Forum Replies Created
Hi all,
Hmmmmmm – then there is this opinion.
http://www.theage.com.au/articles/2004/03/25/1079939765464.html
Derek
Hi Marisa,
Noticed this has been ‘floating’ for little while without any takers so……..for what it is worth and bear in mind I am no expert here.
Using a project builder will probably cost you more in terms of $ because you will pay for the supervisory and coordination work too. However the payoff is a saving in your time.
On the other hand self supervision may save you money (there maybe some unanticipated cost blow outs caused by your supervision) but it means more of your time will be taken up in a hands on supervisory role.
Without knowing your level of experience, nor the amount of time you have available it is the best I can do – sorry.
Derek
Hi all,
Making a will is not simple thing. In some situations a free/cheap will kit (or similar) will do the job – Eg husband and wife and no kids and no previous long term relationships.
However the minute you have a previous long term relationship/marriage and/or children then you move into a potentially loaded minefield.
If you want to ‘favour’ one party over another then you will need to explicitly show good cause why party A got more than party B and so on.
Then the previous wife/husband may also make a claim even though they may have been the recipient of a previous settlement.
The possible pitfalls can be enormous.
For us (and our family life is fairly straightforward too) – it is seen as a necessary evil but I know that my assets will go where they were intended. That gives me great sleep at night factor.
Derek
Hi Redwing,
No direct experience but I must say the couple I investgated seemed a little expensive (me wondering if lease costs had been built into asking price.
Additionally you would never need to worry about accessibility to transport. The display homes I looked at were always on the major entrance to the estate. As such these roads will become the thoroughfare for all and sundry entering and leaving the estate.
Derek
Hi SIS,
We have our wills organised and get them updated every 5 years.
Our most recent will and enduring power of attorney were composed with the assistance of a solicitor at around $600.
Our previous will was free and was written up by the state trustees. While it was free they did want to take a hefty percentage out of the estate as administrator.
Certainly compiling and mainitaining a will should be an essential event and makes a solicitor an integral part of your team.
Derek
Hi DC,
I have a 2001 ‘roough rule of thumb’ that may be os use. I do need a building type (high rise, house, etc) so that I can provide you with some useful figures.
Ultimately a QS report will give you the exact figures.
I would also add that depreciation should not be the purpose for buying a property. The purpose of buying a property is to make money (growth or income is irrelevant) any depreciation claims are the icing on the cake.
Derek
Hi Just Starting,
An extensive list of allowable claims is avaailable on the ato websie. I would also recommend a surf through some accountants websites to see if they have something suitable.
Alternatively visit http://www.gatherumgoss.com and purchase Dale’s TAx BAttles manual. For $99 you can’t go wrong.
I also have a fairly extensive list PM with your email address and I’ll forward it onto you.
Derek
Hi sre,
You are well placed to move into property if that is what you want.
One of the real advantages property has over shares is the capacity for greater leverage – in other words your capacity to make your money work harder for you is better with property than it is with shares.
Derek
Hi Martin,
You will get divergent opinions on your question – and ultimately whether or not you get value for money is determined by what you do with the knowledge.
For example I know people paid good money and got value for money with Henry Kaye’s course/s. Equally I know people who spent good money and got nothing because they did nothing. Whose to blame – the course or the participant?
I would recommend you first spend some time reading and talking to people who are investors so that you can refine what suits you and your individual situation. For me I would never attend a wrap seminar (doesn’t suit my psych) yet others will say a wrap seminar was the best thing since sliced bread.
I wouold also contest that you need to do some preliminary learning so you can discern BS from good information.
Derek
Hi Derek,
Don’t forget that in addition to your $3000 MH will also get a brokerage fee from the bank for each loan product you purchase.
Without knowing your particular situation it (the final cost) could possibly look like this – refinance current loan/s (fee from bank) + line of credit (fee from bank), find property ($3K fee) + write new loan (fee from bank – assuming the properties are not cross collateralised).
Now one has to also wonder how extensive are MH’s property location resources and what else do you get for your $3K.
Me thinks you can do better.
Derek too
Hi Gatsby,
I only came in late to this post as I have been away with work commitments and missed you ‘unedited’ post.
Nonetheless the offer any form of assistance stands. Hopefully the issue (whatever it was) has been resolved – if not do not hesitate to contact me.
Derek
PS Redwing – thanks for the encouragement.
Hi Benson,
I would also suggest that an airconditioner is almost a compulsory bit of gear in today’s world. As a generalised statement we (the collective we) tend to prefer a slightly higher level of comfort and are prepared to pay a reasonable amount for that comfort.
As an example we installed a 2.5hp split system airconditioner in one of our properties and increased the rent by $20/week.
Having said that the key decider about the increase was a lengthy conversation with my PM to ascertain what the wider market was paying. As you are now running a business you need to ensure you are competetive in your service but that you do not price yourself out of the market.
Derek
Hi Blackjack,
While I sympathise with you and your predicament I would stongly recommend you fully investigate the full legal ramifications of what you are wanting to do.
As someone said consult with your office of fair trading or similar, state real estate institute legislators etc so you know what you are getting into.
Bear in mind landlords insurance may be difficult to secure without a ‘professional manager’ you will need to check this out too.
There is so much for you to do I wonder if your problem really resides with the agency owner rather than the property manager. He/she owns the business and the problem could well lie with the training/induction program (or lack thereof)
Good luck with it all.
Derek
Hi Andy,
Over the past 20 years Brisbane has experienced an average growth rate of around 6.2% and Perth 5.08% in average median prices.
Both areas represent good investment choices if you have a long term focus. Brisbane has an advantage in that the wider rental market vacancy rate is about half of Perth’s current vacancy rate.
Having said that there are some areas in Perth with extremely low vacancy rates and these areas have no difficulty finding tenants.
I do have some Perth property commentary if you wish to read it. PM me and I’ll forward it to you.
In addition there are some good growth figures being experienced in the north Queensland coastal cities that would be worth looking at too.
My comment would be that a long term rental, as distinct from holiday rental, would give you greater sleep at night.
Derek
Hi Andy,
Sorry but you will need to be more specific as there are huge differences in prices and returns across the coastal areas of Australia.
The ‘chosen’ area will be determined by these factors and importantly also by your budget.
At the moment rental returns in Melbourne and Sydney are on the low side whereas Brisbane and Perth are still OK – not flash but OK.
The population growth areas in Australia at the moment are SEQ and to a lesser extent Perth – if you preferring to stick to city areas. Bear in mid these properties are likely to be negative cashflow and as such the taxation agreement between Australia and ‘home’ will determine whether or not these areas are economically viable for you.
Another consideration is whether or not you are wanting ot live in this property upon your return.
Derek
Hi Marisa,
Based on the comments attributed to your property manager I would seriously consider increasing the rent. An additional $10/week = $520 of your money you are potentially missing out on.
On the other hand what is the vacancy rate in the local area and what are the typical tenants like?
If there are a number of vacancies in the area then you may well create a vacancy period as you search for a higher paying tenant.
In addition you could potentially lose $160/$170/week on letting fees with a changeover of tenant.
My answer – it depends on local market forces. Which suburb is your property in? I may be able to provide some vacany rates statistics for you.
Derek
Hi Boardy,
The attraction is its coastal location and the relative closeness to Perth – from memory approximately 2.5 hours. A train service runs through to Perth and there has been much land opened up in recent years.
Bunbury has a secure future and has a steadily growing population. Employment opportunities are not too dissimilar to Perth and there is infrastrucure to support a continually growing population.
Margaret River and Dunsborough are ‘pricey’ by comparison.
Ultimately the key driver is the relative ‘cheap’ prices when compared to eastern states areas.
Derek
Hi Marisa,
Being a mining town Kalgoorlie does have significant movements in property cycles. At the moment it is experiencing an upswing largely due to the signifcant improvements in the nickel price and a simalr steadying in the gold price. Aligned with these movements is the upswing in exploration activity.
Kalgoorlie is largely built on clay based soils and double brick homes need extensive foundations to help alleviate any cracking caused by soil movement – make sure any reticulation systems spray away from the house.
There is considerable difference in property prices across Kalgoorlie. The elite area of Kalgoorlie is found in the Hannans and Racecourse subdivisions with the airport area around Boulder having sigificant building activity over the last 10 years. Old Boulder and the area around O’Connor are areas that tend to experience more than their share of social problems and under no circumstances buy property in Adeline. Central Kalgoorlie and the area around Picadilly street are fairlt ‘safe’ areas and are close to most facilities.
Believe it or not land is in short supply in Kalgoorlie/Boulder due to mining tenements and Native Title rulings, as such there can be delays in having new land released.
For this reason there has been considerable ‘battle axe’ developments in the city and many of the huge backyards are now taken up with rear homes.
Derek
Hi Jsandso,
Try Patrick Thatcher – Subiaco – 9380 9533.
Being nearby is not essential – his skills as an accountant are.
derek
