Damo,

Just addressing this issue of CGT with your PPOR, I believe Noel Whittaker addressed this issue about 10 or 12 years ago in his second book “More Money”.

His suggestion, based on the ATO taking a dim view and classifying the property renovator as a ‘trader’, and therefore liable for CGT, instead of just a place to rest their head at…[Read more]

Rob,

Having read your very long spiel tearing Michael’s thread to pieces, I’ve got to say I totally disagree with you, and agree fully with what Michael has put forth.

This might upset you as well, but despite my opposition to the IC club – which you know about – many of the senior IC members also use this strategy to good effect – big Kev calls…[Read more]

Hi Rosepink,

A cottage and two halls…obviously your options shall be limited to what the zoning of the block/s are.

Do you know what it is ??

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

That’s a bit forward of you Marisa….

Happy to keep the posts vague and non-interesting if that’s what forumites really want…but I believe vague one liners don’t add much value – this is a numbers game after all ??

Picked up one big block ‘the problem child’ in Welshpool 2 months ago now and the +CF big one in Ozzy Park a fortnight ago.

Our…[Read more]

Hi bacchu,

Yes, received our valuation on the Industrial block we just purchased less than 2 weeks ago now.

Bank organised the valuation (I grilled my Banker and asked him what his verbal instructions to the valuer was – he said ‘no preconceived ideas’) and lo and behold the valuation came back $ 140 K higher than the purchase price.

Previous…[Read more]

Hi Kenyaboy,

Why not sit down and calculate what your holding costs would be. If it is economic, discount your offer to the Vendor by this amount and offer them a really short and therefore attractive settlement period.

That way, you spend the same amount of money as you did previously but gain the surety of owning the place, and therefore…[Read more]

Thanks Rob,

Not sure about your first statement…it was the thrust of my question…most of the situations are covered and governed by the in place lease I thought. I’ve certainly never read on any comm. lease that the tenant has the right to strip the premises bare – in fact I’ve read quite a few where it says any improvements made to the…[Read more]

Mitm,

We have owned a beach shack for the past 4 years. Having a young family we bought the place as a ‘fun place’, with the intention of getting away from the city mainly on weekends and the like.

Finances and investing came a very poor second or third in the heirachy that went into the selection criteria before the decision to buy was…[Read more]

Bit of progress with the ‘problem child’ we purchased two months ago now.

Letters of abandonment have gone up on the 2 units the recalcitrant tenants occupy who’ve refused to pay rent from day 1.

They are having a meeting with the forklift and dump truck next Monday.

We have 2 or 3 tenants lined up ready to go in there, paying 40% more than…[Read more]

This sounds very similar to a story in one of Jan Somers books – think it was the 101 story one – where one of the elder gentlemen had bought up about 30 props and was travelling really nicely.

In 1970 (I think he was 40 then) he decided to sell the lot and cash in his chips – think he cleared $ 300K, and subsequently lived like a king. Over the…[Read more]

Mmmm,

Feelings…isn’t that a wonderful word.

“The tenant might feel that the Landlord is all take and no give”.

What, with Council Rates / Water Rates / Land Tax / Insurance / PM fees plus add ons / Maintenance costs at the whim of the tenant plus all else being ripped out of the Residential Landlord’s pocket before the mortgage payment, plus…[Read more]

Hey,

East Africa’s gotta be better than West NZ, or southern PNG.

I remember a guy in Sid-a-knee asking me where I was from…I replied the West…in a deadpan serious face he he said he’d never been all the way out to Broken Hill..and meant it…not as bad as some of the hicks from Louisiana, but right up there.

Cheers,

Dazzling

“No point…[Read more]

I agree with Terry. I’m not doing it just yet, but I know people who are, and apparently it’s a fantastic life.

The key to it all is big numbers.

Rob – you need to pop a zero or two onto the end of your thinking and all of your issues will disappear with this concept.

For example;

Port. of say $ 10 MM.
Conservative rise of say 5%….better…[Read more]

Wylie,

You are correct..we are having trouble with 2 or 3 feral tenants…however these were inherited as a group of 6 which all came with the purchase of the property. We fully expected to have trouble with some of them and went into the deal with our eyes wide open.

As posted before, they were all on a bit of a casual, verbal, wink and a nod…[Read more]

Marisa,

We are going through the exact same thing with two of our tenants – except our tenants don’t live in the units, but work out of them.

They have both never paid us rent since we bought the property, other unit lessee’s are flabbergasted….anyway.

This Thursday, after 3 notices over a period of 6 weeks, they shall be ‘moved on’ with a…[Read more]

I agree with Kay – tenants are way shrewder and smarter than LL’s give them credit for, and frankly most of those ‘tips’ are very Mickey Mouse, and hence will fail miserably. When discussing initially, the residential tenant will simply want all of that and more thrown in for the normal “what’s the lowest rent you’ll accept”….

No – my…[Read more]

Ridi,

I applaud your idea but feel it is reactionary to an endemic problem with RIPs of hoping the tenant simply does what they legally obligated themselves to do when the lease was signed.

Of course, many residential tenants aren’t used to being legally obligated, and the lease is simply something you squiggle on before someone gives you the…[Read more]

Ally,

I find having all of my loans with the one institution gives me leverage against them, and also shows a bit of loyalty….a two way street if you will.

I suppose when the 5th of 6th institution sees themselves at the back of the “security queue”, they get a little hesitant.

Have you thought about going with one Lender – bulk numbers talk…[Read more]

Shawn,

They used to cost $ 9-00 for a big A0 sheet with Buukuu information on it…great value.

Now GST has come in, they are $ 9-90…or at least they are at the VGO here in Perth…my personal little Gold Mine in Mount Street Perth (think it’s # 18)…

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Rob,

Our group have very little nice to say about Kevin’s Investors Club. Have a read of page 2 of the standard handout and how tightly the whole show is wrapped up legally…don’t even think of taking part of the action. Forget the actual company name that runs the show really…it’s on page 2 anyway. Think it begins with an L.

We’ve been to…[Read more]