Yes, Catalyst – A is NOT living at the property. B is living there rent-free (in that they don't pay rent to A), but they're paying their share of the mortgage (rent to the bank).
I understand if A is living in the property, then it's a PPOR, not an IP. A pays their share of the mortgage too, but see no rent as such from B, as it's B's PPOR (why…[Read more]
I rang Council today. It is what it is.
The majority of the costs are services-related, although it still doesn't excuse how much, costs-wise, they're actually charging. Efficiency might be their biggest problem and how they're using their money. The fact that they're struggling as a result of other factors (e.g. tourism) should not, in my…[Read more]
Thanks JacM. I'll be ringing the council soon to find out how they decided to value the majority of the base rate. There's nothing on the notice to indicate what value they've put on the property and consequently nothing for me to use to find out how they figured out the final cost. The other costs were in the docs they sent out with the rates (I…[Read more]
I've recently purchased the property, but there are horror stories online about how much they've risen since 2008 – double digit increases, percentage-wise.
It's a shock to the system, especially when I'm used to paying half the cost for my own PPOR and it's worth so much more than the IP. The only positive is I can claim it come tax time, but it…[Read more]
shangrila00 replied to the topic Property flipping wizard Engelo Rumora not in Australia anymore as he tries Kansas City in the forum Help Needed! 8 years, 8 months ago
Thanks for your interest and support mate. I value your kinds words and would love to hear your story about your investment dreams.
It's an absolute pleasure Engelo…… It truly is a great success story and a wonderful example for others of what can be accomplished if you set…[Read more]
shangrila00 replied to the topic Renovation costs as a percentage of purchase price in the forum Value Adding 8 years, 9 months ago
Thanks for everyone's comments so far!
My plan is to do a cosmetic renovation on the property and rent it out. It's a bit of a dump at the moment, so the renovations can't be too flash. Must be in a decent, liveable condition, with a reno on a budget.
Painters, for example, are quoting me an arm and a leg, however! The amounts I'm being quoted…[Read more]
Thanks for everyone's input! Plenty of food for thought here. I'm definitely looking at those who have acquired what I want, following their lead and paving my own humble way to what I want to achieve. I settled on an IP yesterday and looking forward to the future!
It's hard to be positive around so-called investors, whose advice is to purchase…[Read more]
I've been asking myself the same question. Knowing my risk profile (very risk-averse), I've decided to do it. A good property manager (and landlord's insurance) will take some of the hassles out. If tenants are paid via Centrelink (e.g. a pension), you can have an arrangement with Centrelink where the weekly rent is sent directly to your account…[Read more]
The IP I have in mind is in capital city metro area, with sales history since 2003 indicating there's been a 50-60% increase in values since. So they've doubled for a decade. That's not to say it'll happen again in the next 10 years, but it's a comforting thought, at least, that the area's been growing.
How do you handle serviceability/holding costs during the development (which I know can last a while), especially if more than 2 or 3 at a time are involved? Assuming you're only relying on income, that is? And if they don't sell for expected/wanted prices?
I guess I had to be more precise with my question. I wasn't simply referring to CF+ IPs for the sake of $20 in your pocket, but properties with growth potential too, in metro areas, or regional centres that have something going for them.
Expenses and uncertainties are a given, though.
Then rents go up
There's a downside to every investment, I guess, and a risk involved at all times. Plenty of people out there have been successful investing in CF+ IPs, quitting their day job in the process.
True, and bearing that in mind when purchasing CF+ IPs – say for argument's sake, 20 IPs at $100/wk – that's a pretty good living, even after taking growth potential into consideration.
It's nice to dream and have a long-term strategy
Yes, that’s what I was saying – sell the IP and be left with approx. $40K on the PPOR mortgage. This is after CGT, etc.
The issue I have with making a solid decision is whether to wait and put up with renting it out (I know the hassles of tenants, and being a new property it’ll be hard restoring it to its original condition when…[Read more]
Like I mentioned before, I’ve heard of other people doing it, despite the fact it was a while ago. I guess the incentive for the builder will be that they’ll build 4+ properties, for instance, rather than one or two. The details (bankruptcy, interest, etc.) would be mentioned in the contract.
Thanks Scott No Mates – that's the answer I was looking for.What I was told seemed very convenient, as it's a way of telling the builder what you think of them after all this time (none of my problems have been resolved with them, even after raising them as issues several times – hopeless!), although I wasn't sure how well that would hold in court…[Read more]
beedie,The past few months have already been stressful, unfortunately. It's a reputable company, name-wise, but their actions are anything but! I can only imagine what further troubles are waiting for us well into 2011.Again, with reference to the slab, we've witnessed several hundred metal rods (if I can call them that – my building terminology…[Read more]
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