Forum Replies Created
Hi Mcdirt,
Agreeing with PK – get three or four agents to quote the expected selling price. And while they are doing that get them to detail their sales plan and costs.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Hugo,
Forget the FP – the one I spoke to five years ago still cannot comprehend what I have achieved with property while still trying to flog me a managed fund.
If you are after an accountant – recommend Ed Chan (www.chan-naylor.com.au) in Sydney and Dale Gatherum-Goss in Melbourne (www.gatherumgoss.com)
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by servant:Hi,
I have no idea on the economy cycle (boom and bust, etc) for real estate.
Hi Luke,
The critical point missed here is that the real estate cycle (as you called it) is not a single entity.
Was listening to Michael Matusik on Saturday and he has a number of compelling arguments to make mince meat of many of the negative media comments abounding at the moment – particularly as they relate to SEQ.
The question is sifting through the 50000 Courier Mail weekend adverts to find the good investment properties.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Kenle,
If you are planning on retiring in 4 years time you should forget about selling this property unless it is in a ‘dog’ of an area.
Any sale now will be eroded by CGT, agents fees and then stamp duty into the new property.
The critical issue you need to consider is how are you going to use property to fund your retirement. Generally speaking one property, by itself, is not going to cut the mustard.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Chris82:Does anyone know is there anywhere you can get median prices for suburbs for the past 10 years and average rent yields for suburbs where you do not need to pay for them? Or is this something that I just need to pay for?
Hi Christy,
IS there a particular state in mind? The sources may vary from state to state.Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Pasandbec,
If you had a lease in place before it went periodical the same conditions still apply. So go back to your original agreement and see what that says about notices to tenant, terminations of leases etc.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Sack your strata manager and look elsewhere.
I have done such a thing – took a few phone calls around Oz but managed to secure the required number of signatures and now the complex is in much better shape for the change.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by talula:Could any one recommend a few of the following in the Pine Rivers/Caboolture areas:
- Solicitors [evil4]
- Accountants [grad]
- Property Managers [mario]
- Financial Advisors [medieval]
Give Julia a try http://www.bantacs.com.au – not sure how close to you live to the area. Proximity to you should be a secondary consideration – or more importance is the accountants understanding of tax matters.
Get someone closer to your property – as a rule of thumb they have the advantage of picking up ‘walk past’ tenants in between vacancies. First priority is to get a ‘good property’ – the PM will come later.
What is it you want a FA to do for you?
Most FAs are share focussed and finding a FA with a property focus is difficult.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by JULES1:I am not sure what was meant by the RE Agent, but all he said was the problem had been fixed.
I will check with the RE Agent asking more questions
Hi Jules,
I may be reading this all wrong but – it seems to me you are getting your ‘pest’ advice from the agent. If this is the case you are speaking to the wrog person – an independent licensed pest inspector is the person to whom you should be speaking.
The agent is employed by the vendor – not you.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Feast,
I suggest that you do a search of the forum using ‘central equity’ – the serach facility is located top left under forum boards button. The company has come up a few times before.
I would be very mindful of serviced apartments and rental guarantees – you will nned to conduct thorough research to ensure the ‘deal’ stands on its own anyway.
Together they can be problematic as there are sometimes when guarantees artificially inflate rates of returns making the ‘investment’ a little more attractive than market rates.
Some lenders are wary of inner city, small, serviced apartments. Due to perceived risks and dropping values and oversupply issues banks are reluctant to lend at 80% – most around 65%. As such these investments can suck up more of your cash/equity than they deserve making the next one a little harder to acquire.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Feast,
It seems, to me anyway, that you are lookign at investment from the wrong angle. While tax deductions may be attractive the primary purpose for investment is to make money – either through growth or through an income stream. Any tax savings should be considered as a bonus and not the sole purpose for investment.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.As an add on.
The records you keep are the same irrespective of whether or not the property is negatively or positively geared. The taxation issues are the same.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Da Man:Am looking for some guidance on the types of records that my friend should be keeping for negative gearing my rental property?
Your friend needs to keep comprehensive copies of all receipts and for expenses and income for the past five years. As a matter of course I retain mine for seven years just in case.
My friend currently has a tenant who pays rent in cash monthly in advance. He does not have a formal tenancy agreement and the deal is on a “hand shake”.
1. Does he need to have a formal tenancy agreement ?
No – but a formal agreement will protect you and the tenant from misunderstanding/s. It also clearly spells out the terms and conditions of the rental agreement and can be useful if your tenant does a runner and you want to claim for lost rent.
2. What type of “records” for recording the receipt of the rent will be sufficient for ATO purposes? ie: If he keeps a receipt book and provide the tenant with a receipt each month for the cash received, and keep the “carbon copy” book of receipts – will this be sufficient for his tax return?
Receipt books are fine. Remember the onus is on the taxpayer if the ATO comes knocking.
3. He has not been claiming any dedution thus far (do not ask why!) – can he “back track” for rental income received?
Last four returns. As an aside – it sounds as if your friend is on a one way trip to disaster. Property management and tax are not matters to be taken lightly – he/she needs to adopt a more business like approach.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.He’s quick!
(When he isn’t asleep [biggrin])
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi all,
A risk not mentioned so far is the ‘risk of doing nothing’ for your future. Note that isn’t advocating a foolhardy, poorly researched, ad hoc approach but carefully measured and considered decision making is going to put you in good stead.
PS Johnny – Have deleted the multiple posts – hinders the discusion flow.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Jaja,
Stellar/Aviate are (if my memory serves me correctly) aligned/affiliated (? – not sure of the exact relationship) with Jamie McIntyre’s 21st Century Academy.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by depreciator:Our schedules runs for 20 years
Hi Scott,
Just curious – How does your report address other remaining 20 years (assuming new property) building depreciation in the report?
I assume you have a statement along the lines for years 21-40 the owner is entitled to claim $X/annum as building depreciation.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Lizard,
Is it worth it?
One solenoid = $20 – $30 + a bit of labour.
Don’t sweat the small stuff [biggrin] in the grand scheme of things a solenoid is nothing.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Are they going up?
http://www.theaustralian.news.com.au/common/story_page/0,5744,12331745%255E2702,00.html
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Feast,
Sharon has given you a couple of good reference material leads there. But back to your questions.
Can anyone give us some ideas regarding…
1. People / seminars in London relating to this topicCan’t help you with this one
2. Property websites / people / seminars in Perth in the last two weeks of August 2005
Recommend you do a search of the internet – google Perth – property investment and see what comes up.
3. Next books to read…
See Sharon’s comments
4. How to find properties that will give us any positive cash flow from rental return in the Australian property market (Perth especially)!
Without being present at the London seminar it is possible that some of my comments are a little off track. Nonetheless they will serve to help you clarify your investment journey.
You will need to be aware that seminar promoters who work the overseas market do tend to rely on managed apartments and properties that do have a higher gross rental return. The ongoing costs of some of these properties can be quite high and as such your nett cashflow can be eroded through this.
Another piece of misinformation peddled quite widely was the use of a 4% capital depreciation allowance on the same properties. The ATO is ruling against most buildings claiming a 4% allowance and is using 2.5% as the annual claim. The difference to your cashflow can be significant.
You will find that positive cashflow properties are becoming more difficult to ifnd in the current market. The recent movements in price have not been matched with similar percentage movements in rents. Having said that the Perth rental market is firming and rents are on their way up – albeit at a slower pace.
Fixed interest rates are comparable to variable interest rates at the moment. Many lenders do have a discounted rate depending upon your borrowings which can see money borrowed at low to mid 6’s at the moment.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.
