Forum Replies Created

Viewing 20 posts - 61 through 80 (of 154 total)
1 2 3 4 5 6 7 8
  • Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    June 12, 2012 - 2:06 am

    Jim, it's unfortunate that you had so many difficulties in your storage business.  Thankfully we've had a very different experience with our small facility.  Having them managed by the local real estate agent means I never have to deal with our clients.  Of our 30 we currently have 2 that are slightly….several actually pay 12 months in advance to receive a discount!  As soon as any are late paying my property manager is on to them and brings it up to date.

    You are spot on re having a contract in place with the tenants – when we purchased they didn't ever sign anything and it was all done on a handshake.  The first thing we did was put agreements in place with all existing and new clients.  Clients know their obligations and our expectations are clear and thankfully we haven't had any of the issues you've mentioned. (Interestingly neither did the previous owners even with just a handshake agreement!)

    I guess this thread highlights the importance of completing thorough due diligence before taking on a storage facility as an investment as no two are the same.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    June 3, 2012 - 10:35 pm

    Hi Richard

    Does the existing strata-titling make any difference to the NAB?

    Thanks, Tracey.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    June 3, 2012 - 2:47 pm

    I believe that NAB have been doing up to 7 recently.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    June 1, 2012 - 11:13 pm

    Thanks for the update Dianna…hoping others will do the same for people who can be there!

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 29, 2012 - 11:57 am

    For us, we figured out how many $ per year income we needed to quit our jobs and when we wanted to be in that situation…..May 2014 is our date!

    Since then we’ve been collecting positive cashflow properties, improving them to increase the rent and also doing other development projects for lump sum gains. Whilst I’ve been eyeing towns in Qld and WA I’ve been able to find properties with great returns right here in Tassie in good, low risk towns/cities.

    Oh, our plan also includes spending management (budget) – it won’t matter how many $ are created or earned if spending is not under control!

    Good luck making your plans.

    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 29, 2012 - 12:27 am

    Hi Wendywoo

    I'm with Engelo – a 6% gross yield wouldn't work in my portfolio so I would not consider it to be a good deal.  But, for others it may be a good deal – depends on the end goal and investment strategy being used to get there.

    When purchasing I always ask myself:  Will this purchase take me closer to my goal or further away?

    Cheers
    Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 24, 2012 - 10:48 am

    Thanks Kristin – excellent explanations.
    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 23, 2012 - 11:18 am

    Contact the local council and they may be able to provide you with a postal address of the owner.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 22, 2012 - 3:40 am

    Don't have any books to suggest but this website has some solid information on it: http://www.selfstoragesalesaustralia.com.au/index.ews

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 18, 2012 - 9:54 am

    Thanks Nathan, since you won’t be in Tassie any time soon I’ll look forward to seeing your Sydney presentation! Thanks too for the link to your previous seminar.
    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 18, 2012 - 9:49 am

    Sure thing.
    Our weekly rental rates on the website and we are a shade under the others so are fully occupied most of the time. You’d need to check the market rates in your area.
    Our gross annual income is $48K and net of almost $37K after the following expenses:
    Advertising; Pest Control; Phone; Power; Rates; Water; Property Mgmt (@12.5% by local real estate agent, paying a premium here and potential to save); Land tax; Insurance (buildings only as clients are responsible for the insurance of their property)
    Ours are on the market for offers over $450K, giving the buyer a minimum 8% NET.
    Hope this helps!
    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 14, 2012 - 3:27 am

    I think you might be trying to describe the margin scheme – if you are check out this thread https://www.propertyinvesting.com/forums/property-investing/help-needed/4335989 

    I'm not an accountant or solicitor but I think whether you can use it depends whether the margin scheme has been used during any previous sale process on your land.

    My solicitor and accountant usually help me out with these sorts of questions so it might be worth running it by them – it's a fair chunk of your profit if it's not dealt with properly and the tax man comes chasing you for it.

    Let us know how you go.
    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 11, 2012 - 3:32 am

    I agree with Luke…..

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    May 2, 2012 - 12:24 am

    How low is the deposit?
    Is it for you to occupy or have tenanted?

    Cheers,
    Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 30, 2012 - 11:21 pm

    I do these on a back of an envelope rather than a serviette as they don't fall apart! :-) What you've calculated looks reasonable and a quick calculation like this will certainly tell you whether it's worth further investigation.  There may be easements, overlays, access to services etc. etc. that will change these numbers but they're a good starting point.
    Without knowing the area it's difficult to confirm your assumptions re sales price and the costs.
    The GST calculation is overstated as it's 1/11th of the sell price, unless you use the margin scheme in which case it would be less. Private message with the location if you would like a more detailed answer…
    Cheers, Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 30, 2012 - 3:31 am

    Hi Jackie

    Whilst the market may be very slow and he may not have been impressed he should never be rude. I’d walk and find an agent who wants to work to keep my business and sell my properties!

    Based on the quality of your previous projects the properties will be well finished and presented so around $300K should be on the money.

    I have found once (many, maybe not all) agents get something under contract subject to finance they stop trying to find a buyer who has the $ – I’m assuming the contract has a 48 hour clause? Maybe that’s also working against you.

    Cheers,
    Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 24, 2012 - 3:41 am

    This probably also ties in with another post of 'house vs units' eg. if you own a unit in a block of eight only 1/8th of the total land value applies to your dwelling.

    At one of our properties the value of the land value attributed to each apartment is just $25K which helps minimise the land tax situation.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 24, 2012 - 1:39 am

    I think it depends on the type of property.  At the megaconference last year an accountant told me that you are permitted to transfer  commercial property into super at retirement but the same does not apply to residential property.

    As Derek said, the amount of tax will be low but the lower the better so might be worth chatting to a good accountant.

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 22, 2012 - 3:30 am

    Depends if you want them out….if you do you can always serve notice to vacant as soon as they are late with their rent, meaning that personalities are kept out of it.

    Tracey

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158
    April 17, 2012 - 1:12 pm

    I agree with Loosechange that they are a sound investment.
    We have a small facility – 30 sheds and they are nicely cashflow positive.
    They are a terrific ‘hands-off’ investment as we have ours in property management with the local Real Estate Agent
    We have 90%+ occupancy, often 100%
    Several of our tenants have paid a full 12 months in advance.
    Having 30 tenants if a few are vacant it’s no issue.
    Our facility has no on-site manager – has security fencing and every tenant has a gate key and then just a key to their shed…works great.
    Marketing is easy: I built our little website: http://www.shearwaterstorage.com and we have an ad in the yellow pages. We could sponsor local sporting events if we wanted to raise our profile but given the level of occupancy we’d be turning people away.

    Only challenge/negative that I can see is most major banks will lend only 50% value as they’re a specialised commercial property.
    We found ours by approaching the previous owner and saying if you ever want to sell……and they contacted us when they did decide to sell.
    I’ve found people tend to hang on to them, especially the smaller ‘starter’ ones, as they are nice little earners.
    Hope this also helps!

Viewing 20 posts - 61 through 80 (of 154 total)
1 2 3 4 5 6 7 8