Forum Replies Created
- Andrew_A wrote:Best to put the wages to work and not assume they will last forever!
Oh so true!
Spent a few years in a mining town in the Pilbara many years ago (unfortunately not on mining wages) and saw many instances of people who had all the toys but no wealth. Then there were others who had used their money wisely and were setting themselves up beautifully.
Make sure you are in the second group.
Hi 1of,
Need a bit more information before I can make substantial comment.
Are there any plans to build a property on the block?
if so, what sort of timeframe?
insanowayno wrote:Downsides I found to it are, you're locked in to the NRAS scheme for 10yrs, unless you sell, the new owner can continue or opt out of the scheme.It has been a while since I dabbled with NRAS property so take what I say with a grain of salt.
I seem to recall that there is opportunity to opt out of the NRAS incentive along the way. I vaguely recollect the decision could be made in April/May.
Might be worth looking at just so you are fully aware of your options.
Key thing is to make sure you would buy an NRAS property if it wasn't NRAS'ed. In my opinion the property should stand on it's merits.
Only three times to sell.
1. You get an offer too good to refuse.
2. You need to shoot the dogs (underperformers)
3. You can put your money to better use elsewhere.
As Jac has suggested make sure you do your maths very carefully especially with respect changeover costs. They can be expensive.
Given your property is not costing you a cent to hold I would not be overly fussed by it's lack of growth over the last 2 years. Australian property prices in many parts of Australia have been relatively flat over that period of time so be patient grasshopper and your time will come.
Hi Lisa,
Certainly investigate Richard's suggestion.
Reading between the lines it sounds like there is a fair bit of 'hope' in your thinking process.
If you cannot vendor finance then I think I would be biting the bullet and selling while you have some funds available so you can refuse 'low-ball' offers.
PS It is OK to sell.
Magg wrote:I found myself happy with the house and land package they signed me up for
Hi Magg,
Old post I know – but just re-read this thread after a few days sitting on the sidelines.
Happiness after a few days is not a good measure of a property investment decision. The benefits, or otherwise, will only become apparent after an elapsed period of time. After all, this property is being selected to provide you with cash flow or growth (I suspect it has been sold on growth prospects) and that is the sole measure you should you use.
Seems as if the Qld Govt has indicated they will legislate to make sure events like this are prevented.
See the article here
You need to be very careful to make sure the price of the property has not been inflated to cover the cost of the lease back arrangement. I would also say that 9% on a fully (over) priced property is good value for money.
Display homes are often placed on the estates access roads and can subject to noise and traffic.
Must be a big fish to need a ute.
Hi William,
Your information is not quite correct and it is a little more complex than your friend's explanation.
The price you pay for an investment property is no different to the price you pay for a property to live in.
When you own a property you will need to pay for expenses such as rates, insurance, loan interest, repairs and so on. As a home owner you will need to pay for all of these expenses yourself. As an investment property owner these expenses are offset against any rental income earned.
In Australia when you sell an asset (and make a profit) you will incur capital gains tax. This tax is applied to all assets apart from your own home.
What I have explained here is a 'rough' outline of the differences and there is so much more to cover.
No problems – hope it works out well for you.
Hi Rob,
Not a broker so I'll leave the ins and outs of finance to someone more suitably qualified.
One common theme running through many banks at the moment is the need for 'pre-sales' – with 50% pre-sales being reasonably common.
Hi Ryan,
I would organise a depreciation report (or at least speak to someone who can advise on the benefits you may achieve with a depreciation report.
You'll find any depreciation claims available to you will be apportioned over the period of time the property is tenanted. For example if the property is tenanted for 50% of the year then you'll be able to claim 50% of depreciation costs in that year..
While the property is tenanted you'll be able to claim all normal costs. Just make sure you know the difference between repairs and renovations as they are treated differently by the ATO.
Dubstep wrote:any advise please ?
Rent the plate?
Buy the plate on vendor finance terms?
Claim use of Dubstep as breach of copyright.
Nick it?
Trade your wife for plate?
Place Caveat on owner of plates home until your plate is returned to its rightful owner?
Hold car owner's partner at ransom until your plate is returned – mind you this one may not work might be the result the owner is looking fo?
Hire a hit man?
Hi Ryan,
Not across all of the ins and outs of FHOG but my understanding would be as follows:
The two issues should be looked at separately.
1. You must adhere to the FHOG and reading your plans it would seems as if you have plans to do so. The FHOG is administered at the state government.
2. The tax deductibility is a commonwealth matter and you are entitled to claim normal expenses associated with owning an investment property.
I do not see any issues with what you are proposing.
opee wrote:Thanks derek.. He only charged me management fee and Annual Service fee But no letting fee.
But annual fee was charged annually with everything covered. But i still dont think it was fair anyways I have got a new manager now which is good
Certainly looks like was double dipping.
Hi KG,
If you have trouble 'controlling yourself' you might find it beneficial to set yourself some time lines. For example.
I will spend three months learning about property investing.
I will spend two months finding a location.
I will spend two months finding out about the area.
I will spend 2 months finding a property.
obviously I have made up the numbers here but making haste slowly in property is a wise move.
Hi Joe,
You could be right. For me there are so many questions that arise from the article.
1. Did PM tell owner?
2. Was the rotten piece previously repaired?
3. Was this a new piece of rotten deck?
4. Was tradie qualified?
5. Was there a tradie?
6. Did owner want a cheap patch job knowing the deck was unsound?
And so on.
It will be interesting to see if there is further action on this. Based on the article it would appear as if 'someone' was negligent.
HI Opee,
Sounds like you can write this one off as 'tuition fees' – when next negotiating any agreement just remember all fees are negotiable. Most states have websites run by the state based Real Estate Agent Industry or Consumer Affairs which detail what fees are typically charged in each state.
See if you can grab yourself a copy and have that in your back pocket when next negotiating agreements.
Hi KG,
http://www.reiwa.com.au has stats for all areas in WA.
Mind you WA is probably not on your radar. But someone else may have a use for the information.
