if you have built a spec hoime with the intention of just building and selling for a profit, then you are conducting an enterprise. As such you will need to register for GST and remit accordingly. As you are conducting an enterprise, CGT does not apply, however the net profit will need to be included in your normal assessable income.

if you are…[Read more]

I would personally find that wording way too open – redwing drop me an email if you want an annexrue that is more comprehensive. Bear in mind you have to get a seller to agree to thsi stuff!

http://www.megagroup.com.au

asdf – very surprised that a firm would bother marketing WA house and land in Sydney when (a) there is no land available in Perth, so where is it coming from and (b) why not just sell it locally as they would have queques for it. Would suggest the price is loaded??

I think back on sales that I have made in the past… like when I sold a large green title block with a liveable house in east vic park for $180k because I was sure i had picked the peak of the market and everyone was tellign me it couldn’t go higher. Or the townhouses I sold for $290k+ in Vic Park only a couple of years ago now reselling for mid…[Read more]

Talking about yield without talking about cap growth is like looking at the P&L but forgeting to look at the balance sheet. If you look at:

http://www.reiwa.com.au/res/res-salesgraph-display.cfm?PageUUID=8030e35f42023f4a3e7b-26-Aug-2006-08:52:42:465

you see the powerful effect of compound growth. Even if you overlayed the value of a cash…[Read more]

you can contract whatever you like – throw it in if it pleases you… the Seller probably won’t accept it though. you may want to word it as a due diligence clause.

http://www.megapropertygroup.com

INVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT

Of course cap growth is the key to an asset, so let’s not foget to add that:

BankWest 0
Citibank 0
Citibank 0
Commonwealth Bank 0
CUA 0
Easy Street Financial Services 0
Encompass Credit Union 0
HSBC 0
HSBC 0
Illawarra Credit Union 0
ING Direct 0
Members Equity Bank 0
National Australia Bank 0
Power Credit Union 0
Select Credit Union 0
St. George…[Read more]

4% jump? just refix it for 15 years if you really think this will happen… here are the combanks rates:

Standard Variable Rate
7.82%*

1 Year Fixed Rate
7.35%*

2 Year Fixed Rate
7.35%*

3 Year Fixed Rate
7.35%*

4 Year Fixed Rate
7.49%*

5 Year Fixed Rate
7.49%*

7 Year Fixed Rate
7.59%*

10 Year Fixed Rate
7.59%*

15 Year Fixed…[Read more]

Originally posted by foundation:
So I’d take it this is either:
a) A low introductory rate loan with hefty break fees to prevent borrowers from refinancing after the intro rate runs out.
b) A US style negative amortisation loan where borrowers make only part of the interest payment, the remainder is added to the outstanding capital.

But if it’s a,…[Read more]

it is also a terrible destruction of wealth within our economy. I recently had the pleasure of doing a cruise up in Alaska… I could not tell you the number of australian pensioners on there ‘blowing some cash’ so that they can qualify for a pension; quite an eye opener. ‘Live for the day, collect a pension tomorow’ seemed to be the attitude (and…[Read more]

curious to know why the return is so high though? I learnt in economics 101 that the higher the return the higher the risk

I’m convinced……. the end is nigh

“If you are not preparing for further contraction in the Australian economy within the next 5 years, then good luck to you.”

whoah – where did that come from? When did the contraction start? (I sound like a doctor!!!)

I can only guess, just as the economists etc do. As this is a demand driven boom, it makes sense that only supply can satisfy it. I am yet to see where any signifcicant increase in supply will come from. I believe momentum will continue to carry the market higher, at what rate I don’t know. if rents don’t push significantly higher in the near…[Read more]

what bubble are you referring to? and what will YOU do if there is no bubble?

yeh I have gone into some managed funds in an attempt to diversilfy. let’s see if the experts can pick it better than I can! a heck of a lot less work for me too.

I must be the only guy in Australia that managed to lose money on shares this financial year. oh well – can write it off the property profits I suppose. I’ve said it many times before… never touching shares again

is it urgent that it needs to be done? i think you will be struggling to get a tradie to turn up and if they do they will load their price. may be better to wait a couple of years till hopefully the building boom eases off

would be good if they were even half correct, a balanced market would be better for everyone. unfortunately with the amount of deals still in the pipeline and yet to settle I can’t possibly see how the brakes could be applied so heavily… I dread to think how many unsettled OTP sales (and on-sales) are sitting out there. Will be interesting to…[Read more]

I know of some Perth investors that are going to Qld for cheap deals. They may be cheap but it needs to be in relation to the strength of population movements and economic growth. I hadnt even heard of the suburbs that the guy mentioned. Sydney is looking cheap too but NSW seems to be in economic dire straits and from what I can gather is it is…[Read more]