Forum Replies Created
Hi Jim
Not quite sure but I think the tax definition comes down to what were your intentions. In this situation and if you did build your PPOR (which is obviously CGT exempt) then when you come to sell it the capital gain would be split between investing intentions and PPOR intentions.
I am sure that a 2 minute call to your accountant would give you a clear answer on it.
Don
Hey Emptypockets
I think you've got me wrong. Not only do I think things can get worse, I expect that they will and I activley plan for a large number of adverse advents within my investing stratedgy and am naturally a cautious investor. My point is that if it wasn't for the industry I am in then I would be even more cautious.
I think everyone should plan for things going "pear shaped" at some stage on their journey.
Don
Heay all
I drive a 2005 falcon (company car) getting replaced next month. The wife drives a 2005 Mazda 3.
It's interesting you know, I used to drive 71 falcon, 66 valiant, 91 corolla and longed for the days when I could get into a late model car (like I am now). Now that I have it I realised it isn't as such a big deal as I once thought.
I recently purchased my dream car, I've wanted it for about 15 years and Ironically it's a 79 Moke. Picked it up for next to nothing, costs $15 to fill it up and because it has no doors it is great for driving around and looking at houses for sale. I would rather drive this than either of the new ones. There's nothing like smelling the road kill.
Don
Joel
does the "tackey" two bedder have the possibility of renovating therefore increasing your equity. Are you handy like that?
If you are only planning on being in it for a few years, then do you do this, increase your equity and then buy that really nice 2 bedder with a better balcony and view.
Just possibilities
Don
Hi Nina.
What is your family (recipients) of your fathers estate planning to do with the land. If you can convince them to sell it then you will receive a cash injection. You may also be able to convince them to put a house on the property therefore having a cashflow from the property. For your investing or PPOR future it is important that you get a solution to this issue ASAP.
Another way to get some momentum on investing is, if you are time rich but asset poor then you may be able to take on a joint venture with another party where they put in the cash and you put in the time. This sort of thing can work for example a purchase renovate and sell, where you both then share in the profit. This profit can then be used for either a deposit on an IP or PPOR.
Don
Hey Birddog
I am not worried about a recession. I have a stable job in an industry not affected by ecconomic climate. If this was not the case then I would be concerned and a bit more cautious.
From the investing perspective I am continually looking at the market place and adjusting my stratedgy to suit the market so from this aspect I am also not concerned about a recession as each ecconomic condition creates it's own opportunities.
In relation to the coffee and water, I reckon it's essential for a good coffee in the morning, I often seek out a good cappuchino. I have a rain water tank at home and for water there aint nothing better.
Don
Hi Jase and Flic
I have enjoyed following your journey.
You have indicated that you have looked at a number or like properties within your area. I am interested to know if the market in general is going up there and if you think that this will add extra profit when it comes time to sell.
Don
Hi RL
I personally wouldnt be without landlords insurance. If it is added to your public liability and building and contents insurance than the cost is really quite small.
I insure through CGU and have all the above in one package. I have found them very good even though I have only claimed on building insurance component.
Don
Hi Nina
Congradulations on wanting to make a change in your long term financial position. If this thought is followed up with determination you will make a huge difference.
I agree with all Marc above has said. You need to reduce your expenditure increase your savings and start getting some cash reserves or equity.
While you are doing this the local library is filled with property investing books with all kinds of stratedgies (most explain the ins and outs of that stratedgy)
What you will find when you are educating yourself is that there are literatley hundreds of ways to make money out of property investing. It is only you who can sift through these stratedgies and come up with a plan of action that suits you, your family, your circumstances, your time comittment and your risk level.
Good luck on your journey. It can be very rewarding and heaps of fun.
Don
Hey Recco
Healthy skepticisum (if tha't how you spell it) is a valuable trait hang onto that as it make's you question things not just accept the norm.
$5,000 is a signifiant investment but one good deal can make you 10 times that amount. If the mentoring, one on one support and motivation of the team and the larger RESULTS group can asist you to fine tune your deals and make a good deal into a great one it will be well and truley worth the fee. Not only that I don't know who else offers this type of support.
I havent been to the RESULTS program but are pre-enrolled for next years intake and carn't wait. Would love to see you there.
Okka
Hi All
I'm from Bundaberg in Queensland, In speaking to my local realestate agent today they have sold in the last 2 weeks what they normally sell in a month. She indicated things are still crazy even after the interest rate rise.
I have in the past had a long term relationship with one of the big 4 banks. It was only when I hit the lending limit as they advised that I turned to a broker for solutions.
Fortunatley I got a really good one. By taking the time to understand my income from all sources and after cashflow he was able to negotiate a net increase in borrowings of 140k. The irony of this is it was with the same bank.
Yes that's right the mortgage broker could get me a loan signifiantly higher then their own staff could do. I use the mortgage broker for all borrowing now and use a number of banks based on his advise.
Hi Tina
If the numbers dont stack up then don't do it. Look somewhere else or try a different stradedgy or wait until the marked isn't so hot and moves more to a buyers market (I know Narangba and Burpengary are pretty hot at the moment).
Even if you could get your proposed property for 290k then for example, 10k on purchasing costs, 10k on a reno, 5k on holding and sundries, and 10k on selling costs. This only leaves 5k (based on the lower end of the selling costs) for your profit. Not much reward for all that effort and risk.
Happy hunting,
Okka
Hey Boshy
I agree with most of the comments above. Time, results,trust and rewards is what's required. My wife was in the same position as you are in a couple of years ago.
She was very nervous about investing, but over a short period of time (2 years) where I proved good results, I built her turst in my ability. I now have her confidence to the stage where I came home today and told her that I put a hold on 2 blocks of land (240k) and she said thats nice dear, can you help the kids with their homework.
Two things that made a big difference for me were, build your investing stratedgy in your mind and let bits of it out at a time. Don't overwhelm them with to much at any one time, it scares them, and secondly build rewards for them (or the family) into the equasion. For example, if this property reaches this value in 6 months time I'll take you and the family away for a long weekend, or the next time I increase the rent on that property I'll pay for you to have a massage. I have found this increadibly powerful and I now have her interested in the progress as she sees something resulting from the effort. My wife is into photography and it is amazing how much support I got for extra memory and an off camera flash. Find a way that your passion can asist them with their passion.
Good luck
Okka
Hey Lisa
This is a great thread and I must congradulate you on not only looking for any alternative to increase equity, find deposit monies and increase cashflow, but actually acting on neally all of the feed back as each of these things even though small will signifiantly enhance your ability to grow your portfolio in the very near future.
I do however have to agree with Handy Andy. If you want to be very agressive in the growing of your portfolio which obviously you have been then selling one or 2 of the properties that you have (and ideally those that you see as having the lowest growth in the next year or so) may result in you getting further ahead.
By selling one or 2 frees up equity which will allow you to go again and if you have a build, rejuvinate, subdivide or like stratadegy (which you have already done) then this could allow you to be further ahead than you would be with a buy and hold stradedgy. In addition the capital gain will flow through your tax return which should go a long way to improving your cashflow.
As I see it you have got to get some cash deals or flips mixed in with your long term by and hold stuff to signifiantly accelerate your stratedgy.
Regards and keep going.
Okka
Hi Vibe
1) I like the reno kings http://www.renos.com.au but better still is the australian property investor magazine, avaliable from http://www.apimagazine.com.au.
2) Can't really answer this but anything that would reduce your overall loan interest and allow you to put more funds back into repayments is really worth investigating.
3) I like properties as you can have greater leverage, less volitile, can improve them your self (add equity) and you can touch them.
Good luck reserching your options.
Hi EZN
If you are looking for the cheepest property I don't think you can go past a project home builder. One that has plans in place. They are cheeper because the design costs are spread over mutile clients, their costings are very accurate (very little waste) and can generally get them up a bit faster than a private builder. To gague value make sure you compare apples with apples in inclusions quality and come up with the cost per square metre of floor area as a comparison value. This is especally the case if you only intend to build one every now and again.
Are they the best, i'm unsure. It may be difficulty to get a plan that makes the most of your block it's orrientation or neighbouring housing issue. The cost of design approx 2k may be worth it if you can make good use of the best aspects of the block.
I have used both but tend to use the latter to ensure I make the most of the block (especally if it is not a rectangle). I also use a local builder as I do some of the work myself and he is happy to have me onsite and work along side him or his subbies. It is unlikley that you could do this with a project builder.
Good luck deciding
Hello Opportunity in..
I would need to know a whole lot more information to know if this town house is a good price and can not comment if this is a good investment or not. A good due diligence review should give you a good feel.
I can however comment on Burpengary as an investment location. I have owned an IP in Burpengary for the past 7 years (18 months as a primary residence). It has given me a 50% growth in rental income and has delivered 150% capital growth over that time. (I did however do significant work on it myself in primary residence days). Obviously past growth is not necessarily any indication of future growth.
Burpengary has the strengths of a solid working class suburb. It has great commuting links (rail and freeway especially now that the freeway is 3 lanes each way from Burpengary to Brisbane). Good shopping with a minor shopping centre in the suburb (includes a wollies) with major shopping at Morayfield (5 minutes north) and North Lakes (10 minutes south). There is signigiant employment opportunities for possible tennants in the local area with lots of strip shopping and industry within a 10 minute drive both north and south. It is also within 30 minutes drive of Coloundra and great beaches. The suburb even though starting to age a little is well done with large blocks of land 800 to 900 m2. Prices being achieved are higher that Morayfield or Caboolture but are significant less that North Lakes (newer to the south but with significantly smaller land content 500m2) so some ripple effects may occur from that in the future.
I think it has the fundamentals of a good suburb
Good luck with your due diligence.
