Hi Andy- you could always let the tenant know he can move out if he isnt happy with the driveway. It sounds like you could get another tenant easily, probably paying higher rent than the current tenant if units with no car spaces/garages are renting for the same as yours. Either way, there is no way I would be paying any compensation.Seriously,…[Read more]

40% is ridiculous, they are clearly taking you for a ride. If I were in your position, I would let the contract fall through, get a planner like Christain to help you sort out the problem with the council, and then put the house on the market again.Cheers,Luke

If you can get the Renovate for Profit couse for 50% off then that is a good deal. It is very useful- spreadsheets, videos. audio etc. I do not do renovate for profit as such, but it has lots of good ideas that can be applied to other strategies like developments and subdivisions.Cheers,Luke

And please make interest only payments and put any extra money into an offset account so you dont have the same problem as thousands of other people on this forum with needing to redraw money from the loan to buy an upgraded PPOR in five years time.Luke.

I doubt it will increase the value by anymore than $10k (at best).As I see it, adding value through renovations/improvements works best with items that make an immediate impression like new paint, new kitchen, bathroom renovation etc. These are things that add a wow factor and play on the emotional side of the buyer. Another reason is that fpr…[Read more]

Trusts aren't registered with ASIC, but a corporate trustee (a pty ltd company) if one is used needs to be. Trusts are registered with the Office of State Revenue and also Land Titles Office (I think) in the state it was set up.Luke.

Read the book "Trust Magic" by Dale Gatherum Goss, "What Every Property Investor Needds to Know about Finance Tax and the Law" by Michael Yardney and/or 'Family Trusts" by Nick Renton. These books are quite good and explain the basics.Cheers,Luke

And sorry I was meant to add- a $500 stamp duty charge for setting up a trust in NSW is irrevelant and shouldnt affect your decision.

Sounds like you shoudl set up a trust based on your comment. The advantages would surely outweigh any short term negatives like negative gearing being trapped in the trust, slightly higher accounting fees and the set up costs.As Terry said you should think long term. What do you want your investments to look like in 20 years? Would it be better in…[Read more]

Agree with Jamie. It will certainly make it look better on realestate.com.au and so will get more people through the door.I would personally hold off on doing any work untill it comes time to sell, unless possibly if you were considering refinancing in which case it may result in a higher valuation and so more equity to extract out. Of course it…[Read more]

Sorry I should correct- bonds can provide growth so that is probably not a good example.Luke.

If you are looking for yield then Australian Residential Property is probably no the asset class to be investing in. Residential property is traditionally a growth asset class and only delivers net yields of between 2.5 – 4%, but has a history of growth.If you were looking for yield perhaps you would be better off investing in commercial property.…[Read more]

For FHOG you will need to read up the office of state revenue for the rules. In NSW I think it is you need to live in the house for a minimum of 6 months commencing within the first 12 months of settlement. I am pretty sure there is no time limit for claiming CGT exemption- just stick to the rules for FHOG and you should be fine.Cheers,Luke

Hi c-man. That is what many people on this forum do for their first property- buy an IP but live in it for a short time (say a few months) and then move out so it is CGT free.

*yawn*

Freckle- The sky will not fall in and the sun will rise tomorrow. Some countries have a debt prioblem but most do not. I strongly disagree with your statement that every major economy is near collapse.I am guessing that you consider yourself as a notable investor on teh world stage judging by how you speak?Having said that, I am not privvy to the…[Read more]

Whether they are easy to rent out or not depends on1- The quality of the dwelling (is it a cheap and nasty granny flat or a genuine secondary dwelling)2- Where it is located. They are easy to rent in good locations but can be hard to rent in poor locations. Of course everything can be rented if the price is right.Where are you located? And what is…[Read more]

Sounds complicated! I am assuming that a company (say xyz pty ltd) is the trustee of a trust (abc discretionary trust). And you are negotiating to buy a 90% share in xyz pty ltd?I would think that how the company distributes profits depends on the trust deed of the trust. If you are not listed as a beneficiary of the trust then I dont think that y…[Read more]

The banks recently raised rates independent of the reserve bank by 0.10% or so. The Reserve Bank cuts rates by 0.5%. The banks will now pass on 0.35-0.4% rate cut.So the net reduction in rates will be about 0.25% – 0.3%. As I see it, the reserve needed to reduce rates by 0.5% to get a reduction in variable mortgage rates of 0.25%.Cheers,Luke

AALLII wrote:
Hi a little unrelated to the intial post but nonetheless relevant to topic heading…I have been advised that to get a loan with no financial backing except a stable and high income I can form a discretionary trust structure, have myself as a beneficiary and one other person as a beneficiary (i.e. parents) who have a fixed security…[Read more]