If everything is declared up front then maybe okay.

Also to follow up on those foreclosure sites in Japan as mentioned previously.  The figure quoted is the lowest figure that will be accepted but prices generally go 3-10X higher.  Depending on who is doing the auction it is a sealed envelope bid.  Basically this means you write your amount on a piece of paper and put it in to an envelope.  They then find the highest bidder or so they are meant too.  Other places require a 10% deposit in the envelope when you bid.  If you are the successful bidder but your finance falls through you don't get your money back but you may have to pay a penalty to cover costs associated with the auction.

Properties in snow fields:  Most money has been made by developers in the early stages of setting up these resorts.  I would be interested in hearing from anyone who has bought a property in the last 2 years and on sold for any profit.

Wasn't there a report just recently that showed most states had only dropped by less than 1% across the board over the last 3 months.  Although prices in the upper market price range of their areas might have dropped bottom end and middle have either risen or stayed the same.

Only you know how much time you can put towards the program.  Although it may say 30mins a day if you want to get more out of it you will most likely need more time per day.  How heavy is your uni work load? 

My understanding is that you have submitted an offer to buy the property but this doesn't mean you have to put both names on the actually title.  If a bank is involved then all that may be required is a guarantee from both of you to repay although only one person is on the title.

Linar,

Agree about continual disclosure but in reality how often does this actually happen? 
If someone wanted 30K to paint the IP but decided to refurnish the IP instead then do they really need to disclose the difference?  It is a bit of a different situation but how far do we need to take disclosure?

We have 2 situations.

1) Possible fraud with the bank.

( I advised about being up front with the bank about wanting extra 30K to avoid fraud.)

2) Can the 30K or part of be a tax deduction if used elsewhere, for example pay off ppor.

( Technically/legally no but as I mentioned this can be a grey area if done in the eyes of the ATO.  In previous discussions with the ATO on this I have been told (a) that the part used for IP can be deductible but again it is another grey area and will depend on the assessor at the time if checked (b)  It is similar to people who claim klms or fuel on their vehicles.  Most people probably claim more than they are entitled too.)

The point I have been stressing is that pauls05 must be careful what ever he does and it is better to notify the parties concerned about what he does.

It would be very easy to go backwards and forwards discussing legalities/resposibilities of PAULS05 options but I think we have covered it enough.

Claiming tax deductions is one of those wonderful grey areas.
Should you try to claim what you can and have justifications/documentation or play it safe?
I remember reading somewhere that every investor should try to claim what they can without crossing the boundaries of legalitis but it is up to the ATO to approve or not.  This is not interpreted as trying to commit fraud but more of if you don't try you won't know if it is accepted or not.

Sementha,

Look at what your main competitor is doing and copy what you can within reason.
For example if they advertise in the yellow pages then put place your advert on same page either beside, below or underneath and make it slightly bigger.

Depending on your location, city size, what your market is the internet may not help as much especially in smaller towns or rural areas as your local paper will.

Linking is one of the best ways but make sure the links are relevant.  Find other businesses in your area that have web sites, like plumbers, electricians, handy men professional services and try to link with them.  You can also do a similar situation with yellow pages etc and local directories by approaching other business owners and offering to put their businesses and phone number in your advert.

jo45,

1) Would help better if you put some figures in regards to current value. 

2) You appear to have a serious cash flow management problem (no cash, can't afford to replace car) so an IP doesn't sound like the best idea for you.  If something goes wrong with the IP do you have money to fix it?  Not everything is covered by insurance.

3)  Depending on the value of your current home and location are you able to sell it and find a larger house in a different location or a slightly run down larger house that you can improve over time.

4) Depending on the area some prices will go down but other areas will increase.

5) Is it possible to rent your home out for more than what you would pay in rent if you moved to a larger house?

wobbles,

Although it might appear to be a good deal for those that know the area others may reject it because of not knowing the area or too far to travel to inspect or do reno's.

If you think the numbers are starting to look good and the price has come down then offer (80-85K) about 20%  less than current asking price and see what happens.

The 30K you thought you had to spend may now make the overall price around 110-115K.

If this is your first investment then maybe better to find something a little easier.  This could also be a good learning curve and a way to find out if you can handle reno's or are better suited to buying non reno's.

Scott  No Mates,

Some people seem a little quick to think that those that have had homes repossessed must have wasted money on plasma TV's etc.  In majority of cases this is not the situation but a nice myth perpetrated by some to justify acquiring repossessed homes cheaply.  Maybe you should do the rounds of a few of these bank auctions and hear what has happened for people to be in this situation.