Forum Replies Created
Hi Longroad,
I agree with you that the prices might be too high for you budget but be rest assured that this is the best time to buy in this area.
I wouldn't advise you to look for the units in this area siply becaue there will be few more developments in the near future, they are too expensive as most have water views and the older type units won't get much appreciation in the long term.
Wherever you look make sure that you get your homework done becuase with your budget it is more likely you will purchase a unit or tonwhouse in a decent area vs a house with good land.
unless you strategy is geared towards buying +vs properties or similar.
good luck.
Hi there,
You should get in contact with few agents in the area and have the property evaluated with them usually free of charge if you know what to say! Secondly you can pay independent evaluator $300-$400 to evaluate the property.
Thirdly you can purchase Reports on your area/street and the PPOR through this website http://www.rpdata.net.au
Also searching popular website such as domain.com.au etc will give you some indication of the prices in the area but will not be accurate when comparing them to the 3 options that i given you above.
hope this helps..
cheers
Hi Elka,
The commercial property is retail space which has 2 carparks, garage, and two floors of office space. It is on a good busy road with access to the local shopping centre and it also has security gates on the weekend so there is no possiblity of thieves stealing anything from the premises.
I do believe the tenant moved in straight after the ip property was built. I'm not sure of the details that you have mentioned above as the agent is preparing them at the moment. The things you mentioned will be very helpful to make sure i don't make a big mistake and be left without a tenants few months down the track if i do purchase the commerical premises.
Thank you for all the great tips and i will look today for the book you mentioned above.
I will give you more info once i receive all the details.
Cheers,
Michael
Hi Elka,
Thank you for your help! It definately makes it easier once you know someone that has a commercial property and has gone through the difficult and good times as you have.
We are looking at a commercial property that is in a good location, fairly new, has long lease and decent return.
We have found such a place but we need to look at the lease contract to determine if the existing tenants are going to extend their exisitng lease for another 3 year period.
Currently their two year lease is expiring soon so i might need to get an assurance that the current tenants will extend their lease.
What other things should i look out for before i purchase the commercial property when it comes to the lease agreement?
Thank you once more for all the help and the links.
Michael
Hi everybody,
Thank you for all the help! I will look at approaching few lenders and Simon when i gather more information on the commercial property i will email you with my details.
I will let you all know how everything is progressing.
Thanks once more!
Michael
Hi andrew,
Don't get confused here. the basic principle the banks look at is as i mentioned earlier. If your salary is $1500 a week vs $600 obviously this will have a greater effect on how much you are able to borrow from the banks.
If you had i.e $1500 you will be able to purchase another 2 ip with some deposit down and having 2 ip that you purchased earlier acting as a security.
in your case i would still rent for another year or so at least as the syndey market isn't going to recover anytime yet (in most areas) so you will be able to utilise your money to buy more positively geared properties before you decide to purchase a home that you want to live in with your girlfriend.
i think you any very good position as marc stated earlier.
you both aern good incomes, you are young, your properties appreciated and you got less debt owing.
Don't worry too much about steves formula as his decision was to go positively geared and as he done it in the right time cheap buys were everywhere in early 90's!
As a result he was able to get quite a few properties before the boom happened which helped him even more to purchase more +ge properties!
In your case you have 2 ip that are worth 600k+ and you owe only 400k. there is no problems with your 2ip and what you should concentrate on is paying of your home that you live in so that you will be able to breathe easier and buy more ip so they can work for you in the short and long term to bring you god income.
Be careful not to be greedy and purchase an investment that is a lemon which you might pay 500k as this will bring you backwards few years and you will miss the opportunities that will exist in the meantime!
if you keep on going the way you are so far you will be in a very good shape in 5-10 years time!
good luck
Hi Longroad,
With te central coast generally looking at the history properties preform better than on the southcoast of nsw. This does not mean however if you found an area in south cost that after you done your research is very promising to get you appreciation and low vacancy periods then by all means buy your ip there.
if you are looking at the central coast have a look at terrigal, avoca area and the surroundings as the propertie prices will appreciate in those areas in the next boom.
Rental is good and there are low vacany rates when you pruchase in the good street/suburb.
hope this helps
Hi there,
i have to agree with Lia here because if you are able to borrow 90%+ to purchase an investment property if you do your homework you can find a positively geared property in an area that is likely to boom and be stable in the short and long term.
As this is you first investment i suggest that you don't sell your property where you live because it doesn't make so to do so.
The appreciation is so small that refinancing would be your best option.
Hi Bronte,
I agree with mark here. i personally had the experience of not needing to renovate becasue i bought the IP at the right place at the right time which was also positvely geared!
the place i bought the property was in Port Augusta in SA which 3 years later all the experts are voting the place to be the next place invest! they are right however i gained most profits as a result of buying them at a right price of $84,500 for two maisonettes which returned $120 one side and $110 the other!
Make sure you do your homework and buy in the right place at the right time! Renovations should not be your focus here as the return will never be great if you bought them in the bad area or at the wrong time!
hope this helps.
michael
i agree with Bharat..
if you really want to be a successfull investor you must free up your LVR by either moving into a smaller house or into a unit. Your problem is not the property value that you live in but the ability to borrow because you owe soo much money!
Before you do anything you should know what your short and long term goals are as this will determine which is the best option for you.
One option is to hold on your existing property as you might think that it will appreciate in next boom depending where you live.
Then after you wife starts working in one or two years then decide to buy a positively geared property or very close to being there.
Alternatively you might decide to buy another negatively geared property but you will have the same problem as you are having now.If i was in your situation i will look to maximise my IP portfolio and the profit by selling the property you live in now, move into the smaller house, use the cash and LVR to purchase 2 or 3 IP that are in a booming area and are close to positively geared as possible.
By doing this you will get more rental, appreciation and you will be able to invest after a year or two after again so in 10 years you will be bale to pay most of your IP and have a great rental returns.
Another reaso is the ability to claim depreciation, management costs , accountant cost, reaovations etc.
hop this helps
michael
Hi Andrew,
The bank will look at the repayments per month, equity in the positively geared property you purchased and your salary.
Assuming you put a 10% deposit and make the two properties positively geared the bank will most likely won't lend you $200,000 because of your low salary. Especially if the negative property is evaluated under the purchase price and you having no deposit and wanting to finance 100% of the loan.
the best way to do it would be to wait 1 or 2 years for your second property to gain some value and history of having stable tenants or go together with your girlfriend and buy the negatively property so you will be able to purchase it.
michael
Hi Ben,
I had even worse thing happen to me! i had a house valued at $67,000 when the house purchase price was $84,000 !!
what i did is compared all the other similar properties and told the bank that they are wrong but they still came back with the same price as in the town i purchased they used the same valuator and had no other!!!
beacuse the property was $84,000 and was returning $120 and $110 rent per week as it was a double maoisonnete it was a grat buy!
looking at it now i was glad i bought them as i did my research. the value now is $165,000 and i'm getting $130 and $120 per week rent!
just remember do your homework! if it's not a good or better deal that the comparative prices in the area then pull out!!!
michael
Hi,
What you need to do first is actually have a investment plan and strategy of where you want to be if i.e few years etc.
You need to choose a strategy that you would need to use in order to make big $$$$
Nobody will serve you the information on the silver plate.
FUTURE IS DETERMINED BY WHAT YOU DO TODAY AND NOT TOMORROW
YOU FAIL TO PLAN YOU PLAN TO FAIL
[bobby]
What you could do is actually buy 6 or more +ve properties that you will be able to borrow more by re-evaluating them after ie 1 yeat and buy land near the areas for the long haul that will boom based on your research.
YOUR GREATEST ASSET IS THE INFORMATION IN YOUR HEAD AND THE AGE OF YOUR INFORMATION
[biggrin]
Please clarify clearly of what the deal is and what you want to achieve.
[blink]
Hi,
The fisrt think you should do is save as much money you can while educating yourself and talking to the right people to know do’s and don’t in property investing.
To start with read Rich Dad Poor Dad by Robert Kyiosaki
It’s a great book for anyone.
Second is Newest book by Seve Mcknight which i forgot what is called ! oooops. I have the old one which is called 0 to 130 properties in 3.5 years.
Keep us posted on how you are going..
It’s good to see people of your age already thinking ahead for their future and their goals.
Couldn’t agree more!
[biggrin]
You are gotta be kidding!
Hi Calm,
The first thing you would need to do is to ask yourself why and where do you want to be in the future.
You need to make a investment plan and have reasons behind it as we all have different goals and strategy.
No strategy is wrong or right if it is executed properly.
Once you establish the reasons of why you want to be a property investor and once you know the solid reason of what you want to achieve and have your target then look at what you strategy is going to be.
these are not in order but tips.
don’t bet on mortgage advisor to find the wealth for you. You greatest asset is the information in your head and the age of your information.
[biggrin]
