I am currently having this debate with our body corporate of which I am on the committee..
Correct me if I am wrong but.

1. If it is on your property and was there when you purchased your property then as per you “Vacant possesion” clause on your contract the car belongs to you.
This means that you can move it legally to where ever you like.

2. Once it is on common property then it becomes a problem for the body corporate ie. the owners of the rest of the units, of which you are one. Legally they could send you the bill for removal.

3. Move it out to the street, since as per the “vacant possession” clause you are able to do since you own it now. Call the council and have them remove it as it now exists as an abandoned vehicle.

4. Another alternative is to get the VIN number and Engine number. Call the police to see if it is stolen. If not, then put an add in the paper and sell it for parts. This way you make some money out of it too.

Just some thoughts.. I am not a legal eagle by any means so check if this is legal to do but try to turn this inconvenience into an advantage for yourself.

Cheers and goodluck.

Calron the Alcamist
Turning things into gold is fun.
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Hi all

Here’s my story.. It has been posted in another stream tho..

We have 7 properties bought in under 2 years, all +ve geared.. with 3 more next month coming..

we basically got into the market here in GoldCoast QLD when we moved up from Sydney. 20% down into our first property being our Home. That 20% consisted of the $13 that was left of our savings/shares (shares went from $40k to $10k in a week because of sept 11) and the pay that we earnt over then next 2 months that we had to wait for settlement.

We took out a principal interest loan for the first year through a broker. I asked him at the time when we could buy another property, he said call him when we felt we we’re ready cos we should have no problems at anytime.
I was making alot of money back then ($120k), alot for me anyway at the time.

After 3 months we decided that we felt ready to go another, so I asked the broker about this. He said ok, go find the one you want. So we went out and found 3.

He used the new assessed value of our home to leverage against the 3 new properties that were in turn secured against each other.
The downside for this sort of deal meant that our solicitor had to organise 3 similtaneous settlements at 3 banks in 3 different states, each conferencing to each other so that the deal went off without a hitch. Our solicitor wasn’t happy with this, we have since found a better solicitor.

All of these properties are nicely +ve geared and over the next year all four, as far as the banks were concerned had doubled in value.

Chomping at the bit again, about 2 months ago after reading my first ever “property book” and getting rich book “Real estate riches” by Dolf de Roos ( I have until then, always hated people talking to me about them). I discovered the idea of using OPM. I have read a few other books since then on the subects of OPM and property.

So we refinanced keeping 20% equity in all of the properties. The reason for the 20% is that it means that we pay no mortgage insurance on any of the loans and the bank is happy with the LVR.
These 3 investments, we are holding for income sake. The capital growth is also rather good too.

So we then refinanced and established credit lines for upto 80% of the values of each of those properties. From this we put down a 10% deposit for the Yves tower down in Melbourne. We were fortunate enough that my wife was designing the website for the developers, Sunland Group. They offered our pick of units prerelease.
This is a trade rather than investment.. We are going to flick it on when the time is right, but b4 it is complete. We have already been offered an extra $100k for it so we anticipate that in the next 3 years we should make a little more than this.

so so far we have the Home, 3 buy and hold residentials, 1 off the plan.

That brings us to the latest.

2 Commercial units in Brisbane CBD.
With 30% down using the credit line we have just picked up 2 commercial units that are returning a minimum of 10% from existing leases with options.

This brings up the 2mil.

We have 3 more prerelease off the plans that we have put expressions of interest on and they should be in our hot little hands next month.

We as yet haven’t done the build a property or reno or develop thing. We are fortunate enough though to have close friends who have done each of these, so we are going to learn from them the hows and wherefores and whos:)

The primary goal for me personally is to be retiring at 35 at the latest so I can bring up our son, who is due in December and one more when he or she arrives. It’s amazing how having children can allow you to focus.

Oh yeh, I want to buy a brand new Porche 911 carrera s4 by the end of next year, bought with OPM of course:)

I have found that sitting down and talking with other people that I have met, who are doing, who are wanting to do and who have done is helping me reinforce ideas and allowing me to invent ideas on my own, that are allowing us to escalate our investment strategies.
The main thing for me, is when people tell me that we are taking too much risk in doing this, I am thinking now that it is too risky not doing it..
Have no fear. In the word of Nike….. Just do it!

This is funny, but less than 2 years ago my wife was having fits at me when I was talking about owning 50 properties within 5 years.. Nows she’s asking if thats all we’re going to own:)

Flexibility and diversity is our key.. Keep exposure manageable and comfortable for your own peace of mind.

So. Timeline.
OCT 2001 – Home
June 2002 – 3 rental, Buy and hold
June 2003 – 1 off the plan pre release, Buy and Flick
Aug 2003 – 2 commercial, Buy and Hold
Sept 2003 – 3 off the plan pre release, flick 2, hold 1.
Sept 2003 and onwards – Lots More of allsorts.
December 2003 – Xavier Calvin is born.
b4 June 2004 – Buy Porche.

So I hope this helps.. If you have anymore questions then just ask..

Cheers

Calron the Alcamist
Turning things into gold is fun.
[email protected][]

On the surface it looks like it’s a good 12% return deal..

I have a few questions b4 I could attempt to answer this properly however..

1. How much of this is Lettable commercial space?? ie. how big is the workshop??

2. How much space is residence?

3. Is the residence being let seperately to the workshop?

4. What are the outgoings that the tennant is paying?? You may end up paying them someday.

5. Do you know what the commercial rate is in other comm properties around that area?? ie. Price per square meter?

Cheers

Calron the Alcamist
Turning things into gold is fun.
[email protected][]

Hi Michael…

You say that your only interested in 3 bedders???
If that truly is the case then my advise would be to open your options.. Then again your asking for suggestions so I guess you are opening your options..

I own a company too. However not one of my properties have been purchased through it.. That would be a bad tax move.
The company is great for me to have my clients pay into and from there pay me and my wife.
It also allows us to have our car, that we use for our business to be paid for using pretax dollars. Other things too.

However the bank will not take your company into account when going for a personal property loan. But by the sounds of it the personal worth side is in your favour.

Get yourself a good mortgage broker. DO NOT, i repeat DONOT go directly to the bank for any kind of property loan. The guy behind the desk at a bank is probably cringing that you already own 3 more properties than him and will make it impossible for you to get anything. Believe me, this is what happened to me a year ago.. so find yourself a broker that has a big expensive house and lots of investment properties like i have found and let him ask you, what do you want??
My suggestion is to refinance all of your properties and establish lines of credit for upto 80% and use that free money to buy a diverse portfolio of properties. +ve gear them and the banks that your broker works with will always be happy to give you more.
Put some deposits on some “quality” off the plans and flick them b4 settlement for some nice bonus cash. Sure you have to pay tax on the earnings but that means your making money.
This will also give you nice cash injections for deposits on bigger investments.
Think quick. Act quicker. Show no fear.
I like to drive really expensive cars that I will be able to afford in coming years to inpire me.. Find something that you can do to inspire yourself but doesn’t cost you money.. It’s all fun.. So is property..

Do not tie yourself to one single strategy. Their are many different ways to skin a cat. Not that I’ve skinned a cat b4 but you get what I mean.

Think outside the Dohdecahedron.

BTW being straight up, Blunt, Arrogant in other peoples eyes should mean that you are Confident in yours. It’s all good.

Good luck

Calron the Alcamist
Turning things into gold is fun.
[email protected][]

quote:

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old “experienced applicants only”

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Would you really want to take advice from an old financial planner who is still working???

I personally would go for the young Finanicial wiz who quit working b4 he was 30 or younger. He’s the guy I’d rather learn from.

Please.. Financial planners plan for you who want to be poor when you retire. I plan to retire young and retire rich:)

I fired my financial planner who was 62 when I bought my second IP.. He had advised me to put that money into my super fund… hehehehe..

Calron the Alcamist
Turning things into gold is fun.
[email protected].a[]

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Hi,

don’t forget to lock in your interest rates. Historic lows.. yada yada yada

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Lock your interest rates now???
why??

The rates are going to and fro for a while yet..
When it starts to move up a couple of percent then think about doing it but until then stay liquid.. As soon as you lock your rate in, you can say bye bye to any refinceing that you may want to do.
Equity line of credit on an interest only variable rate is better and more useful than any locked rate.
Use your existing equity to buy elswhere and live in that too if you like..

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If you rented this unit out, other positives:
1. Depreciation (depending on your income & ownership position)

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Why is the positivity of depreciation dependant on your income and ownership position??
I thought that depreciation was always a positive thing.

quote:

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2. Option to sell without attracting capital gains if sold within 6 years (please check details with your accountant)

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Why sell if your trying to build a sustainable empire?

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I agree with spider though, risk management is paramount to building a sustainable empire

Rau

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I absolutely agree with this one… Just like sunbathing.
The less exposure, the less likely that you will get burnt.

Calron the Alcamist
Turning things into gold is fun.
[email protected] []