Forum Replies Created
Good evening. The take up of my offer has been such that I have almost gone through my monthly subscription with Residex in April. With this in mind I am going to have to limit each person to one report for now. I have contacted Residex in the hope that I might be able to double my subscription with them – I will keep you abreast of any developments. Cheers, Mike
Thanks JL & all others who have added feedback. It's great that you have taken up my offer, and that the reports are of benefit to you. Enjoy the week, and remember the past deeds of those before us on ANZAC Day. Cheers, Mike
Cheers mentee – let me know if you need anymore run.
Cheers mymatephil. Appreciate your feedback. I was always told "that a man's word is his bond" and I stand by that – the offer is genuine, with no expectation of doing business anytime in the future. I'm paying for the subscription already, and it costs me no more whether I run 1 or 40 reports pcm. I hope they are of benefit. Cheers, Mike
Thanks dantze. i appreciate the feedback, and am happy for you to offer the property reports to your friends and family. Cheers, Mike
Here's the link for the accreditation needed to be a buyers agent in VIC – http://www.reiv.com.au/_uploads/training/accreditation/BuyersAgent_AccreditationGuide.pdf
Hi IP Freely,I used a Buyer’s Agent for my first investment purchase – as I wanted to see the process that they put in place, and also walk away with a file of their research so I might replicate it for myself in the future.Some agents offer varying degrees of service – some will only do everything, but others will do the auction/negotiating for you, or the research. I went the whole hog, and I think they earned their money.Each will no doubt have their own process, but the main steps are below:· Establish terms and length of engagement· Workout what you are looking for, what reasons you have for buying, and where· They do their homework and only come back to you with properties that tick all the boxes· Once you select a property, they handle all negotiations and any bidding at auction, and the building/pest inspections that may need to be done· At the end you “should” be presented with a file of their research, including depreciation schedules etc – what you get will depend on the buyer’s agent, so tell them what you expect upfrontI ended up playing about 1% + GST, but I have heard the standard fee could be as high as 2% + GST plus. In the end I felt that they saved me more than that during the negotiation – they do it every day, and they know how to handle the negotiations. I paid a deposit of $500 upfront, and would not have had to pay anymore if an appropriate property wasn’t found.Cheers,Mike
Hi C,My advice would be to make more bedrooms.My experience dates back a few years to a student flat I brought with a family member back in NZ. It was $220k when we got it, and we then spent $25k converting a superfluous sunroom in to two bedrooms, repainted throughout, and fixed up the roof.From day one each room was rented out for $120 per room per week = $720 pw or $37,500 pa or 15% gross rentTen years on its looking even rosier, and the mortgage all bit gone.Cheers,Mike
Hi Mr Markie,
You might want to check it out – but I was told recently that the few lenders that lend to super funds, will only lend if the super fund alone is able to service the loan. This requirement alone knocks out a lot of deals, as most don’t have the income to service.Cheers,Mike
Cheers Wayne,
I appreciate the kind words. Hopefully the report helps you with purchasing the new property, and you ultimately get it for less than what the real estate agent is quoting.
If you have any family or friends who could benefit from having a property report run, just pass on my details, and I'll do that for them.
Enjoy the weekend.
MikeHi Mervin,
You can try the following websites for flatmates:
http://www.flatmates.com.au
http://www.flatmatefinder.com.au
http://www.flatmatefinders.com.auWith plenty of industry around Hoopers Crossing and close to transport in to the city, I don't think you would have too many problems filling the rooms.
Cheers,
MikeHi Mavoz, In your situation I have seen so many people’s accountants advise them quite differently in these scenarios – so if they don’t give you the answer you want, just ask somewhere else. A couple of years ago I dealt with a youngish couple who were moving back to Ballarat to raise their kids in 8-12 months time. They knew that they would lose one income when they moved, and the other one would be reduced by around 30%. So it was important for them to get the new property in Ballarat before they moved and had their income reduced. Their accountant told them to buy their new house in Ballarat as an investment initially and rent it out until they moved there in 10 months time. The purpose of the loan was to buy a new investment property, and he then claimed the interest on it was tax deductible. As their existing house in Melbourne was worth slightly more then the one in Ballarat, when they moved to Ballarat they transferred (ported) the debt on that to their old Melbourne property without having to provide any updated income details – like for like security. Again this is the advice that they were given, and it might not be applicable to your situation. Warm regards,Mike
Hi Ken,
For my 80+ year old wb ip in Melbourne (Brunswick) I have averaged 1 month's gross rent pa for maintenance in the past 5 years. It was in pretty good nick when I brought it, and I manage the property myself, so that helps keep the cash in my pocket.
Cheers,
MikeHi Mliew,
I agree with many of the comments above – getting in to your first property is a big move, but it is also one that never gets any easier. You have a good deposit and a consistent income, which should grow over time.
Getting in a flatmate for one of the rooms is probably a sensible idea – it won't be able to be taken in to account from a lender servicing point of view, but at least you will know that the repayments will be more easily met.
Many of the first home buyers that I am working with are looking at a fixed rate loan option initially – currently they are locking in rates around 5.19% for 3 years.
Before signing a contract you should look at getting both a building and pest inspection done – Metrospect in Melbourne does that well. You don’t want to buy a lemon.
If you would like more information on certain property, just let me know the address, and I’ll run a Residex CMA property report for you – as I have a subscription with them for properties in VIC.
Cheers,
Mike
