Thanks Nigel for your comments.  I have replied to an earlier post which provides my property equity status.  You make good points and I am sure that it is best I hold on to this property as it still has significant growth potential as like all my properties are sitting on land close to the city.  My understanding is though that CGT is…[Read more]

Thanks Catalyst……I am now late 50's and my financial goals was always property wealth as a single dad.  I have a loan of $1m on the 5 investment properties worth $4m and my home also on a redevelopment site is worth $1.3m unencumbered. As I have implied why I'm in two minds on what action to take is because I think I have achieved my financial…[Read more]

Scott No Mates wrote:
Rates of return on commercial property vary widely ie I'd be expecting around 12-13%+ net for rural industrial property whereas it would be slightly less for retail (9-10%+) and somewhere inbetween for office space.You will need to pay some consideration to the size of the property (nett lettable area) and hence the net…[Read more]

HI "the Crest"The returns seem good for a freehold but I get the feeling that it might be difficult to sell down the track…..I think you yourself might be experiencing this.  Have the capital gains for a freehold motel been on a par with other commercial or indeed residential gains?  Whilst the cash flow for a rock solid residential investment i…[Read more]

Hi "The Crest"….you have given me some useful advice on another posting to do with my buying shops and factory.  I note you are experienced in motels and wondering if I might be better off investing in this area.  I'd be happier to have a single leaseholder and receive a good return for my investment.  I think I noted somewhere you said the ca…[Read more]

Thanks again for comments.  "Scott NO Mates" it is good advice and something I will definitely do.  If the lease backer decides to jump ship after a year would he not only do this if he 'sells" his business……it must have quite a bit of value although perhaps he can just transfer the business to another shop?  Sorry, this is probably a naive qu…[Read more]

Thanks for feedback guys….all very helpful.  In terms of your comments "thecrest",  I would not purchase unless the net income is above 8% of the purchase price plus all costs.  The seller is well respected in the town and it looks they're selling the freehold as I suspect there are family reasons following the death of a key family member an…[Read more]

god_of_money wrote:
I would rather invest in Westfield Trust… 8-9% yield.CP is very risky type of investment… just becareful

In another post I have discussed my intention to enter into commercial investments for the first time.  I was feeling confident about it until I read this post about the dangers.  I can get a freehold for around $1…[Read more]

Thanks ……yes I realise there will be lots to do pre buy and  thanks as I had not thought about some of what you have said….  to me the return on an investment is the most important….low return and low capital gain prospects rules out any further consideration on a buy.  There are 4 shops, factory for producing the items for one shop (and…[Read more]

Thanks Yorkie and Kum YinThis site is so amazing ….so many generous people with their time, ideas and support…..most of the people around me in life somehow seem to be so busy busy busy they don't seem to have time to do anything for anyone but themselves.  Some of us in normal daily life, including perhaps me sometimes, might be like the…[Read more]

Thanks Kum Yin and Azalia for more information to stew over that helps me tremendously so very grateful for everyone's input.  It does seem a bit scary in many ways to go down such a path of being a developer through to the sale of the units.  Another option I'm now thinking, which some may see as  a cop out, is to sell the block with the plans fo…[Read more]

MavozDespite what fairy stuff is said in the last post, remember that the essence of true debate is to seek out all manner of views. Then the real decision can be applied to your individual circumstances.  The purpose of this forum is precisely this otherwise we wouldn't be all on it.  People are not talking crap to you and standing on pedestals .…[Read more]

I think this may have already been covered but remember if you rent out the Melbourne home and rent out a home in the country you can do this for 6 or maybe it's 7 years and as long as you move back into the Melbourne house you don't pay capital gains tax as the Melbourne home remains the family home .    If you buy a country house to live in th…[Read more]

Thanks Yorkie and Mike for more assistance.  Yorkie you are so right ….. this area is hot (close to city and close to ANU) for 1 bedroom apartments so I can get 10 on it no problems being a corner block.  I still need to do more research/investigation but this is certainly the way I'm leaning.  I've "almost" scrapped for example my heart plan to…[Read more]

Hi Tony BThere is no better investment than a PPOR.  Any capital gains made are not taxable.  Find the worst but livable house in the best location at the lowest price and deposit into it whatever you can afford with enough cash to run your business (it won't be easy but all gains cost),  Try and pay extra off the loan and/or fix it up a bit un…[Read more]

Hi Walpy There are certainly overall trends indicating ongoing difficulties in the housing market but notwithstanding this there are still and always will be investment opportunities for those who do their sums and those willing to make sensible risks.  As I said in my previous note I am very strong about keeping debt relatively low especially in…[Read more]

HiInteresting stuff.  I'm a very successful property investor….one of the "smart arses" to have got in early I guess but my investments have always been very carefully structured based on the 4 x L's: land, location, loot flow and low debt (never having debt of more than 50% in total property portfolio).  One property I bought in 1985 cost me $…[Read more]

Hi The good days of property investments are over (unless you have plenty of real, not inflated, equity).  Despite all the doom and gloom of the credit crisis putting everyone in a spin on what to invest in one thing is certain.  The gap between income and house prices has widened in Australia so much so it is up there with the US and Britain .…[Read more]

HiI have properties in university areas which I've rented out like this for many years to different nationalities but mostly Australians.  The key I believe is to start with one person or two who you yourself select for acceptability.  You can tell very quickly and see it over a couple of weeks the standard of caring for your property.  It is ve…[Read more]

JamesDon't want to scare you off.  You have a low debt on your house so that is good so that is a definite plus.  With the interest rate so low pay as much off the capital  before the rates increase once inflation forces them up.   Although you built the investment place rid yourself of emotional attachment and look at it as if it was a bus…[Read more]