Forum Replies Created
If it’s got something unique, like water views, seem to go up & up & up …
A saying I heard about inner city off the plan appartments, as Dan the Man says:
When it’s just a glossy brochure, you’re sold the sizzle, when it exists (and it’s essentially competing against all the new glossy brochures) you’re trying to sell the sausage. Not quite as exciting.
Food for thought, so to speak!
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MelSorry to ask a daft question but what is LMR zoning?
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MelIt’s your info so they should be amicable but beware that sometimes they run spreadsheets which while technically good (and perhaps proprietory), don’t ‘present’ so well, so maybe summaries rather than ‘everything’ would be the go.
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MelEthically $20 for travel time.
Realistically $120 for ‘magical solution’.
Washing machine repair people aren’t my favourites either just quietly …!
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MelHi,
This is similar to the example given by Dymphna on the weekend course, went a little something like this:
You are doing a residential development with the intention to sell:
Buy land $55,000, includes $5,000 GST
Build house $165,000, includes $15,000 GST
Sell price $275,000 includes $25,000 GSTYou claim the tax credits of the $5K+$15K involved in building the asset, and pay the GST of $25K included in the sale price.
HOWEVER ….
If you cannot sell the property straight away, you have to hand back the $20K GST credits you claimed BUT if you sell within 5 years you still have to pay the government $25K and you can’t reclaim back your $20K. If you hold for 5+ years, you obviously still lose your initial $20K but no GST is payable on sale of the property.
….. just passing it on, sound plausible? If yes, the moral of the story is now your market up front and DON’T RENT unless you plan to hold for 5+ years.
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MelGood point Div43 especially if actively buying regularly and happy with higher risk re property value. Still think that if it’s a good positive cash flow property and I don’t need to live on the difference, I’d rather own $200,000 (price doubles in 10years) many times over then own $100,000 & owe $100,000 many times over.
Re longer I/O terms, most people shop around and refinance to a better loan product at the end of 5 years for another I/O term. Not sure what longest single period on offer is, good question – anyone??
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MelKelly is this for commercial only or residential as well – and how do you find out more !?
Thanks,
Mel
[]Hi Gary,
Nice to know my fellow HLC’s are joining the fray – welcome aboard [
] I’m sure you’ll enjoy the information and creative property investing projects talked about on this site!Cheers,
Mel
aka [email protected]
[]Hi YoungGun,
I’m back and have emailed. I can certainly help with the Broker side, but others in the Property Advisor area can probably give you more input on that side of the triangle … [
]Cheers,
MelHG – it’s only positive by $27 per week in this scenario, is that really a good enough return considering you’ve put in $37,000 (plus costs of approx $9,000) to achieve it – I’d vote no unless has significant capital growth/multi-use potential as well.
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MelIn numbers terms:
If you take out a 30 year loan of $200,000 at 6% interest rate, and take the first 5 years I/O and don’t change anything else about the loan, then you will pay interest only for first 5 years ($1,000 per month), then basically a P&I loan for the remaining 25 year term (approx $1,290 per month).
Personally it’s never made sense to me to pay interest only for good quality property (from yield or growth perspective) unless your strategy is to definitely resell in a short space of time. To paraphrase Steve’s Grandfather (cos I can’t find the quote in the book) – no one ever got into financial trouble owing too little ….
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MelIt’s all in the delivery philosophy. Banks do a tick/cross flick through applications looking for risk factors and hence reasons why NOT to lend the money. Brokers look at their clients circumstances and will bat on their clients behalf if needed with mitigating circumstances arguments that often help stack up just enough tick/cross points to get the person over the line.
It’s a game but everyone knows it, and it’s not ‘breaking the rules’. Banks are risk adverse and not keen to spend too much time thinking outside the square, brokers just give them enough info so they can continue not to think outside the square but pass loans anyway. Having said that I LOVE most of the major banks as they are predictable and generally very friendly and helpful, just contrained by their beloved bureaucracy, which after over 8 years in a PAYG J.O.B with a big multinational I thoroughly enjoy messing with …!!
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MelHi!
I cannot help with a contract, but I’ve had the following software recommended, looking to buy myself at the moment: Jan Somers PIA software (look up http://www.businessmall.com.au) or the REAP software (www.inwiththenew.com).
Hope that helps, sure others will chip in too.
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MelHowdy,
If you rooly rooly want to be a broker then unfortunately the criteria is getting harder, but basically to become qualified you need to:
1. Have either two years credit experience or undertake a course (norm 2-3 weeks) approved by Mortgage Industry Association of Australia (MIAA),
2. Join MIAA which involves sitting some Uniform Consumer Credit Code (UCCC) and Privacy Act tests
3. Join a brokerage firm or Aggregator
4. Get Professional Indemnity Insurance
5. Get accreditation with upteen brokers, normally through your Aggregator’s network, which takes ages
6. Find victims, I mean property investing clients ….!!If, however, you just want all the info we broker folk claim to possess, how long have you got …?!?
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Mel? Add/detract value – if done right, Yes
? Existing houses get dearer – double YesTwo cents worth – they are nice mix of grass/dirt with low maintenance requirements for both house and garden, and provided you get on with the neighbours, a bit more ‘community’ feeling than plain apartments.
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MelPS My opinion may be biased as I live in a terrace in Brisbane (one of few!), and adore my neighbours, and my two wee pug dogs adore their patch of dirt, so much so they think there should be more of it inside too, but that’s another story. [
]Calron takes the cake – again! [
]Good to see this thread still thriving! Kelly I met Dymphna at a Property Riches 2003 three day seminar (my first!) in mid-July, she was the ‘expert’ on tax and structures and took the audience by storm. I actually spent Saturday afternoon at a small 5 hour conference she held at the Sunshine Coast Uni and again came away totally inspired – she is very entertaining, but more importantly, VERY active and lateral thinking in the property & tax areas.
For anyone interested, Dymphna Boholt’s contact no. is 07 5479 4455. Do you still keep in touch Kelly?
Speaking of active, must run away and do stuff, ie extract myself from this addictive forum. Have a prosperous day everyone!!
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MelGood idea, personally I love free informative web sites … !! Plus not only will you meet these people but given your gumption they’ll probably want to adopt you too!
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Mel
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] I’m sure you’ll enjoy the information and creative property investing projects talked about on this site!
