Hi, Of the 3 you mention, O'Sullivans is the one that has gone up very little. Christies Bch is good but prices have moved up to reflect the values. On today's prices, cap gain may be a while yet. Aldinga to me is too high priced, always has been and maybe will be in the future. It's the holiday homes suburb with a lot of new houses that [to me]…[Read more]

Hi Clint, I'm sorry I expected more. That newsletter says exactly nothing. I'm disappointed.KY

Hi, if you get expelled, Richard, we'll set up a web site with you as the permanent honarary member or President or CEO or whatever name you choose!Suehe, please reread Richard's replies & consider whether you want to have the cost of an FA.Unless you already have smsf, buying the property within the smsf incurs a lot of running costs With the…[Read more]

Hi, am not sure but can't you claim all 4.5? Pls check with accountant cos I'm not sure either. KY

Hi, Richard's assessment is very good. Vendor terms to your daughter is something that will really benefit both of you. It's a strategy that not enough people use because they distrust mixing business and family ties but the financial implications suggest that it is a no brainer.Start with the end. Suppose your daughter pays $300 p.w. rent.You…[Read more]

hi, different story then.Option 3 is more viable when you're on 70K p.a.Depending on where you're, there are always opportunities. I thought that house prices can't go up any more than they've already done but just last weekend, I went to an open inspection. Big old house needing update sitting on a 1200m2 block. Based on the price quoted by the…[Read more]

Hi, we're usually very hopeful when we start out. There're serious objections to the 'plans' above.1) no problem except that you no longer have the use of the 30000. Offset is the best way.2)Negative gearing at best.3)You'll get into serious trouble. Even if the 300000 includes closing costs, you're looking at $60000 max 'profit' of which you…[Read more]

Hi, different states levy different rates of land tax, NT is the one with no land tax. Queensland land tax is among the lowest. Tasmania has a very low threshold i.e. you pay tax on a very cheap block. One year I paid close to 7 thousand in land tax. As the tax is progressive, the more property you own, the higher the rate.You can 'avoid' the…[Read more]

Hi, if you think land tax in Queensland is bad, come to SA or go to Victoria or NSWKY

Hi, can you not sign a contract for H&L package from your girlfriend? Then you'll get the FHOG which is at least 24 thousand in most states.You can time your marriage after the construction is completed.Think of it this way: if it costs $200000 to build, you get 12% discount, immediate equity.KY

Hi, I did pool fencing for the front house & in black. The fence man was a bit dubious at 1st but when he saw the finished item, even he was surprised how good it looked. And there's hardly any difference when I ended up with the cheapest [they were the only ones available immediately] so no need to go for the more expensive designs either. I…[Read more]

Hi, I'd told my story a couple of times already.I'd never x-collaterize if I had a choice. The best case scenario is a lender to an IP, I think. But in many cases, just as in mine, loans are far easier if I x-collaterize. IP 1, I had no income therefore no choice, just took whatever I could find, which was a private loan 67% LVR 2% above std home…[Read more]

Hi, why Mawson Lakes in particular?For comparison: 48 Melton St Blackwood [$355-385000]12 Hogarth St Panorama [$395-415000 price has come down] might have sold thoughMelton St I think was used by single person thus need to make 2 more BR easily doneHogarth St is 2 storey [very hard to build same house for less than 400000] split level 70s solid…[Read more]

Hi, I used my PPOR equity [paid cash when I bought it] to buy a 2nd, 3rd, 4th, 5th, 6th and 7th and 8th and 9th property. 5th and 6th are commercial and 7th and 9th are devt properties. 8th was PPOR 2  and supposed to be a devt but it was too hard and I sold. I'd always X collaterised because I'm in the category of 'hard to get funding' Whenever…[Read more]

Hi Spudway, congratulations. Didn't post before cos I didn't want to add to the confusion. I'd dig up Crashy's previous posts if I were you & you can see whether he's been at all positive at most times.Good luck going forward & hold that pride high. You're doing far better than lots of people.KY

Hi, Richard Taylor has hit the nail on the head as usual. $250 pw won't be enough to get you there. The alternative may be rent to own. This has a big advantage if you're eligible for housing rebates. Eg in SA, rent subsidies can be up to 50%Good luck,KY

Hi, after 5 years, there's no GST on sale. If you sell the new house upon completion, you may cop trade profit as well instead of CGT which is 50% of total gain.  Eg, if sale price is $380000, then GST is 10%. If you use the margin method of calculating GST, you'll still have to pay a substantial amount. When you tote up everything, you may find…[Read more]

hi, you probably can get a construction loan. Since you own the land already, it should be easy. 70% of end value, say $320000, you can borrow $224000, should be enough to build 3BR home + finishing. You might even get higher than 70% LVR or your end value may be higher than $320000.The entire loan will be tax deductible if you use the new house…[Read more]

Hi, you seem very sure that house prices will come down when FHBG ends. Did that happen when you bought previously? Do people stop living in houses when FHBG ends?Sure, sell if you don't need a house but not to anticipate whether prices will come down or go up. It's something that we can only guess.KY

Hi, tell me when you find a commercial property with good leases selling @ 9% net yield. I'll pay you finders' fee.KY