Forum Replies Created
Hi JessM, how did you go?
From my experience, 5% is not hard to get at all. Just got our solicitor to negotiate on our behave all the time.
secondly, most of the time early access won't be a problem if the property is vacant. However, I doubt you would be allowed to carry out any renovation work prior to settlement. because you don't legally own the property prior to settlement, if any of your tradie or any uninvited guests got injured in the house while they are carrying out renovation work for you, the previous owner of the property is liable for it, because he/she is still the legall owner. For this reason, most owners will only give you access to measure up or take quote and they have other restrictions such as the RE agent must be there and must be monday to friday working hour etc, but won't allow you to carry out any actual work.
saying that, there are some owners who have no idea about their legal responsibility and don't mind you renovating prior to settlement, if that's the case, you are lucky!
ELJ, may i suggest you a solution: keep dreaming! or take more drugs!
Btw, Losty, just noticed your accountant's suggestion on putting more money in super. If I were you, I wouldn't follow that advice. You have no control on how your super will perform and you can't have access to it for 25-30 years! at early 30s, you can use the money else where and make double or triple of the return super can give to you.
I personally don't expect to retire on my super at all. it's just a bonus when I reach a certain age.
Hi Losty,
I don't want to be rude, but I really wonder how can you owe such a high debt on the cars? Especially with such high incomes, why not pay off the personal loan first?
My husband and I have been in the property investing game for about a year, not expert yet but we know the basics and own several IPs. From what we learnt in all those books, seminars and forums, 99% of them all say the samething: the number one priority for anyone who is serious about investing or wealth creation, is "clear personal loan" and "'budgeting". That is step number one before you go out and buy any IP.
Honestly, my feeling is that you seriously need to do a proper budgeting to control spending. Because with your income and mortgage position, you should be able to easily pay off all your personal loan within months.
As for the next step, if I were you I would do a buy and hold type first to get a feeling about how the game works, then get into the innovative way of adding value, such as renovation, subdivision, then finally move into development.
In my opinion, it would be pretty risky for you now to move into development straight away, as it is a lot more complicated than you would imagine.
hope it helps.
good luck
Hi, we will settle one of the new development in middlemount later this year.
price we paid is 300k for a 3 bedroom house including furniture package and airconditioning. appraised rent is 650-700pw.
majority of the mines there is coal, with a couple of small gold mines.
currently the workers in these mines are living in dysart, which is pretty far to drive to and from everyday. they are very keen to move to Middlemount to shorten their daily travel.459k price seems fair price. As the price in middlemount has increased in the past several weeks. an old 4 bedroom house is asking around 400k, so 459k for brand new ones sounds reasonable.
btw, the one we are buying has already increased 10% value and it hasn't even been built yet.just like any other mining town, there are risks. If you do not fully understand or are not comfortable with the risk, then you shouldn't buy it.
hope it helps.
Hi Azalia,
Could you also send the template to me too? my email is [email protected]
Will also send you a PM about it. Thanks a lot for your help!Viv
I've called several major insurance companies (AAMI, GIO, NRMA, Allianze) , the answer I received are all the same: they would not insure student accommodation where more than one lease is in place for the house.
I was told that some insurance broker might be able to help on this one.Just talked to my friend who did the workshop.
She just said it's very informative, their think go out of the square to negotiat with agents, and the course include lots of templates, but won't tell me more about it. I guess when people spend so much on a course, they are not comfortable telling us everything they learnt from it, as we didn't pay for the information.
sorry couldn't find more info out of it.
Hi Mav,
sure I will contact her next Monday to find out.
Also, has anyone purchased the toolbox by Dean and Elise? How is it? I am interested in purchasing it from someone who doesn't need it any more. If anyone has it, please PM me.cheers.
viv
Hi everyone,
so has anyone attended their workshop? Please let us know how you go JessW, looking forward to some feedback here!
Viv
Hi Mav,
I got a friend who is attending their 2 days workshop next weekend. I've been to their 2 hours seminar only, but I found it quite informative. But I didn't enrol in their 2 days program because I too find it too expensive.
I will catchup with my friend in a couple of weeks, will let you know what she says.
I personally am very interested in all the templates and checklists they built. The workshop itself not too sure, as they will talk about asset protection, subdivision, strata title etc, which I already know about, it's kind of waste of money to listen to it again.
Anyway, will keep you posted on my findings.
Viv
I agree with watsonc, pretty sure that insurance company will not pay out the claim if they find out the granny flat is rented out separate.
Actually I was calling around all the major insurance company about situations like this, all of them give me the same answer: if the place does not have council approval and is rented out separately to different tenants, they will not insure it at all, as it is considered as high risk. of course you can still go ahead and insure it if you do not tell them the place is rented out to different tenants, but if anything happens and you want to claim, insurance company can decline your claim because you didn't tell them the truth from the start.
on the other hand, council normally do not like the unapproved granny flat, they have the right to force you to change the design of the existing granny flat when you seek approval from them. this means additional cost to make council happy.
Hi dogkangaroo,
So both of your IPs are negative geared, plus you have to pay rent for the place you are living. Based on the current tight lending policies, you may have a difficult time getting a loan for a 350k place (even if it is a 80% loan and you use all the 70k as 20% deposit). And you will need extra 10-15k to cover the legal fee,stamp duty and some other fees.
if I were in your position, I would use the cash to increase cashflow in the existing two IPs by doing some value-adding, such as install aircon, do a simple renovation on the bathroom and etc. Then buy a 3rd IP at a budget of 200k-250k and positive gear or neutral gear, that way you will still have some cash left in hand and income position is better than now.
from a strategic point of view, at this stage cashflow is more important to you rather than capital gain, so more negative gear IP will not help your future purchase.
hope it helps!
hi Heather,
Thanks a lot for the information! it's great to hear from someone who has been there and done deals around that area to verify what I found in the research.
So did you still purchase the land and house package that's overpriced for 30k? Did they keep their promise about the rental guarantee? Also ,do you know who is actually guaranteeing the rental? is it the developer? and is the local agent managing the house for you?Thanks a lot!
Vivian
Hi Lukey,
In order to be eligible for the FHOG, the property has to be under your own personal name, as your partner already used her FHOG, her name must not be on the title. I am pretty sure that when you take a loan, it has to be the under your own name too. And I don't think you can use the equity in her property unless she refinance, setup a line of credit to withdraw the equity and transfer to your account as a gift. I personally never heard of one person being loan guarantor for another person.
Hope it helps and good luck!
Vivian
Hi GOM,
How did you go with the council approval?
curious to know as I am thinking of buying a place with existing granny flat unapproved too.cheers.
vivian
Hi Shahabr,
I drove around Lakemba, Wiley Park and Liverpool area in the last a few weekend to get a feel about the area.
Wiley park is a good area, price is moving up now a bit with lots of FHB. I went to an auction in Wiley park this Saturday, a 2 bedroom unit 65sqm, in a 30 years old block of 4 was sold in auction at 245k. The unit was in original condition, need a complete reno to do it up. It is not liveable/rentable in the current condition. My husband and I planned to buy it at auction at below 180k, do a reno then rent it out at around 300pw, it will be neutral to slight +CF. unfortunately there were several keen home buyers and the price just got lifted up too high.
I personally would keep an close eye in Lakemba, but wouldn't invest overthere right now. It is an area with crime issue and most non-local people would feel unsafe walking on the street after sunset. Although cashflow is good in the area, if the crime issue is not solved, the future capital gain in the suburb won't be as high as surrounding areas.
I agree that Liverpool is a good area to invest. However, the price and rental in north and south are very different. Generally speaking the units in northern side of the train station is closer to the Westfield and hospital, so the rent is at least 50-70pw higher for units in similar condition and the price is much higher too. I doubt if you could find a 2 bedder in northern side below 200k now. It won't be hard to find in southern side though.
In the end, you may want to balance the CF with expected capital gain. the units below 200k in these suburbs will not give you huge CF like the mining towns or regional area, so if you are purely looking for CF, they are not the best choice. However, they are not bad if you are looking at long term buy and hold with neutral to positive CF.
We've heard too much talk about property price going up property price going down kind of prediction.
believe it or not, even the chinese BBQ pork store owner near our train station is trying to give me advice on 'how the property market will go'. with this mini boom we just experienced, all of a sudden everyone becomes an expert in property investing!
whatever goes up will goes down and whatever goes down will goes up. as for properties, so far in australia market, the general trend is up in long term. please note, it is "general trend so far in long term".
for a smart investor, there's good deals in any market. I am more interested in getting my own experience in these good deals that are not solely dependent on capital gain rather than trying to predict where the market will go.
it is education and experience make us rich, not the 'market'.
just my thought. good luck with everyone who is looking for a crystal ball!Anyone who tells you 'give your money to me and I'll do the rest for you' or 'I can 100% guarantee your return' is pretty much a scam.
AndrewH, in your investment journey you will see plenty of people like this one. They are pretty easy to be identified once you get enough investment education. my advice: build your network, read more books, go to real educational seminars (like steve and dymphna) and do the deals yourself.
good luck with your 10 year retirement plan!yes Terry is right, FHOG is not available for purchae under trust structure.
you can transfer it to a trust after the 6 months, however, you will have to pay stamp duty for it.
