Sounds like its the first time you’re building, I’d say add another 15% from the fixed price. Make sure you crunch the numbers properly. I haven’t been able to find a buy land and build with +’ve cash flow anywhere in Oz. Perhaps I’m not teaming up with the right builders or buying the wrong pieces of dirt. I had achieve positive gearing (vs cash…[Read more]

You can find all the learning material that you need at http://www.asx.com.au. If you search warrant issuers you will find a few of the bank’s websites that will have various education material and PDS’ too. Send them an email and ask them to send out whatever they have on warrants, options, structured products..etc.. and start from there. Good…[Read more]

I would for $10K or even for $1. Granted someone could add to the paper thereafter but I’d be able to argue subsequently that I had no intention to give away or do whatever those additions purported to do. What is a signature? It is only one small element of forming a binding contract? And if all other elements are not present at the time of my…[Read more]

@$285k each with expected $350pw each rent

Impressive returns. Are these regionals or cities? You could probably still get such returns in regionals but the gap is narrowing however I’d be cautious if someone offered you those returns off the bat in the cities which is where the growth will begin in the next cycle. You ask yourself, why would…[Read more]

Isn’t it interesting that all these big boys play in a completely different league? $5 Billion leaving annually is massive. These guys must all have a quiet giggle at our 3x1s and reno jobs… Anyone have big brother who would let me into their playground..?

Someone sent me some info on a positive cash flow deal even before depreciations. If you want more info, PM me and I’ll send you his contact details so you can do your own research and due diligence. Note I’m not getting any kick backs from this. I’m not really into positive cash flow deals unless its commercial or industrial but thought someone…[Read more]

We all have to start somewhere mate. Guys in Capricorn (lucky devils) have got on at ground level, banking on this WA market continuing to do well in the next couple of years so when it comes time to settle next year, land will already be worth what they paid for + profits. Decision is yours whether you want to take that risk like purchasing OTP.…[Read more]

The free stamp duty in NSW for under $500K is a lot of money to forego. $18K to be precise. If you are in the highest MTR, its about $37K pre-tax you need to earn. Can you make a quick $18K in this environment in Oz? If so, then the decision has been made for you. Like Simon said, if you never move into your IP, you will always have that benefot…[Read more]

Hi Simon and Mal,

Are you guys sure that interest on interest is not deductible? I asked a friend who works in tax and she sent me this exerpt from her email.

The Commissioner’s view is that:
“Interest on a new loan will be deductible if the new loan is used to repay an existing loan which, at the time of the second borrowing, was being used in…[Read more]

Hi Shwing,

That sounds like a fantastic idea. Never thought of that. I’m pretty sure interest on interest is tax-deductible but not interest on principal repayments. I have to check with my tax experts. I have been struggling with that idea too – how to extract equity out of my IPs and use them to buy a PPOR without selling the IPs (triggering…[Read more]

Can anyone help Apostle and I out? How is it different to just a call option? Many thanks gurus!

Double ouch!

Only declare something as a business if you’re planning to lose money so losses become deductible against other income income, else we are all small time investors….

Hi Paul, May I ask which seminar you attended recently and how much that cost you? From the sounds of it, you probably got all your moneys worth.. and then some.

Positive cash flow is getting very hard to come by. Most pundits advertise only new properties with ambitious rents and nearly $7-10K worth of depreciation deductions on the highest MTR…[Read more]

Must be one cashed up super fund! They have to be careful re sole purpose test too as the trustee can’t be deemed to be into property development with fund assets. ie. can’t build homes and then flick em as it may be seen as carrying on a business. I find it hard to prove that if you buy up a few blocks in Seascapes that you are not carrying on a…[Read more]

Unfortunately rules are made to be broken. It will be naive of us to believe that the agents would not get on to a deal themselves if they thought was a good buy. I’m interested to find the statistics on how many agents get prosecuted for perpertrating this. I read somewhere that agents are in the best position to get the scoop on a property.…[Read more]

Since we’re updating – Content has just informed me that Busso is ready for 1st inspection next week with handover by end Nov. So process hasn’t been too bad. Locked in price early Oct 04. Slab laid May. Now I just have to go over it with a fine tooth comb to make sure its not going to fall apart. Celeb in Australind a little slower with build…[Read more]

Perth in 2007? Better get something now before it goes another 20%. As most of the WA forumites well know, anything would be better than nothing right now. Theres been a heap of discussion on this & other forum re WA. And you’ve obviously seen the plethora of brokers than can assist in finance. Good luck!

Hey Westan, Whereabouts in Central America are you looking? Mexico, Belize, Guat, Honduras? I was backpacking through there last year and boy was it tempting – yields and prices looked great too but I don’t have my network set-up over there so the remote control element was going to be a real challenge for me. But for the past year, I’ve been an…[Read more]

Hey Flatout, good work re Mandurah. If the experts are right, looks like its set for another run. All the analysts are definitely bullish the Rocky – Mandurah area. But the prices are starting to match those of Brissy so I think further upside will probably be in the single digits. ie. no longer undervalued. But returns over the next couple of yrs…[Read more]

Anyone checked the websites recently for all Perth and WA suburbs thats been mentioned in this very informative post? I have never seen so many properties listed U/C! A bit of Deja Vu to when I was looking in Brissy and SE Qld a couple of years ago…. Surely investors can’t be purchasing these properties yielding around the 4% mark? Any comments…[Read more]