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OK:
Went back to a book that I read a year or so back, "How investing in Commercial Property really works" and the way I C it is, you can set up a company and only pay 30% tax, BUT! there is a whole of of legal reporting to do and it really seems to me that it's a whole lot of paperwork and legal stuff ie: reporting, laws to learn and know and generally way too much pain and anguish to make it worthwhile.
I think it's back to hold for 12 months as being the easiest and simplest way, but will continue to look for another alternative.
Cheers : Brad
Hi Crashy
I cant say that i 100% understand what you are saying ?
Lets say that you buy a property worth $175K add agent fees, stamp duty, solicitors fees and so on spend $15K up-grading that works out to be $200K with 80% LVR thats about $40K of your own $$$ as deposit..
Now property is finished and re-valued @ $240K giving $40K equity. Now u decide to sell, take out tax mans $$$, agent fees, legals leaving "NOT MUCH" around $17K ish, now with your initial $40K deposit you will have about $57K
Is the bank going to want to keep $3,400 of the $17K profit ?
I dont understand how they can keep anything above the loan pay out figure ?Cheers Brad
Thanks Adrian and Megan.
Guess the only thing to do is put the numbers down on a spreadsheet and make a decision from there. But even then the decision is not an easy one.
As Adrian said, property typically doubles every 7 to 10 years so but hold is always good if you can.But as Megan pointed out, personal circumstances and cash flow drain might make selling and re-investing the better way to get to the holding point.
Unfortunatly when you sell you do lose money no-matter how you look at it. But holding can have the same effect due to the cashflow drain while waiting for the investment to mature.Cheers and thanks for your thoughts.
BradHi :
Im not as sophisticated as an investor for what your doin , but I do agree on the take the profit and roll it into something else strategy.
Just doing that at the moment.
Cheers
BradIm thinking last minute rush to get in before interest rate rise ?
Cheers
BradThanks all:
I went with the take the money and run theory.
Now all I have to do is make this profit make more profit.Cheers
Thanks Kay :
But still leaning toward the CG stuff in the high growth areas
Hi Joe:
To be honest, only did about 1 week researching the +CF stuff,first had to find a few +CF towns then had to narrow it down then went to the town and asked publicans, shop owners, butchers, ect plenty of Q’s.
Checked out growth rates and surrounding areas.
Asked plenty of Q’s in surrounding towns.Very limited time frame to work with, So squeeze,squeeze,squeeze.
Cheers Brad
Hi Steve :
Bye the way , your Books are great , The MAP was excellent and the book was highly enlightening.
I just sold a vacant block, simply because im speculating that the land wont have extra-ordinary gains over the next 5 or so years ? Pure speculation, decision was based on interest rates and what appears to be a slowing and even slight reversal of some property prices.
Cheers
Thanks
Must admit still a bit bamboozald by it all.
So many what ifs?
First plan was to build new 4 bedder on one of the blocks we have. That was part 1 of plan A.
Part 2 of plan A was to sell another block.
Loosing some equity value, but cashing up and then taking that cash and perchasing a good size block in a good zone and breaking it into 2 or 3?However, market conditions have me a little to nervous to take this on, so, its over to something a little safer?
+CF stuff.
Im thinking of using something like this to assist in the decision process. Any suggestions welcomed.
http://www.propertyvalue.com.au/files/house_sample_pv.pdfHi Mate :
Im pretty new to this stuff myself, so dont take this a gospel.
I was going for a loan to build a house on a block that I perchased about 12 months ago.
Had the valuation done and it came up shorter than I expected, because the last house to sell in the area that was the same as my plans 4 bed DLUG was only $260K, this was an older property that didnt go near what we were planning on building but it was however a 4 bed DLUG on similar size block.
So thats what our house and land was valued at, when the finnished product should be sold for around the $400K mark.
So its valued on the last property sold in the area that is similar to yours.
Cheers BradCheers Brent :
OK All:
Looks like im not looking at this from the right angle, this is the point where i ask ?
Where is the advantage in selling now?I read a quote in this site that said:
Sometimes a blind man can see what a sighted man cant.
Guess IM that sighted man at the moment ?Could someone point out some of the advantages in selling now ?
[blink]Sorry folks!
The numbers dont add up to do this at the moment.
Your opinions are appreciated though.[computer]
Anyone have a strategy?
