Forum Replies Created
do you really want to invest in an area that you have no idea about? intimate knowledge of a market allows you to buy well and make a profit regardless of what the newspapers say the median has done or will do
“an agent told me exactly the opposite story: they can save me some money if i buy using an agent”
they are either lying or misrepresenting the developer… remember that an agent works for the seller, not the buyer. They are obligated to seek the highest possible price for the property and have no interest in saving you money.
similarly, a developer has no interest in saving you money. if they can shift a unit of stock and pass ont he saved agents fees they might, or they might split it with you, or they may try and pocket the full amount. it is really up to you to determine what is best for you.
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 more of a property investor i.e. your business is renting properties out, you could argue that you are just realising one such property. hence the you would need, to be extra safe, 367 clear days from the date you signed the contract to purchase the land till the date you signed the contract to sell the land (regardless as to what is sitting on the piece of dirt at that time) to be eligible for a CGT reduction. then you will just need to argue your case – should the need arise – that you are indeed a property investor not a trader.
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.auasdf – 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 $500s. Or the beach house we sold for $90k that is probly worht 10 times that, or my last house in floreat on 1000sqm for $480k… I could go on all day but the point is… property may seem expensive today but the likelihood is it aint going to get any cheaper, particularly if you take a longer term view. So you sell and pay a huge tax bill and then what? reinvest in property? or?…. IMO the only argument that could have some merit is investing in Sydney which seems to be suffering herd mentality
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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:
you see the powerful effect of compound growth. Even if you overlayed the value of a cash investment in 1975 it would be providing an overly optomistic result for cash as the key thing is you can’t leverage a cash investment.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Of course cap growth is the key to an asset, so let’s not foget to add that:
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Austral Credit Union Ltd 04% 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 Rate
7.59%*
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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, then surely there’s no guarantee that rents will rise enough to ensure cf= by the time the introductory rate gets above the standard variable rate? Remembering that rents on average rise 3% pa, if the property is returning 4% gross rental yield, then it will take 21 years of rents rising and equivilent interest rate rises (4.0%, 4.12%, 4.24%, 4.37%…) for the repayment rate to hit 7.44%…[blink]
Can’t be.
I’m leaning towards option b). Cripes. “I’m leavin’ on a jet plane…”
F.[cowboy2]
even in the booming Perth market of the last several years the rents have stubbornly refused to move – what use to be a 5% return is sitting around 2.5% or less. To bank this against a mortgage would be a very risky move IMO
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 I am not judging that by any means)
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 future we may see investors dump their stock as they must be hugely negatively geared against valuation. I would say a crash is farily remote given that prices haven’t really gone too silly yet. If a family member asked if they should be in or out of the property market, I would say in.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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
