Forum Replies Created
- Originally posted by Brad1m:
did the sums and did the research and at the end of the day thinking that there is more money to be made using a different strategy.
If you identify your ‘different strategy’ you may get some more comments.
For me I am a firm believer in growth properties and will seek these in well researched, reliable areas. A large and growing population base with a plethora of employment types and sources adds ‘certainty’ for me.
If you mean by ‘nervous about capital gain’ as a short term issue/matter then you have a right to be nervous. If on the other you can and are prepared for time to add value to your research then that is a different matter.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Nowork,
TRy this thread for some reading suggestions;
https://www.propertyinvesting.com/forum/topic/6845.htmlDerek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by Derek:Quote:Originally posted by foundation:The only real way to measure property growth is to do it on a house by house measurement. And on this note I can quote one of previous properties in Perth which almost tripled in value in the 12 year period 1985 – 1997.
I might add that had we held on for a further six years (to 2003) we would have seen the property increase in value by approximately 5 times – N.B using medians as a ‘guide only’ here.
Why did we sell?
Used the profits to build large home (as distinct from house) overlooking the southern ocean.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by foundation:Another top post as always. I must admit I’m a little surprised only 57% of the suburbs in your survey had achieved the double in 10 years ‘rule’ over the last 10 years.
That there was ‘only’ 57% meeting the 10 years is not a surprise to those who know the Perth market. From memory our ‘flat period’ was a little more elongated than a number of other cities.
Which then comes to my initial point – where do you start and finish the 10 years?
In some respects this issue is a critical point as if the stats had started counting back from the end of 2004 the last 10 years would look rosier. The 10 year chunks from my earlier post counted back from the end of 2003 (or possibly March quarter 2004) – when the next lot of 30 years stats are updated and published I would be more than happy (May 2004) to do a similar analysis based on a different 30 years as a means of comparison.
Now with the data you have at hand, might I with all due respect enquire whether you believe that ‘House prices on average (will) double every 10 years’ over next ten, twenty and fifty years?
Thanks again,
Who knows – but I am confident in saying you will better off investing in well chosen and researched property than not investing in property in the same periodDerek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Michael,
BITE.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Simon,
I picked up the three month minimum issue in the piece you have copied into the thread which I think applies here given the house has been recently constructed.
“but will do so as soon as practicable after it is constructed, repaired or renovated and you will continue to live in it for at least three months”
I understand the no minimum clause relates to something that is already constructed.
But as per all matters tax there is a huge disclaimer – I am not an accountant but I did pass year 12 economics.[biggrin]
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by foundation:Today’s Myth: House prices double every 10 years on average (equally applies to the ‘double every 7 years’ myth).
Which 10 (or 7) year period are you talking about? Where are the start and end points of the periods of time?
For example: there are 128 suburbs in Perth that have 30 year statistical median price data.
Every one of those 128 suburbs had a growth rate that at least met the 10 year rule.
Over the last 20 years the statistical group grew out to 163 suburbs. Of these all but 4 met the 10 year to double rule.
Even in the last 10 years (which included the flat mid nineties) the strike rate was 57% of suburbs achieving the 10 year rule.
As a broadbrushed statement – of those that didn’t the greater number were the newer, more distant suburbs from the city centre.
And of course then you get into the ‘median’issue – which reflects only the mid point and doesn’t account for suburbs and/or streets within suburbs that do better/worse than average.
The only real way to measure property growth is to do it on a house by house measurement. And on this note I can quote one of previous properties in Perth which almost tripled in value in the 12 year period 1985 – 1997.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Dian,
Congratulations on your ‘start’ and may you hang around and add vale to conversations here.
Finally may all your renovations turn to ‘gold’
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Science,
I do not recommend you purchase something with a guarantee without a great deal of research.
There have been occasions where the gurantee was worthless and provided by a $2 shelf company, instances where you the vendor paid for the guarantee through an inflated purchase price, or the guarantee didn’t relfect the broader market and was used to make the returns more attractive to investors.
Certainly not saying this is the case here but more a word to look closely.
First time investors are sometimes seduced by the attractiveness of ‘guaranteed rentals’ when in reality a well chosen property in an area of demand usually incur minimal vacancies.
The current trend is for vacancies in some parts of some city markets to be reducing so the ‘threat’ of vacancy is reducing.
As to whether or not you need someone else to find the property that really is an individual’s choice. Many people here prefer to do their own sourcing – whereas equally there are others who are happy to use a third party.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Angel,
Give Julia a call at http://www.bantacs.com.au – Julia posts/posted here from time to time and can also be PM’ed.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Simon,
Well picked up – first day too.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Salla,
The problem may not lie with the banks. When you go over the 80% mark then the lenders mortgage insurance company will (basicall) re-evaluate the loan in light of the risk to them. If they consider they are overexposed they will say ‘no’ – which means the bank cannot cover itself – so they now say ‘no’
There are a whole range of triggers that can create a ‘no’ answer. Not the least of which is how much exposure does the LMI have to the area. Other reasons can include size of the apartment, valuation coming in, your situation and so on.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi LifeX,
Stamp duty legislation and rules do vary from state to state. In some states varying the partnership percentages as per you example makes no difference to threshold ‘avoidance’ as each partnership (even though the percentages may be different) will be considered the same.
Other states (and I don’t have the information here) will see the different ownership portions as being a different partnership.
As for who claims what – each patch of land is levied and is marked on your land tax bill (ours are anyway) so at the end of the financial year we can apportion shares of the bill for each property consistent with the ownership portions.
Eg land tax bill $200 (50/50) claim= $100 each. A bill for $200 (60/40) one perosn claims $120 and the other $80.
Now for the disclaimer – I am not an accoutant but did pass leaving economics and can balance my cheque book [biggrin]
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by mpgloss:Can you have your pay and rental incomes paid directly into your offset account, thus reducing the daily loan amount that the compounding interest rate is worked off.
With this method all your every day expenses can be paid via a 45+ interest free credit card and as long as you pay the balance before occuring any interest you, over the period of the loan, reduce the interest you would have paid quite substantially, as there are lots of expenses that are only incurred annually or less.
My apologies if this was getting to off the topic.
Hi Mpgloss,
Perfectly OK – I have been doing this for a few years and have been making some serious inroads into our home loan.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Originally posted by hkr:I made 3 additional repays(big lump sum payments) temporarily into my IP Loan account. Basically my intention was to reduce my tax deductible loan temporarily as i didnt have any other loans at that moment. But within a month i bought a PPOR and have thus withdrawn these additional repayments in total and put this money in the PPOR loan which is non tax deductible.
I understand i should have made these payments in the offset account of teh IP loan but i was unaware of this at the moment….
Is there any way out of this mess as those additional repays were only for a very short time(less then a month and only 3 transction were made) and then withdrawn in 1 transaction.
Hi Hkr,
You have lost the deductibility of the redraw as the ATO will treat it is a loan to buy the PPOR. It doesn’t matter how long (or not) you made the temporary repayment the ATO considers you to have paid down the IP loan and then used the funds for private purposes.
In your situation you would have been better advised to temporarily house the funds in an offset account (100%) or in a short fixed term deposit.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Tiny,
Problems come and problems go. Many lenders seem to have a period when they are very very good and then at other times they can be very very bad.
I would suggest that you get in touch with a broker who can source a lender who suits your current situation and can also factor into the discussion your future plans. This will help you get the structure right from the beginning.
As an aside you can always change your lender now if you wanted.
All you would be up for is the completion of a whole new set of documents and probably new mortgage stamp duty (not stamp duty on the property) which on $50K will be fairly insignificant in the grand scheme of things.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi all,
I am editing and locking this thread – the orginal poster is first timer, who supposedly owns a number of properties and is asking how to sell them. Yeh sure!
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Ty,
Anything that is an improvement is only depreciable – it is not claimable as a repair. Whereas something that constitutes a repair can be claimed in the year in which the work took place.
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Ty,
For a full guide – try this link.
http://www.ato.gov.au/individuals/content.asp?doc=/content/42782.htm
Derek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
Hi Donkey,
The density Code numbers approximately relate to the maximum number of dwelling units permitted on 1 hectare of land. E.g. R15, R20, R40, R100 etc.
From this website
http://www.melville.wa.gov.au/service_areas/planning_and_building/planning_and_building.htm#rcodesSome examples
http://www.wapc.wa.gov.au/udmp/documents/ResDensity.pdfDerek
derekjones1@bigpond.comProperty investment advice and researched property in quality locations available.
