Forum Replies Created
Thanks Pendo, great site.
LA Aussie – YES, definately! I thought I was a stay at home mum but I'm running a business.
I wouldn't mind checking out that book also.I like the way you're thinking Devo!
I think all this whinging about tradies is pretty pointless. Couldn't we all just bag every profession!
I saw a solicitor that was charging me $350/hour. After my first appointment with him I received a letter that was a summary about what we had discussed. There were heaps of mistakes in the letter and it also didn't even make sense.
I was prescribed some medication by a specialist doctor who was probably charging about $400 an hour. I was assured it was safe to use. After six months I receive a letter saying to stop taking the medication immediately as it may cause liver damage.
Give tradies a break, they're just doing their job. They tend to have a different culture where favours are sometimes paid with beers….who cares.
Mystery and other investors – do you expect Bris to continue at this rate or do you think affordability issues will affect Brisbane's growth? Quite a few people I've spoken to in Bris lately with well paid jobs and 1 – 2 properties want to invest in property but can't afford it. Is this a common scenario? Linda
So what have you been buying;
houses?, units?, subdivs? – neg geared, pos geared?
What has happened to those investments in 12 months and what was your plan when you bought them?
If they are neg geared, has the cap growth kept pace or outpaced the shortfall?Cheers,
Marc.
[email protected]How have your investments been performing Marc? Linda
It's interesting to hear people's perceptions. My husband's an industrial plumber and we gladly pay a plumber or electrician for their work on our rentals and consider it good value.
One of the properties I purchased stated 'as is'. The terms were that if stove, light switches, etc weren't working they wouldn't have to fix them upon settlement. It was a deceased estate being sold by public trustees and I was still able to state that I wouldn't continue with purchase if I wasn't satisfied with the building and termite inspection.
Our tenants always have newer, more expensive cars than us!
The real problem is that for the last 15 years University has been sprouted as the best thing since sliced bread while our technical schools were closed down and the government did nothing to provide incentives for apprenticeships for the last 15 years.
Now that there is a massive shortage of skilled trade people the government has just started to re-open technical schools and encourge over forty year old to do apprenticeships in trades. Also a lot of the already skilled tradespeople will be retiring soon! duckster
True comments duckster! Also just for the record I don't think I'd like to fix anyone's leaking toilet for under $1000. Yucko!Yes you can lay floor tiles over the top of old. I would not recommend tiling yourself though as it is very time consuming for inexperienced people. You may need to scorch (scratch) tiles first.
I had to go out and didn't finish post.
My strategy has changed to have good cashflow/deductions as well as growth. I now believe you need a combination of growth/cashflow investments. I'm still quite confident of Perth's market being steady for well positioned properties over the next few years. I plan on selling prop 2 in about a year – pay off mortgage on PPOR, and a chunk off mortgage Prop 1. We're thinking of planning a 3 month trip up north WA – Hubby's Long service Leave – which would be really nice with our 2 young kids.
After that will have to reassess. Possibly purchase another property that will be changing zoning to higher density. Sub-divide and sell. Pay off mortgage on Prop 1. Develop Prop 1 into 12 townhouses. Keep as many as I can afford and hubby can retire.
I was looking at a 2 bed duplex, 5 yrs old, 350 sqm block, potential to add value in Bris 15k from city for $260k but missed out. Market in Bris is hot and I'm not that patient to keep searching so will focus on my Perth properties and pretty prop 2 up ready for sale.
My properties combined have gone up approx 250k+ in past 12 months and are well positioned.
Regards, Linda
Hi Marc, I purchase for growth. All neg geared. Capital growth has hugely outpaced the shortfall. My LVR is 33%.
My original plan was to purchase high growth properties and develop. Then I realised how much work was involved, risk, and financial constraints. Unless you are doing a small project you will have to either do a JV or sell some of your properties off the plan. When you make a huge profit the govt takes a huge chunk of it and you've done all the hard work and risk. I decided it's probably better off to purchase already developed properties with high cash flow (and great tax incentives and growth) and never sell – hence no tax, and less grey hair.
I borrow 110% and don't purchase unless I'm convinced the property will grow in value by more than what I have borrowed very quickly. I target areas that may not be hugely popular but has to have heaps going for it.
Prop 1 9ks Perth, 1 street from river 1586sqm block triplex
Prop 2 11ks Perth 1 street from river, 1 of best state schools in suburb duplex block 780sqm
Prop 3 11ks Perth 1 of best private schools. 816sqm block huge 5×2 house, best street
Prop 4 30ks Bris – townhouse, views river, Bris, gone up by 40k in 3 months
If I subdived 1st 2 properties they would be worth heaps more and the rent is jumping up by about $75/wk every year. By next year all of porfolio should be neutral. Prop 3 is my PPOR with very small morgage. LindaPerth people aren't crying – most started investing in Bris,Melb Adelaide in the past 12 months.
We're all still smiling.Thanks Michael. Linda
Crashy, in future sign 4 wk contracts only. If they say they only do 3 mth contracts say tough i only want to sign for a month. If Bris is running hot and properties are selling in 1 week why would you sign for any longer? That will get them working!!! Linda
I agree with Dreaming. I'm putting off purchasing property and shares at the moment. A lot of property looks overpriced. I don't know a lot about shares so can't really comment in that area. I don't expect history to repeat – I wouldn't be betting on Real Estate to rise too far higher as it is already unaffordable to a lot of people.
Thanks for replies everyone. Properties are selling fast! I'll take a look around next week. Regards, Linda
You'll have to pay going rate of stamp duty and this will include stating the correct sale price. Family transactions are watched carefully to make sure there is no tax evasion. If your parents sub-divide they won't be subject to CGT but you will. Maybe it would be better for you to help them subdivide before they sell.
Congratulations Richard! Which area? Linda
We're all still smiling.
