Forum Replies Created
Hi IBC,
Are you working the pub too?
If so you need to consider this side of the equation in conjunction with the ‘financials’.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by waz11:Hi,
a little town 30 minutes away from a major city in QLD,Waz11
Hi Waz,
I wouldn’t get too excited about the possibility of building units – 30 minutes away (as timed by the REA) could be up around 50kms in between houses and regional city.
I reckon you could fit lots of land in 50 kms.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nathan,
Without knowing where you are talking about – you need to remember that cheap does not necessarily equal good.
As Newgen indicated there are shires in wheatbelt WA communities that have been giving away blocks of land from time to time in an effort to stop the declining population. Some of these deals are undersubscribed.
The advent of larger scale broad acre farming techniques has seen a sustained period of declining populations in many of these towns, which has flowed onto a reduction in services (teachers, doctors, nurses) etc.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Marisa:Mt Lawley great area, and would recommend to buy in this area, as always seems to do well regardless. I should know I live in the area.
Hi Marisa,
This one nearly got through to the wicket keeper without a tickle.
Mt Lawley a solid suburb and some detailed research shows……………………………
30 year median price change 10.8%/annum (there were 17 that performed better than this). Over the last 20 years 9.4%/annum change in the median price (there were 32 suburbs that performed better) and over the last 10 years Mt Lawley median prices changed by 6.6%/annum (there were 82 suburbs that performed better).
Bear in mind median prices are not a ‘perfect stat’ but they give you an idea.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Waz,
So many things to consder and so little information given.
Rezoning, council plans for the area, flood zones, towns prospects long medium and short term, schools, major roads, quality of construction, pest inspections, are the pictures the property, are the photo angles deliberately chosen to hide the abbatoir next door and what’s over the road etc.
Ultimately asking such a broad question on an internet forum is of little use to you – the best defence you have is your own research and investigation. i always come back to the fact that it is your money so it has to be your decision.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nandos,
Based on your comments it would seem that it is your apparent (or real) lack of knowledge is what is really holding you up.
Sounds daunting but an increased knowledge level will provide you with capacity to detect bullshit so that you can see and hear the wolf in sheep’s clothing. As such this will help you to identify those who you can provide the service you want while also helping to address the lack of trust issues.
I would strongly encourage you to do spend some time identifying what you actually want – in one instance you indicated a couple of days of a week was the aim and then later on you are seeking a financial advisor to develop a 10 year plan that suits your needs.
Just remember also, half the fun is in the chase.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Richard,
I suggest you conduct a thorough anaylsis of the area to see what other similar properties are selling for. This will give you an indication as to what the wider market thinks the property is ‘worth’.
Armed with this information attend the next home open make a thorough inspection of all nooks and crannies while at all time eavesdropping on the agent’s conversations to get an idea of what the level of interest has been like – he/she will talk it up anyway.
Engage in a little conversation with the agent yourself and see if you can elicit some information about the vendor – it is unlikely an outright ‘why is the vendor selling’ question will realise an accurate answer but if you feel like you are getting nowhere you might need to use the outright question.
All of these steps will give you an indication of what is most likely to succeed – I would try the low ball deal and support it with statistics like X% of auctioned properties were passed in, new land tax regime, exit stamp duty etc to add to the depressed market sentiment.
If you preauction offers are not accepted then don’t be in a hurry to join in the auction and forget your ceiling – you may find the property is passed in and then your position becomes even stronger.
As an aside are you buying this property for an investment?
Apartments are a very, very long term investment and it will in all likelihood be costing you big $ to keep.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Daaj,
The umpires are still deliberating – there decision was due (anticipated?) to be handed down in May of this year.
If this is still the case then we should hear somethig shortly.
If the ATO loses their appeal stand by for some massive rejigging of mortgages and the release of new banking products in line with the decision.
But for now hold your breath and be patient[exhappy]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by geo:They are not able to help me with my final question as they have no idea of the NZ Tax laws and deal only for Aussie investors. They can tell you everything about Aussie Trusts but cannot give advice on NZ Trusts.
Hi George,
This comment seems to have been largely overlooked in the subsequent discussion. It clearly highlights a need for individuals to seek expert (read local) advice when buying overseas.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kay,
Love those policy fineprints – make sure you tell us everything of relevance and when you do – sorry too big a risk.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Teach,
If the valuation is required for finance the valuer will need to be on the banks commercial panel and not just their residential panel.
If the valuation is to be used to help you determine a buying price I would still use a bank valuer – otherwise you may find a discrepancy exist between the different valuers with potential to cause some finance issues.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Henry,
I would strongly suggest you establish yourself with a property within Australia first.
Owning property is not necessarily as simple as falling out of bed – there are a number of issues all along the journey – as such I think you are better learning these ropes in Australia.
Overseas investments add other variations relating to exchange rates, finance, tax, ownership, legalities, insurance, shifting money from one coountry to another, property management to name but a few.
Start slowly and build from there when you are established.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by CARS_SW1012:Also to add confusion to the matter, We had a property in Canberra for 18 months and sold late last year, would it be possible to claim any depreciation on that one at all??
Hi Cars,
You legally eligible to review your last foour tax returns and as you were eligible to make a depreciation claim – but didn’t, I would argue that you can go back over any tax returns that are within this window.
If you want to do this you will need to move quickly so that you meet the end of June timeline.
Also be aware that you will also increase your CGT bill if you do wish to write of some depreciation claims.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Calvin,
Accountant – Try Patrick Thatcher – Subiaco 9380 9533 http://www.rmgaccounting.com.au
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kay,
I prefer to use http://www.quartile.com.au – they also have a similar service – and they said that my property was worth 35% more than the Commonwealth Bank. [biggrin]
Quartile’s website has the ability for you to enter current value and merges this detail with sales analysis in the area.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Onmyway,
Ultimately there are too many unknowns in your original post to make sound comment.
You really need to consider where this property fits into ‘onmyways’ bigger picture, your financial situation, what it is doing for your long term security, how it is accelerating or slowing your future, what you would do with the ‘gains’ you have made, are they likely to continue, have you a clear investment strategy in mind and a goal in place.
Without some careful though about these matters (and many others) you may end up making an expensive mistake.
At the end of the day good property held for a long term is a winner – is yours a good property?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Realdeal,
If you allow around 5%-6% of the purchase price that is generally sufficient to cover all purchasing and loan establishment costs incurred when purchasing a property.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Globetrot,
Property is not a get rich quick process and based on the numbers provided you have achieved gains of just over 17% in around 8 months.
You have also indicated that the property is in an area with good growth prospects and as such the potential compounding growth is likely to continue.
Which takes us back to your original question – for me hang on to it because the property is doing what you initially bought it to do.
If you are now chasing cashflow properties then you have approximately $35K in available equity depending on loan structure and serviceability issues with which you could supplement your income.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Melbear,
Geez – and I suppose they still tried to bill you.
Between your story and Geo’s it does clearly demonstrate paying experts is an investment too – you just have to be reasonably knowledgeable yourself to detect the BS.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Globetrot,
Selling within 12 momths will make you liable for 100% CGT and as such any sale should only be considered after 12 months + 1 day have elapsed.
Have you maximised your cashflow?
Completed a section 15.15 claim (if appropriate) to reduce your pay period tax?
Had a QS report done to maximse your legal deductions?
Is your property at market rate?
Can it be upgraded (Eg A/C, garage door or similar) to increase rents?
Any costs that can be reduced?Ultimately the right decision for you will be determined by your purpose for buying the property in the first place – if those aims still stand in place then hang on.
I tend to agree with Monopoly keep it for the long haul and it should prove a winner.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
