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Hi eve100,
If you are based in Melbourne suburbs, you can try using Nancy Keep & Associates (www.nancykeep.com.au).
She is a serious property investor herself and has a very good group of associates (finance specialists, insurances, property manager/s, etc.).
She can offer some other innovative (and tax effective) investment products as well.
Hope this helps.
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Try sourcefinancegroup.com. They are based in Southport, QLD and St Leonards, NSW.
They specialise in non bank lending and really look after their clients.Regards
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi petlover,
Firstly, congratulations on your decision to buy your first investment property.
I think the answer to your question depends on what you want to achieve from your property investments. . You may buy some negative cashflow properties to balance your property portfolio but it should not be bought to get some tax benefits. Given you have not bought any IP earlier, you do not have a property portfolio to balance. Remember, assets feed you, liabilities eat you. A negative cash flow property is nothing more than a liability. It will tie you more to your job (assuming you have a job/self employed). I don’t know what your long term goal is but for me, property investment is a vehicle towards financial freedom and (semi) passive income. Those objectives will not be met by investing in negative cash flow properties. You can find positive cashflow with capital growth as well. Typically, you will find these properties in and around regional towns.
Also, when buying propeties, you should be ready to hold them for a period of 7-10 years. Historically, the prices of properties double in that period. Holding a negative cash flow property for that period will be a burden on your personal cash flow and unless you earn six figure income, you will probably stop after buying 1-2 properties.
I hope this helps and good luck with your investments.Regards
SanjivHi Santoriniwalk,
I don’t think you need to sell your new PPoR to “unlock” the equity to invest in other properties. You should take out a maximum LVR (90-95%) loan on the PPoR and use the equity to invest in investment properties. Also, I believe you would need to stay in the PPoR for atleast 12 months to be exempted from Capital Gains Tax. If you sell now, there may be CGT plus the selling costs.
With the $120k worth of available equity ($580k x 0.9 – $400k) you can build an investment portfolio of around $1 million.
Hope this helps and Good luck. Happy InvestingRegards
SanjivHi Mat,
You can try using positiverealestate.com.au. They are buyers agency that will spot a cash flow positive property and negotiate it on your behalf.Warm regards,
SanjivG’day Wylie,
The portable airconditioners are not worth the money.
Get a small split system and it would be an improvement to the house as well.
Regards
SanjivHi ao,
You have to be careful when you read developers advertisement like that. $350k house in Point Cook is not very cheap. The 20 minute travel to city is non peak hour travel time. You would use West Gate bridge to travel to Melbourne city and its like a parking in peak times. I think the “real” travel time is anywhere from 40-60 minutes.
Also, you cannot just simply compare the prices of houses in Point Cook with that of Sydney. They are two different markets. In fact, $350k house is few % higher than the Melbourne median price as well.
Point Cook and some other suburbs around it (Tarneit, Hoppers Crossing, etc) are on Victoria’s growth corridor. There is lot of development happening and with the slow down in the property market, there has been (to some extent) an oversupply of land and properties in the area. Not long time back, I saw ads in the newspaper where a land developer was giving a free Barina (I think) with the purchase of a block.
That said, Point Cook itself is a nice area. I have gone there couple of times. And I don’t believe the RAAF base is operational anymore. I am not convinced about long term rental demand in the area. The new estates like Point Cook are more owner-occupied.
Hope this helps!
SanjivHi lepryth,
I have used the services of positiverealestate.com.au and they are very good.You can also go to the Real Estate Buyers Agents Association of Australia webssite – http://www.rebaa.com.au/If its just spotting the properties, even I can help you out to some extent. Drop me a private message and we can discuss the fees etc.
Hi CJ,
I don’t think its a great idea to invest in land unless it is in very high growth area. You are better of investing in a small residential property where a large portion of your outflow is covered by rent. And if you do it right, you may even have cash flow positive investment.
I am assuming you have a negative cashflow of approximately $7000 pa on your land investment. With that kind of negative cashflow, you can buy a relatively new $350-400k house/unit in a major city with prospects for good capital growth. For example, south east queensland is expected to grow over the next few years. You can invest your money there or similar high growth areas.
Hope this helps, Good LuckSanjiv
Interest only, definitely.
G’day Mark,
This sounds like a good opportunity. However, you should be aware of the following:
1. Make sure the lenders don’t treat this as a commercial investment and therefore only fund 60-65% of the purchase price.
2. While negotiating, make sure all outgoings (not just the rates) are paid by the developer.
3. If its a fixed term contract with the developer, try to fix the rates on your loan so that you know the exact cashflow.
4. In your negotiations with the developer, have CPI increases from second year onwards.
Hope this helps, good luckSanjiv
Hi Katie,
First of all, congratulations on your decision to buy a property this year.
With regards to your question on buyers agent/property managers. In my opinion, they perform different functions. A buyers agent acts on behalf of the buyers (obviously for a fee). You would typically use them at the time of purchasing a property. They will assist you in completing the purchase, valuations, due diligence, negotiation, etc. You can get more information on the buyers agents from the following website (Real Estate Buyers Agents Association of Australia) http://www.rebaa.com.au/home.htm. I personally have used positiverealestate.com.au and am very happy with their services.
Property Managers on the other hand are professionals who will manage the rental aspect of your investment property. They will seek new tenants, look after the property maintenance, collect rent, etc. You will find property managers are localised because they have to be close to the property to manage it. Almost all property agents offer Property Management as a service. You can use national property agents like Ray White, LJ Hooker, etc but the actual property managers will be local.
Hope this helps.G’day Paul767,
I would not suggest such an investment for the following reasons:
1. As you know, you have to come up with a substantial deposit. Using the 50% deposit on a purchase price of $125,000 (I don’t think you’ll find an apartment cheaper than that) means an initial investment of $62,500 plus closing costs (say another $7,000). You are looking at a deposit of almost $70,000. Assuming LVR of 80%, you can buy a residential property of $400,000 plus $20,000 closing costs. With a larger starting position ($400,000 worth of property vs. $125,000 worth of property) you will tend to have a larger capital gain if there is growth of say 10%.
2. Generally, the investments in hotel apartments have significant on-going costs including body-corporate, management fees, etc. The gross yield looks impressive but its the net yield that you need to consider.
3. The capital growth on these investments is usually very limited.
Hope this helps!Sanjiv
hey grossrealisation
What is the capital guarantee on your “short time money 2% a month 24% return per annum” investment. I have a similar set-up that returns marginally better than yours at 28% compounded.
