Another rule of thumb is “you make the money when you buy”.
You don’t “buy something to lose money and hope to make money in a few years”. You need to make sure before you even buy, what you will buy is going to be making money as soon as you buy it.
Another rule of thumb is “you make the money when you buy”.
You don’t “buy something to lose money and hope to make money in a few years”. You need to make sure before you even buy, what you will buy is already making money.
I actually think it is not necessarily the product itself that is the problem, but the fact that you are being educated in what you are doing.
I don’t suppose most of those groups are willing to teach you how to do research, how to make sure the numbers stack up, how to perform negotiations, etc…
To share my experience. Sometime early last…[Read more]
I can’t say about other cities, but in the city where I am looking at (Dunedin), for every property, there is this thing called a LIM report.
It basically outlines anything and everything, including: property rates details, land details, site hazard details, drainage points, environment information, land zoning details, past approved consent to…[Read more]
Thanks Benny for the reply. I did some more investigation in this regard.
The property is actually in New Zealand, but I thought similar concept should apply.
After talking to a few agents, I was told basically the local council put this phrase on literally every property’s report and it looks like the council put down this as a “blanket to…[Read more]
From an investment point of view, if a building report come up with “possible liquefaction in case of earthquake”, would that set off a red alarm flag, or would that be seen as a opportunity?
An agent told me one of the offers fell over for a property. Basically vendor withdrew the contract upon seeing that phrase in a report.
Interested to find…[Read more]
Between Option 1 and 2, would Option 2 be normally preferred (unless interest rate for the “second loan” is much higher)?
Option 3 would be good, but doesn’t look like I am in a good position to do so until after I get a pay raise.
One of the options I was presented with the amount of savings I have is to pay off my PPOR loan and re-take the money out as a separate loan or maybe a line of credit.
Let’s say I have a PPOR with 800K loan, and I have hypercritically speaking, 100K sitting in a separate offset account to offset the interest, so while I am…[Read more]
The way I described though, won’t work very well in Melbourne or Sydney (or maybe even Brisbane) metro area for the matter.
I mean, if property values are well above 1M and you only get 400-500 per week rental income, then it is impossible to get positive cash flow even if we do buy below market value.
It will probably work in regional cities…[Read more]
One thing to mention though is the above example is a simplistic view.
There are many other factors to take into consideration.
Certain area are good for buy and sell, certain areas are good for buy and let, and certain area are good for multi-let (more common in UK than in Australia… Aussies are not big fans of multi-let for some…[Read more]
I personally don’t like the idea of relying on “growth”. Maybe I am just being paranoid… the way I see it is you never know when the market will go through a correction (or in some cases a sharp correction).
Historically there has been a few times that the market crashed when everybody (including experts) think “now is the best time, it is…[Read more]
I recall reading from one of the books or articles (can’t remember specifically where) that Steve significantly started to invest less in Victoria (or was it the whole of Australia?) because what he did in Ballarat years ago, stopped working for him….
I think that’s where buy from motivated sellers below market value is the key I suppose, as…[Read more]
Steven replied to the topic How do you rate your experience with Property Managers in the forum Help Needed! 6 months, 1 week ago
My take is if you only have 1-2, then you may be inclined to do so yourself, but if you have a portfolio of say, 15-20, then it becomes a living nightmare for you do micro-manage everything.
Whether it is tax deducible or not then becomes an independent topic.
Steven replied to the topic How do you rate your experience with Property Managers in the forum Help Needed! 6 months, 2 weeks ago
I think the answer to that also depends on circumstances too. Some PMs are great with basic buy to let properties, but they may not be the best when it comes to managing multi-let properties (duplex, 4-plex, etc… though not that multi-let are all that common in Australia).
I think a good idea when contacting such PMs are:
1. Give them a map of…[Read more]
Steven replied to the topic Best advice : Don’t invest into property : The australian market is CRASHING. in the forum Help Needed! 7 months ago
What type of properties are them mainly?
Did a quick search on realestates, seems the cheap ones are mostly properties with 200-400sqm land, and the ones that are bigger than 500-600sqm land are getting close to 700K.
Would like to find out if anybody has any directions how to setup a structure that is most tax efficient. Not sure if this is the right forum or if this should go to the Accounting and Legal forum.
So some basic run down:
1. I may or may not transfer some money overseas (NZ to be more specific) to be used as a deposit.
2. I will setup a…[Read more]
Steven replied to the topic How to find out how long a sold property was advertized for in the forum Help Needed! 7 months, 3 weeks ago
OK, now that we have established this fact, just wondering if there is a way for me to find those information (without have to pay every time I want to find such information)?
I tried the URL Sarah suggested, however, problem with that is it only works against those they are currently listed, rather than those that are already sold. Still useful,…[Read more]
Doesn’t seem to be anything “new” though.. they are banning foreign investors from buying existing properties, but the ban does not stop them from buying new ones.
Australia did exactly the same thing years ago and that didn’t stop the price from skyrocketing.
I don’t actually mind people suggesting LOC is a more preferred solution.
But what I have a very big problem with is when being asked to compare different products, that particular broker is un-willing to explain the difference, unwilling to provide the pros and cons of both options and the rationals behind why he thinks LOC is the better…[Read more]
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