Forum Replies Created
Wayne,
Really, do you need cash?Based on what you have experienced in Ocean Lagoon, what is the prospect for cg at Capricorn between now and settlement in 11 months time?
There is always a way to finance a property purchase.
And yes, the deposits seem to be increasing, ( Singleton was $1000) and the conditions seem to be getting more onerous with a ‘repurchase’ clause if you don’t build within 30 months of settlement, although they are still including a $9000 fence/landscape package.
Its still better than the 10% I have been hit for on a number of other purchases…that sure burns through your cash.
kp
Well I am happy to say I got set as well, thanks to Ausprop.
Thats a funny story in itself……
I tried for lot 61, 62 or 68….but they were all sold.
Ended up with lot 56.Not sure about living up there, but am confident of good cg between now and the ‘clear title’ date.
As long as construction prices don’t keep rising as much at the same time, it makes for a reasonable priced property so close to the beach.kp
Originally posted by Cata:Does that mean that as a trustee I can divert the income to a non unit holder?
The trust deeds that I use, Yes if the trustee wants to. You will have to check the deed of the trust you purchase as some differ.
would I still be allowed to claim the interest back on my tax return (as a unit holder?)
This comes back to what the money is used for. In your case, you invested in hybrid trust units, so yes. What the trust uses the money for is up to the trustee, not you(for your tax return)
CATA
Asset Protection Specialist
[email protected]Surely the ATO would take a dim view to you claiming a tax dedn for interest paid on borrowings used to purchase units in a trust and then not have the trust distribute ANY income back to you ???
Especially if the trust generated an income…and distributed it elsewhere.kp
Amen!!
And thanks to Marisa’s due dill and alerting forumites to this area and the subdivision, a few of us have managed to get on board and should do well with our investment.kp
(I wonder if maybe the garage’s tanks leaked and contaminated the sandy soil under the subdivision….lol)Look like long lost twins….
Was someone adopted out at birth ??Thats what it is !!!
Some get it ( are switched on) and most don’t.I have found that after networking with like minded investors and forumites…dealing with an agent is like….<fill in your own blanks>
Most don’t have a clue and are not interested in learning either.( or I must be attracting the wrong agents)What you said Sonja, about them considering you a timewaster, well the experience is mutual…. they are also wasting your time.
I tend to show the agent an example of a property transaction I have recently done as a sample of what I am looking for and trying to duplicate.
ie “This is one I have recently completed, and this was the result’
Give them facts, figures, numbers, and the address and suggest they drive past it.Lets them know you’re serious, know what you are doing and talking about, and stops all the b*llsh*t and sales talk that just delays the whole process ( effectively, screening the agent I guess)
kp
Gosh thats interesting about the contamination…..
Anyone known the area going back many years?
Ausprop, your parents had a hosue there??Was there any industry that has since been closed down?
What could the possible contamination be: asbestos? chemical? PCBs’? byproduct from tannery works ( Robb’s Jetty area)?The whole area used to be sleepy sidings off the main road where some lucky few has holiday and beach shacks. ( Golden Bay, Singleton, Madora Bay. even Mandurah)
kp
Would have to disagree with that Kerr,
It may have been tha case in the past, but we have been investing in a Pilbara town ( it has to be either Pt Hedland or Karratha right?)and,
I am finding the big 4 banks (plus Bankwest) and even second tier lenders are happy to lend to 80% lvr all day and all night.
In fact it is possible to go to 90% or 95% with LMI.Historically, the cg has averaged just under what is being achieved in the capital city ( Perth) and we are managing to generate excellent capital gains as well as a rental yields of between 10% and 12% gross, on our properties.
I believe this will be the case for the next two to five years due to the backlog of demand and the fact that available land is scarce atm.
Its easy to genralise, but I think Steve advocates that you need to look beyond what everyone else is thinking and doing, and manufacture the result you are after, be it capital gain or a decent yield.
We’re achieving both…kp
Gross,
Can you do me a favour and give me an opinion on the post below ??https://www.propertyinvesting.com/forum/topic/20218.html
Thanks
kpYer you’re right…
This is getting out of hand
I’m not saying no more till Gross gets back and spills his beans…
kp* Whos’ on first base ?? *
Can’t help but ask the obvious question….
What happened to the value of the property ??
Its only worth $60k but it owes you considerably more??
WHY ??
What happened…kp
Probably they’re not…..
Too many ‘vested interests’ will get hurt, including themselves most likely.
Same deal with the famiy trusts.
Same threat every year, but no changes forcoming.kp
This whole area is fraught with danger and confusion.
I spent a couple of months with a RE agency just concentrating on commercial & industrial property sales/leasing.
The whole gst arena, causes lots of confusion with agents as well as buyers and owners.There are so many scenarios depending on whether the buyer or seller are or are not registered for gst as to whether they can claim it back after the sale, whether it has to be levied in the first place, etc etc.
One ruling that seems to be employed all the time is if the commercial property has a tenant in it on a valid lease at the time of sale, then it is classed as a ‘going concern’ and thus no gst is levied.
I would suggest you consult an expert accountant to get the low down on gst as applicable to commercial property and leasing.
kp
Those areas appear to be in the goldfields of WA.
There is a good reason why they are +ve cashflow.
Its called risk…
I was recently told that there are 20 pages of properties for sale in Kalgoorlie on realestate.com( the biggest regional centre from which Kambalda and Boulder are satellite centres)
I haven’t botherd to look to confirm if it is true.If you are not averse to risk, and are prepared to do some proper due diligence,it may be worth pursueing…otherwise…
kp
Geeze Bill…..
I wish !!!Have one agent who is attempting to build a clientbase and circulates a list of ‘deals’ every week or so, but none of them stack up !
Now I’m getting jaded, expecting to get a list of deals that don’t stack up, and he is getting jaded knowing I won’t commit to anthing he is offering.
kp
Thought it was time to *bump* this…
Any local experts ( Marisa ??? Ausprop ???, etc) know if the next release in Singleton went ahead yet, and if so what price did the latest blocks come on at ?
Anyone willing to speculate what the existing blocks might be worth now, compared to their release price ?
Seems like it has been marketed for quite some time with no price variations from the initial release prices…
kp
Yes, in hindsight you are right.
I recall the first couple I did in the early 90’s the return was in the 10’s of thousands of dollars.
I hadn’t even figured out how to work it out as a percentage return on investment.
In fact I didn’t have much of a clue….it was just a matter of ‘get on with it’I took the same attitude that as long as I couldn’t lose money, it was worth doing.
As it turns out, the experience was invaluable.Good on you Milly, for deciding to go ahead despite any negative feedback ( guilty as charged…)
Also, the query I had about selling or keeping, once you get into the habit of building the ones you want to keep, you will realise how much better off you are compared to buying on the established market, due to the upfront equity you get when you build ( in the example above, that is the $113,000 you have achieved between your cost and the market value )
kp
Where is ‘the Gross’ ??
Maybe Steve found him and cut off his fingers, so he can’t type any more ( or any less)
Bradshaw, are we going to start disecting the various packages now ???
Whos’ going first ???
kp
Jacob,
That didn’t make much sense either……Originally posted by misty:Get surveying done, blocks pegged and land drawn up, submit to council
Costs
Purchase 284000
Buy costs 17000
Subdivision 22000
demolish 10000
Build 3 x 140sqm house 420000
landscape, drive, fence etc 30000
footings 10000
rates etc on holding for year 4000
interest on holding 50000
TOTAL 847000
Expected sale price 960000**Wow**
It looks extremely skinny.In the first instance, you can get the block surveyed and a plan drawn up for submission, but there is no sense in getting pegs placed before demolition ( for obvious reasons. ) Surveyos usually come back after the block is cleard and peg it out.
Secondly, the numbers do look very skinny.
On the face of it the return is only around 13%.
What if costs and timelines blow out? That 13% return could disappear all together.Is the end stratey to sell on completion, or are you holding for long term cg and rental income ?
This would determine if I went ahead with it in the first place.
kp
