Thanks for your advice crj…

It could be very costly should fire separation need to be installed between each unit…

Hi Leisha,

Thanks for update. A lot has definitely changed since 2014.

I will look into giving you a call next week for more information.

Would Monday, say around 4:30PM suit you?

Cheers,

David

Hi Adam,

Based on the information from the Sciacci Course, income earned from an Instalment contract is treated as ‘Income from a Business’ and is taxable at the time you receive it.

Hope that helps,

Cheers,

David

Wow.. That’s quite impressive Terryw!

What did you to to add value to your property prior to settlement?

Interesting point about the ‘Option’ being a breach of mortgage agreement with the bank.

Are there any ways the owner of the property is still able to provide the seller with an Option to Buy their property at an agreed price, and within…[Read more]

Thanks Corey… That’s a very helpful article…

With my next property purchase I am thinking of purchasing run down property, having early access to it prior to settlement for renovation, and then having the property revalued once renovations is completed…

Ideally I’d like to be able to achieve this via a ‘Lease Option’ strategy to minimise…[Read more]

P.S. The above is obtaining control of the property via an ‘Option’, then ‘subdividing’ and ‘renovating’ the blocks of units before the expiry

One strategy Mark Rolton mentions in his video is ‘Strata Titling’ and ‘Renovating’.

The reason this works really well in a ‘Down Market’ is because you can bring a product to the market that is 30-40% cheaper than everything else.

Example Block of 5 Units:

Purchase Price $470,000
Stamp Duty $15,980 (3.4%)
Strata Titling $11,270 (2.4%)
Basic…[Read more]

Sure thing Terryw…

I don’t have much assets at this stage.

Was just asking out of sheer curiosity.

But I definitely know who to go to in the future for Asset Protection Advice ;)

So how exactly does this Dual Exclusive Agency Agreement work?

The agent that sells gets paid the commission and the agent that doesn’t gets nothing?

Or is it 50/50 regardless of who sells?

P.S. The formula is based on spending 10% of Property value on Renovations

Seems like pretty awesome numbers there Jaxon

I am just going through some videos by Cherie Barber, and she mentions that before any renovations you should obtain an Asbestos Report.

Furthermore, with renovations you should aim to be able to sell for 135% of property value, so in your case $121,000 x 1.35 = $163,350

Have you looked on RP Data…[Read more]

I thought it was the other way around…

The agents would put more effort in if they know there is competition.

How does Dual Exclusive Agreement work anyways?

Is it 50% split in commission between the agencies regardless of who sells it, or are you able to structure it so that it gives the agent more incentive to sell?

E.g. 25% for both…[Read more]

Interesting point you’ve brought up Terry

I assume the owner of the property would own the shares, or maybe a relative of the owner…

But then instead of your Equity being exposed, your shares in the company would be exposed…

Thanks Terry, that makes things a bit clearer. Does the entity need to be a Trust, or can it be a Company?

It was from one of Mark Rolton’s Videos, and his adviser is a qualified and licensed lawyer based in Brisbane…

Basically he mentioned that if you had a property worth $1M, a bank might have a loan of $400K, and then you would have $600k exposed equity, which you could somehow protect using an Irrevocable loan…

Hi Greg,

Have you thought about ‘Staging’ the property to maximise the perceived value?

Or maybe offering ‘Vendor Financing’ for +20% of the purchase price?

Just my two cents…

David