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The downside for your location is that your street will become a thoroughfare funnelling traffic 24/7 to the shopping centre however this should be more than compensated for by being able to offer the larger block/freestanding house which is not available in the newer development.
Resales in your estate have already lost their gloss of being new so the depreciation of the first few years (developers margins etc) have already been absorbed) where as the new sales will have the margins built in again.
It depends on many factors including what do you want to achieve?
If you live in an area which is away from the coast, evaporative coolers work quite efficiently (although it can get a little damp), 'whole of house' fans are able to extract heat and draw in external air (works really well if the house is raised and air can be drawn in from below or through shaded areas of the house. These both use rather small motors without compressors and do not have a high power consumption.
There are plenty of heating options available – from permanent wall mounted oil heaters (some are contained behind a flat panel so kids can't get to them), there are panels that can go into your ceiling and underfloor heating is very efficient too if put into the screed of your floor, there is also gas heating. Least effective are the heat lamps used in bathrooms which provide 'spot heat' for a very short period.
Air conditioning – highly efficient for the movement of heat however running costs are quite high. Be selective in which areas are covered by ducted air ie you don't need ac in your laundry, storeroom, garage etc and you don't need to run the whole house constantly (ie use zoning).Personally, I'd use a combination it may be more expensive to install initially however you won't be chewing up power on days that you only require air movement.
Most importantly, have adequate insulation (roof, walls and floor), minimise losses (curtains), minimise heat gains (shading via trees, eaves, solar pergolas, window tint/efficient glazing & solar orientation of the house).
Item – this is a registration of the easement, you don't need to build it but it goes on the title when you subdivide.
If you are looking at retail, as a green horn, avoid multi-national owned shopping centres – go for a smaller neighbourhood centre or country town based site (if you need to be in a shopping centre at all). Rent is all too much a critical factor in the profitability of the business (often the biggest cost after wages), fitout can be expensive but do it professionally ie stick with what you know & get a retail designer & shopfitter to do their job (don't cut corners thinking you can do it better/cheaper/quicker than a shoppie – additional time means you are paying rent for a closed shop).
Brizza, as you are still studying ask your lecturers which direction they would go given their years of experience. Post grad qualifications are almost an essential nowadays as is CPD.
So Terry, when did they throw out the dart board?
You may still need to get insurance to cover your fitout ie kitchen, floor coverings, paint, robes, curtains etc – check with your strata manager to confirm the extent of coverage.
An Australian Agent who operates both here & in Japow is http://www.fallscreekrealestate.com.au/japan/ Contact is Ted Weeks (although all of my dealings with them have been for Oz)
Either ask your local member or make a freedom of information request (with the help of your local member)
You may not need to get your solicitor to go through it, depending upon the lease, a retail property specialist should be able to tell you what you can and can't charge. And give you value for money from their services.
The shortfall comes from your other income, depreciation (if any) and if necessary a reduction in your taxable income. In other words, it is not a free ride, just that others contribute along the way.
You will have to satisfy the bank that you have the capacity to cover the shortfall without having to capitalise the repayments.
If you are registered for gst, the property is a going concern ie currently leased, you will not pay the gst on purchase (&/or be able to claim it back – you must meet the 5? prerequisites).
Send your query to [email protected] ie the ATO who will give you the appropriate answer (which can be relied upon).
Start talking to the specialist recruitment agencies – Hays, Judd Farris, Conduit etc either their property or construction section.
Better yet, find a job as a site labourer or in the office eg building cadet, estimator's offsider, real estate agent/property management (get to know who is in the industry).
The management fee is the % of the weekly rent taken by the agent (gst, postage, advertising etc is generally on top). You may get a discount for having several properties managed by the same firm.
If it is the standard form sales contract, unless they go for specific performance you will definitely lose your deposit as a minimum (probably up to the 10% if you didn't negotiate for a smaller deposit).
TheYoungInvestor wrote:But thats like just paying interest with no real income ?I will give you the lotto numbers no problems if i find a way. lol
Find a cheaper centre, use less gearing, find a cheaper source of funds, undertake some refurb/extensions & crank up the rents, find other alternatives eg JV, property syndication (holding the management rights) – there's your options.
Where are my numbers?
What you don't say is how old the property is – if you bought it new/off the plan then you have had the benefit of huge depreciation allowances (which need to be added back to the sale price), you can't have your cake and eat it . You may need to face the reality that the property is no longer new and has depreciated by a) the developer's margin & the builder's margin b) loss of it's new status etc. New property does not perform well in the short term especially in a falling market.
Property is a long term investment, 4 years is not long term, in fact it isn't even the length of a property cycle. Wait another 3-4 years and the property will be back in the same position in the cycle as when it was purchased. (but not necessarily at the same value).
On the bright side, you should be able to carry forward your capital loss indefinitely (to offset against future capital gains).
I might consider a neighbourhood shopping centre in a regional location for about $3.3m on a 6-7% net yield. Interest at say 8.5-9% pa (about $200k) offset against rent of $210k.
Alternatively industrial in similar area @ 8-9% (deal would be sweeter again).
Can you give me the numbers for next week's draw THY?
No offence meant Terry – it was tongue in cheek.
if all else fails, email the ato – [email protected] this address gives you a response based on the information provided to the ATO.
