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lol, no idea when the data was collected for that site, but it is probably about the same as the abs. i just stumbled on this site as i was looking up a postcode for an area.
wanting to buy your home is a nice dream, but investing is a better one!
if you could get a positive investment and rent instead of buying, assuming the rent is a good price. you would be much better off financially. as the investment will provide extra benifits that you will not recieve from owning your own home.a smart strategy is build up an investment portfolio then use the income or profit from this to buy your home.
if you are just wondering what to do with the money in the mean time, then investing in shorter term investments is a good idea. as the return will be greater then just saving money in a bank account.
But all investments carry risk, so just saving money means it will be safe. but in 3 years time with inflation etc. your money plus the bank interest will not total that much more then its worth now.If you invest the money, in something that out performs inflation, and hopefully keeps up with houseing prices then you will still have a nice deposit for your house in 3 years.
where as if housing prices went up significantly, your deposit you have saved would represent a smaller % of the property price.
just read over the stuff i wrote…. doesnt sound very coherent but i hope you get the idea.
yeah i think he has just made up his own name for a fairly standard thing.
There are often a minimum lot size per dwelling, and then minus the required open space,setback etc from this, and you can find out the size of each dwelling you can build. etc.So the "pocket" is really just the minimum lot size. then you have density, which is how many apartments etc you can build.
can they be two story one dwelling above the other, single story, 3 story etc.but yeah, i think pocket just means lot size.
there are lots of ways to start, but as you said you are looking for an area with positive cash flow, that puts you in the outer suburbs of cities, small downs, mine towns etc.
If you want mining as you mentioned then start reading the news papers, finance papers, industry reports etc, to find up and coming mining expansions or investments. this will give you an idea of where things are happening and when. then just pick your place and do as much locality research as possible.
Its basically the same no matter what you choose to do, become an area expert in any area and you will start to find deals, just some areas the deals might be more complex then others.
you can get normally get a line of credit using the equity. but if his bank said no, either they are just crap, or there might be some other issues. im sure a guru will answer soon though.
also with the setup you have describes it sounds like a lease to own check out “wraps” where they can “rent” at a rate that covers your mortgage and can pay out the property value at any time. but this will not save you in stamp duty. the way to do that would be as described before where you buy it as trustee for a trust where your son is a beneficiary and then can transfer the property to him at a later date, cos effectively you are just holding it and managing it for him anyway.
few ways you can do it, just have to weight up, stamp duty issues, legal issues, tax issues with family etc.
it is generally as you first said. the renovations increase the cost base of the property. effectively just making it as if you paid more for it.
BUT there are catches… if you are deemed to be in the business of renovating properties then it counts as income and stock etc. here is a page from the ato which gives some examples so you can tell what situation you are in.
If you still cant tell after reading that, best to talk to your accountant.
lenders tend to shy away from owner builders. if you can show proof of your building skill or some history then it might give them more confidence in your skills.
there is a tendency for owner builders to attempt more elaborate construction designs, or to not document the designs accurately enough, resulting in building mistakes, or cost over runs that make the bank uneasy. where as when hiring a building the developer tends to have good detailed plans and a strong desire to get it all done properly.So yeah, get your design and plans all done properly and some history to show your skill and you might have some more luck.
surely if they (the vendor) can charge you delay fees you can do the same to them?
wow, its amazing how relevant people join and post right when a question arises.
some of the links on your about us page and stuff are miss coded. so the links dont work unless you fiddle with the addy up the top.
for example MFP links to landcover.com.au/www.mfpins.com/
and also the MFP page is coded without a title, so the page even though looks fine, just says untitled document on the address bar.just incase you’re in a position to fix those things.
in terms of if it is good or not.
I think if you can get finance without using your ppor it would always be best.
But if using your ppor gets you the best finance, or the only finance you can get access too, then its better to use it and get an IP. then not invest at all. assuming its a good investment.in terms of tax, often its the purpose of the loan that matters, not where the money came from.
add value and redraw or sell. thats basically it for getting the extra money for new properties i think. unless you work and can save.
they send me out free hair dye from america, i make a video of me dying my hair, or other peoples. and they give me a percent of profits from the company as well as the free dye and other merch.
Basically they use me as advertising.when investing, good practice is to always write down your entry and exit points. for both good and bad scenarios.
so you have almost tripled your money, when do you sell and realize those gains? etc.So i basically have the same advice, if you believe that guys advice, go for it. just know when to sell if things start to decline, and buy again once it gets low. if you dont have a set sell point, you might end up with silver thats not worth what you paid for it.
DWolfe wrote:illuminati,just looked at ur blog, dude the hair colour!
D
cheers,
i get paid to dye mine and other peoples
. i got youtube channels etc that make money from all that stuff too!this is quite common, once you give them permission they just do what they think will get them the biggest dollars or quickest sale, depending on what they want.
tips when doing this again is to know about exclusive listings, negotiate their commission especially if they have exclusivity,
some request you cover advertising costs, or in your case they do. you should request a marketing strategy and the breakdown of the advertising costs in either case so you know what to expect and where it will be advertisied and how.
everything is negotiable prior to signing,
After signing you either need a mutual agreement to break it, or if they violate the terms.
You can still request the strategy and breakdown of costs, and compare that to what they have done. and go over the contract you have and look for violations.You can still contact them and just let them know you are not happy with how they are handling your property, and ignoring your requests. lots of people in the property industry, agents, tradies etc will try bully you, and get you to sign contracts or not listen to you after you have. but know your rights and legal info, and what you should know before getting an agent. and fight for what you want. preferably before contracts are signed.
I hope it works out for you.
oh and just because this property is borderline for you, doesnt mean all properties are.
And as other said, its more of a skill.
Buying a property and just trying to make money from holding it is not really much of a skill. its just slightly more involved then using a bank. renovating, subdividing, developing are more intensive skill wise. but because of that the returns are better too.
if IPs didnt make money for people then no one would do it… not all properties make money.. so run the numbers and if they dont, then dont buy that property.
ok so i got bored at work.
i did the bank loan at 8% so it gives you a bit of a buffer.
160 000 property
16 000 deposit
=
144 000 bank loaninterest ONLY at 8% = 11520 pa
200 rent per week = 10400 pa
loss of 1120 not including rates etc.
TAX SAVINGS, of 1332.3
so
-1120+1332.3 = profit of 212.3SO, you will be making a loss on this property, but the depreciation will push it into being slightly profitable for you.
capital gains, according to you, that is 16 394 after tax. is that for 3 years? hard to understand your first post.
if it is 3 years then 16 394/3 = 5464
so for a cash outlay of 16 000, you will make 212.3 a year in cash, and unrealised post tax profit of 5464.
thats a 35.47% return on your money.of course its not that simple… there is stamp duty, rates, commisions, management fees, etc. and also capital gains isnt guarenteed, let alone guaranteed at 8%.
but using just the basic figures it seems that that property gives a return 7 times greater then a bank. if everything you said was guarenteed, id certainly go for that.
if you wanted a profitable property regardless of the tax deductions, then you wouldnt need to increase your deposit by much to reduce the loan to a level where it was positve geared.
or you can renovate etc, to add value and ensure the capital gainswhat you are writing down seems very sporadically written, i am in a bit of a rush, but ill check it again and go over it when i get home from work. but did you take into account how much the rent brings in?
basically think of tax benefits as extras. get the rental income-the loan repayments and property costs (rates etc) to lower the loan repayments you can increase the deposit to greater tehn 10%.
tax benefits are like a secondary benefit, depreciation income losses etc can be used to lower how much personal income tax you pay.
ill check your numbers when i get home.
not sure about an individual, but in development you can take them to arbitration or mediation and claim the costs that the delay has caused you. but they will probably counter claim on the “rubbish” and the ground being too hard, you could present the soil samples etc… but basically it is a fight.
It is outside of court, and often heard by an industry expert who will try to fairly decide what is best.
if you really want to fight it, i would contact a lawyer and discuss your options.
i don’t think you can put up a sign saying how bad the company is… they can sue you for that. but you could put up reviews etc, such as what you have done here.
i was just googling and came across this which might give you some info
http://www.buildingdisputes.info/ they are a disputes lawyer service, i know nothing about them. but the front page gives info on different disputes etc.
. i got youtube channels etc that make money from all that stuff too!
