Hi, to my knowledge land tax is calculated on “unimproved value” of land. Up here in Qld this value is shown on your rate bill. Drag your rate bill out of the cupbord it may be on there.
Cheers
Caddy..where there is muck there is money.

Hi Noddies, was there any predictions for post 2006, that is, are they prediciting that they will continue to rise, level, go down??????????????
Caddy

Don’t forget that commericals are subject to GST on the purchase price. I know you get back and all …eventually…but you have to find it in the first place.
Caddy

Hi Delyse, I am 53years old and know just how you feel. Risk is a frightening thing but without it growth is limited. I have 5 properties know but sadly only one is a positive cash flow. I am taking steps to rectify the others now. It has taken me since the year 2000 to research, understand, set up financial structures etc so it definitely does not happen over night and you will make mistakes along the way…. but if you learn how to risk manage in the first place the mistakes should have minimal impact on you or your financial situation.

The advantages you have now (year 2003) is that you are entering a period in Australian history where you have support from people who have taken the plunge with + pos geared properties and the banking industry (generally through mortgage brokers), solicitors etc are knowledgeable on wealth creation rather than wealth restriction which was the banking mentality you and I grew up with. Of course it is the change in the banking industry policy and deregulation that has bought about the vast amount of opportunity open to people for investing today that was not around/available for previous generations.

I suggest you begin your journey of learning by buying “Rich Dad Poor Dad” by author Robert Kiyosaki. I think it available in most libraries if you have limited funds. This book is invaluable for people of our age as it begins exploring the paradigm shift required to change thinking.

From a financial perspective, you need advise from a contemporary accountant. One who not only specialises in tax but also in wealth creation. It may even take two seperate accoutants to give you wholistic advice. Users of this forum may be bale to assist you in finding such a resource. Where do you live?
Caddy [8D]… where there is muck there is money.

Hi Mary B, I have IP in south east Qld. I use MGA Insurance brokers P/L – Toowong Qld – phone 38761224. They paid up for me when a tenant refused to. I took a while for he processing but there was no arguments from them. In the instance of tenants defaulting though the eviction has to take place through the courts for the insurance guys to recognise the rent in arrears payment.

Also they have always been friendly etc and good natured on the phone that always helps I find as they will refer you on if they cannot help. Oh and don’t forget which ever one you choose read the small print.
Caddy [8D]

Hi Ezy, I am due to retire in a couple of years……earlier than most. RK,s books and single night yearly mini-seminars which I have attended over the last couple of years have allowed me to not only plan and set myself up for an early retirement they have also shown me a way that I can maintain an income when I retire.

Prior to learning of the man I was facing a retirement in 10 years time with an annual income of approximately $20,000 per year tops….not even enough to keep me in coffee. Now I am on track for retirement in 2 years with a projected income far exceeding $20,000 per year.

I have now read most of his books including Prophecy which he co-authors with Sharon Lechter. Personally I do not give a hoot if he was exaggerating, fibbing, inventing or whatever, the principles of his teaching are true, reliable proven and now recognised by some universities I believe…..honorary doctorate etcs

As an academic I appreciate what you are saying….all publications should be supported. RK may have many reasons for not quoting his sources…..I appreciate and respect this.

Buy the book. I advise that you read it more than once as I think it will take you a while to really listen to what he is saying. Then read Prophecy and have a good look at your superannuation conditions.

Caddy

I have been caught by the negative gearing trap although the properties I have got are experiencing good capital growth….in this current market cannot always be guaranteed. Positive geared property unless wrapped/optioned etc is reliant on acceptable rental income being maintained to meet at least the 11 sec rule if not more.

My thoughts on negative gearing are that rental prices are set/propagated by Real Estate Agents. In the majority of cases (at least here in QLD), the properties are not only sold by the agent but are then rented out by them.

Now the real estate agents I believe, sees the management money from rentals as turnover and critical to them in the lean times. Therefore it is in their best interest to keep the rentals at a low price…maximising turnover monies. Some argue that as they are percentage based, that is, the higher the rent the more money the agent gets per property that the system works in reverse. I believe that argument to be flawed as technically rental income is not their core income rather it is turnover/negative based cash flow during lean times…….much the same a negative geared property deals….they just give a pro-rata return while waiting for times to get better when it is sold for profit or ..core money.

I wish I knew how to beat the agents when it comes to rental return as they certainly set the stakes. Anybody else got thoughts on this?

Be wary of property developers -not all but most. Do not want to generalise. Apply the rules of supply and demand to ensure that your property can withstand shocks to the market.

To explain, if you are in Brisbane CBD, look at the cranes…..what are they building…….apartments. Now think about who buys apartments…… people who work in the CBD. As there is so many apartments/flats the demand will drive rents down as the supply is too great. In other words, as a rental customer, you will be able to bargain for rent as you will have so much to choose from, lowering the medium rental returns. The landlord will have to take whatever he can get to keep the thing rented.

The Brisbane City Council now as a issue to address, because they have allowed so many high rise apartment blocks to be built in the CBD they have no where to allocate land for commercial development…commercial development brings employment into the CBD.. Therefore new business initiatives are being pushed out into the suburbs more.

This is not quite apparent at the moment but will be. Also the CBD is reliant on the government workforce. If the Government decides to cut back offer retirement/redundancy packages etc, the supply of potential government employees to rent the property also declines.

Supply and demand indicators very rarely let you down in any market. 0419173396 if you want to talk further.
Cheers, Caddy

Regarding being nervous re debt, I share your concern. This has at times held me back and put me into “standing still” mode”. Not a good mode to be in.

Can I suggest that you do up a Risk Management Register. I do not hear much about these types of Registers at any forum, seminar etc that I have been too. Basically the Risk Register is as important to me as my long range strategy as it allows me mitigation/knowledge what to do if the sky begins to fall.

To do one look at your fear/s —-write them down and then research until you find the answers. Very powerful. As you have written it down it gives you a sense of power to be able to handle the problems.

Having been in your shoes these are my thoughts to assist you, I know the strategy has helped me in the past. Ring me on 0419173396 if you have any questions if this is new idea to you. You may able be doing this but are still nervous.

Cheers
Caddy