Request for advice/services for a cash rich/time poor potential property investor?

Hi Novice100,


Sound like you are looking for a package deal.

Have you thought about investing in some kind of property managed fund ?

If you investing in some kind of property fund, you don't need to have physical meeting, good exposure to property market, more transparent than any buyer agents ( sorry all the buyer agents on the forum) due to ASIC regulation requirements.

check

https://www.vanguardinvestments.com.au/adviser/adv/investments/fund-detail/funddetailVAPSIF.jsp

http://www.spdrs.com.au/etf/fund/fund_detail_SLF.html

http://www.passiveincomefund.com/

I assuming most of the property investor would like to have some kind of physical touch with their property.

but you sound like more suitable to put your money in property managed fund type of investment vehicle.


Please don't get me wrong, some buyer agents are fantastic in find suitable property.

Be honest with you, I sometimes doing deal with passive investor like you also, I just thought some property managed fund may be more suitable for what you are looking for, safe, secure, no contact, professionally managed, low maintenance or tenant issue .......
 
Hi Novice100,


Sound like you are looking for a package deal.

Have you thought about investing in some kind of property managed fund ?

If you investing in some kind of property fund, you don't need to have physical meeting, good exposure to property market, more transparent than any buyer agents ( sorry all the buyer agents on the forum) due to ASIC regulation requirements.

check

https://www.vanguardinvestments.com.au/adviser/adv/investments/fund-detail/funddetailVAPSIF.jsp

http://www.spdrs.com.au/etf/fund/fund_detail_SLF.html

http://www.passiveincomefund.com/
.

thanks for thise links - I'll investigate. I'm heavily invested in non-property shares/unit trusts/index funds anyway but have always had a slightly negative view of property trusts but not sure why - maybe I will reevaluate this
I think I alike the idea of getting a higher level of return from direct property as compared to a broad property fund and by nature am happy to accept a moderately higher level of risk with direct property
 
Since you're new to property investing, this is NOT
There are plenty of good mortgage brokers, buyers agents, property managers, solicitors, accountants, etc. on the forum. For instance, a good mortgage broker who is in Sydney that posts here is Terry_w. He also happens to be a law talking guy, so can probably help you there, too.

I suggest you start by talking to him.

Thanks - I'll get in contact with Terry_w and others recommended when ready
 
I've not really considered commercial as no experience of it but will look into it now. Any recommendations on areas in Sydney and how to find a good commercial property?
My main concern is the risk of long-term vacancy although i have no idea how often that would happen in metropolitan Sydney - although I have seen numerous vacant lots that appear to have been vacant as long as i can remember (>2 years) in the lower North Shore so that does put me off a fair bit


If your budget is really $ 6m and you have no time and no experience, fear not, you don't need to worry about a thing.....the people earning commission every step of the way will find you eventually.
 
I'm not really sure what the issue is.

1. Email broker to ascertain how much you can borrow
2. Email REA who is selling a property in an area you like to see if they'll accept the amount of money you think its worth
3. Email a conveyancer and have them handle the transaction
4. Email a PM and tell them to look after it.

This is precisely what I did. Until last weekend I was yet to meet the Broker or PM. I still havent met the conveyancer.

Something preventing you from doing that? Be it time, pride, disability, knowledge or otherwise?
 
If your budget is really $ 6m and you have no time and no experience, fear not, you don't need to worry about a thing.....the people earning commission every step of the way will find you eventually.

so do you think its not feasible or practical to profit from property long term in the way I'm looking at by outsourcing most of the work?

My gut feeling (without extensive number crunching and without knowing the professional fees involved in detail) is that it would still be possible just because of my tax situation in which if I do not start massively gearing myself into property I'm expecting to pay around 41% per annum income tax over the next 3 years een after accounting for my current deductible debts and I don't have any/many other options to minimise this (assuming the debt levy only lasts that long)
 
I'm not really sure what the issue is.

1. Email broker to ascertain how much you can borrow
2. Email REA who is selling a property in an area you like to see if they'll accept the amount of money you think its worth
3. Email a conveyancer and have them handle the transaction
4. Email a PM and tell them to look after it.

This is precisely what I did. Until last weekend I was yet to meet the Broker or PM. I still havent met the conveyancer.

Something preventing you from doing that? Be it time, pride, disability, knowledge or otherwise?

I would be up for doing as you suggest but for each specified step I'd need to

1. find a good broker - (one reason I posted here) - and understand why I
need one as I don't really understand what brokers do and why I need one

2. choose an appropriate area and determine an appropriate price - this is probably the main barrier at the moment because it would take me a lot of time/effort to do this to my satisfaction

3. easy

4. I'd need to find a good PM that I trust in the relevant area

also I would need guidance on how to structure my loans, which entities to purchase the properties, whether to use my SMSF and guidance on things I probably don't yet know I need guidance on
 
Destiny meeting - what to look out for?

Ive scheduled an initial meeting with someone from a Margaret Lomas Destiny franchise - I've read online reviews which are variable although mostly seem favorable and understand that a lot will have to do with the individual franchisee that I get

any tips on specific questions I should ask or issues to be aware of?

Thanks
 
...so do you think its not feasible or practical to profit from property long term in the way I'm looking at by outsourcing most of the work?

.....it would still be possible just because of my tax situation in which if I do not start massively gearing myself into property I'm expecting to pay around 41% per annum income tax over the next 3 years een ....

I don't get/understand anything on what you are doing here or trying to achieve! What a useless discussion......

Anyway... good luck with it all...
 
If your budget is really $ 6m and you have no time and no experience, fear not, you don't need to worry about a thing.....the people earning commission every step of the way will find you eventually.

just to clarify, I was using $6m as an example figure for strategic understanding and was not implying that is my own budget as I'd avoid posting such personally specific info on a public forum
 
Ive scheduled an initial meeting with someone from a Margaret Lomas Destiny franchise - I've read online reviews which are variable although mostly seem favorable and understand that a lot will have to do with the individual franchisee that I get

any tips on specific questions I should ask or issues to be aware of?

Thanks

Beware of their preference for cross collateralising loans. Also ask them if they are licenced to give the relevant advice - tax etc.
 
I would be up for doing as you suggest but for each specified step I'd need to

1. find a good broker - (one reason I posted here) - and understand why I
need one as I don't really understand what brokers do and why I need one

2. choose an appropriate area and determine an appropriate price - this is probably the main barrier at the moment because it would take me a lot of time/effort to do this to my satisfaction

3. easy

4. I'd need to find a good PM that I trust in the relevant area

also I would need guidance on how to structure my loans, which entities to purchase the properties, whether to use my SMSF and guidance on things I probably don't yet know I need guidance on

Great! We have progress instead of all the fluffing around thats been going on in this thread so far :)

1. Reason for the broker is that there's only a certain amount each of us can borrow, varying a bit by our circumstances. So, it makes sense to use the banks in the correct order to allow us to continue borrowing ad infinitum without reaching any limits. A good broker can help you navigate through this - if you must use one local in Sydney then Shahin seems to get the most positive feedback on here. Otherwise I use & recommend CJay who's located in Adelaide via email (since you said you dont need/want physical meeting)

2. Stick around the forums for a bit and get an idea of where other's investors are buying. You say you're time poor but you've posted here so I assume you have time to read the threads. Do some searches on realestate.com.au of those threads as well to see what kinda things are on offer. I assure you that after a few months you'll recognise good value when you see it.

3. When you've bought, just ask on the forums for conveyancer in XYZ areas and I'm sure someone will suggest one they've used.

4. Same as 3.

5. Structure of loans comes down to the broker in #1. The entities part you'll learn about by checking the Accounting or Legal sections of this forum. I'm unqualified on this area but I think residential property in a SMSF is a waste of time, commercial seems worthwhile though. A discretionary or unit trust can be very handy, but run this by your mortgage broker to ensure he's familiar with lending to them and whether they'll affect your lending power.

I hope that helps and not hinders :)
 
Great! We have progress instead of all the fluffing around thats been going on in this thread so far :)

1. Reason for the broker is that there's only a certain amount each of us can borrow, varying a bit by our circumstances. So, it makes sense to use the banks in the correct order to allow us to continue borrowing ad infinitum without reaching any limits. A good broker can help you navigate through this - if you must use one local in Sydney then Shahin seems to get the most positive feedback on here. Otherwise I use & recommend CJay who's located in Adelaide via email (since you said you dont need/want physical meeting)

2. Stick around the forums for a bit and get an idea of where other's investors are buying. You say you're time poor but you've posted here so I assume you have time to read the threads. Do some searches on realestate.com.au of those threads as well to see what kinda things are on offer. I assure you that after a few months you'll recognise good value when you see it.

3. When you've bought, just ask on the forums for conveyancer in XYZ areas and I'm sure someone will suggest one they've used.

4. Same as 3.

5. Structure of loans comes down to the broker in #1. The entities part you'll learn about by checking the Accounting or Legal sections of this forum. I'm unqualified on this area but I think residential property in a SMSF is a waste of time, commercial seems worthwhile though. A discretionary or unit trust can be very handy, but run this by your mortgage broker to ensure he's familiar with lending to them and whether they'll affect your lending power.

I hope that helps and not hinders :)

thanks for your helpful and specific advice and the broker recommendations which I'll look into.

I've spent much more time on this thread than i ever intended but won't be able to trawl through long threads to extract the nuggets of wisdom for long.

Other responses have been helpful to me as I have more avenues to look into (especially premium properties and commercial) but am feel I wantto get things started well before the end of the next financial year when the debt levy kicks in
 
whats wrong with cross collateralising loans?

Basically means that the loan has multiple houses associated with it. That is, consider 500k house with 400k loan plus 500k house with 400k loan vs 1mil worth of houses with 800k worth of loans.

In the latter, if you run into any trouble or if you need to re-adjust anything, you're at the banks mercy as to which property you/they want to sell or release from loan. Dont give them the power when its easy enough to retain it.
 
Tsk Tsk Dazz ....

Tsk Tsk Dazz

Some things never change.

I haven't visited the Forum much lately and here I am now, reading you being lofty and abrupt to some poor, unfortunate newbie who just wants to learn all about it in the most concise, precise and direct way possible.

Dang it all, Dazz, whatever happened to giving a helping hand to those just starting out, with or without a $6,000,000 budget to start with?

I shall go and read a few other posts now and if I find you being nasty to anyone else, then big smacks for Dazz!!!

xxx
Kristine
 
whats wrong with cross collateralising loans?

I get tired of answering this one, but do a search. There is basically no good reason why you should cross loans, but several good reasons why not to. Buy crossing you are basically tying yourself up so that you cannot escape if things go wrong.
 
Novice100,

You need to pursue a property strategy that suits your particular financial position and circumstances.

The best approach may differ depending (amongst many other things) on whether you are earning 50k p.a, 200k p.a. or 500k+ p.a.

You need to be able to first decide what that approach is for yourself, then go and look for a BA to help you implement it.

If you are still deciding between the new build specialist, the cash flow positive specialist, the premium property specialist, the commercial property specialist etc... you are setting yourself up to be sold a property strategy that may not be the best fit for you.

The catch is that to do this properly you need a certain amount of knowledge to begin with, which you don't seem to have and don't have the time to seek.

Some of your objectives also appear to be in conflict, on the one hand you want to reduce tax, but on the other hand you want to invest in property for income which will increase your tax.
 
whats wrong with cross collateralising loans?

My usual response is

Nothing is wrong with scroll until it becomes a problem.

The benefits for most borrowers are far outweighed by the negatives.

Keeping it really simple, it's providing the lender more control over your potentially bad outcomes than one needs to.

Here is a 10 year old post. Much of it still applies, with a few more additions

http://somersoft.com/forums/showpost.php?p=120656&postcount=6

Ta
Rolf
 
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