Sorry James. I don’t know the answer to that question. I expect that if you’re selling the property, you’d pass it on to the buyer (ie the buyer pays you the extra 10% for GST, which you then pay to the ATO); and if you’re buying the property, the GST component simply forms part of your cost base.

There is a way for developers to make some type…[Read more]

GST is payable on commercial properties, but if you structure the deal so that the property is sold as a going concern, you won’t have to pay GST.

In order to qualify the property as a going concern, it needs to be sold with everything necessary to conduct the enterprise. You also need specific wording in your contract. Go to the ATO website and…[Read more]

I once heard a self-styled millionaire saying that you’re not a real millionaire unless you have at least $1 million in cash and other highly liquid assets, in addition to any other investments you might have.

Cheers
Eylsium-M

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

As Simon says, and last time I checked, interest rates are the same for owner occupied and investment properties.

Stamp duty on loan docs and land transfers is the same regardless of whether the property is owner occupied.

Insurance may be different. But why would the bank care as long as you’ve got a valid policy?

The only thing I can think of…[Read more]

Hi Billfromoz,

I know that this is more an opinionated post than something that fits into the “Help Needed” category, but I just wanted to ask some questions.

The impression I get from your post is that it’s aimed at particular forumites. Why is it a problem not to like what somebody else is saying?

Isn’t the notion of a free society meant to…[Read more]

To expand on pelican’s post – as a general rule, overseas borrowing commitments should be met out of income in the same currency. So if your mortgage payments are in Japanese yen, and your rental income is in Aussie dollars, then you’ve got a mismatch which exposes you to exchange rate risk.

The big companies mitigate this risk by entering into…[Read more]

Hi Chan

Sorry to hear about your lost money.

I personally feel that what happened to you is wrong. Firstly, how in the blue heck can you assess a property without knowing its location and physically inspecting it? Even Steve McK says you need to inspect before you sign.

Secondly, I don’t like this contract by ambush routine. Carparks used to…[Read more]

Hi kay,

There’re never enough girls who deserve champagne!

richmond made a very good point earlier in this thread. To build on that point, you also never know when you might no longer be able to afford enjoying yourself. So you gotta enjoy life (in a financially responsible manner, of course).

Cheers
Elysium-M

DIY Residential Property…[Read more]

Also, check the rental pages in the newspaper. If you read it often enough, that should give you a rough idea of the range of acceptable rent prices for the relevant area.

Cheers
Elysium-M

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

Thanks crj

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

Rancid,

It doesn’t sound like you’ve got the mindset that would allow you to be comfortable with property investing on the scale advocated by Steve (or even on a smaller scale, say a handful of rental properties in addition to your home). Don’t take this the wrong way – I don’t intend my comment to be derogatory or condescending.

Reading your…[Read more]

Sorry wrappack – I disagree with you on the caveat suggestion.

DO NOT slap caveats on their properties unless you get court judgment entered in your favour (in which case it’ll be a writ of fi fa or something similar that your solicitor can arrange to be slapped on the properties).

You don’t have any direct interest in those properties, and are…[Read more]

Hi crj,

How did you work out the price at which each party was bought out? Did you get a formal valuation done (or just an appraisal by an R/E agent)? Or did you just do your own research to come up with a back of the envelope figure? Or was there a formula?

Also, was there some argy bargy about the dollar amount before you agreed on the…[Read more]

Actually, the identity of the trustee of the trust is irrelevant. If the tenant sues the trustee, in its capacity as trustee of the trust, and you change the trustee, the tenant simply goes after the new trustee (sorry melbear – it’s not that easy to defeat a lawsuit []).

mooda – there’re 3 different kinds of “asset protection” you seem to be…[Read more]

On the other hand, though, the right (and it is a right) to claim interest and compensation equal to 10% of the purchase price is clearly set out in the contract. This is not a new thing, but something that’s been in standard sale contracts for years.

When the purchasers signed the contract, they agreed to the deal on that basis. And a deal is a…[Read more]

Phew – there’s some divergence of views here.

I totally respect the vendor’s right of privacy. I think it’s legitimate for a vendor to take the view that the reason he or she is selling is none of my business.

However, the flip-side is that as a purchaser, I’m not doing myself any favours if I fail to ask that question.

For example, if I find…[Read more]

It sounds like a very clever arrangement.

However, I worry that if the “lender” is able to have recourse to your super money, or if the money lent to you actually comes out of your super fund, the arrangement would seem to be illegal.

So I’m interested in learning how you can get around the fairly strict restrictions on use of super fund money…[Read more]

picjal,

What if you default and aren’t able to repay the loan? Does the super company have the right to take the money out of your super?

Also, where are the loan funds coming from? Is it the super company’s own funds, or is it actually coming out of your super fund?

Cheers
Elysium-M

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

Microsoft Money is only about $50. Cheaper than many investment seminars…

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

There is no law in any Australian State or Territory, as far as I am aware, that requires anyone to pay a minimum amount for a deposit.

The deposit is simply a contractual detail agreed upon by the buyer and the seller. You can offer a $1 deposit, and if the seller accepts your offer, that’s what you have to pay! Of course, you still need to pay…[Read more]