Forum Replies Created
HI Again people,
Since my post on September 2nd I signed up for James’s course and paid my money.
I have got my manual and listened to the modules..
I am happy with the money I spent..
I have done many property investment courses in my life including Steve McKight, Michael Yardley and others (even Henry Kaye)..
James course has possibly been the most practically useful course I have done.. Commercial property is more about numbers than residential so it can be more instructional… like a complicated cookbook. I find residential more fluffy and vague when it comes to education.
With commercial (or any type of investment) you don’t know what you don’t know… it is good to have a back up and some one to ask questions.
Their website has a good forum that James regularly contributes to and responds quite quickly to any questions.
I started this course after completing a couple of commercial deals (and after doing residential investment for 10 years) and making a couple of very small but very costly mistakes.
My thoughts are that if you are going to do commercial property investment it helps to have some sort of manual and resource to refer to and people to ask those questions that may not seem that significant but can make a deal awesome or a loser.Hope that helps.
Regards….HI There,
Just wondering if anyone can tell me how to get involved with James Dawson’s Commercial property system..ie. purchase package.
I cant find any website links etc, even on his website??
Thanks in advance.I just completed a 95% refinance on an IP with ANZ. The property was purchased in November 04 (with 90% LVR). Revalued and refinanced in May 05 to 95% LVR (after renovations etc). LMI was about $1200ish (low because I already paid LMI at initial purchase).
Seemed easy enough![biggrin]Sorry about my delay in replying.
This was not an ‘advantageous’ purchase. The vendor wanted to sell the property himself but had no idea of real market value and sold it for less than it was worth. It was not advertised. We just happened to be in the right place at the right time. We ordred the valuation without the valuer knowing the purchase price. They valued it 20% higher than our purchase price.
I can complete the purchase via the usual channels but I thought that this is an opportunity to try do do something creative!
Thanks . ASHi all,
It’s great that you guys have got a group started. Still love to involved. Bugger I missed the first meeting. How do I get in contact with you guys?
Sorry Jaffasoft, I emailed you six months ago( or So ) but I guess it didn’t get through….kinda got busy then & unfortunately didn’t follow up.
Hope the meeting went well.[biggrin]Hey John,
I didn’t mean to be critical. No need to get so personal!
I just said that Thyrgoona is not a desirable investment area IN MY OPINION. Although with certain kinds of property this would definately not be the case (as in any area). What I mean is that I personally would not buy a house to sit on and speculate that it will increase in price.
I am aware that there are things are happenning in that neck of the woods. I also know that the Albury council is planning to encourage significant population growth in that area over the next decade or so. If you are planning a large residential subdivision or commercial venture this may be the place to be. I just think that from a single dwelling investment point of view there will be huge supply and possibly not the demand to match, especailly in the short term. But hey who knows? That is just my humble opinion.
I must admit that Thurgoona is an area that I have only looked at on the surface and thought …..”not for me” then moved on. My mind is open to be convinced otherwise.
Also, CSU has moved part of its campus to Thurgoona, but it has definately not RELOCATED there as yet.I live down the street from its central Albury campus. I can assure you that it is still there!
We are working on the student accomodation thing!
John, although you have some valid points regarding the areas that you mentioned, which I entirely agree with, I think your comments about Central, East and South Albury are generally not true… but hey, you are definately right about the freeway!
We all have our own opinions and we can only do what is right for us. Debate is good….
it can only encourage each of us to open our minds to possibilities we may not have previously been open to. [biggrin][confused2]Hi Jaffasoft,
I have lived in Albury for the past two years. I know Central, East and South Albury like the back of my hand. We are involved in a few development projects in central Albury. Cashflow positive deals are difficult unless you do something creative, or buy in the most dodgy parts of town.
The population of Albury is about 45000. The region population is about 90000.
The uni has not yet moved to Thurgoona, but plans to in the next few years (and sell of the existing period buildings in central Albury). Thurgoona is not a desirable area IMO. It reminds me of Cranbourne or Narre Warren. The Albury Wodonga development corporation has just announced that it will release , I think, about 500 new house lots over the next few years. A recent land auction by this same corporation (with probably 20-30 lots on offer failed to attract anyone to even register to bid and these lots are <$80,000).
The national bypass freeway project will definately make some areas more desirable and others less so!
We have yet to find many like minded people with whom to meet regarding property and so would be very interested in some kind of meeting thing.[biggrin]Hi there Peter,
Sorry to get off track here but does this mean that each of your developments is kept in a separate company name? If not, in what structure do you generally hold your projects?
Thanks in advance.[biggrin]Hey!
I just worked out that the link thingy is automatic!…….Cool.[biggrin]Hi there wrappack,
Vendor duty is not payable on the first sale of new dwellings. See NSW Office Of State Revenue website (www.osr.nsw.gov.au).
(Sorry! I haven’t worked out how to do the link thingy yet)
Hope that answers your question.[biggrin]Thanks Derek,
I’m all booked in…………
they seem to have a pretty slick operation.
Ciao.Hi there,
Sebatian let me get this straight……
You have a property purchased through a trust.
You are the trustee.
Unless you transfer ownership of the property from the trust to you ( incurring SD) the trust will always be on the title.
As I understand it the trust deed will spell out the procedures for appointing trustees. This power is vested in the appointer.. which would probably be you if you are the sole trustee.It seems like a simple procedue to then retire you as individual trustee and be replaced by a corporate trustee.
It may be more complicated as I have not done this myself……but hey there’s my 2 cents….[hmmm]Hi k2005,
Need more info………..
What is the purchase price?
When did you purchase it (contract date)?
What is the current valuation?
When is settlement?
How much deposit did you pay? What state is it in ? Is is off the plan?
Do you have any other property/equity?
How much cash do you have?
It all may be relevant…..
Think outside the square!!!!!!!!![hmm]We all get biulding insurance for our properties. We probably all have landlord insurance. We definately have car insurance. To be certain that a desired outcome will eventuate is it not prudent to “insure” out mortgage also so it cannot unexpectedly increase to an unmanageable level. (unless the absolute worst case scenario is covered).
I think it is not about whether rates will rise or not, because nobody can tell us that, it is about not gambling with your cashflow.
Did that make sense?????[confused2]
Anyway we are still near historically low rates.Hi Misty1,
The ATO website has a downloadable e-CGT calculator. You can plug in justabout any scenario and it will calculate CGT payable.
Just a thought![worried]As others have already stated you heven’t necessarily bought a lemon so why sell? The real gains in property are from the long term investment in quality assets. If I were in your situation I would try to maximise my present situation as much as possible witn the aim of 1. Incresing my cashflow, and 2. Increasing my equity.
Increasing cashflow may be achieved by:
– changing the loan to interest only (this would save you about $50 per week)
– increasing your rent. Are the tenants paying market rent? What are comparable properties renting for? You said that they are on a periodic tenancy. Maybe you could (depending on rental demand in this area) remove the tenants (or leave them in place) and do some minor renovations, ie. paint, gardening, general tidying etc. This alone may increase the rent by $ 20 to $50 per week.
Increasing your equity may be achieved by:
-pumping in more money to pay down the loan
-renovating/improving the property (will result also in an increase in rent)
– developing the property. Why wait to develop? It seems that you have a number of options. You could have plans drawn up (and approved)for an additional dwelling and the subdivision completed. You could then sell the back land with plans pay and down your loan.Then your house maybe CF+. You could even do it the other way around. Many other issues will obviously become important here also.The most efficient thing to would be to do all of the above, ie interst only loan, renovate the front house, have plans drawn up (& approved) for the back etc,etc….. Actually it sounds like you are sitting on a gold mine.
Your situation reminds me of myself many years ago(mid 1990’s) when I bought my first property. It was a studio apartment in an inner Melbourne. At the time I had no clues as to what I was doing except that it was a good idea at the time.It cost $70,000. It was just refurbished (the block and the apartment). It rented for $130 per week. It produced + cf of about $20 per month. Then I went to a seminar and the speaker advised that studio apartments were bad investments…”they were too small and produced no CG”…so I sold it ….for $70,000. ie at a loss due to costs etc.
About 5 years later the same studio sold for $140,000 (rented at $140pw). I felt like a bit of a goose. The moral of the story is……..It’s a while since I read the book but I distinctly remember that Robert Kiyosaki (in Rich Dad Poor Dad) specifically defined a sophisticated investor according to their “wealth”. I cant remember the figures exactly, but I think it was something along the lines of someone with net assets >$1 mil or a personal income >$200k pa. I guess when a person reaches such levels of “Wealth” they suddenly become sophisticated. To whom this is relevant I have no idea! It’s in the book somewhere.
