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Hi everyone,
did the meeting kick off? My husband and I are also interested to join. We also live in hurstville and Meeting in the city will suit us too.We took Dymphna Boholt's ultimate course mid last year and are currently in the process of purchasing our 3rd investment property. The next one we look for will be a baby step in renovation for profit in sydney area. Happy to share our limited experience and also looking forward to other people's stories!
Cheers,
Vivian
Hi Dan,
Thanks for the reply.
My concern is, how can the ATO or court(if the trust get sued) know that the property is owned by the trust, not the company? As we don't want the company to own anything or do any trade.
In the structure the bank setup, it looks like the company is the legal owner of the property, but we want the trust to be the legal owner of the property.
Hope i am not confusing people…..
Thanks!
Vivian
We have some very insightful analysis here!
I don't know much about other states, but Sydney is definitely going crazy! The houses in the area we are looking at are being sold at lightning speed. There were 6 new houses listed on realestate.com.au on this Monday, by Wednesday they were all under contract already! We didn't even get a chance to look at them,coz they won't last until Saturday! As a result the realestate agents dramatically increase the asking price on all the new listings.
Also around where we live (St George area, Southern Sydney) it seems even the most crappy house get snapped up at high price within 3 weeks. Even the unit price are going all the way up to sky, a 3 bedroom unit in Hurstville can be sold around $550k.1 year ago, the same unit was listed at 480k for 4 weeks and no one wants it.
There is definitely a bubble forming, but I wouldn't say it will burst, the price will be more likely to slow down and drop slightly when people notice that they have trouble servicing the loans coz they paid too much in the first place. Especially the FHB who rushed into market last year, plenty of them didn't do planning or budgeting and pretty soon with the higher interest rate they will have trouble servicing the loans.
As for investors, the smart ones will always make money regardless of market timing. There are good deals and bad deals around all the time, when the market is down, it just means it is much easier to find bargains.
We bought a nearly unit in sydney before the market boom, it was a mortgagee in possession because the previous owner bought it brand new at peak of the market, now he can not afford the payment. basically this guy paid at least 100k more than the price we paid and it was negative gear for him.
good for us that we got it at a reasonable price and it is positive for us.hi Troy,
The first thing is to analyse yourself.
A good deal to person A does not necessary mean it is a good deal to person B.
The key questions worth thinking are:
1, what is your borrowing capacity? if you can only afford a place of 500k, then don't waste time seeing the houses with 1 million pricetag.
2, what do you want to achieve over short term and long term? A Cashcow or future capital gain? Do you want to profit within 6 months or long term?
3, what are you comfortable doing? for example, a development or renovation work may require relationship with tradies and constant check on their working progress, do you know anyone who can do the job? can you sacrifice lots of weekends to go check out the place? Can you handle the stress if something goes wrong or get delayed?So no one can really tell you the answers except yourself.
hope it helps and good luck!
Vivian
Hi Dan,
Thanks a lot for the answers!
I am still a bit confused about the depreciation. as depreciation is not a cash expense, how can I benefit from it? Is it only applicable when the house becomes positive gear and offset again the future positive cashflow?
Thanks!
Vivian
Hi Dan,
Thanks a lot for the answers!
I am still a bit confused about the depreciation. as depreciation is not a cash expense, how can I benefit from it? Is it only applicable when the house becomes positive gear and offset again the future positive cashflow?
Thanks!
Vivian
