Thanks Terry, I have really only heard people discussing it off hand but not heard a lawyer saying it can actually be done and that it works. I will look into it and get good advice when (or if) that time comes.Cheers,Luke

worldinvestor wrote:
Luke86Hotspotting does not necessarily mean speculative to me.For example look at areas where rezoning is on the agenda.Craigie is looking good, older homes, good infrastructure where you can pick up properties under $400K.  Check out realestate com, you will note that houses appear to be snapped relatively quickly, good…[Read more]

I understand there are structures where you gift money to a trust (the value of the house) and then the trust loans you back the money to pay for the house and takes a first or second mortgage over the property so there is effectively no equity in your PPOR. In the event of bankruptancy or being sued, there is no equity in the PPOR and so no…[Read more]

I would certainly be paying for quality advice for this development and not relying on information from a forum. I doubt many people on this forum have any idea whatsoever about this level of development (maybe Richard Taylor, Nigel Kibel or Alistair (I cant remember his last name but he is a mortgage broker with development experience I believe)…[Read more]

Why do you want a hot spot? I would be looking for areas with evidence of historical high growth.Hotspotting for me means speculative areas, typically regional and mining towns not a capital city area.Having said that I think the areas of Perth that will experience continued growth are inner north (North Perth, Leederville, Mount Lawley), inner…[Read more]

I agree with TVC. Renovation for profit requires time and effort, and is extremely risky if you dont have the necessary skills.Also agree with Terry. I think that selling a property because it is negatively greared just to buy a positively geared property is a terrible idea. Big deal, you might get $2500 per year cashflow from a positively geared…[Read more]

Also, I doubt houses in Laverton North have increased by 44%. Maybe the statistics show that they have, but like for like houses certainly haven't. The problem with median house statistics is they are easily skewed by new developments or lots houses in a particular price point selling for some reason or another.Cheers,Luke

Freckle I dont understand what you are trying to prove. You just spat out exactly the same figures as I wrote down. Invest in cash and you will get a return of 5-6%. Invest in property and you will get a return of 7% if the market performs way below the historical average and only generates 3% price increases, nut more likely 15% or so if it keeps…[Read more]

Freckle wrote:

simple wrote:
I would disagree. You buy a house for 500K, rent it out and if properly done brake even, not even considering tax. That at 100% finance, with zerro capital outlay. Now, in 5 years from now, your loan is still 500K, but tenants pay more (min 3% rent increase/year). So, you have an income, thank you inflation. Now 20…[Read more]

The occupancy certificate can be issued by the local council or a private certifier.To buy an unfinished house will mean you need to find someone willing to sell you an unfinished house. Which is not easy as builders/developers will want to finish the house themselves so they can make money, as opposed to selling it to soemone at a loss. One way…[Read more]

I still dont understand why you think inflation is bad from a propertys perspective. In ten years time, the debt you have on that house will still be the same. But inflation means that the house is worth much more. Even if it only grows with the rate of inflation, and rents only rise at the rate of inflation, it will be worth much more than ten…[Read more]

??????I thought inflation is a property investors friend.Inflation means assets, incomes and rents generally rise in value while debt remains the same. How is inflation bad for property investors?Cheers,Luke

Tracey B wrote:
This probably also ties in with another post of 'house vs units' eg. if you own a unit in a block of eight only 1/8th of the total land value applies to your dwelling. At one of our properties the value of the land value attributed to each apartment is just $25K which helps minimise the land tax situation.

But you want as big a…[Read more]

Are the properties held in a trust or in their own names?If they are held in their personal names I think that you are out of luck. There are rukes about "at arms length" transactions and so transferring/selling the properties into a super fund breaches these rules.Although I am not an accountant so  dont know exactly.Cheers,Luke

Land tax is not that big a deal in some states. In WA it is irrelevant but in NSW it is quite high (2% I believe for the portion of land component over $400k). You wuold have to do a quick calculation to see if the land tax payable really makes a difference to your investing strategy.Google search Land Tax in (state) to find the answer, it should…[Read more]

Hi NHG,It sounds like option 2 is the way to go, although there is not much information there so hard to say.I am under the impression that typically the bank will not take into account the granny flat when valuing the property (or only increase the value slightly to take it into account). This is because owner occupiers buy houses and so they…[Read more]

ok it looks like you have already made up your mind that it is a good spot to buy. I agree that it would be a fantastic place to live (my sister sure enjoyed herself when she was there for 6 months!), I hope you enoy the sunny coast!Cheers,Luke

Why is it too much effort? I don't do it myself, but I know friends who do and it doesnt cost anything and is easy to do.Cheers,Luke

You could sue him (if you could find him) to rever the lost rent. But realistically this would probably not be worth the hassle or the cost.I would just write off the loss and move on.Cheers,Luke

You can buy and sell a house in whatever condition you like. However you will need an occupation certificate before you live in it (if it is a new build) and a bank will generally not allow a high LVR on an unfinished project so getting finance will be difficult which will affect the ability for purchases to settle. So generally, selling an…[Read more]