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  • Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Hi Matt, I started buying cashflow property in Kansas City in 2013 with a friend/business partner of mine, we ended up with several cheap properties, we did well partly due to the exchange rate over the last 6 years and growth of the US economy. We sold them all in the last 12 months. I’m not sure about your situation but happy for you to message me privately for more info.
    I basically set up an LLC in the state of Missouri to buy in Kansas City. As a foreigner I wasn’t allowed access to traditional finance options in the early years so used my own/partners cash , however, overtime with cashflow coming in smaller banks were happy to lend to me with low LVRs.
    I was typically buying properties that were rehabbed an tenanted for 35 to 50k in lower socioeconomic areas.
    The biggest issue I had was the banking system there, twice my LLC business accounts were shut down at short notice. Once I had to fly there just to move a large amount of money from one bank to another. I have to fly back again in person shortly to wire a large amount back to Australia because the small bank we were with was taken over by another bank. I had to google how to write a Cheque out when I started buying there, because for some reason they still use them there.
    I often hear Australians who have invested in the states complain about property management, however, I made the effort to go to Kansas City and build a rapport / friendships with the property managers I used, I made friends out of them, I always got my rent.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Like all Political Parties, Labor will talk tough (easy to do in opposition) and tell the people what they want to hear to get their votes. Once in Office its a different story, policies get watered down etc. From memory the Labor Party brings up abolishing negative gearing about every 12 months.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Im still in KCMO with a business partner of mine, to be honest its worked out well for me, However I went over there a number of times to sort my own things out and met the right people. I have a good property manager who I have actually become good friends with in the last few years, so that has helped.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    I find this website quite accurate for quickly assessing the likely rent in the US for a particular property
    Rentometer.com

    • This reply was modified 8 years, 5 months ago by Profile photo of Bennytee Bennytee.
    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    catinthehat, I agree with you, also I am skeptical of the Co2 benefits of everyone driving electric cars in a country like Australia, where 74% of our electricity comes from Coal power. The more electric cars on the road the more Coal we need to burn, go figure.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    I am a bit of a self-confessed health freak and use a variety of different natural health products and supplements depending on what my goal is… so it could be to clean the blood… detox… boost brain strength… etc… the more I look into these subjects that interest me… the more I find that I simply would of not known about it if I didn’t delve deeper into this magickal world of health and wellness :)

    I was wondering who else here uses supplements to better their health? And where do you buy them from?

    I personally found this great deal –> http://healthadvocate.net.au/iherb-coupon-code/

    At the moment I am using raw cacao for the plethora of health benefits it provides (in my smoothies) and a bunch of supplements to decalcify my pineal gland and open my 3rd eye more and more!

    Exercise, a balanced diet & drink plenty of water, that will do more than any supplement. The only supplement I recommend is scotch & dry with a cigar every now an then

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Well done guys, I got to the states last month, I just settled on a 3rd IP in Kansas City, I aim to pick up at least another 5 with my business partner before the year is out. I am aiming to buy another Sydney property to live in as My family expands in the next 3-4 months

    Good luck guys

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Any agent worth using will not work for you without an exclusive agency agreement. Most agents work commission only, they will not invest their time an effort in you & your property, while there is a risk another agent could sell it & get all the commission. Would you

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Hi Friends: I bought a property in Burnie, tasmania around 2007. It has allways been rended from day 1. it is a 3 bed room h ouse on a 700+ sq m block. Recently pained. Attracts $205/ week rent. I repayed 10% of the purchage value and now paying interest only about +- $700/ month (real estae fee on top). When I wanted to sell the property, teh real estate agent tells me the selling price woud be less than the initial price I paid to buy the property 7 yers back. I am a bit surprised to hear that. How can it be a negative growth after 7 years? What should I do? Please advise.
    Thanks
    Sharif

    [email protected]

    2006/2007 (I bought 3 IPs there) was the end of a property boom in tassy, due to economic reasons (the greens) unemployment has risen, the forestry industry was shut down which didn’t help (amongst other things) also I believe 70% of people in tassy get most of their income from the government (unemployed, pensioners, students, public servants etc), tassy is probably the worst state to invest for growth in my opinion due to above reasons, however you can get good cash flow stuff. The good news is the recent change in state government to Libs is seen as positive for business, consumer confidence etc but it early days. I have sold all the IPs 2 for what I paid an 1 for a small profit in the last 2 years.
    I suspect your RE agent is on the money, get a few appraisals done to be sure.

    Profile photo of BennyteeBennytee
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    @ten_burner
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    Boy do I hate capital gains tax. Its pure evil.

    I am playing devils advocate here, I believe Capital gains tax actually helps keep our property market stable during GFC like events, it stops investors panic selling their IPs & therefore flooding market.
    I guess the pain associated in handing over vast sums of money in the form of Cap gains tax, encourages people to take a wait & see approach. food for thought

    Profile photo of BennyteeBennytee
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    @ten_burner
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    The other thing would be to have capital gains tax removed once you have owed the property for a certain number of years. That way we could encourage long term investing and help to provide for peoples retirement.

    Good point Nigel, Capital gains tax on property was brought in around the same time as negative gearing(circa 1985), perhaps to counter the lower revenue the government received as a result of allowing negative gearing.
    If they get rid of one they should get rid of the other.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    I don’t know why I keep replying, but you’ve completely missed the point. Don’t consult a PM, what would they know? Consult a lawyer, as this is covered by contract law. The PM is the worst person to ask this sort of question as they are completely biased in their opinion.

    A PM agreement is a 2 page document deliberately written in Layman’s terms so its easy for the general public to understand, hardly cause for a lawyer($$$) & if you want to take it further, the cheaper (free) alternative is to contact the office of fair trading in your state, they deal with this type of things everyday, they are the main body in charge of legislation & disciplining RE agents, PM etc. see link

    http://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Legislation.page?

    http://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Discipline.page?

    Profile photo of BennyteeBennytee
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    @ten_burner
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    Post Count: 243

    <div class=”d4p-bbt-quote-title”>ten_burner wrote:</div>

    <div class=”d4p-bbt-quote-title”>TheNewGuy wrote:</div>
    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    I believe you will still have to pay their management fees for the notice period, even if you said you wanted everything handed over to you tomorrow. Remember, by signing the managing agreement you have agreed to the terms & conditions on that document.

    No, you wait until you get paid and every RE I’ve used pays out the balance every month / fortnight, then you have the money and they have none, so they will need to get it from you. Most importantly though, a contract GOES BOTH WAYS – they provide a service, and you pay for it. If the Real Estate breaches the contract by not providing the service, then you don’t have to abide by the termination clause. For this type of breach though, you’ll need to give them the opportunity to rectify it, otherwise if they do choose to sue you, then you’ll probably be liable.

    However, I really do recommend contacting the owner. I’m assuming they’re different people, and you really should bring it to their attention.

    There is an ethical way and an unethical way to handle the situation. The original property management issues where not what I would call catastrophic or malicious, the ethical thing to do is give them the 30 days notice, then move on.

    I double checked with a PM friend of mine she told me the agency is entitled to the management fees (as I said)for the termination period laid out in the property management agreement, however if you do what The New Guy said 99% of agencies won’t chase them up for fear of the landlord bad mouthing their company.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    I have been using Strategic wealth since 2008, no issues always on the ball

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    We’re in an experiment. We have amatuer IT enthusiasts trying to figure out how to make an open source platform with third party plug-ins work while trying to maintain a functioning forum.

    Perhaps its time to start your own forum lol

    • This reply was modified 9 years, 11 months ago by Profile photo of Bennytee Bennytee.
    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    I believe you will still have to pay their management fees for the notice period, even if you said you wanted everything handed over to you tomorrow. Remember, by signing the managing agreement you have agreed to the terms & conditions on that document.

    Profile photo of BennyteeBennytee
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    @ten_burner
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    ten_burner – I would really like to know what you mean by ‘hick’ towns. From a quick google search of ‘hick’ I came across
    “a person who lives in the country, regarded as being unintelligent or provincial”

    I find this extremely offensive if this is what you are implying – I myself come from a town of less than 500 people and do not believe I am either of these things. I can also tell you that 99% that live in the country actually pay their rent on time and are excellent tenants and I wouldn’t hesitate to invest in such towns – from a small populated town I am receiving an 11% return and they are the best tenants I have had.

    I believe most people except “hick town” as general slang for a small regional town.
    I never said anything about country people not paying their rent on time nor would I.

    I only spoke about fundamental issues with small towns that are commonplace (I except there is the odd exception like mining towns) like…
    longer vacancies, minimal to no rental or property growth, an illiquid property market (FYI the Dirranbandi property in the earlier posts has been on market since September last year), declining populations, lower LVRs.. maybe its the fundamental truths that offend you.
    Also your 11% rental yield is low when compared to the risks you are taking on, in my opinion there are bigger regional towns with similar rental yields.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    There should be a termination notice period in your property management agreement, email them and say that you are terminating the management agreement (so you both have a record), 30 days is a normal termination notice period, however it might depend on which state your property is in.

    Profile photo of BennyteeBennytee
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    @ten_burner
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    Post Count: 243

    There must be a lot of gain realists, retirees, deaths, divorces, etc in the US and only in certain areas.

    What is your net yield?

    I am not saying that investing is US property is good but it’s not as good as everyone tries to make it to be.

    15% net return after all expenses(insurance, rates, taxes, management fees etc) in Kansas City, population 600,000. From what I saw there its actually better than I first thought.

    • This reply was modified 9 years, 11 months ago by Profile photo of Bennytee Bennytee.
    • This reply was modified 9 years, 11 months ago by Profile photo of Bennytee Bennytee.
    • This reply was modified 9 years, 11 months ago by Profile photo of Bennytee Bennytee.
    Profile photo of BennyteeBennytee
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    @ten_burner
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    Post Count: 243

    sorry about the edit, I am learning BBCodes

Viewing 20 posts - 1 through 20 (of 232 total)