Well,
Have just got back from over there where I was looking at land and property.
Apparently the ownership laws for foreigners have recently been changes, to encourage and promote foreign investment.

There are various pros and cons with investing in Indonesia which I am still working through.

Having said that, I found that there are lots of ‘ex…[Read more]

There is the other grey area of GST.
You may be liable for gst as well as cgt upon the sale of the block.
Puts a huge dent in your profit (assuming you declare, and pay the dual taxes, and/or do not cop an ATO audit if you decide not to declare the profit)

I would be looking at the market rent you could expect to get for a house down there, vs…[Read more]

I received a fax from Celebration Homes Sale rep today who has just started his own business where he is offering complete home finishing: ($20,000 incl GST)

Carpets to all bedrooms, lounge.
Floor tiles, living areas, kitchen
Internal wall painting
Light fittings installed
vertical blinds to main windows
landscaping including retic, roll on…[Read more]

Hey crashy,
Depending on which state you are in, the laws may be different with regard to a periodic lease.

From memory, in WA for example, the tenancy agreement states that the lease reverts to a periodic if a fixed term lease is not renewed at the end of its term.

Under the periodic lease, either party can give notice to vacate by giving 14…[Read more]

Hi django,
Do you have a contact number for them ?

Sounds like a reasonable price..

kp

You seem to be aware of your rights as a tenant.
Seems like the agent might be trying a bluff.

Call them and advise them of your rights under the tenancy laws, and see what they say…

Seems like a hostile reaction on their behalf….are you sure there is not more to the story than you are letting on ?

Anyway…sounds like they don’t have a leg…[Read more]

Looks like the smart money is bailing out of the US before their curerncy collapses.

Running trillion dollar defecits is no receipe for success, and is not sustainable.
The day of financial reckpning must come…its not a question of if…its a matter of when.

kp

Hi Leo,
Your last post pretty much hit the nail on the head…
You have to start somewhere and preferably start small.

The multi million price tag may look scary but when you divide it between 5, 10 or even 20 investors, its no different than a typical residential property sized investment.
So two points…jv or syndication is the way to go, and…[Read more]

Hi tony lau,
Typically, the rental return in Perth is usually lower than you would get in other capital cities around Aus.
A yield of between 2.5 and 4.0 % is pretty standard.

I would expect that you would get a better rent return in Qld.
An alternative would be to consider commercial property where you could expect a yield of between 8% and…[Read more]

Exactly Gross!!

The process of subdivision is no different ( even in WA !!)
You can’t go ahead and start a second construction without approval. Approval has to come from the local council. They will not give approval till conditions of subdivision, connection of services, etc, are met.
No approval = no building licence = no construction…

kp

Hiya Marisa…
The $20k cost looks reasonable imo…effectively if you ask the builder to do all these extras ( IF they are prepared to do them, that is !!) then they have to levy the cost with their margin of 20%.
Everytime I have asked a builder to qoute these extras they have advised that I am better off organising it myself for that…[Read more]

Thanks Bob & Gross for clarifying…..

Reason for the query was that I am lookimg at something similar on a land subdivision…where total cost ( aquisition plus developemnt ) is in the area of 1.0 to 1.25 mil and gross realisation looks to be 2.24 mil thus lvr will be under 60%

Just going through the exercise of whether presales will be…[Read more]

Have a read of the post by Karina on Somersoft….she did a lot of her due diligence over the phone and with photos, and in the process has bought up half of Geraldton.!!

Her NETT equity is up well over 1.0 mil as a result of her efforts.( buying sight unseen, as long as the property fitted her criteria )

Of course it has to be better if you can…[Read more]

Is that a typo?
Do you mean lending of $7.5 mil and not $750k ?

Based on the original post: gross is $9.0 mil, and lend is $7.5 mil, so isn;t this an lvr of 83% ??

Hi Relly,
I am not sure how your client managed to get approval to construct two dwellings without approval for either green title, survey strata or strata subdivision ??
Where did the approval to construct come from ??

The last two that I completed in Perth, were for green title subdivision, and it took no longer than 3 months to get the…[Read more]

Anette,
There is a clause in the management agreement with the agency that lets you get out of the contract.

I do not recall where exactly it is, but it effectively says that if they are not performing their job the landlord can terminate the contract.
It has a number of clauses which allow either party to terminate, for non performance, by…[Read more]

Hey Gross,
When you say full lend are you saying you are borrowing 100% cost for land and construction?

If this is the case, are you providing something else as security against the borrowings, or is the final value of the completed project sufficient security for the lender?

kp

Hey Marisa,
Can you advise what was included with the Celebration house??
ie…internal paint, floorcoverings, dbl remote l/u gge, etc, etc.

Regarding your query with the landscaper….quite a few of the builders include everything on a turnkey basis…( including landscaping), would this not be a better way to go ?

costs more, but saves you the…[Read more]

Dunner Runner……

Not quite Terry,
Companies are not eligible to any CGT concessions ( ie…50% CGT discount after 12 months)therefore any profit from the sale of an asset is fully taxed, but at the company rate.

A trust or individual may be elibible for a CGT discount of 50% depending on certain conditions ( its a tax law…so it gets very grey)

So in fact you…[Read more]