Hi,

My wife and I got back from Chilli three weeks ago… We where looking at purchasing a 2nd property but pulled out on a deal.

We bought our first property in Chili over 4 years ago and the returns have been really good, we are in the process of selling our property. We bought our place for 10K AUD and we are selling it for 100K AUD not a bad profit..

The South American market is booming and places like Chili, Brazil and even Colombia are thriving.

But there are also many challenges:

• The only way we where able to buy a property in CHILI with limited risk, was the fact the my wife was born in Chile and My brother in law lives there too.
• If you dont know the environment or have any real help the risk of being taken for a ride is far greater.
• Also If you planning to rent out the property please be aware that Tennents have more rights then the landlords. Its a different market to australia.
• The returns are really good but the risk is increasing by the day, there is a high level of corruption

Hi Scotts,

If the property was receiving an income at some time then CGT may be applicable – How much for what portion best to talk to an expert.

When the property was "treated" as an IP did you ever lodge a tax return with your properties?

Hi,

How long are you planning in living their? My question is this.. Sure you might get some tax benefits now but if you sell you have to pay capital gains..

If you are intending in living their you might as well keep at your own property and pay no tax if you sold it later on.

So my questions is what is your future goal with this property?

My gut feeling is this, If the tenant is struggling finically right now then "there are signs" that they might look else where in AUGUST.

So maybe reducing the rent for the time being is a good idea but as the guys suggested ask for a 6 month extension on the agreement.

If the tenant does not agree to this then this is a sign that their intentions are to leave any way.

Monitor the situation close….

Also maybe you can do something like this:

Current rent is $700.00

Tenant wants to pay $600.00

Difference: $100.00

Total bond (2 months rent) – not to sure how yours is eg: $5600 (BOND)

Total difference between now and end of lease: $2000 (Out of your pocket) – Maybe an agreement can be made where $2000.00 from the lease gets deducted from the Bond and straight to your pocket at end of lease.

Hi togs

Firstly hopefully you are feeling better? Health is a very important aspect of life so make sure your stress levels are under controll 

i can vouch for terry he is a experienced member within this forum but he is also good at what he does

I have a few questions though:

1) Since this is your first project are you better off doing this in your own names? For tax reasons etc

2) The melbourbe market is flat and renovation game is very competitive, sso if you can't sell the property how will this effect you?

3) what is your target market and who are you competing against 

4) I say start small learn the rropes and build up from their 

If you need a accountant I can recommend some one who Specilises im this feils

Hi,

I have sold allot of real estate in Melton for a number of years (Not any more though), Melton is a area I wouldn’t look at for capital growth, sub division or even passive income.

What are my reasons?

• Allot of land available – more than enough

• So many areas being developed around Melton – Allot of house and land packages available with major builders

• Melton only caters for two markets, 1) First home buyers and 2) allot of immigrants are being pushed into Melton

• High unemployment rate

• High crime rate

But one of the most important things is this, Melton shire is running out of money big time, they had a population boom a few years ago and basically blew allot of the money on infrastructure etc, Also allot of companies are parking their business in areas such as Derrimut. Melton is pretty far from the CBD too…

Hope this helps.

I think most of us have started with no savings or assistance.

Your first property  is the biggest challenge, I started at the age of 21 only 7 years ago.

I worked two jobs plus I was studying at night.

7 years later my wife and I have our PPOR almo st paid off, our dividends from our shares cover our repayments and we have another ip which provides us with an income. We also invested in a Bussiness up and down like a yo yo lol

The biggest thing for us has been this, my wife and I have bouts of anxiety some times we both need to take time off from work My wife has had 4 months off and to be honest having investments has made life allot easier 

Hi Andrew,

Being an ex real estate agent I have a couple of questions:

1) Is their a reason why you have put this property for auction vs private sale – Not saying its bad but the question is why?

     – From my point of view (I could be wrong) auctions are great when the market is cooking, but allot of buyers are very conservative ay the moment.

2) Timing: This is a very good question Andrew, some of my best results where homes that where sold during holiday periods because I usually found that the people coming to view the home where more realestic vs just window shopping.

3) Vendor finance? Have a look into this as well…

Freckle makes a good point reading the market from reading or taking classes won't help

its an art that must be learnt with time and practice 

i have bought three different properties in two different cycles and still did ok with all three purchases 

i sold two at the end of the boom but are you looking at a particular area?

Go to as many open homes and you feel how he market is traveling 

even though I'm not looking at buying I still go to opens in Vic and I have notices it has been pretty quiet out there 

prices are steel pretty flat and wouldn't be surprised if pricesfall lower 

mite also interesting allot of people are loosing here jobs in Vic 

Its going to be a very interesting couple of years 

Facebook is only another channel to expand your brand, but a question you should ask your self is this?

if you use Facebook your self how many times have you purchased a product or look into a product that you have seen on face book ?

Alternative healthy product,? Maybe spend some time promoting your product at a market stall  or  even at a trade show that is related to your industry 

focus on your target market !!!

There is a great site called flying solo have a look on google