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Viewing 20 posts - 1 through 20 (of 73 total)
  • Profile photo of NessieNessie
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    @nessie
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    Post Count: 73

    Dino, don’t let it get up your nose, try and get it into your bank account.
    Get a rent assisted tenant into your IP.
    That way you are getting rent assistance to help help pay off your PPOR. ????
    Turn your [:(!] into a [:D].

    Profile photo of NessieNessie
    Member
    @nessie
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    Hi ladybug

    I’m in the mp area. My Hubby may be able to assist you – he is a Solicitor. If you would like some help send me an email at
    [email protected]
    with your Ph. No. and I’ll get him to give you a call.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi Steve,

    Glad to hear that you have acquired this magnificent property from my Accountant? He showed this picture to me prior to Xmas last year suggesting that I could rent it from him for the holiday season. [:O] I had to decline – the stairs were too steep.

    Profile photo of NessieNessie
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    @nessie
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    Hi Jstuart

    Welcome to the forum.
    When I bought my first real estate property I struggled with the debt level. Couldn’t sleep – worried about repaying the loan quicker to save paying interest.
    Now some 20 years later and with debt 40 times that of my first real estate purchase I don’t care about my debt level now. Why? Because I have the cashflow to support the debt and any substantial increase in interest rates. I have learnt to live with the high level of debt, can “hold my nerve” and can control the emotional side of investing.

    The change didn’t happen overnight though – it took me 6/7 years to change my thinking about debt. All my debt is 80% LVR and I can live with this even though the $ are 7 figures.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi Brent

    I understand this to be that the block of Units is all under the one Title – Torrens – that is the Units have not been subdivided. So there would be no body corporate fees because a Body Corporate is only created when there are separate titles for each Unit.

    If you intend to sell any of the Units individually you will have to subdivide and create Strata Titles for each Unit. This will also mean that you will create a body corporate. You will however, be able to create Strata Titles and pay no body corporate fees whilst you are the owner of all the Units.
    Once you sell off any individual unit, you will be required to have body corporate insurance and then Body Corporate Fees will need to be paid with respect to all of the Units.

    Speak to your Solicitor for a more detailed explanation.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi Doogs

    I always get a Pest Inspection Report on a property before buying it. If the report is bad then I walk away from the purchase.

    Are to saying that you have acquired a property with a termite problem?

    I haven’t got my copy of Steve’s book yet. So am unsure what you mean by rising above this “Plateau”.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hey Bradyboy,

    quote:


    my name is brady and im 12


    If you are “12” you are too young to be acquiring property!!

    Wraps – get yourself a copy of Steve’s Wraps tapes
    Plans – only you can do this – what are your goals for now and the future. Work this out and then you will be able to put your plans in place to achieve your goals.
    Referrals/Research – talking to local councils, real estate agents, reading local newspapers etc.
    etc. is the way to do this.

    All of us on this forum had done our own research, so you should do the same. If you have specific questions about the research that you have done then you will get answers/responses, but don’t expect to get help/answers when you put questions like this on the forum

    quote:


    need help on wraps, some good trustworthy plans, some refferals, a way to research the boom areas in victoria.


    Good Luck with your research.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Beancounter, you should not just rely on the 11 sec. solution. You must think beyond this and look at other methods. MiniMogul is right by saying “There are a zillion ways to make negative cashflow houses positive..”

    I use the 11 Sec Solution as a starting point. If the property doesn’t fit the 11 seconds then I have several fall back solutions to look at.

    You have to work hard and travel many a mile to achieve your goals.
    This is not an easy game to play. Here, here Richmond – real money, real debt, scarry stuff and you need nerves of steel. No weak knees when your debt level rises to 7 or 8 figures.

    On average I would find and review info on 30/40 properties per month – might put offers in 3/6 per month because the numbers work – so far this year only bought 4. Been out bid on offers by other crazy Property Investors who are paying more than asking price for property.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Gaza

    Let me see if I help you.

    Land Cost $60K
    Building Costs $260K (that is $65K each Unit)
    Other Costs S/Duty etc. $16K
    This makes a Total of $336K

    The Building costs are extremely cheap. Am concerned that $16K is not enough to cover variations and non-building cost items such as landscaping. Have you taken into account Architect Fees, Council Permit Fees, Surveyor/Subdivison Fees. Then there are holding costs whilst it may take anywhere from 6 to 9 months to get the Council Permits and get a builder signed up, plus add the time to build – another 6 months.

    Building costs are averaging about $10K to $13K per square. So for a 10sq Unit with a Single Lock Up Garage would be $100K upwards. This does not include landscaping or driveways.

    If you use the 11 second solution – $150 x 4 / 2 x $1000 = $ 300,000 – it indicates that you would be overcapitalising on a per weekly rental.

    You should probably not retain all 4 Units. Perhaps sell 2 to recoup building costs and retain 2. You need to check out what the current sales are for the type of Unit you intend to build. Also whether there is a demand for this type of property in the area.

    Am looking at a similar situation at the moment, but the sale values are too low. The project would be a break even situation so not worth proceeding when there is no profit.

    If you re-do your figures you may come up with a break even scenario too.

    Hopes this helps.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi Delight,

    I think you should walk away from this.
    A 55 yr old Weatherboard house with 20+ points on a Building Report would be a no-no in my book. Too many problems. Sounds like a bulldozer is the best thing that could happen to this place.
    Morwell – well my research several months ago was not good. There were many vacant shops in the main streets and discussions with locals said that Morwell was “dead”. However, the Latrobe City Council had plans to relocate their offices to Morwell from Traralgon in an attempt to boost the town. But when this was to occur – nobody could give me a date – just sometime in the future.

    My 2 cents worth.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi fz7hny

    Welcome to the forum.

    Some simple Questions to ask :
    How long has the property been on the market?
    Why is the Vendor selling?
    What are the rates and outgoings on the property?
    How long as the Vendor owned the property?

    Get the answers to these questions and then more questions will arise from the answers.

    Also read some of the various books about property investing, such as Jan Somers etc. – they will give you lots of tips.
    If you search this forum you will find several other books listed. Also check out Sooshie’s Useful Links posts.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Hi Andrew

    Great reading. I thought I was actually reading my property investing life so far – everything you said has happened to me. Many a time have aimed high (the bullseye) and not hit it. Got the outside rings or totally missed, but have learnt a lot and also learnt not to make the same mistake next time round.

    Time is such an important factor. There is never enough time but with a little patience and time out for reflection it is easy to hit the bullseyes. Once you hit the first bullseye they keep coming thereafter providing you don’t stray and you keep control of your destiny. A rushed decision is usually not a bullseye.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Hi Dnanz

    I presume you mean a lease of a residental property. Yes, it is uncommon for a lease to be more than 12 months. In Victoria, Tenants usually sign a lease for 12 months. Mainly to protect the landlord. If the term is longer and there is a problem with the Tenant you can’t get them out – the lease has to run its term. Majority of Agents in Victoria recommend to take a 12 months Lease and then if the Tenants want to stay on you just sign them up for another 12 months.

    The other factor is the rental monies. If you sign the Tenant up now for say a 2 year lease you then lock yourself in for the rent for that period. You can of course have a rental increase clause after the first 12 months – say a CPI increase. But “what if” the rental market changes – high demand for rental properties – impact on rental money is likely to be a bigger increase than the CPI. So you are not receiving the correct market rental for your property.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Hi Freedom

    Banks/Financiers will only lend 70% LVR on commercial property plus the term is usually only for 10 years.(Residential is 80% LVR and 25 or 30 year terms) So this means a much greater monthly loan repayment.
    Also they like at least a 5 year lease with an option. That is a 5 year term with the option of a further 5 year term.
    There are lots of commercial properties available (a lot without tenants) but getting one which will be acceptable to your Bank/Financier is usually the hold back factor. Speak to them and find out what their lending criteria is with respect to Commercial property and then you can find the property that will fit into this.

    I believe that you should buy commercial properties where you shop yourself. That way you know what is happening in the local area. You get to know what businesses are long term businesses. Majority of small businesses don’t survive more than 5 years.
    When shopping I always ask questions like “how long has this shop been here” etc. It is amazing what you can find out about that particular show and the area in general. Location is important. Small shopping strips near the large shopping centres are, I believe, not a good investment. But a small shopping strip that is further away are better. They service the needs of the local houses, are usually a good investment and get long term tenants.

    Hope this helps.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Hi all

    Beware he is back already. [:D]

    Yesterday’s Herald Sun carried a half page ad on Page 31 with the headline
    ” Henry Kaye …. “Business as Usual” “

    The fine print states that all regulatory scrutiny of his education programs has been successfully resolved and that the ASIC have decided to discontinue its litigation because he will ” absolutely comply with voluntary undertakings with ASIC”. [:O]

    I wonder what will happen next, now HK has been given the key to his cell.

    A book perhaps?
    Anyone willing to predict the next chapter ?

    Profile photo of NessieNessie
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    Hi Cremin

    Yes a line of credit is the best option. I find that by having this type of facility it can give you more bargining power when submitting offers for IP’s. You don’t have to buy subject to finance, you can pay cash, you can do a quick settlement. Then finance the property after you have touched it up – you can get 80% LVR of a higher valuation. The 80% then goes back into line of finance account to start all over again with your next deal.

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Hi all

    Marco, I was waiting for a train when I read the article – someone had left behind and I did likewise, so can’t remember which page it was on.

    Profile photo of NessieNessie
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    Hi Sooshie

    I read a similar article in yesterday’s edition of the Australian.

    The Media hype about investors creating high prices is just exactly that. Investors are such a small percentage of the overall market and I believe that they are not responsible for the increases.

    Good Investors (not all investors) have their limit and will stick to it.

    The Investors, and others for that matter,who let their emotions take over with the hype of the auction and up their limit because “they want the property” are crazy.

    I went to an auction of a warehouse in North Melb. last week. Was interested because it could be developed into 18-20 apartments for University Students. The Agent said that it would sell for around $800K – 850K based on the $ per sq metre for the sale of land across the street.
    Bidding started at $900K, was on the market at $1m and I was stunned when the hammer was knocked down at $1.35m. It was very obvious from the body language of the winning bidder that he had paid too much for the property. He actually pulled out of the bidding (which was probably his limit – $1.15m) but then went back in with enticement from the Agent. Emotion took over.
    Absolutely Crazy.
    Mind you the Vendor in the back corner was rubbing his hands and grinning with delight.

    The Bendigo Bank site in Geelong was sold yesterday for $825K. I was told the purchaser wanted it at any cost because the Bank was the Lessor. Don’t know what the reserve was but it was well below the knock down price.

    It’s these sales that are giving investors a bad reputation and blame being laid on them for the increase in property prices.

    I believe that we have to look beyond the hype and these sorts of silly investors who are buying on emotion and small or break even returns. They are the ones that will have a bust problem.

    All of us on this forum know we can do our deals without the hype and emotion can’t we [;)]

    Cheers
    Nessie

    Profile photo of NessieNessie
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    Hi all

    Congratulations Andrew. Terrific Title. Perhaps Steve can use it for his next book !! [;)]

    Cheers
    Nessie

    Profile photo of NessieNessie
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    @nessie
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    Yes, I too must check out the forum first thing every day – I have to have my daily dose to get me kick started. No Coffee for me – The forum is chemical free. [:D]

    But like AD, I find that time spent on the forum is time not spent on finding new property deals and so not as many contributions of late.

Viewing 20 posts - 1 through 20 (of 73 total)