I have never know CBA/Colonial to give out a copy of their valuation[angry2]. Think it is the result of litigation whereby it was found that they were in no way compelled to disclose details of the valuation, as it is for their purposes only and shouldn’t be relied on by anyone else (more complex than that, but a very basic version!!).

Whereas…[Read more]

Been a few postings regarding Darwin over the last few months – my experience is not good – not really any capital growth to speak of in last 5-6 years for the two properties I’ve been involved in (one inner city apartment and one house in good loc 10kms from city) – negetive cashflow properties. Darwin also has a very high vacancy rate.

Lots of…[Read more]

I’ve had an IP in Darwin for 5 years – capital growth has been hopeless compared to other regions – good opportunities for positive cashflow though as rents are high!!!

Friends have owned an inner city townhouse for past 8 years and hasn’t increased in value one cent!!! (where’s that old doubles every 7 years theory gone!?!?!)

They keep saying…[Read more]

I’m in a similar position to you, however looked into the trust structures just before my last purchase, and ended up buying number 3 in the name of the trust. So better late than neva to set it up for future purchases, and can also then assess whether it’s worth the expense to transfer the existing properties to the trust.

I spent an hour with…[Read more]

with the last few loans I’ve got the bank has told me when applying that if I want to keep the rate as at my application date, then I can pay a rate fixing fee, otherwise I would get the rate as at the date of the loan is drawndown – not sure if all banks operate this way…..but assume that without an agreement to fix the rate, then it would be…[Read more]

Pretty much impossible I would have thought – apart from a few exceptions (family court orders/ppor transfer to joint ownership with spouse in certain states), any time you transfer an interest in land you cop stamp duty, even if you are not actually purchasing and are “gifting” property from one person to another.

In this case, you are actually…[Read more]

If purchasing negetively geared properties, a trust is still very beneficial, so not just for positive cashflow properties – can still get the tax benefit if set up right!!!

Cheers

ooops, just re-read your message and see that you’re not looking to invest for 12 months….please disregard my “keen as mustard” ideas.

Cheers

You should be able to refinance up to 90% but would have to pay Lender’s Mortgage Insurance. Apparently if you repay the loan within 12 months you can get some of this LMI back – so if you’re keen as mustard and want to get in, then that might be worth looking at. Then get your property revalued in 12 months and if you’ve got enough equity you…[Read more]

My advice would be DON’T LISTEN TO THE REAL ESTATE AGENT and do your own homework to try and establish value, rental return etc.

I can’t believe the things we have been told by agents over the years in order to try and make a sale (sorry to all those honest agents out there…unfortunately my experiences have been pretty much all bad!!)

Cheers.

The ATO site has a great booklet you can download on rental properties that goes through the list of what you can/can’t claim – very user friendly and easy to follow!!!

Cheers.

The ownership structure is generally just indicated on the Transfer of Land when you buy it – there are two structures:

Joint tenants – which means you own it jointly in equal shares and on the death of one party the survivor will be the sole owner; and

Tenants in common – where you indicate the percentage owned by each person (i.e. 1/2, 1/3 etc…[Read more]

The DHA properties are definitely overpriced due to the sale/leaseback arrangements.

If you buy a house yourself that meets their criteria, you can actually have them lease it off you under the same arrangements without having to pay the inflated purchase price!!!

Better option if it’s the leaseback that you’re interested in – not guaranteed I…[Read more]

I think the term ‘hybrid’ in relation to trusts just means a trust that emcompasses more than one type of trust (i.e. if you amend a Unit Trust which is fixed in nature to make it discretionary, then you’ve made a Discretionary Unit Trust, which can also be called a hybrid trust cause it is a combination of two different types of trusts). That’s…[Read more]

In relation to the trust issues, I have set up a discretionary unit trust for my properties that are negetively geared and still get the personal tax benefits – asset protection not an issue for me, but significant tax advantages with properties being owned by trust – see a good accountant if this type of stucture interests you cause it can be…[Read more]

Have been investing in property for a few years, and only recently (thanks partly to this site) realised the importance of having the right structure.

Have ended up with a Discretionary Unit Trust (Hybrid Trust) as it appeared to be the most appropriate structure for our requirements, but the type of structure you have depends on lots of issues,…[Read more]

Hi Red,

We have just set up a Discretionary Unit Trust (Hybrid Trust) in which the individual/unit holder borrows the money and the Trust owns the property. The Trust can then distribute the income to the unit holder who can then offset the loss incurred from the loan against the income received from the Trust.

From what I know, a loss can’t be…[Read more]

I’ve just been through a similar process, which resulted in the following set up –

* Discretionary Unit Trust owning the properties * Loans taken out personally (with Trustee of Unit Trust as Guarantor – lending requirement)
* One of the Unit Holders is Family Trust

My understanding of how this works is that because losses can’t be distributed…[Read more]

I had a similar problem a few years ago….the joys of it.

My insurance paid for up to 6 weeks rent (if the tenants left before the expiration of the tenancy agreement and only up to the expiration of the tenancy agreement) and didn’t cover any vacancy following tenancy expiring.

It also covered any damage caused by the tenant (i.e. if they…[Read more]

Thanks for the advice guys!!!

It is a secure complex in one of the best streets in South Perth with UCP – just one of the older complexes.

It is unique in that there are only very few complexes in South Perth that have ground floor apartments that have river/city views.

Perth is well behind Melbourne/Sydney in the apartment stakes, and still…[Read more]