just jumped into two LOC loans in the last month……bugger.
.
As far as I can see, You seem to explain things simply.
I think a lot of people who get into home loans for the first time would just nod their heads and say “yes,yes,yes,,,,,,,,,um…do I get the loan or not?”
Live, Learn and GrowLifexperience
It’s only $500 for a building inspection – request an estimate of repairs needed for the “termite damage”.
This will tell you where you stand with the building.
The vendor is taking it off the market? I’d ask why. I’d also find out if the RE Agent actually put your offer to the vendor. This smells like an agent doing his own deal behind the scenes…..
….of course I am a conspiracy theory freak…..
….maybe the vendor just didn’t want to sell……..
Live, Learn and GrowLifexperience
beautiful
Live, Learn and GrowLifexperience
They can be high maintainance, as opposed to a wall or a floor.
Lots of moving parts that can break and tenants claiming that the remote doesn’t work anymore (cause they dropped it) can lead to problems.
I personally wouldn’t bother for a rental..
Unless that kind of property was expected to have a remote garage. ie; targeted at inner city corporate accomodation.
Don’t bother for a family home.
[biggrin]
Live, Learn and GrowLifexperience
yep, different accounts!
Live, Learn and GrowLifexperience
Simon. Oh wow, so is that why an offset is better than a line of credit. So simple :0)
Live, Learn and GrowLifexperience
]
