Hey Sargeant

There’s no profit if you buy each block for $140-$150K….you’ll need to buy 1 large allotment for that price and then subdivide and build 2 homes on it to make a healthy profit. Thats if i’ve read your post correctly and you’re buying each block for $140K and building 1 house on each.

Assume 12-18 months holding costs for the…[Read more]

We personally avoid auctions…….for us its worked well not buying through auctions…….. Sure there are probably great opportunities at auctions but what we’ve found is that we may do a whole heap of research and due dilligence like we do for every property we’re serious about and then go to auction and not even get a bid in.

We find that…[Read more]

Hi TMR,

Just wondering what a third party lease is? If you can elaborate that would be much appreciated.

Kim

Kim Anand
kimanand@adam.com.au

“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”

Hey Redwing,

Information about Martin’s ‘bus tour’ in Adelaide was sent through an email to forum members about a month ago…i don’t think its advertised on this website…i only remember seeing it through one of steve’s emails asking for expressions of interest.

Kim

Kim Anand
kimanand@adam.com.au

“Money Can’t Buy you Happiness but it Does…[Read more]

We used to ask the very same question a few months ago but hubby took the plunge and resigned in May 06 because he was very unhappy at work and we have not looked back since. For the past 2ish years, we have been members of this forum and have attended countless seminars and read 100’s books/articles on property….we still had doubts in ourselves…[Read more]

We’re in Adelaide and we think Adelaide’s a fantastic place to invest……….trying not to be biased or anything but its funny, we’ve had a couple of ‘well known’ developers come down to Adelaide to talk about property and they’re views are that you pretty well can’t make money in real estate in Adelaide at the moment and the best place to…[Read more]

I completely agree with you V8ghia….i don’t know why or how the 2 year ABN rule came about but its a real shame because we really do think we’re doing well for ourselves but the 2 year rule is making things 100 times harder than it needs to be.

Our development timeframes are only 12months and thats from the point of signing the contract to the…[Read more]

Hi Richard ,

Yes you are correct…….Westpac don’t typically check the ABN status.

I will enquire about the DEF should we need to go down that path because they can certainly dimish the profit very quickly…i know RAMS DEF/early exit penalites are astranomical!

Thanks for the reminder Richard

Cheers

Kim Anand
kimanand@adam.com.au

“Money…[Read more]

Thanks for the replies everyone.

I’ve had some forum brokers provide some really good info but i’m still kinda stuck.

We ended up buying the property in my husbands name because the profit was going to be distributed to him anyway so didn’t work out too bad in the end.

But we’re still stuck in the same position where every broker we’ve spoken…[Read more]

Yep its Westpac.

We spoke to our accountant and because we were going to distribute most of the profit from this particular deal to my husband anyway, it doesn’t work out to be too bad to buy the house in his name only apart from the fact that we won’t have the same benefits in relation to asset protection etc.

We do have others which we need to…[Read more]

Hey Geoff,

I just had the same problem but finally managed to get a hold of someone who would this morning.

CGU were able to offer us Public Liability Insurance with no probs. To give you an idea of what they quoted us, our block is approx 780m2 and for $10M premium was $610.50 and for $5M premium was $457.88.

I’m ringing around to get a couple…[Read more]

If we were going to keep the house and not demolish it, we would normally put it subject to a pest and building inspection to our satisfaction. If you include something along the lines of “to purchasers satisfaction” then that should allow you to back out of a deal regardless of whether the pest/building inspection comes up ok…..we use this…[Read more]

Hi Mark,

We’ve had this very question put to the Adelaide investors group many times as newbies feel more comfortable with someone guiding them to start off with but we’ve never once had a volunteer, and i don’t think its because noone wants to but moreso because mentoring is a very time consuming task to take on. If you’re after a mentor that…[Read more]

Hi Rexilla99,

We sometimes use the agent’s letter of offer if they have sufficient space for what we want to put on there but more often than not if we’re putting offers on homes we haven’t yet personally inspected, we just fax off something from home.

We just include things like address, agent’s details, offer price, settlement terms, finance…[Read more]

Hi SueTimeMatters,

My hubby and i flew up for the Melbourne workshop and were a little disappointed. I think it depends on how much experience you have in property to start off with. If you’re just starting out then its a workshop i would highly recommend as there were plenty of live testimonials of former students who have done extremely well…[Read more]

Hi Alwast,

Just a few things for you to consider………. make sure that you check that its been approved by the local Council (planning issues involved) because if its not yet already been approved then it may be very difficult to do so as the zoning may not allow for such an operation to occur in that specific zoning. When i worked for a local…[Read more]

Thanks for the reply Duckster

Actually funny you mentioned that coz my husband recently resigned and has no salary/income as such so we were thinking about putting the house in his name as opposed to our trust. We also know other people who also have a company/trust structure in place for their investing but choose to do alot of the deals in…[Read more]

Thanks for the tip Tony. Much appreciated [exhappy]

Kim Anand
kimanand@adam.com.au

“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”

Hi Jes,

I think one lesson in the real estate business is to never take a real estate agent’s word for it. One example is hubby and i recently heard a well known Australian investor say to a group of Adelaide Investors that Adelaide’s market wasn’t so good and that its not a great state to make money. Well i know for a fact that this investor was…[Read more]

Hey David,

We were in a similar position about 3 years ago, we built our PPOR in Adelaide and then realised that it maybe wasn’t such a great idea. So we sold up and started renting a 2bd unit. Benefits of doing this is that our rent at this stage is less than what a mortgage repayment would be, is partially tax deductible (because we have a home…[Read more]