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I have an IP in the redlands and also in Marsden. I believe I will see more cap gains in the Redlands than Logan shire. Largely because the Redlands is coastal and a gateway to the Morton Bay Islands bla bla bla. But being on the conservative side of things I view the Logan shire the same way locals used to view it and that is last, the bottom of the list. What I mean by this is that it is a great place to invest as long as you are buying right. Pay too much and you can get burnt. I am a property cycles type and I advise against following the heard but if the numbers work then “go for it”Key
It sounds like you are doing really well, being addicted is good. You may or may not have “bought” at ‘below market value’ but you have done nicely anyway. I hope you do well at the council, sometimes a lot of time, energy and money goes into the planning stages before you feel you are going forwards, the council will probably have some hoops for you to jump through but you have got a great idea so push hard on all the doors.
Key
Hi trying
Building is an effective way to acquire property at wholesale prices, especially if you do a bit of hands on stuff like lay your own turf, fit your light fittings, source your own floor coverings and save a dollar where you can. The down side is that it takes time from initial purchase of land to the hand over of building, then more time to complete the bit you might do yourself while all the time you have to pay interest on money already outlaid (with no returns). I have done this 4 times now and will do it again because I enjoy it and have made a dollar.
The cycles I have observed are as follows
* Just before GST you could not get a builder and if you could you had to pay a lot more than 10%
* Just before FHOG – Good time to build
* Just after FHOG – still good time because industry is geared up and efficiently rolling on
* Now – Very hard to buy well priced land in good quality area
* Future – (my thoughts) a removal of FHOG or down turn in market (eg rise in interest rates) will cause major problems in the building industry, as has happened in the past.The problem is when the industry or property market is in its perfect part of cycle to act will you be ready, and if we wait for its perfect peak or trough how much has inaction cost us?
As for seasons, normally the building industry shuts down over Christmas for 6 to 8 weeks, the builders I use worked all but 2 weeks last Dec.Hope some of this might help
“Don’t forget the price of inaction”
KeyHi AD
Congrats on the new three star rating. I believe we are in for a year of uncertain times. Some areas are still going up, some areas may have hit a plateau and some areas/regions will go down due to a number of signs or indicators that are wise to watch out for. The indicators are not yet clear but their are reasons for them to start to appear. I have just bought an under valued IP in a still rising market and I am actively looking to continue to purchase so I don’t consider myself a doom and gloom negative type but I am cautious. It seems to me that the experienced successful investors started in a more forgiving market, we are fortunate to be able to benifit from a few of these experienced investors. I get a lot of encouragement to “look harder” and “do something today” from these mentors, I believe I can (faith statement) make money in any market,it’s just that I don’t know how yet. I look at the conflicts over seas, the unprecedented amount of investors investing in real estate, the state of the economy, the drought, the colour of peoples socks nowdays and I wonder how hard and how fast should I be going, “fools rush in where angels fear to tread”and “don’t do what everyone else is doing” thoughts are at the forefront of my mind. I am not letting these thoughts stop me but they do get in the road at times. My question is what did history do that we may learn and profit from?
Key
“A procrastinators work is never done”
A lot of depth their Jane, welcome to PI.com [
],I agree 100%, property investing is about investing time and effort into learning about how to do what everyone else is not doing or do things smarter and how to get the best results out of people.Key
Just a question
Who pays for the fhbg?
I don’t want to sound pious and suggest not to take from the “system” but as an investor the fhbg was a green light to inflate the market price, every owner could see an instant $7000 (initially $14000) on top of existing values and what has happened in many if not most places is that demand has fueled the increase in property value. So if you want to grab the $7000 you will probably be paying more than $7000 due to its effect. I am not being negative I just want to recommend buying well with the fhbg as a bonus not an incentiveHi Foo
Is that transfer in 2 to 3 years or two thirds of this year, if it’s the latter then check your FHOG details to ensure you qualify or don’t have to pay it back when you move.
I have transfered around Aust a few times and made nice tax free money buying my own family home instead of renting (without FHOG or any other assistance). If you buy well you give yourself options:
1.Cash in on FHOG and cap gains tax free profit if you sell
2.When transferring due to work commitments you can claim the property as your place of primary residence for many years even while renting it out.
3.Use the incentives you have mentioned to turn a marginally geared property into a positive geared property
4.or as you have already planned and moreMy first homes were not my ideal family home but because they were short term I settled for less and made more $ long term.
I have learned from experience that the best time to buy was yesterday but don’t rush in and buy today without considering tomorrow.Hope you enjoy my 2 cents worth
KEY
Dan
I am no expert, but basically if a company as trustee borrows money to buy a property for a trust, the company owes the money, the director gives a guarantee and when the company reaches its borrowing limit you can start another company. Trusts and company rules are complicated and not cheap (@ $2000 +) so I recommend getting hold of some solid info on the subject a good solicitor and some form of personnel banker, I think accountants are also full bottle on trusts etc.
Dan
It sounds like you need to put more work into a structure that will enable you to go further. I have spent time and money to ensure I have a good structure, ie. Company as trustee for a family trust with me as director. This along with a good broker or personal banker means that my limit is or can be as far as I can push the boundaries. I don’t know what costs are involved in restructuring but with positive cash flow investments I recommend looking at and learning more about structures
key
],I agree 100%, property investing is about investing time and effort into learning about how to do what everyone else is not doing or do things smarter and how to get the best results out of people.
