Forum Replies Created
Hi Chris,
… and welcome !! There are a wealth of useful threads that would (collectively) steer you down the right path. One thread I recall that asked particularly re IO loans and “how they work” that could give you some fresh thoughts. And, with the kind of $$ you and your fiance are bringing in, this can be good news. Here’s the thread:-
https://www.propertyinvesting.com/topic/4410595-im-a-bit-confused/Keep in mind too that there can be ways to generate Equity. Things like renovating, changing the “function” of a property, developing, subdividing, etc. Also, keep an eye out for Investor Meetings (regularly advertised on here) and go meet some others who are already into property. You will learn heaps from the presenters, and also from networking with like-minded people.
Enjoy your time here, and do come back with any more questions. Hint – the only silly question is the one you don’t ask !!
Benny
PS Also have a read of this one :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/-
This reply was modified 10 years, 10 months ago by
Benny.
Hi all,
Whatever they end up doing, I trust they will take the time to “think things through” before introducing some radical change.The NCCP change introduced a couple of years back was an ill-thought-out change (IMHO). The major thing Govts need to consider is that changes may well be worthwhile to “stop people getting into trouble”, but any restrictive changes suddenly introduced can play havoc with those with skin in the game already. BOTH sides of an issue need to be considered before making wholesale changes. For those “in the game”, perhaps any change should be made non-retrospective, and even to take effect some years into the future – to allow time for those already committed to change direction.
I trust the Libs will be a wee bit more circumspect than Labor have tended to be over time. Tony Abbott’s catch-phrase “First, do no harm” holds a measure of hope here. If he stands by those words, I would think any changes will be of value, even if unwelcome for some.
Benny
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This reply was modified 10 years, 11 months ago by Benny.
Hi Bullion,
Nice opportunities there. :) Re the CGT, I am certainly NOT an expert, and, the more I look at it, the more I think I should “Pass” and have you tell us after speaking to a good adviser (Accountant). But below were a few of my thoughts – see what you think….At first, I thought great – by selling half, your Cap Gain was ~$53k max. (then a 50% discount, then taxed on $26k = stuff all tax to pay). But then, that would then mean ALL of the $185k would be a gain on the second sale, so the CGT ramifications would be huge (and would depend on what you would earn in next FY too).
Or, maybe on the first sale you would apportion HALF the initial cost as the Cost Base, thus giving you a Gain of over $90k on the first sale (then 50% discount, then taxed on $45k = a few $k tax to pay – not too bad).
Are you allowed to CHOOSE which method to use? I don’t know…. But I would certainly like to hear the answer.
For sure, do check all options before making the decision. The numbers will tell you which is the right way to go. Maybe it will make A LOT of sense to build on it as your PPOR… Interested in the outcome,
Benny
Later – I see Terryw was answering you as I was compiling mine. Cool !! Terry is one who really does know – unlike me ….. He picked up on the possibility that the land is owned in joint names (I’d missed that). Thanks Terry :)
Hi Gateway,
I have a 4,300mtr property in the Liverpool/Moorebank area. It is the last of the original subdivided blocks from the 1920′s so the valuer is not able to take more than an “educated guess” with the caveat that even that could be wrong as the place is the last uncut block, has 2 street fronts, zoned med density, not bad house etc etc etc. Basically no one has any real close estimate of the place’s worth.
I don’t know the area (I’m in Brisbane) but I would have to think you are sitting on a small goldmine. Just a quick “back of the envelope” calc should get you close. Again, since I don’t know your area (Council bylaws, zoning meanings, etc) I will just do a quick example that can point you in the right direction (perhaps).
For my example, and to make calcs easy, let’s say this can be subdivided to form 10 blocks for building – a size of 430m2 is pretty common today, and could even be less size with many Councils, perhaps allowing you to form 15 blocks. But stick with 10 x 430m2 blocks. And, let’s say a 400m2 block in that area fetches $200k. That means you would have the possibility of $2m or thereabouts.
Now set your own figures to that. Then you need to allow for subdivision costs, so the price would drop to allow for those. Maybe you can look at subdividing “a small part every two years”. Like, subdivide 4 blocks off one end and arrange to build 4 homes on them over a 2 – 3 year timeframe. Keep in mind access for those in the middle. Maybe you need to “give up” one or two blocks to satisfy the access problem.
By developing them yourself, you save around 20% of the cost, AND you already own the land (less the cost of subdivision). It strikes me that you could set yourself up pretty nicely over the next decade. Sell off a few to pay off the rest (maybe sell 3 or 4 to keep 5 or 6 without mortgage) and go play golf !!! With the land costing you little, and the wholesale building costs if you develop, these should be hugely cashflow positive.
I’d be interested to hear what others think too – especially those who might have done similar things. And I’d like to hear what you think. Can the above idea be massaged to “fit” your situation?
Benny
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This reply was modified 10 years, 11 months ago by Benny.
Hi Long John,
You should be a poly Benny. You’re talking a lot without really saying anything or committing to any position. That usually indicates one doesn’t understand the problem or have an inkling of which way things are going.
Well if you think that, you either didn’t comprehend my words, or you choose to continue to promote your personal bias and take a shot at anyone who puts an opposing view.
Anyway, for the sake of others who might have thought I “wasn’t taking a position”, let me share a very interesting link (showing “house cost vs Income ratios for 2014” – for the whole world !!!!) Let me preface it with this quote from my earlier post:-
If, as Glenn Stevens says, we are at “cost equals 4 times earnings” for the most part, where’s the bubble? I don’t know exactly what this figure is today, but it will rise and it will fall from time to time.
http://www.numbeo.com/property-investment/gmaps_rankings.jsp
Now, I know what that figure is – and Glenn Stevens wasn’t far off…
There is good ol’ Aussie, with ratios of 3 or 4 in most areas, but with capital cities a bit higher (Sydney and Melbourne in the 8’s – gee, it must be a bubble… :p) No, they have had a recent climb in values, so it will take a while to taper and/or allow wages to catch up. I guess they may never quite get down to 4 like less popular cities, as immigration and overseas investors will see to that.
If you want to see real pain, click on some of the Red paddles. Now THEY have a problem. Probably where it takes three generations to pay off a home?
And my position? I’m a “middle of the roader” – I’m not bullish on property at all times. I endeavour to take a balanced view, but to retain the ability be a “swinging voter” as times and circs dictate. Right now, warm on property.
Re the world situation, well hey, I am not in any position to be able to influence anyone except myself, so the best I can do is to do my best. If it all goes to hell in a handbasket, I guess I won’t be alone, and hopefully better prepared than many.
Since LJ put a burr under my saddle, I went looking for information to either back his POV, or mine. I found both types, but for ME, this one makes a whole lot of sense, and probably explains why LJ, Scamp, et al have been posting what they have :-
http://australianpropertyforum.com/blog/entry/3174279/8081
Seems like some “Demographia survey” has been widely quoted as saying Australia is unaffordable. Well boys, read THAT link, then see if you feel the same way. It sure put my mind at ease, ‘cos frankly, I just couldn’t see the doom and gloom that you were belting us with !! That link shines a very bright light on what may have been a massive chunk of mis-information.
Benny
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This reply was modified 10 years, 11 months ago by Benny.
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This reply was modified 10 years, 10 months ago by
