If you’re looking to set up a trust for tax advantages, there are a couple of lawyers in Perth who are really good. By the same token, they are also quite expensive (I’m talking several thousand bucks for starters). If you’re still interested, let me know and I’ll email you the names.

Steve – stamp duty, which is state-based, may also have a…[Read more]

Hi fellow sandgropers,

I’m going into a consolidation phase for the next 6 months or so. Don’t plan to buy another property until after then.

Got a bit of equity in my portfolio, so I’m going to put money back into the stockmarket – I figure that if the property market is plateauing, money is going to flow back into the stockmarket (as shown by…[Read more]

Hi guys,

A great little program that could help you crunch the numbers is EZ-Rent.

Go to http://www.ez-rent.com to download the free program (last I checked it was free).

It shouldn’t be the only tool in your toolbox for evaluating properties, but I’ve found it helpful for my purchases.

Cheers
Elysium-M

Hi Michael,

Thanks for your input.

I’m simply stating the basic position.

You may be right technically, in relation to limited partnership structures, but technicalities rarely work in real life. The circumstance in which you’d be arguing that technicality will more than likely be in the courts. I’d rather take a different path and avoid that…[Read more]

Hi redwing,

It looks like a strata titled office to me.

If you do the calculations, you’ll realise that YOU are the one paying the rates and taxes, not the tenant. This is typical of these types of property, although what you said about the tenant paying rates and taxes is true for the majority of commercial properties.

I’d check to see if…[Read more]

Hey hwd007 – sorry to hear about your problems.

You know, at common law (regardless of whether there’s a written contract in place), an agent is under a duty to act in the best interests of his principal (ie the landlord). The contract between you and the agend may try to exclude this duty, so check the fineprint.

The tenancy agreement may also…[Read more]

Hi Jess,

One trick I learnt when sanding my floors is to sprinkle flour over the area I’m about to sand. It keeps the paint from sticking to the paper. It’s not 100% foolproof, but I’m sure you can see the results straight away.

I’d also wear a cap (otherwise you’ll get sawdust in your hair, which is a pain to get out), dust mask for the finer…[Read more]

Hi all,

Check out this old thread:

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=3394

Blossom – I don’t think it’s a loophole. It’s a deliberate, specific provision.

And the cut-off date is actually 1 July 2000, not 2001.

Cheers
M

Cheers big ears!

[]
M

quote:In WA, th REIWA recommended rate is 8.5%, altho you ncan negotiate of course. Just watch for the add ons though

Wow that’s low. I’ve talked to 4 real estate agents about managing my rental property, and the rates I get are 10-11% (around $200pw), not including property inspections/condition reports. What am I doing wrong? Maybe I look…[Read more]

Hi guys,

I’m in the process of writing a guide on doing your own settlements in Perth. the launch has been delayed because some major things in the settlement process have recently changed (eg stamp duty). But I had a few people use the guide earlier in the year for properties they bought, and everyone’s settlements went smoothly.

That said,…[Read more]

I agree with Enduser – the higher the risk, the higher the return.

Sure these are finance companies. But they’re smaller outfits without the same level of financial security as the banks.

What is the worse case scenario? Interest rates go up, property prices crash. People who borrowed money from them can’t service their loans and default. But…[Read more]

Better make sure your landlord’s insurance is up to date if you’re going to try to put them in their place or kick them out. Nothing worse than vindictive tenants who decide to trash the place as a going away present.

Cheers
M

Don’t forget the requirement for plant and equipment, electrical wiring, gas, water and sewerage plumbing (yadda yadda) to be in good working order.

And also make it clear in the contract what fixtures and fittings are to be included (eg light fittings, curtains, curtain rods, blinds, etc).

Unfortunately, while you can accurately identify most…[Read more]

If I remember correctly, if you get caught out, you have to pay back the $7,000 and they can slap a $7,000 penalty on you without any conviction. If convicted of providing false or misleading information to the government, it’s a criminal record (fraud-related, which will completely DESTROY your credit rating for years to come) and a further fine…[Read more]

Hi Salaberge,

As a general rule, I believe that if the turnover of your enterprise is less than $50,000 per year, there is no need to register for GST.

If you’re not registered for GST, you don’t have to remit any GST on your rental income. Therefore, you don’t have to (and in fact CANNOT) charge your tenants GST on the rent they pay you. ie…[Read more]

Hi Casey,

Thanks for sharing your experiences. I’ve just come across an investor who specialises in student shared housing. He bought a $180,000 house a few months ago, and is renting it out to 3 different students for a total of $400.

Now that’s clearly positive cashflow. In the metro area too (close to a university).

However, you do make a…[Read more]

Onya Steve!

It’s also written in the scripture that you can’t please everyone. Quite true.

Cheers
M

Have a good flight Steph! Hope they show some good movies on the way over.

Cheers
M

Hi Pat

Sorry to hear of what happened to you. From your post, it sounds like you had a dodgy clause in your contract that the agent and half the people in Mandurah and their dogs could drive a truck through side by side.

I hear a lot of stories about people in your position. And you know what all of you have in common? A dodgy clause with…[Read more]