Forum Replies Created
Hi Rick, I’ve actually done that here a few times. The trick is to make sure you don’t do too many or you need an agents licence. It is becoming popular with cars brought in from O/S. There are two main ways to do this (1) You find a buyer for a certain model car and get a deposit from them and use that deposit to buy the car O/S. Have the car shipped in through a third party and receive monthly payments until they buy it out right.
(2) You buy a car with your own money that you know someone wants and do the same situation as premention.
The govt keeps changing the regs and are trying to close all the loop holes. There aren’t many left.
There no reason why you can’t do it with domestic cars that I know of as long as it’s not as a business. If I’m wrong could someone please provide correct info. Someone wrote on another forum about creating business that can bring in a few extra dollars a year and wrapping cars may be another.
I can see Steve’s new book. 0-130 and no speeding tickets in 3 Years.
C2
“Is it true that the more you owe the more you grow until the bank steps in?”
Hi jars11, I’m one of the guilty 20 that read your question, but I don’t have enough finacial knowledge to offer advice, sorry.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Hi all, I know it is preferably to see the property for yourself, and as someone did write “i read somewhere that if you dont have the money to jump in a car/ plane to check out places, you shouldnt be investing……” BUT some investors live O/S and it makes it quite difficult to jump in a plane and go and see, even if it is a tax deduction. You also need to have people who know, they will benefit from helping you and be your eyes and ears. A win win situation.
C2
” Is it true that the more you owe the more you grow until the bank steps in? “
Motivstorm, PPOR is primary place of residence. Where you live or where you claim you live.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
Hi OZPATINQ8,
I agree with your thoughts on Katherine, it is a great place to live if your into outdoor activities and it’s also a water course. I missed the flood as I was O/s at the time and cyclone Rachel (97). I would also be interested in a look at the Mitchell st proposal as well. In regards to the Value inn, I believe that these service apartments have been a little hard to sell later on.
C2
I/O loans are generally lower repayments over the same period as P/I and can leave you extra cash for other properties, but you still owe the same amount you borrowed. P/I loans pay some off the principle and this generally gives you faster equity than a I/O of the same value at the same interest if both are achieving the same CG. This is just the general basics and I’m sure other people can explain a lot further for you.
C2
” Is it true the more you owe the more you grow until the banks step in?”
As with most places there are good areas and bad areas around Darwin to invest in. The prices have been jacked up a little lately due to the hype about the line, port and gas projects. The real estate agents have jumped on this bandwagon and this has helped inflated the prices a little further.
The vacant land between Casuarina hospital and Leanyer is to be a residential area ( I believe to be under the control of DHA and not necessarily for our boys but for the stars and stripes ). This is to possibly help minimise the military influence that is currently exerted over Palmerston and helped push those prices up a few years back. I know of a few people who have DHA leases that are nearing completion, but the selling prices are still not enough over what they originally paid.
In Darwin city itself there are quite a few development projects/units that have popped up and an oversupply is waiting in the wings. In regards to rental guarantees secured by banks, what influence is there by the NT govt to these institutions to obtain leases as a way of getting investors to put their money forward? When the leases expire the same as DHA leases what are going to be the returns then? I myself have a few IP’s around Darwin but are also starting to look elsewhere. As with most situations some people will win but some will also lose.
C2
” Is it true that the more you owe the more you grow until the bank steps in?”
Hi Dannards,
I do both. I use an agent for units and do it myself on the houses. No major problems either way and only the occassional hiccups both ways. I think it’s more of a case of how much you want to control the situation and if you want to put in the extra effort to receive larger rewards
The more you owe the more you grow[
]Us Aussies keep on popping up everywhere here in Japan. Hungry I’ve bought properties in Oz whilst here in Japan, but still go back to do my own final inspection before signing on the dotted line. I’m trying to get another now but getting a few headaches from the mobile banker. Huey if your daughter drops me her CV I will see what I can do from this end for her. It’s easy to find work with companies like Nova and Geos but as someone else has previously mention they are FACTORIES, and you can get the raw end of the deal from them. [email protected]
C2
Hi Stu, I think this topic may be a good one for you. I’m currently in Japan like a few other investors on this site and can borrow money through Australian banks in Japan at interest rates below 2.5% for properties in Australia. The question is the pros and cons of doing this. I always find it tricky working out the exchange rates and some of the extra payment options if currency fluctuations put the borrowings outside the appropriate LVR. If you require any more info please ask and I can send you the info they have sent me. Thanks,
C
Hi Laura, I will contact you in the near future, thanks.
C
Hi everybody. I’ve been following this thread and it seems that there are quite a few investors who are Perth based. I’m interested in the Perth area but are still o/s at the moment. Will fly back to OZ around the 3rd week of July and may come to Perth. Is there any one who may be interested in meeting during this time as I’m not able to go to the 6/24 meeting. As I’m always o/s it’s impossible to do hands on management of IPs thus the need to find some reliable people to handle this area for me.
C
The relationship between speeding and property investments is quite simple, both involve an element of risk. Sometimes you win and sometimes you lose and remember when you lose learn from the mistake and don’t do it again. Finally ignorance of the law is no excuse for the crime whether it’s investing or speeding.
C
Hi Kooringal, thanks for the input. The situation I have is different to the one’s in your reply. They do sound a little interesting but I would rather keep everything above board, although cutting corners is fine.
Can anyone give a definition of what constitutes a PPOR as I have been given different responses from accountants. Is it your voting address or number of nights spent there. My business keeps me o/s or interstate 95% of the time causing the ATO to query my PPOR on a few occassions. Has anyone else come up against this situation?
C
Hi Julia,
I’ll assume your familiar with the Darwin. Some are in the golden triangle NTU, Casuarina Shops and the Hospital others are N/C shops area, but away from Aralia st area. The others are within a few minutes walk of Palmerston Shops. I think Darwin will hit another mini boom within about 18 months. Federal and Territory Govts are pushing ahead with quite a few enterprises/schemes that will continue to see the infrastructure of Darwin improve. I’m not in the big league like some of the people on this site with IPs but hope that my next shopping trip will take me to double figures. Darwins downfall is its high departure rate of short term residents. If you don’t do your own property management get on side with a good property manager. You often hear bad comments about real estate agents, but I’ve found them quite above board in Darwin, probably due to the fact that its one of those places where the long term residents know each other and once they stuff up everybody knows. Are you a local investor or an interstater.
In regards to Steves comments about no money down, thats not so difficult in Darwin if your local and a long termer 10Y up.
C
Hi Darwin, my own personal thought is to try and find IPs in the same area initially before expanding to other areas(states). This makes it a little easier when negotiating with the banks for a second loan. You may find with the right manager your equity might not need to be very much. I have a few IPs in Darwin and think the prices are still going to climb a little longer. My next shopping trip is there in July.
C
Hi Michael, hopes this clears a few things up.
Hi. I was trying to work out why you think the property is free of capital gains. It could be for two reasons:
It is your PPOR
The property was bought for PPOR but being o/s 95% of the time, has caused some concerns about this status.
Can anyone give me a concrete definition of PPOR and how this effects people who work interstate or o/s for long periods at a time.
I say in five years because they may reach a point where they can obtain a loan, either unsecured or secured, to pay out their debt and receive the title, which they cannot do at the moment.
I think them paying it out is highly unlikelyHowever, if this property will attract no capital gain now or in the future when sold, my second option if retaining the house is to keep it as a rental, even if it means new tenants.
I’m leaning towards this situation but concerned about losing PPOR.BUT I would attempt to wrap or L/O another place to my current tenants because they’re too good to loose.
The difficulty with this idea is that I’m still unsure about wrapping and being o/s makes it a little difficult to manage the situation.
I’ve read quite a few of your posts and found your replies very informative and would like to know if you have any contacts or ideas for people like myself who spend the majority of their time o/s and have a few IP properties in regards to tax advantages. I can be contacted at [email protected]
C
Hi Michael, thanks for the reply.
How long have you owned the IP?
Property acquired mid 80s
What are their weekly rent payments?
Property is about 30% under the current rental market. This is a trade off that benefits both parties without going in to the full details.
Have they gone to the banks first before asking you if you’d like to sell? Perhaps they’re not aware they can buy from you as a wrap deal.
They asked me first and are also aware of the wrap situation. I haven’t wrapped any properties so far and as I’m o/seas 95% of the time and I’m still hesitant about taking that first step.
Taking the $190K sounds fine, but the capital gain may occur not when you don’t want it to.
Can you clarify if you mean capital gain on the property for tax purposes, it should be free of capital gains tax.
(2) accept 70K and do vendor finance at what interest rate and for how many years
This is my personal preference. You have the 70K for other projects and 15 years of +ve income.Still require information about what should be an appropriate interest rate to charge and over how many years.
This would be a last choice, especially if this IP was a “non-negotiable” part of your buy-hold-rent strategy, you may need to reconsider what you want from this investment.
As the property has shown capital growth since purchase, I have mainly used it as a negotiating point with the banks when purchasing IPs.
What do you want? You don’t have to say here, but this is important for a true win-win. Do you need 180K now, or 70K now, or will this affect your tax position adversely? Are you happy with +ve cash flow over the next 15 years whether it is from rental income or a wrap deal.
I want probably the same as everyone else on this forum to be financial secure in the near future. I don’t need the money now but I do want to acquire a few more IPs. As for the tax position it’s a nightmare that I haven’t been able to find a good accountant who can advise in this area. The problem being that I’m o/s 95% of the time and my situation about income is a little out of the ordinary.
Where the money comes from is not a problem for me, wrap or rental.
Thanks again for your reply and if I’ve left anything out just let me know.
C
Hi Superman,
Steve’s pretty right about the unit situation. One of the first units I bought was in a block of 9 and a second in a block of 4. Both acquired at the same time on investment loans. I was eventually able to obtain the other 3 and gain control of the situation completely. The other one has provided the odd headache but nothing too major. The pros and cons of buying a house or a unit are endless. You have to go with what you think is right. I have houses and units and have ear marked certain units as my emergency sale options as generally they are cheaper and can be easier to move if you are in desperate need of money. I haven’t actually had to sell any, but on a few occassions when I thought finance on other properties I wanted to obtain wasn’t going as well as I liked, I placed a couple of for sale adds to see how the market was going and how quickly I could move a unit or house if needed and found the units attracted more interested. This is not going to be the same in all situations, but appears to be mine. I think one of the keys to your investment situation is finding a good property manager. This has been discussed on other forums.
C
Hi Chris,
I understand your situation as I’m based in Japan and have bought a few properties whilst O/S. One of the biggest hassles is that some of the documents that you need to sign may need to be witness by another Australian or a consulate or embassy member. An easy way around this is to give power of attorney to someone but only in the specific area of signing certain contracts. I have given certain powers to my Bank manager and conveyancer to handle on my behalf. The most important part is too ensure that you have the complete trust of who ever you give power too and that power is stated explicitedly. P.s where in Cal are you? I lived in Covina, West hollywood and San diego for a little while, not too mention NY, but thats another story. Also if your income is in USD you can lose a fair bit of money on international transfers. What I do which may be of interest is to buy gold *certificates* which you can sell at the Perth mint without losing on the currency exchange. There should be someone in the U.S who can advise you better onhow to do this. Finally if you can’t come back to look at the properties (it is a tax deduction) you want to buy then find someone who can video and down load any properties your interested in.
An added note too some of the people who have contacted me previously, your not forgotten. I’ve just started another business over here and have been working 24/24 so no time to reply, sorry.C
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