Originally posted by sansue6:
What is a good profit for investors as far as in percent per year…if the project takes 3 years to finish and they invested lets say $100,000.

I know how much I WOULD want to make such an investment, but that is theoretical and somewhat irrelevant.

Let me turn the question around. Let’s assume that the development…[Read more]

Think about what you want from an investment, and more importantly what your exit strategy is.

What happens in 10 years time when you want to exit your investment? The lessee still has a lease that has up to another 10 years to run.

Therefore you cannot give a buyer vacant possession. This will limit your pool of potential buyers to investors…[Read more]

Sounds like a Wrap to me (albeit at a discounted selling price represented by the agreed/shared added value of the tenant).

I trust that your $70k is sitting in an account that has full offset to your home loan? (I wouldn’t rush in to dumping the $70k straight off your home loan just yet).

Why is it that you have 0% equity in your own home? Did you buy, and the market moved backwards that much? or perhaps you owe the usual 20% deposit plus closing costs to your…[Read more]

When running the ‘numbers’ you don’t usually include the principal repayments of a loan.

This exclusion would make the ‘deal’ (in fact ANY deal) extremely +’ve due to the nil interest rate.

As Byronet suggests – factor in a real interest rate.

If your financier IS able to do a 0% loan then all the better.

I wanner believe in the Nil rate loan…[Read more]

You would pay off that credit card debt sooner if the interest rate were lower, yes?

Credit card interest rates are still approx 3 times that of a home mortgage. Credit card finance is for those that either fall into their grasp through spending more than they can repay at the end of the month (sorry to be blunt but I suspect this is what…[Read more]

Hi Dan,

You live in NSW and I’m assuming that your intended IP is also NSW.

As has already been said,

1. the ‘standard’ settlement period in NSW is 42 days
2. it should be their price and your terms, or your price and their terms – exert some control to your advantage.

I would also NOT waive the contract cooling-off period. It gives you time…[Read more]

Originally posted by Still in School:
…..”How to Buy Property at $50,000 or More Below Market Value”, anyway …. to being scrudges or preying on the vunerable.

(paraphrased)

Let’s see, is it possible to achieve the above without being a ‘scrudge’… hmmmm.

What about:
1. attend a morgagor in possession type sale where all the mortgagor is…[Read more]

Originally posted by Robert B:
Gordon is the CEO of Conquest Property Developments Pty Ltd, a development company established for his personal portfolio. He is also the mentor behind Appreciating Realty, a Queensland based real estate company set up to provide a buying agency.

Over Gordon’s lifetime he’s bought, built and sold more than 50…[Read more]

Originally posted by terryw:

And watchout, you can’t just setup a LOC and use the money for the trust/company. Loan agreements need to be drawn up so that the interest can be claimed – as they will be different entitites.

If the LOC was set up in their personal names, the action you recommend is good advice.

I would however use the same…[Read more]

Is that a generally available publication/magazine?

I can’t recall seeing it on the newstands.

Hi Julia

TD51 of what year?

The problem is the dentist is only prepared to sign a 1 year lease.

Just a few thoughts to contemplate:

1. Was the now-expiring lease only for 12 months too? If not it could signal a problem with the dentist as a continuing longterm tenant. I would also use the now shorter lease to buy more cheaply – the premise is no longer prime.
2. How long…[Read more]

Yes, the Trust will need a TFN.

On the basis that the company was ONLY going to act as the trustee of the Trust, then I would have the company apply for a ABN. Since it was not trading in its own right then it won’t need a TFN.

Depending on the type of property targetted, you may also need to register the Trust for GST. (ie where you will be…[Read more]

There are very few “tax free employee benefits” these days. The introduction of the Fringe Benefits Tax System (back in mid 1980’s)saw to that.

What you are suggesting re: the free rent is caught by the Fringe Benefits rules.This would effectively double the price of the ‘rent’, whereas, say, paying a salary sufficient to cover the net rent would…[Read more]

I’ve just re-read the post and the responses and since it doesn’t appear to be mentioned anywhere I guess it begs the question – why would you want your family home in trust in the first place? – asset protection (from creditors) only?

Terry, you’re strategy is workable so long as one trust a beneficiary of the other. But then you get nested trusts which the taxman can take a dim view of.

Agent007’s basic problem is this:

Let’s assume s/he builds up assets of $500k for the trust. Let’s assume too that there is a successful action against the trading company for $1m and there…[Read more]

Unfortunately the renos are as a result of you living in the home and therefore are not claimable against the future rental income of the IP.

Money spent in bringing the property ‘up to scratch’ – ie a rentable standard – would be taken into account when determining any capital gains that would be taxable when you eventually dispose of the…[Read more]

Chris would be unimpressed being referred to as an accountant …. he’s a tax lawyer/barrister and probably wouldn’t know a debit from a credit (old accountant’s joke)

Mel

You’re right but then you still have to split the interest between the appropriate item numbers in the tax return/s. I would normally recommend the pro-rate approach unless there is good reason NOT to use it.

As you say, if the purpose to which the loan was put was ALL income generating (and hence all the interest deductible) then it doesn’t…[Read more]