Thanks Red.

E

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Hi Melbear – that’s a good thing. Most contracts in WA are drawn up by the vendor’s real estate agent.

Cheers
Elysium

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Hi guys,

Sorry I’ve been away for a long time – work’s been really busy.

I admit I was being a bit flippant with my earlier post.

The point I’m trying to make is that without clear drafting, the effect of the “subject to” clause may be to postpone the existence of a binding contract until the “subject to” condition is satisfied. This means…[Read more]

hi guys.

Publicly offered property syndicates are typically set up in a unit trust-type structure (even though it’s not called a unit trust), because it allows the tax benefits (ie depreciation, amortisation, etc) to “flow-through” to investors.

Sure you can try to do your own prospectus yourself, but any misleading or deceptive statements, or…[Read more]

Hi John,

Sorry I haven’t been around for a while – work’s been absolutely crazy. Haven’t had much time to breathe.

Anyway, Noel Whitaker had a great little article in the money section of last week’s Sunday Times (WA) on asset protection strategies. Check it out.

I still feel hesitant about telling you what to do. But if I was in your shoes,…[Read more]

All the best.

Let us know how it goes.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Many people love using “subject to”. But that’s uncertain.

Is it your offer that is “subject to” something, or is it the contract, or is it settlement?

If it’s your offer that’s subject to the thing happening, can it be accepted by the vendor when it hasn’t happened yet?

What happens if the thing doesn’t happen? Which party has the right to…[Read more]

Start collecting product disclosure statements (they used to be called prospectuses) from all the syndicates currently out there. Have a good read through them, and it’ll give you an idea of what’s involved.

Some of the things you’re going to need are:

1. Australian financial services licence
2. responsible entity (ie trustee) that complies…[Read more]

Hang on – if you’re earning a salary in the highest tax bracket, it means you’re making money!

Why are you getting buried? You’re only ([] paying tax on every dollar you earn over $60,000 at 48.5%. That means you get 51.5 cents in the dollar back in your pocket.

Someone who’s in a lower tax bracket will be taking home less money that you…[Read more]

I think it’s deemed to have been sold to the company at market value, for CGT purposes.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

When a company is deregistered, all its assets automatically become owned by ASIC.

It takes quite a while to get ASIC approval to reinstate the company or to approve the transfer of the property to you.

I’d suggest you get your hands on the relevant ASIC fact sheets on deregistered companies.

The other thing is – was the company already…[Read more]

Just remember that your deposit sitting in the agent’s trust account earns zero interest, unless you specifically request for it to be put into an interest bearing account (this should be specified in your offer). Not a big deal with small deposits, but something to think about when you’re putting down 3-10% of the purchase…[Read more]

It’s the love of money that’s the root of all evil. Money in itself is merely a neutral thing, neither evil nor good.

I think the concept “money” in the saying refers to the measure of wealth, whether it be of houses, material things, or how many goats, cows or sheep you have.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the…[Read more]

Yep – Chan’s post reminded me of something that I always do – my offers will be on the basis that I only pay the deposit (whatever it ends up being) 7 days after I’m told that the vendor has accepted my offer. That way, I don’t have money tied up when there’s no binding contract, and have to wait for a few days to get the money back from the…[Read more]

Hi john, I have to admit I’m a bit reluctant to say yay or nay, because I don’t know your circumstances. For example, what’s your risk profile? Does your work expose you to personal liability? Are you involved in business? Are you a civil servant?

Also, what do you stand to lose? How much would you actually have left over if you sold all the…[Read more]

Hi taleisha,

In my view, it’s a try-on by the vendor’s agent. As Simon said, it’s in the vendor’s and the agent’s interests to get 10% deposit. That way, the agent knows he’s got his commission payment sitting in his trust account, which he can get his hands on immediately at settlement; and the vendor knows that he doesn’t have to chase you for…[Read more]

Or offer it for sale on this forum…

Oops that would be spam, wouldn’t it? []

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Land tax is unavoidable, unfortunately.

It’s payable on all properties that you own and don’t live in (at least that’s the case here in WA). Putting it into a trust or a company is not going to change things.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Dan, sorry to break the bad news to you – cash advances drawn from your credit card immediately accrue interest at the high credit card rate.

If you find any “high interest” term deposits that will earn you a higher rate of interest than what your credit card is charging you, let me know!

You might also want to do the sums on whether it’s all…[Read more]

Sorry john – you’re going to have to cop the stamp duty.

You’re just going to have to do the sums and weigh up all the pros and cons of keeping the properties in your name or transferring them into the trust, and decide whether it’s worth it to incur the stamp duty expense in order to transfer the properties – eg why do you want to transfer them…[Read more]