Forum Replies Created
Hi microwave.
This are my thoughts: I would call it providence that they told you and you did not blow the house up this winter.
Ergo….My ‘revenge’ would be to go to Bing Lee and buy the best and most expensive gas heater you can find and call it your blessing for 2005.
I hope you enjoy your (now) safe new house.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcOriginally posted by skippygirl:All’s well that ends well!
After a visit to the local Centrelink office, and handing them copies of the will and the title to the said property, Centrelink are correcting the asset list for my relative and restoring her pension payments.
Having no right to any rents or profits or any sort of income until the brothers pass on or marry means it is NOT an assessable asset.
Better still, this asset had been recorded unbeknownst to her for the last 6 years, so she can make a submission to be reimbursed the lost pension payments caused by this incorrect data!! Yippee. Is she happy or what?
Cheers
skippygirl
)To cut both pensions down to $11, the asset recorded must be around $400,000 for a homeowner and around $500,000 for a non-home owner. If you say the property is worth $350,000 and of that only 1/5 is, or will be your relative’s asset, then the whole thing is a mistake and has nothing to do with the will. Like I said, someone jumped the gun and adjudicated the whole lot of the property to her.
$70,000 will not affect the pension either way, if they record it (as they should if they do their homework), or if they do not, because they read the will that state no rent etc (even when in fact such is irrelevant).
I am sorry your relative had to go through that. There are many thousands of owners of holiday houses who keep the family holiday place in their own name and find themselvs whithout a pension because of that.
Unfortunately millions of people in Australia think that by paying taxes they are contributing to a retirement fund.
I so whish we had a state funded retirement plan like in the rest of the world, and not a welfare plan for the indigent and then … nothing“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcFamily payments have two components and both are income tested. Neither is asset tested.
Part B has NO income test for primary earner in a couple or sole parent. Secondary earner is income tested and reduced by 30c per dollar above ~$2000 per year. Part A income test starts at ~$32,000 combined income and reduces the payment 30c pe rdollar until it reaches the base rate.
Base rate is paid until income reaches ~$83,000 plus 3,300 per child after the first, and will then reduce 30c per dollar above the threshold until it is nil.
Under this formula to recieve nil family tax benefit A base rate, a couple with 3 children must earn aprox. 127k“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcThank you for your answers.
Dazzling, I agree about the link between petty little problems and residential properties. Usually I leave this to the PM who are working for me. This tenants are particularly demanding. I bought the property tenanted and the first month received a $50 bill for mowing. I thought it was the guy that does the communal areas but no, the previous owner had been paying for mowing their own backyard!!So far they asked for a 4 car carport at the front (they do not own a car but would like the shade), a sail also for shade, complained about the snakes because I stopped mowing their backyard, want new locks, screen door, security lights, a new fridge and pizza delivered once a month….OK the pizza is a joke stolen from another post.
It goes without saying that they are the longest standing tenants and therefore pay the least rent…(Strange how this logic resinates with the PM who would assent gravely to this talk.)
I rectified the situation by stopping the mowing, and rising the rent from $120 to $150 to bring it up to the other flats, to the bewilderment of the terrified PM. There will be no 4 car carport or sails or fridge nor pizza yet I fitted lights and fenced off access to the back.
That is as far as I will go, after all the vacancy rate there is nil.
My daughter had a spate of bad tenants yet she is over it. The alleged drug dealer in Cairns is still on the run, flat full of his gear yet not used and rent paid religiously in advance.
Second bad tenants in Campbelltown left everything in the house and she paid ~$1400 for removalist and storage for a month plus daily adds in the Sydney Morning Herlad (Such is the legislation in New South Cuba)
Auctioning the stuff off last week got back $500.The RE agent found them and is taking them to the local court for a total damage of $5000. Good luck with that, the agent has done most of the mistakes and knows they are next in court if no money start coming our way. The insurance has managed to fence off most of the bills.
I am helping them out and removed two skippers full of trash. I counted 200 beer bottles and 50 boxes of beer cans. Fortunately the damage in the house is minor and I can do the fixing myself for a few bobs. Fortunately they are taking it with philosophy, she has another property with a good tenant and is overall doing well, asset wise.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcKhalida, if you want to prosper you need to purchase income producing assets. Real estate investments in Australia has been synonym of “negative gearing” for a very long time, in normal terms means to buy liabilities for the fringe benefit of transferring the loss to another source of income.
Cash-flow positive is the opposite to negative gearing but both are accountant terms and not investors terms. When an investor purchases an income producing asset he does so with a dual purpose, to purchase an asset that will appreciate in value over time and that produces income in the process.
In view of the increase in market prices, due largely to investors demand, regional and rural residential properties in general do no longer fit the criteria in the short term, that does not mean that it is not possible to score the odd opportunity, it just isn’t that obvious anymore, andthe risks have increased.
Yet residential is not the only income producing asset there is. You have commercial property, industrial units, hotels, boarding houses, not to mention the possibility to purchase the commercial operation together with the real estate that goes with it. Also the option of increasing the value of real estate by renovations, extensions, subdivision, turning residential into commercial and many other value increasing exercises.
It goes without saying that all of the above are a higher, much higher risk operation than simply purchasing your average suburban home and hope for the best, there are also increased difficultiesto find funding for it.
Yet income comes from adding value to other people’s life, in other words there is no such thing as something for nothing.
You will have to get wet to catch fish, if you don’t know how, I suggest you find someone that does and is willing to share the risk and subsequent rewards.
If you add up the income of your 5 closest friends and divide it by 5, you will have a figure equal to your income this year.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc5.5% in Sydney, 7.5% in Queensland
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcI love Golf …. but I love DIY too.[blink]
Nevertheless it makes sense that if you can use your time to close profitable deals, why would you use that time in working on something that others can do for $400 a day. I suppose it all comes down to where do you get your sense of achievement from.
Now if I call it a hobby does it still count as DIY?[biggrin]
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marchttp://www.pleven.net/rental/East-Timor.htm#East-Timor-Rent-Sale-Houses
Not much I know.
Plus I’m sure that you will pay 10 times the price on the net then if you go in person.
Also the chances of the ET going bananas with the australians and nationalising all bad foreiners properties is a distinct possibility since, as you know, we are stealing all their oil [blink]Not a bad idea though, I was thinking of buying in Cuba and wait for the end of the Fidel era, yet you can only buy commercial property there, residential is off limits, “no speculation allowed comrad” he he.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.
MarcFoundation, on a slightly more philosophical level, you have many times highlighted the “speculative” aspect of investors and usually demonise in some more or less subtile way the profit maximising exercises of the said investors, something I boo you for, yet you seem to have overseen the many post, this included where people are figure of speech, waiting on the sideline to see who is down first.
Clapping at interest rate rises, and hoping for some sort of recession and price bust.
Now don’t get me wrong, I am the first that would profit from something like that, but for the “evil speculator” I must be in your books, I would see such scenario with heartache. Doesn’t the hope for someone else’s disgrace qualify for “speculation”? (bad bad man[angry2] moving the index finger side to side)
Just a thought … go get them champ[biggrin]“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc‘What is a “real job” for you?’
Phew, big question. I think it’s something to do with an exchange… perhaps of time or knowledge or a service… either for money or some other desired / required commodity. Probably important that there is a perception that all parties to the exchange benefit in some way… As I said it’s a big question. I’ll have to consider my answer more fully.Because of this paragraph in your response, I forgive your past sins [biggrin]. Best words spoken in a long time.
Using those words, it is clear that a renovation, providing it is not a “dirty cosmetic rushed job” does add value, and both parties, the seller and the buyer will benefit. The price will be determined by the market as always, and take away the extremes, (too high or too low) there will be a fair exchange in value from both sides.
I don’t think that it is fair to accuse the seller of cheating if someone buys at the end of a boom period only to find himself back on the other side of the slope.
Also it is not fair to point fingers at the one that got in the market too late. After all the latecomers do so because of a massive amount of pressure created by books, media and bulletin boards like this one here.Friends?[cigar][biggrin]
“What you want in your life occasionally shows up…
what you must have… always does.”
– Doug FirebaughOriginally posted by wayneL:
…………..anyway, clicked on your site and spotted this little doosie in FAQ’s:“Is it like Amway, Herbalife or Neways?
No it is not like Amway, Herbalife, Neways…”
It appears that your website is promoting a network marketing business.
So it would appear that it is like Amway et al.
Are you comfortable with this apparent contradiction?
Thank you for amending the wording in your post.
Network marketing as a method of marketing goods was first introduced by Amway in the fifties. The methods and commission distribution plan, was well suited to those early days.
Fifty years later there are a few thousand different companies and each uses a different method and markets different products.However the early companies that remain very reputable and very large, have changed very little whilst the market is in it’s forth wave of evolution. The new players in the market must necessarily highlight the remarkable difference between companies.
There is a report written a few years back that compares 200 MLM companies. Written by Daren C. Falter, it is an easy 50 pages read and will probably show to the person that thinks all network companies are the same, that such is a biased oversimplification just like “all franchises” are not the same or “all men” are not the same, they in deed are franchises but they are as different as men can be.
It is the same with Network Marketing companies. They share the same concept of marketing by word of mouth but the similarities stop there. Just like a statement that says “all men are the same” would lift a few eye brows, your statement probably made in haste and in ignorance of the industry, was undeserved.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcFoundation, I thought I would get used to your comments but I can not go past your constant reference to “speculators” when referring to investors, your derogatory tone when referring to the level of commitment some investors have, and ridiculing with different innuendos the risk some people took, wisely or otherwise.
You say: “Odds are they’ve left real jobs to pursue ‘ property developing’ full-time having had phenomenal success with a couple of minor renovations over the preceding years. “
What is a “real job” for you? Chances are that it is not the same for others. Success is rarely achieved by people who stay year in year out in “real jobs”, rather it comes to the one that take chances.
They had phenomenal success because they took a chance, quit their jobs and launched into a development adventure. Why do you ridicule this people’s efforts? Is it because you did not have the same determination?You say: “Incredibly they thought it was their $5000 facelift that caused the capital gain at the peak of the biggest speculative boom in history.”
Here, besides calling the recent boom “speculative” ignoring all the fact and pushing your left wing antipathy towards capitalist success, you are proposing that a renovation well thought is worthless and that prices are paid just because of buyer’s stupidity. Fortunately renovations do work and do add value despite your remarks. I think you must have a thing with TV renovators and your dislike is boiling over here.
Your say:”The scary thing is that some people still operating on the assumption that $5k and a bit of elbow grease bringing twenty times that in gains is normal.
What is “normal” in your corner of the woods? Should we be like Cuba? Is profits a dirty word?
I find it funny that some can be so taken aback by prices hike and falls as if it were the product of the collective “evil” mind of the “bad” investors (speculators) who meet at night time to screw the market for their own (sick) pleasure and ensure that the poor first home buyer and the poor tenant has a really bad time.
Markets and economics are fortunately a bit further detached from your views, and frankly your constant hammering of this lefty concepts in a forum composed mostly of investors can be a bit tiring.
“What you want in your life occasionally shows up…
what you must have… always does.”
– Doug Firebaugh
MarcNRMA – CGU – ALLIANCE, I have insurance for blocks of units with each of them, no problem.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcI am in the market for a farm in the Camden/Cobbity area for myself, and have come across several big houses that were initialy built with a nice garage, suburbia style, but had since being converted into another room, some become bedroom others music room or play room for kids, with the addition of a carpet, eliminating the roller door and building a ceiling. One did not even have a window. With sheds and more sheds galore in farm houses, the carport was not an issue.
One of my IP was a 3 bedroom converted to four by building the bedroom on the rear veranda. It recieves always more rent than the other 3 bedroom proeprty in the area and it seems tenants have a relative in the forth bedroom that helps them with the higher rent. The property had a bathroom with separate toilet and I added a toilet in the bathroom so that now it is virtualy a “four bedroom two toilet” house._________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?acePersonal preference aside, gloss will become satin with usage but only in the areas that have more transit so it will show wear more than satin.
So for me it is satin without a doubt.By the way if you plan to do the job yourself, (only assuming), including hiring the machine and sand the floor…reconsider. The difference between what you will do and what a professional does is big. The difference between the expense of hiring, buying the products, and clean up the mess and what you pay a professional if you shop around, is not that big. The damage you can do and will do to the floor is irreparable. I have seen properties where the owner told me with pride “We have done it ourselves” and I had to bait my tongue to stop me from pointing out the multiple dings, dig-in and uneven boards their untrained hand had done with the hired sanding machine. If a floor sander did a job like that to my property I take him to court.
Just my thoughts._________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceNow that you mention it, I heard something about that. They added this product recently. Must check them out.
Also Rencover seem to be specialised and promise a lot of things on their webpage. Worth to check it out too. I just sent them an e-mail asking for a quote for all my properties, may be tempted in offering me some discount hehe.[cap]_________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceApproval from the council must come before building, they approve the plans, that is what the bank wants, not the approval of the final stage of the building.
Do you have development approval? You cannot build two townhouses and then subdivide. You may never get it. If the council approved dual occupancy without subdivision, there is no guarantee you will get subdivision and you will be stuck with two houses on one title for a very long time until the building code may change.
_________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceNot far from where I live an old servo was sold for development into a very small shopping centre. The owner simply dug up the entire place, built an underground car park and refilled with imported soil the front for the level car park area and built two stories over the rest.Bingo.
_________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceWhat about “The Hermit’s Den”[biggrin]
_________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?aceThe debt recovery option may be a good complement of self insuring, but I wouldn’t advice anyone to self insure.
In my opinion CGU is good, providing you have a small excess. They do pay._________________________________________
“What you want in your life occasionally shows up…
what you must have… always does.”
……….– Doug FirebaughMay God Prosper you.[biggrin]
Marc…http://www.chosen4u.com/?ace
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