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Thanks for your replies.
Yes the holding costs were a little low. Should be based on at least 90 day hold
Jaffasoft, all my figures were for worst case scenario. I.e. interest rate 1% higher than the current variable, Sale price $50K less than what others are going for, and the reno should only cost $10K, but I allowed $14K to be on the safe side.
Unfortunately we got our offer in too late and it is under contract with someone else now.
Its not that far out. Only 3 hours from CBD.
Good question Richard.
I would assume so. Have there been cases where finance is not available in Country locations?
My intention is to offer subject to finance and inspection, so if we cant secure finance then we are coveredNo it doesn't, ha ha. I haven't actually said which state it is in.
Haven't pruchased as yet. It is a mid-sized town about 13,000 people with a train line to the CBD. Reasonable employment there too
More details:
- $110,000 Purchase price
- $7,000 Purchase cost
- $120/week repayments
- $140/week rent
It in the country, and unfortunately we wont be able to get to see it prior to purchase. Will be relying on a Building Inspection to assess the current condition of the property
Purchase Price: mid $200k's
Reno Cost: $25k
Total Cash in: $56,624.00
Expected Profit: $15,726.00
Project length: 4monthsThis was your original estimate. I am guessing the profit has increased with those sort of offers?
Well done, the place looks great. With the renovations on the outside, it really gives the perception of additional living space.I'm with adel bank on a variable loan. Havent been informed of anything as yet. They are usually very good with that type of thing.
HI Baby@investing,
I heard something similar at a Martin Ayles Seminar. I think it comes down to how the taxation department interpret the earnings. For example, lets say you are renovating on or two properties per year on a part time basis, this would definitely be classified as capital gains as it is not you primary source of income. On the other hand, if you were full time renovating and doing, lets say 10 properties per year, then this could be deemed to be your primary occupation/business and therefore it is viewed as income.
A good accountant should be able to cover this in more depth though.
Cheers
Thanks for the feedback Steve. I wasn't too concerned with my score at -820, as it needs to be put in context of your goals and timeline. My goal 18 months ago was to be able to afford a family home without saving for a deposit. Using the FHOG and $10,000 loan my partner and I purchased a townhouse which we renovated and sold for $60K profit which enabled us to buy our dream home without paying LMI. Next step is to generate more income which will hopefully happen as I am about to start my own business.
P.S. the business will be designing websites (low cost, fast turn around), so if anyone is looking to update/improve their website, then please drop me an email ([email protected])
I'll put in a bid for lowest score, -820. If I sell all my assests, pay out my debts and stop working then apparently I will survive until…well… today
I'll put in a bid for lowest score, -820. If I sell all my assests, pay out my debts and stop working then apparently I will survive until…well… today
While the resource industry is seeing a huge boom at the moment, that is largely due to China's enormous growth in recent years. If China slows down their growth, even by 5 or 10% then Australia will feel a huge impact. Throw on top of that, the USA has several trillion dollars worth of debt (from the War on Terror), so they are in a high risk climate and we are intrinsically linked to the USA.
