thanks so much Paul

a tax deduction from your income is worth more than the CGT payable when you sell (if you sell) so yes whilst you will have to pay it back it will presumably be under the 50% CGT reduction, so half the value, plus the tiem value of money

thanks Paul and Terry – think I had naturally worked my way to this conclusion so looks like I will put one person on RTB and another on instalment contract. The person that wants RTB wants the security of rolling over to IC in 2 years, presumably an option in the RTB agreement to roll over to IC has been done before?

the thing with RTB is…. if there is a danger of rates jumping 2 to 5% in the next few years, how can the vendor protect against that? How can the vendor avoid carrying a hefty interest rate bill whilst the RTB'er takes their merry time to buy?

From what I can see it is the opposite in WA? An instalment contract triggers stamp duty but a RTB doesn't? 

settled on a property that the bank valued at twice its actual value and I didnt realise was only half built and the builder then went broke. BSA denied an indemnity claim. The bank or their valuer stuffed up but they dont care they just see it as my problemLesson – regardless of what the bank lends or values the property at, get your own valu…[Read more]

oh is this where everyone has gone. maybe Dazz could be enticed back here…. full circle

Steve advocates a corporate trustee but I can't see how he gets this past the lenders…even if they accpeted it surely the 2nd thing the banks ask for are personal gaurantees?

hard to say without seeing all the facts and figures, tho usually it is best to fully develop the land, but don't forget GST and CGT consequences. Forget the accountant as far as subdividing goes… talk to a surveyor to take you thru the necessary steps

taking on debt is a reflection of confidence. look at the birth rates. none of this is amazing nor nation building stuff, but it's all good. cash is not always king… usually it's just lost opportunities

renting your home in Wollongong would be the best possible outcome. you dont lose any of your asset base to taxation and you get to rent for next to nothing  (compared to the cost of ownerhsip) on what would otherwise be a non-deductoble expense.

the China effect has seen the real cost of goods fall dramatically e.g. TVs, clothes etc etc and as the dollar strengthens the price of those goods continues to fall. exports become less competitive so there is less demand on the economy and more supply available to the local economy. more supply = lower prices. Also we are so heavily indebted to…[Read more]

article in todays sunday times quotes gavin hegney as saying the boom is about to take off again and we are in a temporary lull… worth reading

well I think it would be reasonable to assume that wages don’t generally go down after you purchase a house, so there is no increasing burden. cheaper housing is created on the peripheries of cities and that is where FHO’s make a start (the median property of today is not the same property that was around 30 years ago). those trading up or fresh…[Read more]

but the $600 billion isn’t set in stone – when the first indonesian walk down from up there the value was nothing, so you don’t say the pre pre boom value was nil. The $3.4 trillion is real asset value – real because we do not live in a closed exonomy and much of the sales are to external overseas entities. I would also argue that not everyone…[Read more]

i dont get it – do I have to read back on the last 42 pages to do so?

why does it have to go up 13%? not all median house price increases have to be funded by debt… it only takes one house on the street to sell for an extra million dollars and you have created $200 miliion in value

I am often faced with this dilemma and assess the property on several criteria. I too am a fan of the donald and would take his advice f possible

I tried to settle mid term once and ran it past my lawyer… even tho buyer and seller was wiling the builder was unwilling to agree to assignment of the building contract.

you will probbaly find that the comparabel rental returns between long term unfurnished and short term is similar. the appeal is that you get to use it in the off season when it is vacant.

if you really want a ballpark number… in perth (which is probably similar all over) you are looking at $2500 to $3000sqm for a nice mid range spec. probably the higher end of that price range. you could blow $5k/sqm if you wanted tho