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  • Profile photo of NHGNHG
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    @nhg
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    What would be considered an 'active' investor? 

    Profile photo of NHGNHG
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    For just construction I found 90k for 60sqm + a large decking area. The 2000sqm was inclusive of council contributions and connections.

    Profile photo of NHGNHG
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    @nhg
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    Including council costs, approvals, designs and everything else, the cheapest I found using a builder was $2000sqm in Western Sydney.

    Which is why I'm looking for alternatives which work out MUCH cheaper. 1 worked out great, the other one not so much :-/

    Profile photo of NHGNHG
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    I’m considering buying pretty much right within the HC area of Bidwill. Bad idea even if I purchase the property for super cheap? Theory being the area is being cleaned up slowly but surely.

    It somewhat strays from my criteria, as it is far from train stations tho well services by busses. Too big a risk?

    Profile photo of NHGNHG
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    Has anyone been getting the better returns here on recent purchases? I would love to hear about it. I do agree with Shahin that there is still capital growth left in the area.

    Profile photo of NHGNHG
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    Hi Shahin,

    Just crunching numbers:

    $315,000 x 1.05 = $330,750 (for stamp duty and other fees)

    $350/week x 52 weeks rent = $18,200

    $18,200 / $330,750 = 5.5%

    Assuming 6% interest rate, + 1% (for pm fees, insurances, etc), it ;ooks like they are already 1.5% out of pocket depending on depreciation.

    How old is the property? How large is the land? Can a granny flat be built on the back?

    I am/have been targeting a minimum of 7% returns with the option of developing on the back for higher returns.

    Profile photo of NHGNHG
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    Budget is fine, I have a couple in St Marys already and would like to branch out a little more.

    I realise Mt Druitt has much larger potential with the train-line, access to highways and bus hub.

    Yet I wonder, would Mt Druitt to already be 'over-priced' as such with all the investor activity there?

    Profile photo of NHGNHG
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    SIGN ME UP :p

    Sounds too good to be true. Any legal opinions here?

    Profile photo of NHGNHG
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    Goals by Brian Tracy

    and

    How To Find Property HotSpots by Jeremy Sheppard.

    Just add the words free and e-book after the titles in google, should do the trick.

    As Jamie mentioned, there's a large thread with quite an extensive recommended reading list. Hope it helps :)

    Profile photo of NHGNHG
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    Sure, I’ll look for it when I get home to Sydney this weekend.

    My colleague and investment advisor TOM RYAN, no joke, happens to be staying at the Western Ambassador this weekend. I told him about the offer, I hope you don’t mind :P

    Profile photo of NHGNHG
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    Use to live there and worked on the capital projects in the area. Have a flood map showing lidar analysis of the entire area on a cd somewhere which isn’t readily available to the public. If I can find it and figure out how to upload it I will.

    Central: Close to everything except university. Prices are steady and some flooding along Fitzpatrick St. University and professionals rent here.

    Wagga Wagga North: Flood area, a lot of the developments here are not approved.

    Mt Austin/Tolland/ Ashmont. Housing commission, some great bargains, though need to know the area as certain streets are really bad and to be honest, and every street is different from the next. Spent a lot of time doing community work here, actually nowhere near as bad as they make it out to be, definitely worth a look. Most of the local agents are a little ‘too close to home’ to know anything about the area and provide non bias feedback – may as well be another world with a giant fence and flaming sword blocking the entrance. Talk to indigenous liaison officer and police, may be more specific about which streets are which.

    Kooringal: Where I would say majority of the average folk reside, some good bargains at $300k is mark. Average familys rent here.

    Bourklands/Tatton: Tatton from memory was the more expensive of the two suburbs, nice looking area, poor soils in Tatton, could find your house will have cracks in the near future (beware agents talking up the area). Though the community was incredibly nice and friendly.

    Glenfield Park: Newer-ish developments, $400k nice new houses, big blocks. Not sure if I would invest here as there is plenty of land to be developed further back on church land. A lot of home-owners.

    Springvale: Larger blocks, kinda far from everything. Expensive for Wagga. Most residents like to keep to themselves.

    San Isidore: Considered far out of town by locals, and residents are generally against any new development.

    Forest Hill: Close to airport, and army barracks. Seems to be a spot to look at.

    Estella: Close to university, shops are being built/have been built there last I spoke with the local developer. Prices already seem a bit steep. University students rent here, and in central.

    Cartwrights Hill: Near abattoirs, smells, close to all industrial area.

    Areas further out like Ladysmith etc, have flood issues.

    Profile photo of NHGNHG
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    cs_rlewis wrote:
    From what i read i believe a negatively geared property is more suitable to lower the amount of tax you pay and is more likely to appreciate in value over time.

    So from that perspective I do hope my property is negatively geared.

    Well to claim back on tax, it means you are making a loss. Your property would have to go up considerably to offset that loss and also consider your reduced ability to purchase more property in the meantime.

    Profile photo of NHGNHG
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    Would anyone know the CGT implications for my mates mum if property is purchased as a ‘favourable purchase’ for say $550k.

    Is she taxed at the properties true value, and in the future is her daughter taxed at her purchase price of $550k effectively double taxing the family for the value between the two prices?

    Profile photo of NHGNHG
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    As a rule of thumb if total incoming rent is greater than your Interest rate + 1% on remaining loan amount, then your place may be positively geared.

    Profile photo of NHGNHG
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    Thanks for the replys, helpful.

    Hoe would you describe deposit finance, I haven’t heard of it before. How would it work?

    Also as the mother has a cleaning business, is it possible to purchase it for $550 and pay say $30k/year for 5 years as a cleaning and property management fee. Would this remove the CGT and allow me to pay her the rest at 30% rltax to her over 5 years. What are the legal implications for this?

    Profile photo of NHGNHG
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    Off the top of my head…

    PROPERTY BOOKS

    All the authors you mentioned above.

    Particular books:

    0 to 130 Properties in 3.5 years by Steven Mcknight is probably the best start

    20 Must Ask Questions for Every Property Investor by Margaret Lomas (my absolute favourite property author, I recommend all her books)

    An easier version of the above book to read is How to Find Property Hot Spots by Jeremy Sheppard (It's a free download online)

    MOTIVATIONAL BOOKS

    7 Habits of Highly Effective People by Stephen Covey

    The Four Hour Work Week by Timothy Ferriss

    The Travellers Gift by Andy Andrews

    Goals by Ben Tracey (Can be downloaded for free online)

    Most audio tapes by Anthony Robbins

    This is barely an extensive list, nor all the best started books. I think I have a couple of hundred books in my personal library ranging from free to $100's. Knowledge is a never-ending quest, I can however HIGHLY recommend you get a mentor, I consistently learn more in 1 weekend with a (free) mentor than I have ever by reading a dozen+ books.

    When I have a chance I'll go home and pass along some more recommendations.

    Profile photo of NHGNHG
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    Also when i scroll over the achievments icon the text appears behind all the writing so I can't read it.

    Profile photo of NHGNHG
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    @nhg
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    Great Work to all involved!

    On a downer:

    The site keeps crashing on me, it took about 8 tries to post this 

    And of course I lost my Lvl 8 badge… *cries in corner*

    Loving the new look, much more professional looking, and easier to navigate (before it crashes).

    Profile photo of NHGNHG
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    @nhg
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    Yeah, pretty much.

    Need to connect electricity to main switchboard, can keep water together and just increase rent to include the water bill., tho I prefer to keep them separate at the extra cost to myself. You will need a licensed electrician with some sort of special extra accreditation to do the job. Make sure you call the electrical company first to set up the connection reference (takes about 10 mins).

    When you call electricity company for reference number they will ask you how you want to name your new place. eg. if its 26 AWESOME ST, you can name your GF 26A Awesome St, and your bills will be sent there.

    Am building a couple of granny flats now myself in St Marys. Where abouts are yours?

    Profile photo of NHGNHG
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    Landscaping, stairs and decking?

    Definitely fencing, and perhaps a shed for extra room outside.

    What about air conditioning? Dryer or clothes line? extra taps outside for water etc.?

Viewing 20 posts - 21 through 40 (of 173 total)