Forum Replies Created
Thanks to all of you guys for the replies,
It still seems that there are a lot of “add on” costs in WA irrespective of the management fee % rate.
It seems that the inspections and ongoing services are included in the fee in Vic and NSW and elsewhere, and this fee also happens to be lower !!(excepting Tas of course)
I will be providing this info to my PM and asking “why is it so ?”Redwing, I agree with your comment, running a rentroll is a lucrative business for an agency, but have yet to find one that that wants to be ultra competitive and offer an all inclusive service for a fixed fee (without all the add ons)
Monopoly, I also agree that fees are negotiable but the problem is that all you can do is ask the question and if teh PM is not negotiable your only other option is to manage on your own, or accept their fee….and they’re not negotiable here.
The best I have managed is 7% plus all the add ons as detailed, apart from that, I manage my own rentals.
KPThanks for both your replies,
So by “settlement” do you mean when the wrp contract is enterd into, or when the wrapee finalises the contract (pays it out or re finances it)
Also, when is stamp duty payable by the wrapee triggered ? At teh start of the wrap contract or only when the title is transferred into the name of the wrpee ?KP
Traditionally, Perth has not been an “auction” market with most residential sales completed via private treaty.
Therefore, using auction results will not give you a good indication of the market at present.
The feedback I got from 3 agents this week is that the markt is still very active up to $250k with some resistane after $300k.
The resource boom which is driving the local economy is still in full force and this is reflected in consumer sentiment towards spending inclusive of the housing market, especially in the construction of houses.
For example,on a buildng contract I have underway: the concrete pad was laid in Feb, bricks were delivered in May, and brickies turned up last week (July)There is a huge backlog of building contracts to get off the ground such that it will take 12 months to clear even if the builders don’t sign another contract this year.
One prominent builder has close 26 dispaly centres as they have said that they need to clear the backlog of contracts (12 months delay) before they sign any more contracts.
Looks like someone forgot to tell WA that the boom has ended…….
KP
Thanks Yack and other for the response.
Its as I suspected…we seem to be behind the 8 ball in WA (and I suspect NT as well) with regard to fees and charges being at the top end of the scale.
I have to wonder why this is so ?
It can/t be due to a lack of competition.
Maybe the rents a much higher in Vic and NSW so that a PM gets a decent dollar return as a fee at 5 to 7% ?
But to include all the other service items in the cost has got me curious.
Why is it so different in WA ???KP
So based on this, you would think that the ATO would be pro wrapping as it eliminates the non cost deduction of depreciation being claimed on what is effectively an investment property !!
Another query Julia, how is CGT liability viewed by the ATO once a wrapee is in place ??
Dos this trigger the CGT expense since you will now have a contract in place with the wrapee even though your profit may not be forthcoming for a number of years ?
KP
Great topic to raise Helen,
Reminds me of something a gentleman fro Singapore told me years ago with regard to investing in property which basically mirrors your Hamilton Island example.
ie.. when you have finite land (an island for example) and demand, or excessive demand, then the only way you can build is up (multi storey) and hence prices go up accordingly.Until of course, the price exceeds the demand or economic factors change then you’re into the bubble phase, after which a correction is due and some or many will get burnt.All part of the cycle.
But an interesting concept about land locked (with natural barrirs in place for eg.. mountan range and ocean ) places being good to invest in, if you can afford to do so, as your capital growth is more assured.
KP
Yair hotshot,
sounded like a fair question to ask on this site…after all, its populated with so many property experts, surely a few useful and helpful replies could be expected….??KP
There should be a clause in the management agreement regarding terminating the agreement.
Usually, there is a cost payable, but you also have right to dismiss if the PM is in breach of the agreement for eg…non performance, not collecting rent, etc.
It should be detailed in yr agreement, check there first…
KPHmmmm,
Its DOCEP
and you can download all teh forms and applications from teh website…KP
Jamie,
You need to look further afield to the mining towns, such as Port Hedland, Karratha, Kalgoorlie, but they are more than half a day away from Perth.
The rent returns are there but the asking prices are $200k plus
Cheers, KPI would have thought that the booming nature of real estate was a function of the low interest rates, same as the busting scenario when interest rates rise.
Interest rates coupled with the greed/fear psyche determine the state of the market, not the other way round…..Ding a ling ! Ding a Ling !
Yep Gerry, I hear them bells ringing.Need to add a new word for the dictionary..
How about HERDISM, something to do with herds and frenzys.
There is a fear and greed aspect to all this too.To just rely on rental property income as the only alternate source of income also beggars belief.
How about this for an alternate source of income:
A friend of mine owns two sets of Taxi Number plates (plates only, for 2 taxis, not the cars))
He leases them out for $350 per week per set of plates.
So thats no rates, taxes, insurance, outgoings, etc. for a gross(and nett) return of $350 pw. each.
Maybe the plates are worth $120k to trade, so thats a yield of 15%+KP
Hi Yorker,
Do you have info for all states ??
How about WA //Cheers, KP
Depends where you are looking….
What return do you need for it to qualify as “good” ?
Always possible to find a run down or subdivide property and improve the yield by some improvement to the property.
Depends how keen you are and how much time you have avaailable to look…KP
They might have a buyer lined up who has enquired about that house from a drive by, or maybe they are hoping to get in the door with a short listing with a view to talking her into extending after the 7 day period.
KP
Give hubby a kick….might not get you some tickets but you’ll probably feel better….
Hi Cajun,
Yes, you can add as many trusts as you like with the same trustee acting as the common trustee.
You can organise a trust online. Go to lawcentral.com.au
go to “create a legal document”
They quote $275 for a discretionary and $330 for a unit (hybrid) trust.
However it may be best to get some proper advise from an accountant or solicitor who is au fait with this sort of thing to make sure your trust is capable of doing exactly what you want it to do ( ie .. buy property, borrow money, etc)Another place to look is taxlegal.com.au
go to “publications” and then do a search on “hybrid trusts”
You should come up with a doc called “Trusts in Structuring” which is very informative.Good Luck,,,
KP
What about a canine ? DO you still qualify then…
Alternatively Allan,
CAn you get access to some of that overseas money…sounds like it is cheaper than local moneyKP
Girlie girls, Kay n’ Jo. what was with the catfight earlier in the thread ?
You’re supposed to be moderators ??The original topic posted by Howard was in regard to his position as a non aussie and therefore being restricted by FIRB requirements as to what he can purchase in Australia.
No point advising him to look at established suburbs, and property with land as he does not qualify to purchase it.KP
