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Hey Tommy,
There is a property search tool called Ripe House – RipeHouse.com.au
It allows you to do suburb analysis and find discounted properties. It also shows how long these properties have been on the market for.
The problem with a sellers market is that properties that have been on the market for a long time are generally only there because they are overpriced, not because the market isn't buying.
I guess your best bet is to find a property that:
a) no one wants because it is in a bad condition
b) The seller needs certain terms more so than a high price point
If you can settle in 14 days instead of 60 it might be better for them than a buyer offering more money but the longer settlement date.
Ryan McLean | On Property
http://onproperty.com.au
Email MeAs everyone else has said it probably isn't ideal renovating from the other side of the country.
A friend recently bought a house in Port Hedland (WA) and he lives in Sydney. It was a renovation job and Port Hedland is pretty remote so you can't exactly just pop down to your local bunnings to pick up supplies.
To get this done he paid a friend (and Sydney resident) to fly over there and renovate the property for him. He paid for all flights, accommodation and building supplies and paid the guy a daily rate…plus paid for his food.
I say this to say that you could consider getting in contact with local builders or handymen and consider hiring them as a handyman…paying for the supplies and paying them a day rate to complete the work.
Otherwise you can get building quotes done for the project. Handyman will probably work out a bit cheaper but the job probably won't be as professional
Ryan McLean | On Property
http://onproperty.com.au
Email MeWhy do you want to go a one-stop-shop?
You need to be aware they tend to take a cut on almost everything – Land, House Build, Mortgage etc – which means they have a vested interest in selling you the property that makes them the most money.
If you really need help you would be better off paying for the help of a Buyer's Agent who can find the property for you and use a Mortgage Broker (there are many great ones on this forum) to help with your financing.
As has been previously said the first investment is probably the most important one so you want to make a good decision.
Spend some time learning and doing research yourself.
Hope that helps
Ryan McLean | On Property
http://onproperty.com.au
Email MeI have heard of people working overseas for cash…
Ryan McLean | On Property
http://onproperty.com.au
Email MeWhat attracts you to the area?
Have you researched the capital growth over the last 5-10 years?
What is the rental yield you would achieve on the property?
Is there population growth in the area?
What are the demographics of the area?
All these things are important to know before making an investment decision.
Ryan McLean
http://CashFlowInvestor.com.au
Helping You Invest In Positive Cash Flow Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeHow do you know you will get $525,000 for the property when you sell it?
Make sure you research the area and find out if there are large differences between renovated and unrenovated properties. If there is a large difference then you might get the return on investment you are looking for.
But if there is not much difference between renovated and unrenovated properties then you might not sell for as much as you want to. Many investors think "Because I renovated I can sell for X dollars" but make sure you have research to back your projected figures. Otherwise you are just gambling.
Ryan McLean
http://CashFlowInvestor.com.au
Helping You Invest In Positive Cash Flow Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeRemember "If it sounds too good to be true it probably is".
If the agent selling the property to you is also going to manage your subdivision and development I would tread carefully.
Agents get a commission for selling a property and thus have a vested interest if the sales goes through. They could then back out on the development side of things.
If you are serious about developing I would get some quotes from other companies who could also manage the development for you. You can then compare their fees to the agents fees and see if there is anything fishy going on.
Ryan McLean
http://CashFlowInvestor.com.au
Helping You Invest In Positive Cash Flow Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeA few questions so I will try to answer them as best as possible.
1) An Australian bank should be able to loan you the money as long as you have been claiming your income. You usually need to prove (at a taxation level) how much income you earned. If you're not declaring income this will be difficult.
2) Interest Only loans are definitely possible. People do them for their place of residence all the time. I haven't seen many interest only loans with a greater than 5 year term though. I think you have to renew after 5 years and get another interest only loan.
3) Borrowing money against your Chinese places would give you cash to be able to invest in the Australian market. You could always look for a low-doc loan if you have a large percentage of the deposit.
NOTE: I am not a financial advisor nor mortgage broker. Probably best to speak to a mortgage broker as they will be able to tell you straight away what your best options are.
Ryan McLean
http://CashFlowInvestor.com.au
Helping You Invest In Positive Cash Flow Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeI myself would HATE to be paying body corporate for a HOUSE!!! That is one of the reason I don't like investing in units. Less control over your property and more costs…lowering your cashflow.
Ryan McLean
http://CashFlowInvestor.com.au
Ryan McLean | On Property
http://onproperty.com.au
Email MeThere are benefits to both.
OLD HOMES – By purchasing an older home and renovating you can often buy below the market rate, but then get a good rental return after the renovation. This can lead to increased rental yield and can help you to earn a positive cash flow faster.
By renovating you may also be able to increase the value of your home giving you instant equity.
NEW HOMES – You can claim more depreciation on a new home as all the new items have a lot of value to lose (on paper). This can help you get a greater tax return. However, with new homes you are likely to pay more and thus your rental yield opportunity may be less.
Ryan McLean
http://CashFlowInvestor.com.au
Helping You Invest In Positive Cash Flow Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeYeh I thought so. I haven't taken an indepth look into banks lending habits on land or construction. I have heard of a few people getting 95% loans on house/land packages.
I had heard that once you have money in your bank account for 3 months banks count it as 'genuine savings' so I wondering if after you purchased the land and got the $15,000 grant…if you then held onto that in your savings account for 3 months it could sneakily be counted as genuine savings.
However, I highly doubt this would work. But thought it would be good to get everyone's feedback. I'm always trying to think of ways to do things for a little money down as possible. There are a lot of people out there who can't save a deposit but can afford repayments.
Ryan McLean | On Property
http://onproperty.com.au
Email MeI have also looked into this in the past and you can secure 97% finance but that is with a 5% deposit. The 2% covers LMI (lender's mortgage insurance) and it is very difficult to get around this. Keep slogging away and keep saving up your deposit so you can buy that house.
Only 2% to go!!!!!
Ryan McLean
How To Save For A House FastRyan McLean | On Property
http://onproperty.com.au
Email MeSaving a deposit is key. I wish it wasn't (because it would be so much easier) but it is. For good reason too!
If you can't afford to save a deposit and you are investing without a deposit then your risk of financial loss is increased dramatically. Mix that with inexperience in property and you have a disaster on your hands.
There are ways you can buy a property without a deposit (like vendor finance) but they are difficult and better suited to the savvy investor. But DON'T WORRY! You can save a deposit if you work hard and put your mind to it.
Ryan McLean
How to Save for a HouseRyan McLean | On Property
http://onproperty.com.au
Email MeI know that they sell properties and I haven't heard anything back about their service. I definately don't think they are a scam.
Haven't heard much about their information/education though. Maybe try giving them a call to arrange a time to see someone.
Ryan McLean
Free eBook "How To Find Positive Cash Flow Properties"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeAs already mentioned above. It should be fine to claim on the entire $780k, just as long as it is all for investment purposes.
Imagine if your property was a business. You would only be able to claim expenses relating to the business. You couldn't claim completely unrelated expenses. It is the same with property.
If you think that an expense needs to have the goal of making you more money, or improving your investment. Then usually that is claimable. Stamp duty is an expense that will hopefully make you more money down the track because it allows you to buy property.
Ryan McLean
Free eBook "How to Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email Me@Catylst – That was exactly what I was thinking. "Why are there two vague, but positive, messages about this company from first time posters. Both with an underscore in the middle of their name?"
Maybe some sneaky marketing tactics at play here.
Ryan McLean
Free eBook "How To Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeThe 110% fees for leasing the property to a new tenant. This sucks when you change tenants every 6-12 months.
Ryan McLean
Free eBook "How To Find Positive Cash Flow Property"
http://cashflowinvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeAs Jamie mentioned speak to your Solicitor or Lawyer. Have they actually broken any laws or intentionly misled you or given you incorrect information?
It is possible to add things into your contracts such as a clause where you only have to purchase the property if, on completion date, it is valued at the purchase price or higher. Then if it falls below the purchase price you can obtain a refund of your deposit. You need to get a solicitor to write this up.
Without knowing more about the situation we cant give you specifics about what to do…but basically you will probably need professional legal advice
Ryan McLean
Free eBook "How To Find Positive Cash Flow Property"
http://cashflowinvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email MeDo you mean a cash flow calculator? Like to calculate whether a property is going to be positively or negatively geared?
Or do you want a calculator that analyses risk based on area, price, vacancy rates, crime and all those sorts of risks?
Ryan McLean
A Free Cash Flow Calculator For Property Investors
http://CashFlowInvestor.com.au/quicktestRyan McLean | On Property
http://onproperty.com.au
Email MeI have used it and it is pretty ridiculously good. I would recommend it for people who are looking to buy. Not just people searching but not actually in a position to buy.
My favourite thing is the fact that you can analyse individual properties. See what they sold for in the past and what the software guesses they are worth. It isn't always perfect but it gives you a really good ideal. Especially if you aren't familiar with the market.
I think they have a trial period. Why not try that….or go to their free webinar and see more about it
Ryan McLean
Free Ebook "How To Find Positive Cash Flow Property"
http://CashFlowInvestor.com.auRyan McLean | On Property
http://onproperty.com.au
Email Me
