Under the new NCCP it is not be possible to capitalise interest.

Would they pay the agents fees? My general advice to people is even if the area you purchased in is going to sub perform after all the transaction costs you are often better to keep. FYI:Sale Price: $385,000Legal’s Buy and Sell: ($3500)Agent's Fee: ($10,000)Marketing: ($1000)Duties on $450k: ($16,000)Loan Swap Costs: ($1000)After Costs: $3…[Read more]

I would at the very least get a solicitor to look over Annexure A and explain your implications. If for any reason you could be hold to account in the contract it would be easier settling out of court rather then allowing it to progress (this is not advice). That is if there is anyway the buyer could due money.However, if the solicitor believes…[Read more]

I'm open to talking to you about my own private deals. I tried to contact you, however you are not accepting messages.

As you have a longer horizon you could look into areas with future subdivision. If agents aren't aware of the blocks true future value, you tend to get a discount on the price. Be careful with agents as the word "potential" doesn't mean that you can 100% do what they think you can. Especially with development sites I would always pull the title…[Read more]

Hi Lmanley,I know Andrew has just posted above me, but I'll give him a little plug. We are a Buyers' Agent in Perth and whenever any of my clients request one in QLD I send them to him. I've spoken to him on many occasions and he knows his stuff.

Hi Jpr,There is a Property and Trading Expo on at the convention centre this weekend, Saturday and Sunday. I hear it is going t be quite large. I'm obviously a property advisor and I'm confident we are one of the most reputable in Perth. If you would like to compare us against our completion I would be more then happy to extend you some free no ob…[Read more]

Hi Fully,When lending banks look at 2 things. The first thing is deposit or equity and the second in cash flow or servicing. A client of mine in a very similar position, he has great servicing. He purchased a property with a 6.5% rental yield in Armadale, WA for around $300k a little while back. In that time it has hardly moved. He still h…[Read more]

luke86 wrote:
I disagree. Subprime loans were for subprime borrowers- being an NRAS property has nothing to do with the borrowers capability to repay the debt. I dont think this is a valid comparison. The tenants may or may not be bad tenants, but as the landlord you can approve who is or isnt able to live there so with enough luck (actually,…[Read more]

Like any investment decision don’t think in generalisations.I can say some NRAS developments will be good and some NRAS developments will be bad. You should never buy an investment for a tax break. Olive farms anyone?Excuse the pun but similar to sub prime loans, these properties have been intended for sub prime tenants. NOW, I’m going to get lot…[Read more]

This is not personal advice, this is general advice. You should not take actions on anything I say and speak to an appropriate advisor. I know of many good accountants who would get a private ruling before using a hybrid trust. I do know of 1 way that it is considered legal without it being for tax purposes. However, the person's intention must…[Read more]

Hi Quattro,You have heaps of questions! I will try and answer as many of them as I can with the info provided.a) Have you only spoken to your branch manager at the bank about the amount you can borrow? I can't give you finance advice, but from clients of mine with similar circumstance we've been able to get a little more funding. This will…[Read more]

You have highlighted three main criteria:1) Little work (DIY)2) High capital growth3) good rental returns With also:4) Sub $400K5) Tenants6) Short period to realise its rental value. (How long?)I would say pick two of the first criteria, with a waiting towards looking for high capital growth and putting the work into increase the rental returns. R…[Read more]

Hi Shavlilly,Trusts can be complicated to understand completely. However, I would suggest arm yourself with some basic information. To help you with that, I have copied a trust document which we have sent out in our newsletter. You can download it here:http://pdfcast.org/download/property-trust-tips.pdfOnce you have this basic information, head to…[Read more]

Hi Burls,The price depends on a whole range of things (for extension as well as granny flat). I often find that granny flat extensions are cheaper per sqr mtr. Things which effect price include:- quality of finish- site works- single or second story extension- speed of construction- city – AND HEAPS MOREI'm sure if you speak to a specialist in the…[Read more]

Hi Josh,It also depends on income, deposit and what YOU want to do (goals, skills, motivation and other). If I knew a little more about your situation I could give you examples of clients in the same place. Some basic tips:–          Put your plan on paper–          Break it down (work back from retirement to now)–          Educate yourself[Read more]

Hi Tony,Is it essential for your parents to receive 65% payment for their house? If not, you can use a 2-3+ year lease option. Basically you can set it up how you want, but I’ve seen it in the past where:1) Family member rents property @ the lending costs of the owner2) Owner agrees (option contract) to sell it for today's price in 3 years t…[Read more]

As every PDS disclosure says, "Past Performance Does Not Guarantee Future Results." I often start (on the contrary) by looking at areas which suit certain criteria and have not necessarily performed the best.  When looking to value a house in a suburb there is 2 prices which move independently in the short term, but on the long term they conv…[Read more]

Hi Josh,So you have 3 questions to answer and I will throw another into mix, just because it's Monday. The fourth question I will answer is the economic term, "Opportunity Cost".Pros of a New Build (often what is marketed):- Better Tax advantage- Better rental yield- Low entry costs ($1000 down and fin the rest after build)- Lower maintenance-…[Read more]

Hi Lizard,If you are not looking to develop for a while there is a great opportunity to land bank. Despite all of the fancy stuff which can be done with design loop holes in town planning schemes. I recommend to most people to understand the basics of a limited number of councils that are pro development in suburbs of high demand and low sup…[Read more]