Hi Donles,

regarding tax breaks, my suggestions would be to start a fmaily trust if you don’t already have one. This will allow you to divert any income stream from property among family members in the most tax effective way. If you buy the property under the trust it also affords you some protection of the assest if anyone ever tries to sue you…[Read more]

Hi Monopoly,

In answer to your original question, 8%+ properties in QLd can be found predominantly in the folowing suburbs: North Ipswich, Riverview, Redbank Plains, Goodna, Darra, Inala, Greenbank, Loganlea, Beenleigh.

Cheers,
Jason.[exhappy]

ok westan, i have one of those too:

I bought a property in march 2002 for $145,000. Just had it valued in June 2004 at $355,000.

[cap]

Hi Redwing,

I’d dump ’em, shop around and negotiate a better deal. I pay 1 weeks rent, 5% letting fee, and $3.50 for postage & petties, etc.
[cigar]

there are some creative suggestions here but I would get professional advice about the line between creative and tax avoidance from an ATO perspective. If it’s a good investment, why not just buy and your parents can pay as much rent as they can comfortably afford?

why not invest in equities for 12months and then take your profits and invest in property in 12 months tim. Alternatively if you don’t feel comfortable withe direct shares you could choose a strong LPT.

if I come across any bargains in your price range I will let you know.[thumbsupanim]

you can also list your property at http://www.owner.com.au. this is a free service and you can list up to 5 photos of the property for free.
[biggrin]

I bought AMP shares in Dec 2003 and have 45% return in 6 months!!

I’d keep monitoring the area you are looking at for another 12 months. Prices are dropping and there is a saying from the sharemarket that is relevant here – “never catch a falling knife”. Another little gem is that “wealth is the transfer of money from the impatient to the patient”. So I would wait. interest rates will have to go up by 2-3%…[Read more]

Hi Jerry,

I think it is best to spread your wealth across a range of investment classes, and change these allocation depending on market conditions. Eg., data from Capegemini/Merrill Lynch shows that in 2003, high net worth investors (ie, millionaires) had twice as much of their wealth in equities as they did in real estate.

[thumbsupanim]

Thanks for your feedback Anastasia. I certainly feel more confident about looking further into buying in this area. My brother has lived in Teneriffe and New Farm and he said it was a great suburb too. Anyway, will let you know how I get on.

Thanks again,
Interface.

Hi Rubgyfan,

I like the prospect of being able to get higher rent!! Do you think with the softening market and given that we have a good long termm tennant, it would be wise to leave the rent where it is? Or do you think we could realistically expect to ask fo rmore rent???

cheers,
Interface[strum]

not sure of name of building but it is located at 85 Commercial Rd (cnr Alfred st). Any advice or help you could provide would be appreciated. please let me know

cheers[]

Thanks everyone, I will take all the feedback on board and do some more thinking on this one. I’ll talk to the vendor and attempt to negotiate the price and see what happens from there.

Thanks interface.

Bruce & HousesOnly,

Thanks for your advice on the market price of the propoerty. You both make very good points about the softening market and the potential risk in relying too heavily on the student market.

Thanks everyone. MortgageHunter, I like your suggestions about selection of students and your strategies to keep them happy and monitor the property.

I have found some other properties being subdivided in Daisy Hill – but unfortunately so has the person I wanted to buy from. One subdivision (aprox 800m2) was going for $230K and the prices went up from there. So, it seems the $220-$250 mark for the 1012m2 wouls have been good value.

Now, the seller has offered to give up more of his land so…[Read more]

AusProp is right on the tax issue. Another tax issue that is currently before the courts is where people establish a line of credit against their property, for say $200K and then they pay $100K of this toward the mortgage on their PPOR. They allow the interest to capitalise. So they get the benefit of pay less interest on PPOR and also claiming…[Read more]