Forum Replies Created
a mate of mine just put rent up $5 a week and the tenant left – pfffff! is a bold investor that puts rents up now. CPI has such a mish mangle of components and has no connection to rents anyway (even though I woudl imagine rent is a component of the CPI calculation). comparative rentals can be the only way to justify it
there is a car wash out Belmont (WA) direction where the equipment is always breaking down, so the owners are out there manually soaping the cars up before they drive through. doesnt sound very ‘passive’ to me! for $700k I hope they give a decent warranty…
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
Terry can you please clarify that a bit more? My understanding is you either go hi-doc with verified income, or lo-doc in which case you will need 2 years of unverified income i.e. I was told you can’t just go and make up your income on a lo-doc, you have to have a believable source of income. And of course despite what the bank does or doesn’t believe, you will have to service that loan.
I haven’t read Steve’s book, but now that I know he is an accountant that bailed from accounting (like myself) I think I’ll have a read! In Kiyosaki, if I recall correctly he did specifically say don’t throw your job in tomorrow to do this – he said try do a small enterprise on the side to ease into it i.e. a little mail order enterprise etc. The biggest thing from all these books like this is to make a written plan and that may have to involve working for the first 3 to 5 years until some of your side investments come through. You wil also probably cop some heat from your employer as your attentions will not be 100% on the job – dont buckle to the pressure. Employers only care about whats best for themselves on the day, not who is going to pay for your retirement!
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
ok here’s my 2 cents. I bought my first IP in 1991 so I guess I have 13 years up now. I missed all the excitement of the late 80’s though. I wish I still owned every property I have ever owned. I also looked at buying some places in regional areas (which I never bought), some of which I regret not buying and vice versa. So in summary if I had stuck with quality city properties I would be very happy today. My strategy is, buy quality city properties, do everything possible to make them as neutrally geared as possible. Inflation over time will boost your asset values and eventually provide cf+ returns as rents slowly rise. It’s not a get rich quick scheme, but if you plan for 10 to 15 years and plough your earnings back against the properties you should be able to retire by then.
speaking of 20% equity, here is another link to check out:
well they don’t really highlight anything, just sensationalise. one night its the reno kings throwing around a tin of paint and putting wood contact on the floor to collect $100k for a weeks work, the next night its the impendng property disaster. its just rubbish and should be treated as light hearted entertainment. what will it be tonight, a 13 year old being offered a credit card, a dodgy builder, or a 10 year old with a $2k mobile phone bill? and how will they squeeze a property story in that half hour – OMG the scheduler there must be under presure!
I would suggets you have a read through http://www.ato.gov.au – they have excellent and very detailed examples of exactly this type of situation. also I understand that the 12 month rule went out the window a few years back (but persists as an urban myth!)
Yep – we had a heated debate on this a while back. The postings are probably in the archive section somewhere (actually I think it was in “opinions”). The summary of it was: they charge huge real estate agents fees to developers because they shift stock fast – especially stock that is questionable. The boom has masked a lot of this as the revalues have come in above what they sold for (as they should do in a boom) coupled with the fact that the buyers are advised to never sell. The agents that they have working for them get generous commissions depsite being under the pretence of voluntary labor. My beef is that it is not a club it is a real estate agency. The conclusion was though that if the property stacks up on its own merits (and get independent valuations for this) then the commissions involved shouldn’t matter so go for it. Does that help?
would be interesting to know the costings for the reno. sounds like a lot of hard work and money for what is basically a 21 year lease paid upfront. good to see a council being a little creative though.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
tip: be careful. Drove past a post office in a decent location last night. My girlfriend tells me it has been vacant for 3 years. brings a tear to the eyes!
Rugbyfan – how would you feel about paying $5 to walk into Liquorland?
I think the concept is bizzare – imagine going to a home open and they had a collection tin at the door. Or you go to a real estate agents office and they refuse to talk to you until you hand over a crisp 20.
I would wait for 12 months so that you can get the capital gains reduction of 50%. Given the construction times recently I doubt you could do it in less anyway. If you do too many of these deals the ATO will regard you as a developer and you won’t be eligible for the 50% reduction (as it will be just operating profit). If this is a one off, by all means go for it.
Paying tax is good because it means you have made money – go for it!
Actually I just read Rugbyfans comments and I would agree. The profit you mention would have to be a comfortable profit with all interest costs etc factored in to even consider it.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I like that idea of the free land for a $20 enquiry fee. basically you are running a raffle without having to buy a licence. always more than one way to skin a cat huh?
surely the properties have sold now and the post can be taken off? I wouldn’t want to be the 500th person handing over the 25 bucks!
Yes but as you will see from this discussion board there seems to be an increasing desire to achieve positive gearing rather than negative gearing i.e. a general realisation that investments should make money not lose it. I am trying to say that people buy properties for different reasons – some to achieve tax write offs, some to generate cash. Negative gearing has distorted the property market so much that it is hard to determine what the income from the property is, as you are relying on tax deductins and future capital growth (pass me a crystal ball!). If it was just based on annual returns (or yield) it would be clear cut. The abolition of neg gearing would boost rents so much that, tax deductions aside, the returns would probably be about the same as prior to abolition anyway. I read a very compelling article arguing for abolition which I can’t seem to find unfortunately. One of it’s points was that neg gearing has created an artificial diversion of investment into bricks and mortar to the general detriment of australian industry – could this be partly responsible for our declining standard of living and continued reliance on imports/inability to produce our own goods?? Well I could go on all day, but the reality is it won’t be abolished anyway, so it’s all conjecture. Would welcome others comments on this….
Originally posted by Still in School:Originally posted by AusProp:I wish they would abolish it so that I could get a decent yield. Unfortunatley there is very little likelihood of it
Hi AusProp,
Could you explain more on what you mean a decent yield? If we couldnt -ve gear, i wouldnt purchase any -ve geared property then and so would many….
Cheers,
sissounds like a load of hogwash. i rented out a granny flat short let for very healthy rents for a few years with no problems. who would know (unless you don’t get on with the neighbours?!). i didn’t actually construct the granny flat as it was already there, so just call your local council and see what the guidelines are – I would be interested to know.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I wish they would abolish it so that I could get a decent yield. Unfortunatley there is very little likelihood of it
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Extensive list of new Perth property available for sale.
Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
Yes, and this is an important point when comparing +ve CF residential to commercial. If you are borrowing your residentials on a low doc basis I am told that you are not able to do the same for commercial.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
