Forum Replies Created
In Qld you cannot do an and/or nominee clause and substitute someone along the way unless that person was originally intended to be the nominee prior to signing. A double stamp duty is payable (one for you one for them) and unfortunately that is the law. Wouold be nice to source a good deal and then Flip it on but the long way is slightly less profitable but a whole lot safer legally.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey DJ,
Maybe it is worth putting down your purchase costs and rents and present values of the two you have. Through them out here and see what we can see !! Maybe give you some help.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinPersonally I factor in 4 weeks. In my paradigm if I have a property that takes ,longer than 4 weeks to rent then I will sell it. I feel that as part of my due diligence I should be finding properties that meet my needs. Just how I do business.
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHi DJ,
Good to have you here. My thoughts,1) Why not try isiting various offices as a tenant and asking how you go about renting houses. Look for the agents that do showings (not hand out keys) and seem to take an interest in you. Next go back to the same place and tell them you are a property owner who wants to let a property and ask costs, services, etc. See what you think. Trust your gut and look at the fine print on the costs. Sometimes a lower % can be made up by the agent in sundry costs. Read carefully.
2) Always worth getting the QS report. Also make sure you get the exact date of building as there was a short period of time in 1987 (I think) that enabled you to deduct your house at 4% rather than 2.5% per annum. A big difference for you at tax time if your house falls in the date period.
3) Just remember that the negotiation never ends until settlement. Was the building report satisfactory ?? Never be afraid to ask for further discount basedon building reports if it needs it. Make sure you inspect the house on the day before settlement to ensure everything is there as you first inspected. If it is not in the state you saw it you can stop the contract. Don’t accept second best you are in the drivers seat.
Hope the ramblings help DJ….
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinDoes this fellow have a website were people can find out more about him??
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinYou are welcome Mouze Den. Just gald you are asking the questions.
The question about the costs is a very important one. You should research this very carefully especially at a place like unilodge. you may find the costs outweigh the percieved cheap price. If you are after units why not try and source one yourself in a high rental area and try to get it for the right price.
If you really want to go -ve you should try as hard as you can to make it as minimally negative as possible. That way you do not limit your DSR (Debt Servicability Ratio) too much and impede ourself further down the track.
As to the lawn mowing I have only ever had to have lawns mowed three times with my houses and the returns ,gains and general control of the property to me far outweighs the unit benefits. The only time I could see myself buying units would be a pack where I control the whole site.
Another option might be to find a rundown unit and fix it up then rent it at a good price. This could increase the viability of the unit and build you some good equity into the deal. Unit renos I guess would be fairly easy as there is no outside concerns merely interior. I know from house experience that internal especially flat walls are an easier job than Weatherboards.
Make sure you check out the sinking fund and Body Corporate management costs to ensure you are not buying a problem. Might be worth chatting with a solicitor to see what things to look out for in Unit buys. If you need a good one in Brisbane let me know and I will fire you a guy I use.
Hope my ramblings help.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Stricker,
Could you explain more about what you mean by that clause. What is the aim ?Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHouse Mouze,
I am a land man…..I need to see a block of land that I own with a house as I have a strong belief that land carries the true value.
As to units in Brisbane though there is a large supply of them at present. For your own interest it would be worth ringing 10-15 agents and asking for their vacant tenancies in the area you wish to invest in. This will give you a clue as to how high the vacancy rate is.What are you going to do with the units ? (reno, Hold, etc.)
Look forward to your reply.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Ozchick. I just had a thought that John Burley’s book may help you guys get it all in order. A good read and helpful to sort out priorities.
When next you are making the decision of now or later. Just imagine yourself being able to choose whenever you want to later on because of your sacrifice now. We are making that choice because I can see freedom down the tunnel. The time is not far away when I can choose to go on holidays when I want and where i want. That is freedom.
I strongly believe freedom is worth a little sacrifice. It really doesn’t hurt too much.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWell done Lance. Congratulations and keep on going.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Steve,
I know what you mean about the walk away thing[
!]. Been there done that. It’s amazing how it can seem like life or death at the time and upon reflection a little less serious[]. Kinda like buying houses. If you miss “that” property what a worry….and yet like buses another good one will be along in a little while.If you have problems with monopoly do not play Risk….that is a whole new level of frustation in game play.[}
] Not to mention relationship testing.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Andrew. I would also love to do such a course but in all honesty I do not have the time.
Such is life.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Melissa,
If you are currently living in the first property when you sell it and move to the second property then the first property will be CGT free (under current rules). If you then sell the other property 5 years later you will pay CGT on a scale of 75%. (15 years out of 20 years ownership as investment).
So in numerical terms…….If you have a gain on property two from time of buying to time of selling of 1 illion dollars. you will have $250K tax free and the other portion will be calculated depending on your situation. That is it will incur CGT more than likely. So in todays terms you will pay tax on $750K (lets say you pay 30% tax at the time) which means you will pay $112500 in tax and the rest is profit.
Now all this assumes nothing will change with our tax system in the next 20 years (ha ha ha) but it gives you some clue. IF still unsure check with your accountant and see what he/she says.
Hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Nelutha,
Welcome to PI.com. Wow….. so many good books to read. Mannie has made a great suggestion about Jan Somers book as it explains property investing pretty well. It has a negative gearing slant on it but it still teaches great lessons on property investing.
Another suggestion is to buy the Australian Property investor Magazine. Often topical articles with interesting things to think about.The following link is another thread that talked about books, I hope it helps.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=316
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinAnything you spend on the property is offset against the resale value.
eg.Cost – $200K
Reno – $20K
Stamps, etc. – $5K
Commission (for resale) – $8000Cost of house to offset – $233K.
Numbers are very rough but just some ideas for you. Please check with your accountant though as to your situation but shouldn’t be much different.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Gerard,
Welcome to the site. Mate have a look on the search function as I remember not long ago a discussion on this topis. Put in NII or National Investment Institute and see what turns up.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhen is it on Poochi ??
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinThe other thing to think about Kim is talking to a broker and explaining what you want to do and seeing what they advise as to products. That way you get a wide range of possibilities in products. I wish I had known of brokers all those years ago when I had bought my first house….. Lesson learnt. Stu always offers help on the site (amongst many other great people) he may be able to tell you more.
I think talking to a broker rather than a bank mean you can be more open with them and your true aims. Also if you talk to the right person they are active investors themselves so are aware of what you want from experience.
Hope this helps..
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinDevelopment Application approval.
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinMight be worth talking to a buyers advocate. They may do the hard work if you are averse to the hunting. I think it is still worth developing a relationship with an agent in the area you are looking and askling them to call ASAP if a deal comes through. THe only thing you must do is be there quick when they do call to show them your seriousness.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
!]. Been there done that. It’s amazing how it can seem like life or death at the time and upon reflection a little less serious[
]. Kinda like buying houses. If you miss “that” property what a worry
….and yet like buses another good one will be along in a little while.
] Not to mention relationship testing.
