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Hmmmm – I smell some ‘pumping and dumping’ here.
All these glowing endorsements from individuals in their early days on the forum and not much else in any other discussion.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Alfie,
The $450 threshold applies to the unimproved value of the total land holdings.
A simplistic example to show what I mean –
Investor A has 10 vacant blocks all worth $45K has reached the threshold.
Investor B has two blocks with houses on them. Each unimproved block is valued at $225K so he/she has reached the threshold.
Investor C has one beachside block with an unimproved value of $450K. He/she has reached the threshold level.Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Part way reading Michael Yardney’s new book ‘How To Grow a Multi-Million Dollar Property Portfolio in you spare time” and found it a good read.
Micheal makes some great points in his book and backs it up with some very well explained figures and stats.
Loved the parts on ‘The Next Boom’ which looks at property growth, and patterns and cycles. The section titles “Taming the Tiger’ was well written but the highlight for me was Michael’s explanation of Living off Equity.
Congratulations Michael, easy and informative.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Mortgage Hunter:maybe just that only 98% of the adult population carries one?
(I just guessed that stat [blink])
Hmmmmm – I’ll have to rethink any stats you quote from now on Simon. A bit of checking and balancing may be in order.[bigeyes]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by alffie355:You will have to look into the cost of owning property in QLD they have differnt rates/land tax and stamp duty than we do in the NT. Also you will be in Darwin and it will be in QLD so you will be relying on some else to sort out any problems. My experience with agents has led me to run my IPs myself!
Stamp duty is lower in Queensland.
There is no land tax in the NT and the land tax threshold in Qld is $450K.
Rates in SEQ are around $1400 (give or take a little). This figure includes water and shore services and is paid on a quarterly basis.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Lee,
This type of development will become more common as town and city planners work out ways to maximise the land available within the city limits.
There are examples of these developments working very well in parts of the Gold Coast and also in Subiaco and East Perth.
As a matter of interest I am currently involved as a silent partner in such a development in another part of East Perth. The city planning authorities had no problems giving approval.
The only downside, as I see it, is the need for compatible co-existence. For example 9-5 offices and residents living upstairs should be harmonious whereas you throw a noisy eatery into the equation and just maybe…………………
ooops – had to fix a typo
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Interest only is the way to go.
Reduces your outgoings on each property and enables you to hold more assets for the same ‘cost’
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Andy,
More than happy to take a call about what the benefits and minuses of renting your existing PPOR will be. Phone call is better as we can explore a few issues at greater length.
No strings attached.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Give Jamie or Kristen a call at Empire. They are based in Vic Park and can be contacted on 92620400.
They do a wonderful job.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Where?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Land first – with conditions allowing you to do a feasibility study.
Then investigate number of units able to built on the land with discussions with relevant experts in the field to determine the maximum economic benefits you can engineer from your plot of land.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by tamtam:has anyone bought a house from just looking at it on the internet or a magazine and not actually attended it??????
I have done from a piece of paper detailing the attributes of the property. So in effect not a magazine or on the net but a similar set of circumstances.
and when u make an offer on a house do u do it after u inspect it back at the office or can u make an offer a week later!!
I assume by inspection you mean ‘your visual check’.
Really depends on your personal belief and make up.
You can do either. If however you do place an offer before the inspection ensure that you have correctly worded ‘out clauses’ just in case your inspection is not to your satisfaction.
and when u make and offer, if it is in writing, do u write it on one of the agents applications or do u just get a piece of paper of your own and write or type it on there??
Agents prefer the offer to be on the ‘official piece of paper’ as the wording is pretty standard and it tends to make the job easier for all.
If you are serious about an offer then use the relevant real estate document – use appropriate conditions so that your interests are looked after.
An offer doesn’t assume any real status until it is in writing.
can u email an offer??????
Or fax – the keypoint is the signature.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113No problems folks.
I might also add the use of quartiles is in some way an attempt to provide a little more detail behind the vagaries associated with only using median price as an indicator of property growth.
Median’s can be distorted through the quirks that exist in the property market.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi SK,
Adding to flatout’s thoughts – a busy road is only going to get busier.
Pay a little more and get a ‘better’ property.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi PWA,
I would also recommend you download a copy of the ATO’s CGT guide.
It has a number of examples, one of which is the scenario you are currently investigating.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Not a valuer but have spoken to and used a number from time to time.
Originally posted by d_robb21:* What does a valuer specifically look at when valuing a property (block size, property condition, number of rooms, car accomodation, etc etc)
* What other considerations does the valuer make when looking at a property (recent sales, property age, etc)
Valuers will look at your property and identify it’s key features which include the points you identifed in your first question. This information is digested and then records of recent, similar comparable sales in the immediate area made. This gives the valuer an indication of the worth of your property which helps them derive a valuation figure.
* Is a valuer likely to give favourable valuations for cosmetic changes? Or is a 3 bedroom house in suburb X a 3 bedroom house in suburb X.
Valuers tend to be more focussed on the big ticket items in the property. Cosmetics may add a few dollars to a valuation for finance but not necessarily so. They tend to be more interested in the underlying value of the property.
* Will a bank take a valuation from an independant valuer, or do they always need to use their own?
Not usually. Banks prefer to use valuers from their panel. In some cases banks have preferred valuers for certain postcode areas.
If you are going to use a banks valuers make sure they are suitable for the relevant area and that they write the valuation suitable for mortgage purposes for the relevant institution.
* Any other info that is relevant to the valuing process.
While the valuers claim their process is scientific – I do not believe this to be the case. The beauty of my current role is you get to see the discrepancies that exist in valuation reports.
For example just recently I became aware of three valuations for finance done on identical units in the same complex. The units were between 3/4 years old and the valuations were all done for the same bank (a big four lender). The valuations received were $240K, $235K and $280K – go figure.
Thanks
Dave.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi D,
The use of quartile medians as per the API magazine is aimed at giving people who are stats driven some more information about the relativities of a property market.
I’ll use 100 sales (ranked in order from lowest to highest) as the sample to make the illustration a little more meaningful.
Primarily the median price is the middle price achieved of all property sales in the relevant area – that is the 50th ranked property in the sample above.
The lower quartile is the price achieved by the 25th ranked property in the sample above. Conversely the upper quartile median is the price achieved by the 75th property in the ranking order.
In a standard range of prices it is reasonable to expect that the gaps between the lower – mid – upper quartlies to be relatively the same in a normal market.
If there are discrepancies (ie lower quartlie is close in value to median) then you can determined whether or not the properties in the suburb are generally of lower value or not. You can get a trend in price movements in the sample suburb by comparing the lower – mid – upper quartile prices with previous quarters to determine where the movement in prices is (or has). Ie is it in the lower end of the market, the upper end or in the suburb in total.
Obviously this is a very quick explanation of the quartiles and I hope it has been of some use.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Dannii,
Would suggest that the comment is related to the changing tax bands which come into play from July 1 of this year. Capital gains are added to your taxable income and taxed at the appropriate rate.
As an aside have you considered hanging onto your property – there is plenty of anecdotal and researched based evidence to suggest that there is still steam left in the WA property market. You may well be better off locking in you growth and leveraging off your available equity.
Obviously this all depends upon your goals, capacity to service the loan and so on. Nonetheless you are selling an appreciating asset that will continue to grow.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113I would suggest you do yor sums a little more comprehensively. Renovation costs can be a hidden nightmare if not undertaken thoroughly enough and planning delays can, depending upon the relevant local authority, add considerably to your work timelines.
Have you considered placing an offer, with extended settlement time to allow for further research on your part.
I am providing some Mezzaning funding to someone doing a commercial/residential development in East Perth.
The offer included considerable time for the behind the scenes research to take place with suitable ‘get out clauses’ if the research showed ‘major issues’
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Reg,
Been there done that.
In addition to Crusher’s comment – I would add keep it simple.
Explore the ‘let’s get ONE investment property’ train of conversation with the wife. If you have leaped off the great divide and talked about a multiple property portfolio before taking the initial steps this can be overpowering to someone just starting out.
I also add you need to show your wife how one property should not affect the current lifestyle you enjoy. To do this you will need a full budget scenario before and after property.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113
