Forum Replies Created
very cute!!!! Did I count correctly? 10 puppies!!!
I also believe there is GST on a vacent block of land that you may have to take into consideration.
THi Talisman,
Please message me if you are still looking as I dont seem to be able to message you. I am in NSW and have a DB. I am away until Sat though.
Cheers
TammyIt would also depend upon where you are building and the terrain (slope, soil type).
As a comparison, I am building in regional NSW (duplexes) and I am paying around $1250 per m2 plus any extras (extra driveway, kitchen upgrade etc.
All the best
TammyIs there any particular reason why you dont complete the subdivision first? Sorry for such an obvious question!
THi Michelle,
I agree with Jon, Steve is a great one to learn from. Also, you may be interested in Troy and Bec, proteges (if you will) of Steve's. They have monthly meetings and would be able to put you into contact with other like minded people (troynbec.com.au). Also there is Wendy Moore (also of Steve's group) at Affluencia.com.au They are aimed at women in property and also hold regular meetings. Both of these are in Melbourne. And not to costly to check it all out (nominal fee for each meeting – chack out their web sites)
Hope this helps
TammyKleenmaid have a 5 year warrenty. I have just had mine 3.5 years and have recieved an offer to extend the warrenty for a further 5 years. I will include these documents when selling and would ask for them when buying. May not be still available, but you never know if you dont ask.
Cheers
TammyDid you have a finance clause?
TammyHi Longroad,
As a starting point, have a look at the API magazine. They alternate their statistics section between sales results and rental yields. It will give you a start on the prospects of each area. Also, if you call the larger REA's and ask about their numbers on the rent roll and their vacency periods you will have some more info. Just for practice, why not call for anything advertised as a rental. Have a list of questions to ask and you should be able to join a few more dots
Possible things to ask
– how long as a rental?
– current lease details (length, type of tennant, how long have they been there)
– REAs knowledge of rentals in that area (demand, vacency rates, average prices, high and low prices, can anything be done to this property to improve the return)Jump on google and determine if location to schools, transport, major roads, shops is determining the rental differences across a suburb. What I mean is a house on a major road will rent for less than the same house in a quiet street. Sounds obvious, but this is neccessary to know as statistics dont reveal this.
I realise you asked for an opinion on rentals in these areas, but I also note this would be your first investment. Whilst my investments are not in these areas, if you apply the above it will give you alot more confidence with an area, and at the end of the day only you have to wear a bad call.
All the best
Cheers
TammyWhilst you may be able to continue to borrow under different trusts – dont get carried away and forget about how to service them. Yes I know, it should be obvious, t'ant always so!!!
TFHOG – first home owners grant, generally $7K but different states may kick in a bit more (check up on latest rules), also on offer is the stamp duty exemption up to a certain $ amount, again check the current rules.
PPOR – principle place of residence, this is where you actually live, ie hang your toothbrush, not just where you intended on living. What I mean is you cant live with your parents and have an IP that you claim is your PPOR when it comes time to sell it.
LOC – line of credit, a loan to a certain amount secured against an asset, such as your PPOR. The idea being that you have access to quick funds should you find a good deal without the need to go through the time delay of application. A great tool when used cautiously, however, be aware of the temptation to use the "free" money for non essential items and thereby increasing the amount you owe on your PPOR.
Hope that helps
Tammy
Well done on having the courage to bring to our attention this previous hidden addiction. All the best for future meetings
TammyHi Jase,
Congratulations on having the finish line in sight!!! I am sure Steve's weekend will see you explode forward now.
All the best with the sale.
Cheers
Tammy (from Tamworth)Hi Cheryl,
I am in NSW and purchasing a property in QLD. My local conveyencer is not able to handle the Qld purchase as they are only able to be registered in one state at a time. I ended up using a local law firm who has a Qld agent. Not that it all ran smoothly. When you find a property, try putting up a post asking for a referal for a certain area. A personal referal may give you a gem!
Cheers
TammyHi Thai,
This is prefaced with "see your accountant" and I am not one. However, my understanding is that tax deductions can only be offset against an income producing asset. This would mean that as your block of land is not producing an income, you are unable to claim a deduction. I believe that the deductions are accrued againt the cost base of the property meaning that if you were to sell in the future and realise a capital gain, then all costs associated with holding that property are taken into account and added to the purchase price to change the cost base and thus reduce your eventual capital gain.
Again, check with your accountant, but I hope this helps.
Tammy
Hi Sam,
I understand why some vendors are not happy to insert finance clauses and I guess the FIRB approval clause also increases the degree of uncertainty. Having purchased using finance clauses, I also consider inserting finance clauses on a sale if necessary to get over the line. For me, the amount of time alllowed for such a clause is the consideration. Do you know the time it would take to get approval from the FIRB? I am surprised at the 5% penalty for not getting approval during a conditional period. If you do pull out of a contract during this time (finance, building inspecting etc) then there is a penalty which is 0.025% (correct me someone if I am incorrect – and this is also NSW). This sometimes just needs to be called the cost of buisness and due diligence.
I tried to send you an email but there isnt a contact. I am currently building duplexes in a resource town would not have a problem with finance and FIRB clauses. Shoot me an email if you would like further information. [email protected]
Kind Regards
TammyConsider the "real rent" that you will get for this house. Use this to work out your total "extra" rent and be sure that he would have added this to his asking price.
$290K rent @ 7.5% = $21750 pa roughly $40K over 2 years.
You indicate that his price is 35-40K inflated. This accounts for why. It would seem that you would be better off considering a purchase at the "right" price and leasing to a different tennant, granted at a lesser return, but comparatively a better potential combination of growth and yield.
Cheers
TammyKing B,
There are alot of places to find your information as you have been advised. When you feel you have used this to target your area and find a potential purchase, you may then want to consider the more indepth reports that, yes you will have to pay for, like RP Data, Red Square or the like. I understand your reluctance to pay pay pay, but perhaps this is because you feel like you would need too many reports which would suggest you need to take the time to refine your area and strategy. It does take time and while there will always be the dumb luck stories of $100K made in a month, consider it worth the investment to pay for a detailed report and NOT buy a property than go it solo and be stuck with a lemon.
All the best,
TammyTry the latest property mag out. I think it is called Property Investor and the 2nd one has only just come out. It gives all rental info, well the last one did anyway, suburb by suburb for all of Aust.
Cheers
TAmmyHi Kenzel,
The one I was refering to is Dec 06 (issue 70), also you may want to look at Feb 05 (issue 48). Whilst I have not yet bought this months API, I see on the website a reference to buyers in their 20's. May also be worth a read.
Cheers
TAmmy
