Forum Replies Created
Haha fair enough. I was in Adelaide a few months ago and was driven around Elizabeth, Davoren Park etc so have an idea of what you're talking about!
Recent API article on potential CG and CF areas highlights Whyalla as a good area to invest. I'd never heard of the area before but it does seem very promising with the Dam construction, hospital, $8bn in future projects etc. The low house median suits me fine to start off investing so will be looking into the area in more detail.
@James- what areas would you recommend between Jenkins, Norrie, Playford and Stuart? They all seem to have have a similar median so wondering if there's much of a difference between them. I'm thinking longterm for CG and positive CF with subdivision in the future so maybe closest to the port?
I remember seeing test kits in Dulux a good while ago but the same ones are available online- http://www.australian-asbestos-removal-services.com.au/australian-asbestos-removal-services/asbestos-kits.htm.
Seems like a pretty easy process but the sample is sent off to a lab for expert testing and results takes a few days to be returned
If the contract specifies vacant possession then you should be ok. If not, you'll inherit the tenant and lease.
As long as they are given an adequate Notice to Vacate there shouldn't be a problem. If they refuse to leave, you can delay settlement until they do vacate. It may take a few weeks but I believe an eviction notice can eventually be served if they're being particularly stubborn.
I'm guessing they've just moved in during March so the last thing they'll want to do is to move again so soon. I would suggest being as helpful and understanding as possible, maybe even help them find a new place or offer to help with moving costs. This should hopefully soften the bad news but encourage them to acquiesce with what you want.
Just make sure to run it by your solicitor first.Regards,
DerekHi Peter,
Sorry to hijack your post but wanted to say that's a very impressive profit considering the small population of Wandoan (<500?). I know your strategy isn't buy and hold but out of curiosity, I'm wondering why you sold a property that is in the area of what you know is soon to be one of the largest coal mines this side of the world? Would it not be preferable to have kept the property and extract the equity gained and use that to fund future purchases instead?
Regards,
DerekI was wondering that too as I have 6 'rewards' but no idea what they are!
The website definitely feels more interactive with the moving Activity Feed and challenges to be done. I'm just hoping the forums don't get spammed by people posting just for the sake of it as a way to get points and unlock achievements etc.
Excellent job on such a smooth implementation but would be good to have some sort of explanation for it…
Regards,
DerekHi Michael,
I've been tracking both suburbs over the last year or so due the their affordability and proximity to the CBD and it seems as though the two are frequently touted as being good investments. Blacktown does indeed receive more attention but I think this may be due to the size difference and number of properties on the market, it has around 280,000 residents whereas Granville is a much smaller suburb with nearly 23,000 residents.
Both feature in the 'Annual Hot 100' of this months API with Granville receiving a 4 page assessment of its pros and cons (Blacktown was featured in the Dec 2011 issue). Personally I would be looking to take advantage of the 'ripple effect' that should occur in Granville seeing as it's only a 30-40min train ride into the city and its closeness to Parra is definitely a a big positive. These kinds of suburbs usually become gentrified and slowly begin to demand higher prices as time goes by (Redfern is a perfect example of this).
Old units aren't necessarily a bad thing, if they are structurally sound then they might be perfect for a reno that generates a decent equity gain (and possibly positive cash flow… if you're very lucky!).
Have you been to either suburb yet and talked to the REA's that work in there? If not, it would be a great idea to do some personal recon and find out some information first hand.
Kind regards,
DerekFreckle wrote:What would be more interesting here though would be things like how to manage a portfolio in a down turn, what strategies are most likely to succeed going forward, what will the PI market look like over the next 10 years and so on.I was thinking that as I was reading the Feb issue of Y.I.P, as it seems a lot of their 'Investors of the Year' contenders and the almost monthly cover stories of everyday folk going from broke to property millionaires have made their money over the last ten years with many properties doubling in value, high yields etc. I was wondering what their success rate would be like if they were only starting their portfolio's now…
As I'll be starting my own foray into the property investing world this year, It will take a lot longer for myself and others in the same position to build up a portfolio that provides decent CG and/or a nice yield given the current uncertainties. I believe the old 'buy, reno and hold' strategy will work well in any environment and hope it does the job for me. Of course there's still plenty of opportunities to take advantage of too such as the increased number of distressed properties available (up 20% on last year apparently).
I do wonder what API and YIP magazines will be running as cover stories in a few years. Maybe something along the lines of "Read about Mr X and how he achieved 5% CG in 4 years"?!
Ah that makes it a bit clearer, thanks for answering. So it's along the same lines (if not the same thing) as the PAYG Income Tax Witholding variation form which would also help with the CF. Quite handy in some situations I can imagine.
Regards,
DerekHi guys,
Nothing needs to be done if the gift is not related to employment as there's no gift tax in Aus.
The ATO uses its 'nexus' rule to determine the relationship between the gift and employment and whether or not it's taxable.
Eg, if you were receiving the $25k in $200 in weekly instalments, the ATO may treat this as a source of income and consider it taxable.In your case, it's a once off payment from a friend so no tax is payable. I tried searching the the ATO website for a link to a more official source but not much luck. It would be a good idea to get something in writing regardless, always good to have some sort of 'paper trail' for the lovely people at the ATO.
Kind regards,
DerekHi Toucan,
I attended the seminar today and quite enjoyed it. Steve as always did a great job presenting but I felt a lot of the material had been covered in his lectures at the last 3 day conference (which he did admit to to a certain degree) and if you've read all of his books then you probably won't miss out on too much if you don't go. Stuff like value adding, lowering yields to increase value, identifying the right property etc were all talked about. Still was good revision and keep it fresh in the brain.
We did get a book of all his lecture notes which was a great idea. Rob Hadded was pretty good but again, material was very similar to the 3 day conference. Joe from Acceptance Finance was good though he could have done with a bit more time.
Similar to iGreen, my free ticket went unused so maybe $300 was a bit much for just a few bits of new information but I find these seminars are great for motivation and to do some networking.
If it's too expensive maybe create a post asking for someone to go with you and share the cost? That's what I did for the spare conference ticket I had and got a few interested people. I think seminars like Steve's are always worth the money as there will inevitably be a few things that you'll pick up to help you with your goals.
Kind regards,
DerekCheers for the replies guys, appreciate the fact you read through all that.
Catalyst- I've known for a long time that I didn't want to work for someone else and after reading books by Kiyosaki, McKnight etc, that was reaffirmed. By far the best type of lifestyle. The flip properties are not a definite, just something I'd like to try and see if it'd be a way of replacing normal income. For the other IP's, I'm hoping to have bought them within a year. I use my spare time wisely and during work can easily research properties there. Ideally I'll be looking within an hours drive from Sydney, although still trying to figure out which suburb(s) I'll focus on. West Syd is somewhere I've been looking as it seems to be marked for continued growth.
2 properties a year is nice progress. How long have you been investing? What's your strategy?
I've been following Nathan for the last year or so, very much in awe of what he does! I'll be talking to him tomorrow morning so looking forward to that and was thinking I would benefit greatly from his mentoring program. I will indeed be attending Parra meeting though sold my car so hoping public transport gets me there on time as I usually finish work around 6. I'll PM you nearer the date.hbbehrendorff- I have thought about commercial but think I'll be better off starting small and when I have more experience behind me, venture into that area. I wouldn't feel too comfortable with the higher vacancy rates that I've heard about. Although in saying that, ultimately I'd like a mix of both types and be in the position where the residential CF would cover any commercial vacancy.
TerryW- forgot to say the prices I'm thinking would be inclusive of stamp duty, closing costs etc. Would subdivision be a more lucrative method to generate some spare cash? Even $20k a few times a year would be a good income. Thanks for the offer, I would most certainly like to meet up some time. Reading your replies, you seem like a veritable fountain of knowledge on all aspects of investing.
Jamie- Would it still be hard to get the 90% loans even with the LMI and do banks mind if all the loans use this? Seeing as they're covered should anything bad happen, I thought they'd be pushing this product on anyone. Though maybe not so much in the current climate. Is it likely that the possibility of owning a few CF+ IP's plus some decent equity or the term deposit would replace the problem of the new job? I've been in the same job for 2 years but it's only been part time as I'm studying (finish in Sept) so don't think that will help much servicibilty wise.
Kind regards,
Derek
Thanks for that, all the links work fine.
I did read about it briefly a while ago but didn't realize it was actually that bad. All those lower classes living in abject poverty surrounded by empty apartments, crazy!
Kind of understand where the Gov is coming from but that is definitely an extreme. Wonder how much worse it will get and what's in store if China ever becomes #1…
(I originally thought you were referring to another type of Chinese ghost town!)
Is there a different link to the story? Firefox reports that it's an attack site!
What is the current listing status for http://www.sbs.com.au/dateline?
Site is listed as suspicious – visiting this website may harm your computer.
Part of this site was listed for suspicious activity 2 time(s) over the past 90 days.
What happened when Google visited this site?
Of the 84 pages that we tested on the site over the past 90 days, 54 page(s) resulted in malicious software being downloaded and installed without user consent. The last time that Google visited this site was on 2011-07-16, and the last time that suspicious content was found on this site was on 2011-07-16.
Malicious software includes 7 scripting exploit(s), 7 trojan(s). Successful infection resulted in an average of 18 new process(es) on the target machine.
Always happy to help a fellow newby and share whatever info I can
Interesting you should mention Marrickville, I've been keeping my eye on the area for a while now and think it's a good place to buy, primarily for the reasons you mentioned. It does still have a bit of a stigma attached to it but, like Redfern, is slowly undergoing gentrification due to an increase in the young middle-class looking for more affordable housing that's still close to the city.
One piece of advice you'll hear again and again is to buy in the suburb next to the one that is booming. In this case, it seems Newtown and St Peters have had their time in the limelight so Marrickville should be next on the list. You're definitley on the right track with regards to the way you're thinking. Speaking of track, most of the suburbs on your list have train stations and reasonably good bus services so they will usually be in strong demand.
As Jamie mentioned, look for factors that will cause growth in the area. I noted that the Aquatic Centre has been redeveloped and there's some sort of 'waterplay' park that was recently built. Also heard there was to be another mall constructed in the area but not too sure when or where.
When I was a ceiling insulation installer (fun times!) and working in the area, I did notice that a lot of the houses were run down and could so with a good reno. I'm not sure what strategy you intend to go with but I think it would be worth looking into that method as reno's are a quick way to gain equity. Personally it's not a place I'd want to live but if the numbers stack up and the outlook seems positive, go for it!
Regards,
Derek
Good afternoon Hawko,
It's great that you're thinking of using the money to invest in property. Personally, I would (and have) put such a large sum of money in a term deposit at the best rate for a year or so and use that time to learn as much as possible about investing in property. There's many books, forums and seminars out there that would easily fill up your time. By then you'll be far more educated and be able to make better informed decisions regarding your strategy, structuring your finances etc. Also, the interest by the end of the year on the TD would be enough to put a deposit down for a house. Thank you bank!
1. If you're single and don't have a job, I think renting a room may be a better option and use the money to buy IP's instead. Negative gearing will slowly drain your bank account as you don't have any money coming in. Of course if you do get a job and earn a high income, there are tax benefits associated with NG'ing your PPOR. There was a thread created on here about renting vs buying a PPOR but couldn't find it.
2. If you haven't bought a house in Aus before then you are eligible for FHOG but the inheritance being a property may affect this. Was the house in Aus?
Check out the discussion on Somersoft- http://www.somersoft.com/forums/archive/index.php/t-31168.html3. Starting small is always a good idea as it will give you an idea of what goes on before, during and after buying a property and mitigates risk associated with larger deals in capital cities. It's a lot of work and requires a lot of effort. It also depends on what your portfolio strategy is and what outcome you are looking for from property investing. Buying rural may produce neutral or positive cashflow (especially as you can put down larger deposits) but historically, it is slow to gain much CG. There are also reno's, flips, vendor financing etc that are good ways to get into the proeprty market and these can be done in any market.
I would highly recommend any books by Steve McKnight, Michael Yardney, Dolph DeRoos and Margaret Lomas just to get you started. And of course, reading through websites like this on a daily basis helps greatly.
Best of luck with the future decisions,
Derek
A more useful reply…
I would suggest getting to know the person in the bank who deals with these. If they know what you're interested, they'll contact you. It's similar to telling the RE agent what you're after and thye call you before the property hits the general market. Although I'm not sure of the legal/ethical aspect of this but I can't see why it would not be allowed. Worst thing that can happen is you ask and they say no!
http://www.nmddata.com.au/ and http://mortgageeproperty.com.au/ are good places to start if you can't get on an agents contact list for mortgagee sales.
http://www.somersoft.com/forums/archive/index.php/t-40336.html is a discussion on the same topic so hopefully you'll find something useful there
Regards,
Derek
Try and find out what past CG in the area has been and compare it with other relatable suburbs. If you can go back as far as 20 years, it would give you a better overall idea of the areas potential. The local council should be able to provide some good information on past performance. An educated buy in a 'well located' area should prove itself over the years as a good IP.
The best thing to do is check the data in the back of any Australian Property Investor magazine as it's quite comprehensive. There's plenty of data online too of course, although you are usually charged for this information.
Here's a list for CG suburubs Australia-wide- http://www.smartcompany.com.au/construction-and-engineering/the-top-50-growth-suburbs.html. Did find some for Sydney but at a cost of $215 etc.
I have heard that the inner west is a good place to be investing as infrastructure development, residential land re-zoning, Gov spending and population are all on the increase in years to come. Plus house prices are a bit more affordable so it would be a good place to start.
Good luck!
Regards,
Derek
Hi Wilson,
Why were neither a building inspection or a pest inspection conducted? They should form the basis of your friends due diligence process. And common sense for that matter. Has he contacted the seller or their agent?
Did the seller mention any previous pest treatments? I'm pretty sure anything like that has to be fully disclosed. It could be possible that the owners were unaware of the matter as it required your friend to do a reno 12 months later to discover them. Given the timeframe, I would suggest obtaining the opinion of a termite expert to assess the damage and hopefully provide evidence that the termites have actually been there since before the house was bought. Termites are relatively slow to reproduce but a mature colony containing thousands could quite easily have been attracted to the house and created the damage in a matter of months so it's hard to tell.
If you can prove the termites were there before the sale and the seller was aware of this (the main point), then it's a breach of contract and you should be compensated. Otherwise, your friend will have learned a very expensive lesson.
Kind regards,
DerekHi Dalefro,
Any luck getting a copy of Marty's Blueprint? Admin said there's no plans to sell it again any time soon which is a shame as I'd love to learn his methods.
Regards,
Derek
