Slightly different strategy, build and sell. (build 2, sell 1 keep 1) take a profit, leverage it into some more property. Keeps debt level more managable.
Only my opinion…but seems to work so far..

KP

Looks like my accountant let me down….

Built two units last year completed in April. took 10 months to complete. Rented one in May to Jun (end FY) and accountant only claimed propotion of interest for the period of rental income. When I queried this, I was told that the balance of the interest gets carried forward as a capital cost, which can…[Read more]

Looks like my accountant let me down….

KPBuilt two units last year completed in April. took 10 months to complete. Rented one in May to Jun (end FY) and accountant only claimed propotion of interest for the period of rental income. When I queried this, I was told that the balance of the interest gets carried forward as a capital cost, which…[Read more]

Hi Hotrod,
Any clues about areas outside Perth that give you +cf ??
Are you talking about regionals such as Gtn. and up North ?
Are they so +cf that interest rate rises will not turn them -cf…I am curious

KP

Don’t know about buying, but I’m selling…..

Hmmmmm…
I am in Karratha and I’ve been to Broome.
Personally can’t see what the attraction is with Broome. Must be something I’ve overlooked coz Qantas and Virgin blue run direct flights from Melb, Sydney etc. to Broome.
Maybe its the “thaw out” factor with Melbourne visitors.
To me its like the Gold Coast, OK to visit but seriously…[Read more]

Hi melbar,
How on earth do you manage to have a taxable “income” of – 107k ?
Is this from capital losses, or is this neg. income…
As the great Pauline said……..please explain..

KP

Its chinese…..Malaysia is populated by malays who are muslims, who are not allowd to drink alcohol,,,hence they have no cheers….
I’m kidding…they do drink but thy’re not supposed to
But it is chinese (yam seng)…

KP

Marisa,
Seeing as you no longer want to purchase the property, how about passing the address onto someone else who might consider it.
Sometimes more than one offer at $50k is the wake up call the agent needs that MAYBE thats where the property is, pricewise…its only worth what a willing buyer and willing seller agree to transact at….regardless…[Read more]

Hmmm, can you just post the answer ? I would like to know as well…

KP

Thats an oxymoron Property9,
Good area + good yield ?
Its one or the other I believe(for Perth)…and the feedback I have been getting is that yields are pretty average across the board …especially in the Perth metro area..thats why they’re all flocking to regional areas chasing the good yield.
I had a Sydney investor who moved to Perth all…[Read more]

Most are already on a strata title, but I think calvin is describing on in the country (regional area) and it is quite possible that it is on a single title. ie buy the pair or not at all.
Advantage for him is that he can strata title it and reap the benefit of having two.
But all a moot point till he can confirm the title status

Waiting calvin…[Read more]

Me the same. Paint the interior: $500 for cost of paint or get a painter in for $2500.

Apart from phone calls at STD rates, you’re also up against average to poor property managers who don’t seem to care…why should they ?

The pos geaing will turn negative with interest rate rises, because rents will not keep up.

These area and their tenants…[Read more]

There is a considerable cost difference between the strata title process and a green title subdivision, not to mention extra delays to get the title through (typically 3 months for the green title vs 6 wks for a strata title)
The green title subdivision needs to go to through the Planning Dept. for approval whereas a strata title can be approved…[Read more]

Doesn’t the FHOG only apply to your first purchase provided it is a PPOR ??
What I mean is, if you purchase an IP first, then you are not entitled to claim the FHOG for a subsequent property even if you intend to live in it.

KP

MA: Yes I remember rates at 18%. Was also in the market holding property and struggling to keep up with payments.
What I was alluding to is that rates are on the way up and at 10% in approx 2006, investors that got in this time at 6% will struggle at 10%, just the same as I struggled when they bit me in the bum going from 11 to 18% in the early…[Read more]

Do some more homework Wayne,
The bottom line is you are dealing with a home builder whose business is to sell new homes.
The fact that they package it up to make it easier for you doesn’t necessarily mean they are there to help you or do you any favours.(help you profit)
Sometimes if you do more of the work yourself ( look at other methods to…[Read more]

Jaffasoft: You qualify ??? You’ve never owned a property.
Surely the first home owners grant is only for the purchase of your first ever home ?

KP

Yep…a guy I work with was looking at positive geared property a large regional centre in WA, and the agent he spoke to advised him that he couldn’t understand why all these investors from over East were buying up all the properties in a “scummy” suburb in the town.
All sight unseen and based on the asking price (between $60k and $100k)and the…[Read more]

I think the point he was making was that Ian McF would have no choice but to put rates up in line with rising global interest rates.
The domestic rate has an immediate impact on the AUD.
The RBA spends a small fortune in buying or selling the currency to maintain in within a bandwidth where they feel it should be.
The RBA only has finite resources…[Read more]