Forum Replies Created
hi echidna
totally agree with michael…the prices in frankston haven’t moved in for over 2 years…stuck around $230K
you might wanna have a look at brighton east….thou
the median price has plumment by $80k in just the last 6 months
from over 770k down to 690k……. and still heading southmight find some bargains there soon
..never know might even get down to frankston prices
atrain
welcome to property investment
as a fellow IT person and someone thats put 90% of his investments into property, i thought i’d share some wisdom.just one of my IP’s
i did everything by the book..thats micheal yardleys books…
1. Passive appreciation – slow growth I value as the general market increases in value.
i did that…held for 13 years, watched it grow
2. Active appreciation – faster growth which you influence; e.g. buying below market price, adding value through renovations.
did that…bought at last recession..carn’t get cheaper than that…spent $40k reno
3. Cash flow – your rental returns
did that two….peak season got $2K a week rentals..$1k in down season
4. Tax benefits – what you get to keep after tax.
wow did that 2….paid 15% tax…in my own SMSF..how good was that…
and
sold 12 months ago top of the cycle …..wow can i read the market….profit $500k….
until i realized….
if only i had diversified……
and bought CBA share’s (safe as houses) insteadprofit today….$1.5mil
makes the 500k look dismal
hindsight is a wonderful thing
and really…the economy has had 14 years of real growth….
this is the best its going to get
we’ll be pushing uphill to do 3% growth from now on….do you think property prices are going to double in 8-10 years?
while the government is trying to restrain wage growth….and make australia competitiveget real
Properties MAXd…
good luck….
nice one dd
tassie’s a lovely spotbut just doing some quick calc’s on your gems, looks like selling today at $145k would make you about $15k after all costs..
(if at val $125k you loss -$4k)
if instead had you got some bhp shares today you would have made 40k
then you could have bought maybe 2 IPsall to do with timing
look melbourne is booming
just an example
buxton RE sold a place 18 months ago $520k
back on the market expect $540k
wow thats a gain over 18 months of 20klets not tell them about the odd $40k in cost to buy
the $20K in costs to sell
and the costs of interest to hold it for 18 monthshi mathewc73
life is full of experience
and occasionally you come across scumbags that just spoil your day
sadly there are unscrupulous individuals in all works of life, even in property investing
for example…..
We have just purchased a large house that is quite old that still has all it’s old built in appliances (stove, oven, dishwasher etc). We want to eventually replace these appliances when we intend to renovate in 3-4 years and move into the house ourselves, but for the time being, it will be a rental property. All the appliances are working.
Considering that the appliances are so old, we’ve considered adding a clause into the tennancy agreement stating that we will be under no obligation to fix these appliances if they fail. Is this fair? I feel bad, but I also shudder at the thought of continually getting calls to fix a problem appliance….especially ones so old.don’t you take pleasure from that bit “i feel bad”
you might have lost $100,
but can you image your nightmare with an abhorrent landlord like THATthank grant
i see you got a good grasp on the obligations as the trustee of your Discretionary Trust
“The trustee’s overriding duty is to obey the terms of the trust deed and to act in the best interests of the beneficiaries”
its ok …its only the small print“essence of happiness”
dalai lamaSorry grossrealisation but your wrong…you’ll probably get about 10Db attenuation from rockwall and you have to get it into the walls.
Redwings right…..
windows and any air vents that are in the room.
There are two types of noise transfer through
partitions, airborne transfer, and structureborne
transfer. Both may need to be considered in order
to achieve the desired result.
double glazing will do wonders…plus blocking of air vents…
the only problem is that you then don’t have any air in the roommore details if your interested
http://203.20.208.23/brochures/orders/PDF/acousticsel.pdfHi grant
just wanting to clarifying your discretionary trust.
when you fill in section 58 in the “Trust Return” and fill in the Full name of the beneficiary, their address plus TFN,
why the Tax office doesn’t cross reference it to that beneficiary who has received a distribution from you…..unaware!!what happens then??
bardon
“The city officials, housing action groups and local business support foreign and out of town investment as this is what is needed to correct the years of disinvestment.”
Admirable analysis of a country with anomalous priorities
performing its super power contest
USA invests $400 Billion dollars in Military expenditures (Australias total GDP $800billion)
Performing its social responsibility,
a homeless veteran,
“In FY 2006, the funding of $22 million, will improve the Homeless Veterans’ Reintegration Program (HVRP) through capacity building and increased retention efforts. VETS will support efforts on behalf of incarcerated veterans. This level of funding will help 10,600 homeless veterans find jobs.â€
$2,000 per veteranSo that’s all its worth to fight for country and flag
And then rely on “out of towner’s to correct the years of disinvestment”Detect the incongruity
markdangerous
you have undeniably hit a nerve with Brisbane 04
what you misapprehend, is that the whole point of this forum is stimulate prosperity, no matter what the sacrifice.
Go Brisbane 04, trample humanity, impede human rights, and proliferate in capitalism at the disbursement of mankind
in simple terms
04…your a wit
mark…your wasting your timeHi garnt7
how fascinating having beneficiaries unawarei of their interest in your discretionary fund
“This is a pain as the beneficiaries dont even know they are on the trust and aernt involved in any way”how do you handle the tax issues when you distribute profits to them ?
hi guys
you know what i don’t like,
thats dealing with a company that promises me these extraordinary deals and returns….and guess what the owner of this company is…….
“Mr. Founder”thats right
example
“The founder of Canterbury has acquired 72 properties “
“The founder of Canterbury eventually went to University”
“When Canterbury ‘s founder was in his early 20’s”Whats the secret “Mr Founder”, come out of hiding and tells us who U are….
or is your first name “Scam”
hi guys
you know what i don’t like,
thats dealing with a company that promises me these extraordinary deals and returns….and guess what the owner of this company is…….
“Mr. Founder”thats right
example
“The founder of Canterbury has acquired 72 properties “
“The founder of Canterbury eventually went to University”
“When Canterbury ‘s founder was in his early 20’s”Whats the secret “Mr Founder”, come out of hiding and tells us who U are….
or is your first name “Scam”
hi pipbender
you’ve been dragging this out for 3 months now….
whats the goi’ve email you….your return link goes nowhere
whats are you trying to say?
if you’ve got an idea…lay it on us…..
show us the money
hi asdf
“but I may not even be here in 5 years time so wouldn’t mind enjoying as much profits as possible”
Totally agree
so why are you you looking at property…remember long term
What generates GOOD income today?
You have to borrow to invest, to generate, to create a lifestyle.
There’s no magic formula
some like IP’s, so like businesses.
both need borrowing to start……
I’ve done both…for me the business was a winner….doesn’t work for everybody.
Flying from NewYork to London in the Concord gives you a feeling your doing all right.
Business creates the cashflow….cashflow creates the investments and lifestyle.
I live on a cliff overlooking the bay….my next door neighbour bought his property a few years ago for $1mil…holiday house…”what do you do?”… Towing Business….what…there’s that much in towing, i ask?….”we’re doing alright….looking at buying another at Port Douglas”…”How much are you making?”Going back to this topics question.. heard that Melbourne median property values rose over 5%, seems a bit rich in a flat market.…
their lies the answer….. “BIT RICH”….look at the areas that have gone up
brighton, hawthorn, camberwell
who lives in those areas?
people with high incomes.
and with no sign of an econimical slowdown, the signs are positive for this end of the market.
Low to medium…..thats HARD work….obviously without substantial salary increases, borrowing power is constrained…so the market at this end becomes stagnate.
and the new IR laws and the cost of child care will only restrict this end of the market more.Don’t worry Pursefattener:
I know of someone with 20mil from sale of business, who lost a buckle load in a big property development… a big.. arrrrrrggg…excellent analysis terry
“many people after vendor finance are the credit impaired, or people that otherwise don’t meet the normal lending criteria”the bank’s don’t want this 1% of the market
leave it to the wrappers
[“i]you need to be squeaky clean with your credit report and have stable work history [/i]“
which represents 99% of first home buyers
thats the market their aiming for, with these loans.thanks
1990…what a year
there was one old guy standing in the corner…plus 6 of my friends, at this auction….6 years later, 6 doors down..100 people.PS i still have the business today, and it is still as profitable.
but now the staff get a much bigger profit share, as i only go in every few weeks, just to say hello.Just adding to the SMSF, that building is owned by the fund and houses the business…so where does the rent go…..straight into the SMSF 15% tax…
in six months when i retire…..0% tax on income
who repairs and maintains the building? ..the business
win winwhen your 35 it’s the last thing on your mind is super…
when your 55 all you think about is your superhi pyramid
i started Buy,Reno, Sell properties 35 years………
my first property was in Yarraville, 15K….interest only…..i was going to make a fortune…had a full time job, so worked every night and weekends on IP…sold 3 years later 20k.
didn’t have excel spreedsheets then, but my gut feel was…i was a loser.
then, just thru luck, a business was closing down and taking everything back toSA, i’ll save you the trouble, i’ll buy the P&E off ya, take over your lease and pay you over 3 years...no worries
starting capital $1,000
26 years old
same hours as my IP property but all of a sudden the returns where dramatic
i renovated , expanded…
within 5 years, we where generating 10k a week profit…a week!!
we travelled OS every year, at the pointie end of the plane, conferences…we’d take the staff to lunch in sydney…wow…those where the days.
except with high profits comes high taxes…remember then 60%
i got a tax bill for 150K (today about $400k)…sh*******t
i spent 2 months with accountant setting up and educating myself into P/L ,Balance Sheets and accountanting
i was thirsty for tax knowledge
we started our own SMSF…
and that’s where the real investment money went…..remember 100% tax deduction to your company, No tax then ,15% now, on contribution and income.
Yes we had all the family trust, unit trusts etc etc….
but the SMSF, in hindsight, was the best thing we started 20 years ago.
every year, we contributed the max.
imagine 15 years ago, having 400k in cash sitting there, for you to invest, but you carn’t have it till you turn 55.
what a great discipline..its your…but not yet.
but you can invest in whatever you like….wow…and only pay 15% tax on income…..
and when your cashed up, but in no hurry..its amazing what happens.
A recession….people losing homes everywhere..you would open the property page..mortgagee auctions everywhere…
why?
businesses wheren’t investing in P&E, instead they where buying properties everywhere…no matter what price….this was NEVER going to end…borrow,borrow,borrow…
well it did..big time
there’s a ton of examples…..the losses i’ve seem in property are amazing…but personally, being at an auction, when the only people there is the auctionner, the Bank and YOU..is errie.
They paid 12 months earlier…1.2m….we paid 360k….today its worth 1.5m…great for us…bad for them 300k in 15 years…by the way…they also lost their home…totally over geared..and if i still had my yarraville IP today …what would it be worth 400K
30 years later….we where making more than that in 1 year…and having fun.
so when i see
“Melbourne median property values rose over 5% in the December quarter. Am I going mad”i say to myself…i’ve been here before…..
but this time it different….half the market’s struggling ..the other half.(brighton,hawthorn, camberwell) are going gangbusters……
certain businesses are doing very well,some people are getting great pay….so what’s going to happen?Your question: Would you have been able to do the same for shares (ie achieve assets of $4m worth in shares)
in hindsight…if i had educated myself in shares 20 years ago…..EASY and made heaps more…
but my european upbringing taught me property.
i’m happyhi terry
sorry, i understand now….
a residential tennant with a lease option to purchase the property
logical….i think dazz was more interested in the concept of the tennant pay all outgoings, similar to a commercial lease…anyway
what would happen if the tennant pull out of the deal…
would they be intitled to any reinbursement, as they’ve been paying outgoings for the landlord?
