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  • Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
    Join Date: 2004
    Post Count: 190
    July 7, 2004 - 7:39 am

    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 personally for anything. Re: the $100K equity I would also encourage you to consider inveting in a fund or LPT for 12 months and see how the property market is going then and what iterest rates have risen to. hope this is useful :-)

    [biggrin]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 7, 2004 - 7:27 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 5, 2004 - 10:22 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 5, 2004 - 10:16 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 5, 2004 - 9:46 am

    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?

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 5, 2004 - 9:36 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 5, 2004 - 9:31 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    July 1, 2004 - 7:39 am

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

    Profile photo of GrantH_1974GrantH_1974
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    July 1, 2004 - 7:27 am

    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% before you see any real pain. But you should also decide now what you think is good value for the property you want to buy. Then you can be comfortable with when you buy, regardless of the market cycle.

    Profile photo of GrantH_1974GrantH_1974
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    June 30, 2004 - 10:44 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    March 22, 2004 - 9:35 am

    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.

    Profile photo of GrantH_1974GrantH_1974
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    March 20, 2004 - 2:03 am

    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]

    Profile photo of GrantH_1974GrantH_1974
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    March 15, 2004 - 11:51 pm

    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[:D]

    Profile photo of GrantH_1974GrantH_1974
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    March 1, 2004 - 11:04 pm

    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.

    Profile photo of GrantH_1974GrantH_1974
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    March 1, 2004 - 11:03 pm

    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.

    Profile photo of GrantH_1974GrantH_1974
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    March 1, 2004 - 11:00 pm

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

    Profile photo of GrantH_1974GrantH_1974
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    @granth_1974
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    February 29, 2004 - 7:39 am

    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 that the portion he is selling is now 48 perches (approx 1214m2). He is emphasising the fact that this could be further subdivided into 2 blocks of 24 perches (approx 607m2 each). But the price for the 48 perches is now $380K. The seller is basing his figures on the actual sales just down the road (eg, 807m2 for $230K) so it is hard to argue him down from $380K because he argues that he could sell each one for $230K each for a total of $460K.

    I’m not sure what to do now. I could buy the land. Build on each and hold for a year or two and then sell for a profit. I’ve research 3 bedroom house sale prices in the area and they are mainly around $300K+, depending on other features of the property. Average rent for 3 bedroom house in the area is $230-$260. It’s just that it seems like a big project and although I think the numbers work, I’ve never taken on anything this big before.

    Does anyone have any advice? Does it sound like the numbers are ok?

    Grant @ interface.

    Profile photo of GrantH_1974GrantH_1974
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    January 22, 2004 - 10:08 pm

    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 more interest on LOC to offset income. Needless to say the tax office is not going to allow this to occur.

    One other issue with holiday apartments is that management fees and body coroprate can be extremely high, depending on whether the apartment blocks has a pool, lifts, airconditioning, etc. In addition, one major hassle is that it is the body corporate that decides what happens to the outside of the building.
    I had a bad experience with a coastal unit where the salt etc was rapidly deteriorating the painting on the outside of the building. The body corporate would not agree to spend the money on repainting the building and so it stayed in its run down state for years. It was a real hindrance when it came to sellit.

    Hope this helps.
    [:)]

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