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I was very put off by the history of a property I intended on bidding and so was everyone else it seems no one at the auction. A quick google search had all the details of the property and it also seems this sort of history sticks the property is still vacant.
I have purchased a number of deceased estates many times with the beneficiaries present at the auction which is a very different proposition to criminal activity and or murder where the only remaining member of the family is in prison some day to be released.
So I guess if you are looking for a bargain you won’t be in competition with the likes of me I like to sleep well at night.
A couple of things on this that it pays to keep in mind such a situation.
You're talking about $5.00 a week or $260 a year. Leave the property vacant for another two weeks waiting to find a tenant who'll pay $280 or $290 and you'll be out of pocket $520.
Happy now that the property manager has saved you from…………….
Not sure what state you're in but the basic premise of the standard authorities is that the property should be let at market rental. If the tenant is the only tenant offering $275 this is a pretty accurate measure of what the market rental of the property is.
Don't rev the property manager they've just saved you a couple of hundred bucks in the shortfall you would have incurred for what an extra $5.00 a week.
Try this with the property manager. I appreciate that you've found me a quality tenant but I would really appreciate more if you kept me informed a little better in the future.
The basic principal is that sometimes you'll get a poor quality tenant who'll pay a higher price or a great quality tenant who will look after the property and cost you less in the end that'll be paying $5.00 a week less. The truth is that the tenants who pay the higher market rentals are always the first on the phone when something goes wrong and they are the ones who treat properties like hotels.
Most importantly ask this one question of your property manager. Do they own an investment property? If they say yes you can be sure that they understand the importantce of getting some cash flow happening and that $5.00 today can cost you $520 over the next two weeks.
Asking the property manager to consult you with regards to every decision is great, if the property manager tells you thats fine sack them immediately. The best property managers are busy property managers.
You'd call it a marketing fee in QLD
The amount of the repayment on your PPOR will not go up if you take out a new loan to purchase your IP. You're not actually accessing the equity as a transcation of sorts its just used as security for the additional loan.
The total amount of your repayments across both loans will increase and be offset by rental income.
Slightly off the topic but many forced sales are now not being advertised as such as instructions are to not to disadvantage the marketing and sale of a property.
The Sellers are however disclosed at the time of the auction.
When there are signs all over a property baring unauthorised entry due to a court seizure order its a pretty good indication that the property has to be sold. Properties are sold to achieve the best return for all parties though.
Never sell IPs. PPOR there is always a time to sell to gain TAX FREE money.
I'm sure you'll get plenty of mortgage advice. Your repayments shouldn't go up when you access the equity in your property as security to buy an investment property.
But as a property investor. Stick it out with your PPOR (Tax Free Mine) and do the hard yards to gain the required equity then buy right (you make money when you buy not when you sell, rule 1 never sell), add value and build real wealth fast.
Surprisingly there are many property owners out there who need and pay "bird dogs" (middle men) to find them properties and do all the impressive sums.
> NOTE WELL > Lodge any Bond Monies you have ASAP. You don't need to wait for the full bond amount to be paid. Holding onto the funds beyond the allowable period is a breach of the act. You seem to already be aware of the need to comply in this area.
http://www.tica.com.au is the tenancy database many agencies use. I'm pretty sure that the service is only available to agents. Now that the tenant is actually in the property I’m not sure about the legality of accessing the information anyway. Similarly you would need a signed privacy disclosure from the tenant acknowledging their permission and your intention to access the information.
> Future reference. Most agents will do a let on a rental property. That is the agent will find the tenant check them out draw up the lease and maybe for an additional fee even make sure that things like the entry condition report are conducted in accordance with the act. Ending up in small claims without the t…s crossed and i…ss doted often means that claims don't even get past the application process and by the time you've sat down in court its time to leave.
Don't risk it for a fee of say the first weeks rent get an agent to the hard task of finding a good tenant and getting the tenancy off to the right start. This is where the agent makes there money. The ongoing management of the property isn't the real cash cow its new and changing tenancies. So they'll be keen for your let business for sure.Contact the Residential Tenancies Authority (RTA) they exist for landlords too. http://www.rta.qld.gov.au
Tenants in QLD can only be blacklisted if they leave a property with more money owning then the bond. Contact the tenants previous landlord/agent because bad tenants can't be "black listed" until they've left a property. By that time someone else has already rented to them. Thats how things work today and the laws in QLD are changing frequently.
Two quick things on this.
1. Properties are purchased in as in condition that is as you inspect is as you purchase the property. That we be where the negotiations have take place to this point.
2. The point to impress on the Seller via the agent is that the things revealed in the building and pest report aren't going to go away. That is either the Seller is going to have to take action to repair them or they will still be an issue when negotiating with other Buyers should the current contract fall over. Obviously the best way to approach further reductions is to furnish realistic figures for rectifying issues identified in the report.
Most definitely negotiate a further concession from the Seller for issues which were not apparent at the time of inspection and latter identified by a building and or pest inspection. Happens all the time so make your conveyancer or solicitor do the hard yards on this.
Give some consideration to stamp duty. You may pay a higher rate (Investment) if you dispose of the property under 12 months (QLD).
Yes I recently received this call about the $250,000 in income tax i'd be paying that could be used for investing in real estate. Good script got my attention but pretty obvious its an old dog in new sheeps clothing.
All the Perth investors are in South East Queenland.
What’s normal anyway. The two go hand in hand in a hot market thats for sure.
Relative to the rest of the conditions in the contract its at the sellers discretion to have the clause inserted as a concession for accepting the subject to sale clause.
Most agents would recommend this and it maybe claimed this is an extension of a duty of care to their seller in subject to the sale situations.
Looking through the eyes of the Seller its a good move isn't it.
3 Bedroom brick and tiled with ensuite, built-in robes and double lock-up garage on about 300m2 yes these properties are selling in the low $300,000s.
Yes there is strong rental demand for these types of properties around $300 per week.
Many investors are in a similar position trying to source this type of property in Sydney or Perth not easy if not impossible. Marketing to Sydney investors is a norm for projects like these. Sydney investors were buying houses in similar fashion 10 years ago for say $80,000 they've all done pretty well it seems. Long term propositions.
I have seen many of these recently and most of the data seems pretty reliable. Always pays to do you're own homework and making a visit to an area is well worth the few hundred dollars it'll cost in airfare and car hire.
The golden rule is land content. 300m2 is the norm for these new low density areas but generally speaking 600m2 is a standard for a residential block.
Does the property meet your investment needs?Yes you're not alone on this. Call ask the questions and the answers will be forthcoming.
Seems to be a new access point for brokers.
Very confusing isn't it and this should be clarified upfront and throughout the process.
Everything seems the same expect for the names of products and such. Who knows what drives brokers to particular lenders especially when the relationship become confusing for clients.
Once this becomes more apparent surely there will be noticeable action.I think as clients of any bank as long as they maintain their service level and remain very competitive they can call themselves what they want, after all we call them what we want too.
Call the ComBank 132224 and ask to be connected to Colonial.
I've been looking at Morayfield & Narangba area. Anyone know if this is a good area to invest in?
Back to your question.
Good areas to invest in. Well that depends on your investment strategy and the outcomes you invest for.
If you wanted the facts and figures i'd assume you would have them by now.
Solid performers with improving rental returns. Narangba is still an emerging market.
Looks like you get what you pay for. Still tax deductable isnt it.
Guess i’m lucky that I only pay for the stamp duty
Opportunity in everythinng
So the mortgage guys must be the clever ones that are apportioning their purchase costs as a deduction over 5 years.
Are they?
That is;
> establishment fees
> title search fees
> costs for preparing and filing mortgage
> mortgage broker fees
> stamp duty charged on the mortgage
> the cost obtaining a valuation or lender’s mortgage insuranceYes all of these cost form part of the CGT cost base of the property but are they also deductable in this fashion over 5 years?
Who’s claiming their purchase cost as an apportioned deduction?
http://www.ato.gov.au/content/downloads/NAT1729-06.pdf (ATO Page number 14)
Opportunity in everythinng
All very well and good isn’t it. The issue is surley more about serviceability. That is for members of the forum who generally would be in the growing phase of their portfolios?
If I purchased a property for $175,000 and sold it a year latter for $245,000 i’d be doing pretty well yeah. Especially if i’d only been able to buy that property through utilising IO loans.
Opportunity in everythinng
Northside of Brisbane what about the 200+ million dollar upgrade of the Bruce Highway. National 1. Wonder why?
Clearly it pays to do you’re own research.
Always get an independant valuation and see the property for yourself.
http://www.mainroads.qld.gov.au check out the link to the projects for South East Queensland.
Opportunity in everythinng
