What do you mean by tenants in common agreement? You mean just buy property as tenants in common. I believe the only difference between that and joint tenancy is right of survivorship. Any lawyers out there to confirm? Also if you’re a first home buyer, can’t get benefits if your other buyer (or two) has previously ownned properties. Good luck

Thats not Anchorage by any chance was it Ausprop? What happenend to being neighbours…

Somerly looks like its getting pricey for where it is but then again so is everywhere in the south. People have been saying the North side is under priced but with this latest kind of pricing, doesn’t look like it to me. Developers are really cutting up the blocks now aren’t they? 600m2+ blocks are considered duplex! Thats crazy talk.

I’m sure you’re aware building costs are going up everywhere at a squillion rate per minute so if you can afford it, go the larger block and lock in a contract ASAP. I’m willing to bet it ain’t gonna get any cheaper to build in 2006. Perhaps Ausprop can hook you up with a builder. Good luck.

Those elevated blocks are definitely unique. Was contemplating those too but numbers didn’t quite stack up. Someone I got to look at it for me said that you could potentially get slight ocean views from a 2 storey. It would cost in excess of over $230K to put the simplest 2 storey (lofty style). Plus interest holding costs, finished product is conservatively $430K, probably $450K mark. Yes, it would be a nice home to live in but for an IP? Theres been a few discussions on here re building 2nd storeys too & from memory its not w/out its issues.

Then when I walked up there last weekend, I thought any ocean views you may get is really just a small strip in the horizon and that mainly you would be looking down on roofs! Food for thought….

Looked into that estate too but its very exxy. I suppose its OK if you intend to live there rather than as an IP. Bruce is a very shrewd businessman who represents a group of investors thats been landbanking for what seems to me a long time now. Last I heard he was struggling to get council approval for that stuff up the front as they wanted them to put in more parks and stuff. I’m sure it’ll all be in the $200s though when he does finally get them through. Just look at blocks at the next estate down – Madora Bay I think. Doubt they’ll release any ocean front blocks soon though – would probably develop that themselves. Even if they did, I’d expect $450K+ but seems most developers are adopting that approach – sell the not so good blocks and keep the premium ones for later. If anyone does call him, see if you can get that group discount!

Can I just add that if you are looking to get the stamp duty exemption in NSW also (which is worth up to $20K), you MUST NOT have acquired a property in Oz previously, irrespective of whether you only had a relevant interest in the property (which is OK for FHOG). Not sure about other states’ stamp duty concessions though if you had only owned an investment property previously. Please check their respective OSR sites.

Hi ya, my girlfriend and I were in a similar situation. I own a few IPs but she is can get the FHOG in NSW. We were looking at maybe getting something together >$500K but yes, she loses $20K stamp duty exemption so on the w’end shes put an offer on a unit at low $4s which has been accepted. She intends to live at home (unit currently rented) and move into it next year to reno it a bit while I will continue to rent. We don’t live together which helps with her FHOG. Be careful with the spousal rules. Read the application form from the OSR website for more details. If I were you, I’d buy a good place as a PPOR. Obviously look at location, ability to add value, under market value..etc.. then sink as much equity into it as possible so that your rent roughly equals your mortgage if you can then you’re indifferent as to whether you rent or buy. Then set up a LOC and isolate that part for IPs so interest there is tax deductible. We sat with her mortgage broker uncle tonight and he ran through a westpac rocket repay product which I reckon is pretty good. One part P&I and the other I only with offset account. But munjy is right, in Syd the sub $500s market you’re competing with is FHO. Theres not many investors out there looking every Sat. I think the removal of the vendor tax has done the opposite – these guys are putting their properties on the market! Yields are still very ordinary in Syd. Then again if you think that this market is not going to go anywhere over the next 2-3 years, then you shouldn’t be in a hurry to get into this NSW market. But how long will the concessions last…. Good luck

You’ll find what you learnt at uni is of very little relevance in the real world of property investment and wealth creation. You’ll learn more from your fellow forumites than them case laws you’re used to trawling through. I’m thinking that Steven put you through an accountnat? I was going to suggest that you don’t just use any old accountant. You should work out what you want. Pros and cons/costs with different type of trust structures and trustees. Get that sorted first before you go shopping. We were doing it simultaneously and boy was it a pain. Good luck. Incidently, are you practising?

You mean Steven? Directors g’tee usually required if the trustee company borrows the funds seeing the co. is probably a $2 co. with no assets. This means the directors (you) will have to g’tee the obligations under the loan. Not too much of a hassle, just more paper work the bank needs to send out to you so a little more time consuming. But if you have a HDT, I would have thought the loan is made directly to an individual? so they can use it buy the units in the trust..etc.. Pty then reg’d in name of Co. Trustee ATF HDT. Any financiers care to add/ correct me?

Are they the same as LPTs that invest in CPs? Guys at work structure that kind of stuff, some listed, some not and then offload them to retail. I recall from reading one of the prospectuses that they do rip a fair amount of fees out. They try to sell it as a pure income play – some with very little particpation of capital growth. All depends on how its structured and/or leveraged. We have some great minds structuring these kind of deals and their services don’t come cheaply. And I believe there are also many other hands in that pie too. I think the idea behind direct CP ownership is to buy something well, maybe change its use, increase rent/tenants and thus capital value. Easier said than done but some individuals in this forum has obviously done very very well from it. I’m still learning…..

Hi Caston, did it work? I reckon thats a myth but it sure does help. I’m 29 and recently moved back to the folks’ (helps on the finance application when you don’t have to put PPOR mortgage or rent figures).
Thanks Dazzling, this has been a very interesting post as I too am dealing with this issue. The folks actually like having me back although I work long hours and crash at my g’friends’, am hardly there. Since my brother and I moved out, I suppose I can say that they probably missed us. We used to hate getting told to do chores..etc.. but know now that it was great training plus they were busy trying to put food on the table too. Now they have so much free time, all they do is clean! I told mum I’d gladly pay for a cleaner to come in but she has no bar of that.
Although moving out teaches us to be independant..etc.. its actually not that big a deal. Unless you’ve been spoilt rotten by your mum, I think everyone should be able to survive out there by themselves and its not as if you’re on your own anyway. Most of my mates moved in with others so in that way, they are relying on each other for support. Perhaps there will always be that stigma that comes with living at home?

I’m seeing some of my friends getting married now and taking on PPOE mortgages while some continue to rent. They don’t struggle day to day to get by but I don’t see them accelerating their wealth creation at the same time. Like Dazzling said before, some choose to go for the lifestyle play -nice units, PPORs, clothes, fancy hols…etc.. which is perfectly fine but I know they are heavily reliant on their JOBs and I’d hate to think how they are planning for any kids in future. Syd is not a cheap city…

I’ve been lucky to be “exposed” to property in the last couple of years and am absolutely loving it. I can see the leverage working and just keep leap frogging. Unfortunately not many of my mates are doing the same thing so I really struggle with people to talk to about this stuff hence the forums great. I wished I started this a lot earlier rather than trying to make my millions trading One Tel and Libertyone shares. But I’m very pleased with what I’ve achieved so far with property and hope to just continue learning. Unfortunately they definitely don’t teach you this stuff at uni. All the option pricing theory I learnt at uni did buckleys for me trying to make my millions in the sharemarket. So your knowlegde and advice will be the best education/insurance for your kids’s future.

And BTW, I don’t plan to stay at the folks’ till I’m 35. Am looking to buy a PPOR in the next year or so, maybe with the g’friend. That would be another topic altogether….