Forum Replies Created
The simple answer to ‘how do I get the money out’ is that a trust distributes its profits whenever it wants to or at least at the end of the financial year.
It discretionary distributes its income to any beneficiary ar its “discretion”- this year it may be to you, next year it may be to your kids.
A unit trust must distribute the profits in proportion to the units owned by the unit holders.
Passing on the profits is the easy bit.
There’s lots more to trusts- speak with your accountant
Michael Yardney
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FREE subscription http://www.metropole.com.auA number of years ago, proeprty watchers predicted that the Commonwealth Games would boost the Melbourne property market.
Apart form some extra construction work, it has done little to the property market and will do nothing for prices.
It will boost short term accomodation and hotel usage for a while.
Michael Yardney
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FREE subscription http://www.metropole.com.auAvoid this size unit.
As you say the abnks don’t like lending for them. Valuers will value them at a lower figure.
Fewer tenants want them
If you ever have to sell it will be much harder for the above reasons.
OF COURSE IT IS CHEAP and it will always be
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Yasmina:Hi Michael,
I thank you very much for your reply, it was very informative and useful. I am more than prepared now. Cheers.
Yasmina
I’m glad I could help
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Yasmina:Hi everyone,
Tomorrow i have first meeting with my Property Manager -my first investment property. What should i be asking him? Please give me some pointers here.
Cheers.Yasmina
Choosing a PM is important – they are not all the same. Don’t select on fees alone
this report may give you some ideas of what to askhttp://www.rentingmelbourne.com.au/html/s02_article/article_view.asp?art_id=109
Michael Yardney
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FREE subscription http://www.metropole.com.auWe use valuers all the time so I could make some suggestions. I even know some “friendly” ones.
But it depends upon your lender – the valuer must be on their panel.
Give me some details of the property and where it is and if you have a lender in mind. Either on the forum or by email to [email protected]
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auOriginally posted by chrisholt452:Hi WtbNow
I have just recently completed my Estate Planning, I own property in my own name and a trust, I formed a Discretionary Trust, which comes into effect only when I die. This seemed the best way to pass on my assets to particular people. A good solicitor should be able to advise you. Costs between $2,500 – $3,500.
Good Planning Teach
What you are talking about is called a testimentary trust.
The nornal family discretionary trust or unit trust with a corporate trustee is a separate legal entity to you and therefore endures after your death, which means the beneficiaries including your children still get the benefits of the properties with no change of ownership and therefore no stamp duty or taxes.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auOriginally posted by Misty1:Can anyone tell me where I can access some info on suburb by suburb stat’s for FREE (there’s plenty of sites you have to pay for the info) regarding percentage capital growth figures?
I would really appreciate it.In Victoria you can gets stats and graphs for free at the REIV web site – http://www.reiv.com.au
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by dave_pious:I’d really appreciate views about Melbourne properties (Australia’s Melbourne, not Florida).
Help !!
I could give you some views on Melbourne if I knew what you were looking for. What are you after eg capital growth, cash flow, renovation etc.
How much do you have to spend and what is your borrowing capacity?
All this will make a difference to the sorts of properties you should consider.
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by kerwyn:Hi Michael
Reading the latest reports on Sydney property it seems there might be a prolong downturn. Property has already fallen 5% in most suburbs except some of the more affluent areas. The forecast is for this to continue for the next 2-5 years.
What is your estimation of the length of this downturn?
Have you an opinion on the Canberra market as it seems to be giving conflicting Stats at the moment, I am not sure what is going to happen.
KerwynKerwyn
You are correct about conflicting stats. Each organisiation calculates their figures differently.This week the Australian Bureau of Statistics released its results for changes in median prices and they differ from Australian Property Monitors who provide statistics for the Reserve Bank[blink] Figure that one out.
Residex which does not report means but uses its own statistical methods has differing results again.
Which is correct? They all are. Figures can’t lie can they? They tell what is being reported.
Which is most representative of their market place?
APM have changed the method they use this month so they claim they are. In the past I have found Residex to give an accurate representation.
As for Sydney the market is still weak, and has had about a 5% drop overall in prices for the last 12 months, but the higher end of the market has held up well. I believe this will continue and the other suburbs will flatten out and gradually increase. It is likly to be generally potive but slow growth starting early next year. Residex supports this view.
The next boom (which is the shortest part of the cycle and the end of the cycle) is unlikley to be till the end of this decade. But it will be too late then. Get set for it over the next year or 2 if you otherwise you may regret it. The cahsed up wealthy have always made their money in the slump stages of the cycle.
Sorry we don’t monitor the Canberra market
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auYou will find some information at http://www.metropoleprojects.com.au under investor’s learning centre
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auYes it comes out monthly but you should get your first email within minutes of subscribing.
Thanks for letting me know about your probelms as we get 10 -15 subscriptions a day and it all happens automatically. Pleasesend me you details to [email protected] and I will check what is going onMichael Yardney
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FREE subscription http://www.metropole.com.auTHINGS ARE CHANGING!
Last year a senate subcomitte recommeded that people giving property investment advice be regulated.
Their suggestion was to bring them under the Financial Services Reform Act and have them regulated like financial planners.
They recognised that a real estate agents license is NOT enough to enable you to give property invetsment advice.
And as has been clearly explained in this post, you don’t even need to have an agent’s license to present seminars or give “property investment advice.”
I welcome the recommendations as they will stop the next generation of Henry Kaye’s.
But they may also stop the good guys like Steve McKignt because even though he is an accountant, this is not an accepatable credential for property advice.
I have become a foundation member of the PIAA (Property Investment Advisors Association) and have put my name down for the new course to be run by Deakin University in property investment advice, which may become the new standard required to give advice or get up and present.
Times are changing
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by foundation:What? >100 views and nobody has a comment? After hearing “real estate cycles are typically seven to ten years”, “we’ve reached the low point in the current cycle”, “it may look like a bad investment NOW, but time heals all wounds – in ten years you’ll be quids ahead” etc so frequently of late, surely somebody is prepared to look for a hole in my simple analysis?
To reiterate, my thesis:– House price cycles are 16 to 17 years long.
– The cyclical low is always below a rising trend (‘fair value’).
– The ‘fair value’ trend of the current cycle for Melbourne is at current nominal prices in 2012 (around 368k / 300k x 2005 $).
– 2012 should be the next cyclical low, so selling prices should be below the ‘fair value’ trend at that time.If I could post graphs & tables, I could make my point more clearly, but any comment is appreciated.
F.[cowboy2]
Interesting post, I haven’t replied because I’ve been interstate – enjoying the Brisbane sun – I’m up here to present at the Reno KIngs workshop.
I would disagree on the 16-17 year cycle. There is no doubt that these are the major peaks, I probably have the same stats as you, but there were intermediary, but smaller property peaks in 1982 and 1985.
I guess it depends what you call a peak .
I do agree that it is not a period of time that causes these peaks, but they are related to economic factors and supply and demand.
I would be really interested to see your graphs and data – I am always willing to learn. Could you email them to me – [email protected]
What is you basis for determing that proeprty prices are overvalued?
Michael Yardney
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Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by Pete&Jackie:Hi Everyone,
I’m a registered builder and have built a couple of Spec homes in the past preferring not to advertise them until they were completed.
I have someone wanting to buy my next house off the plan. Am I better off selling him the block at market value then building the house for him? More like a traditional builder/ client relationship.
Or would it be better to keep it all in my name until finished? If I take this option can I still claim progress payments in the normal way.Thanks in advance,
Pete
If your profit margin is the same, it would seem to be beter to sell him the land and enter into a normal building contract. This will be much better for your cashflow.
Having the money for the land in your pocket now rather than when you finish building may allow you to buy another block of land and repeat the process
Michael Yardney
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Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auYou are correct that Australia’s proeprty markets move in cycles. While these occur every 7 to 10 years, they don’t occur because a period of time passes, but because a set of economic circumstances occur.
These are macroeconomic – on the large scale in Australia and microeconomic – effecting local markets – things such as supply and demand.
Steve’s 5 points are monitoring a number of the many factors that collectively effect the market.
In my current newsletter (subscribe for free at http://www.metropole.com.au)I discuss the current state of the various macroeconomic factors in detail.
The market tends to move from its slump into its upswing stage related to supply and demand. You are correct in saying that the government can affect this with grants etc. but there are many other factors.
With regards to the last boom being the “greatest of all” – this is not correct. The upswing may have lasted a long time, but if you measure the magnitude of increase in property prices, the boom of the late 80’s beats the last one “hands down.”
That is why the late 80’s boom was followed by a much more severe downturn than the last boom was.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by Property Passion:When looking at a development site, how do you seasoned developers create a feasibility report ?
what is the best way to go about it? what costs do i need to take into consideration? and what should i watch out for?
Sort of hard to get it down on paper when there are so many unknowns when looking at a potential project
thanks in advance
Before we even do a feasibility we assess the site for its development potential.
You will find a checklist you can download at http://www.metropoleprojects.com.au under investor’s learning centre
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auTo ensure we don’t leave out any costs we use a program called feastudy http://www.devfeas.com.au.
Of course it is only as good as the numbers you put into it. It tends to spit out an 18 page reports with lots of “what ifs”‘- a sensitivity analysis
Michael Yardney
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FREE subscription http://www.metropole.com.auIé had a termite infestation in one of my investment properties and it is a very expensive affair.
It’s ahrd to tell how extensive the damage is. It’s not worth baragining down the property.
Make things easy on yourself. Move on to the next one.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by Property Passion:Its all in the title. just putting the question out there for developers.
This way us budding developers can learn and know what to learn.cheers
I’ve been involved in proeprty development since the mid 80’s. I stated doing renovations, the progressed to developing townhouses.
I had no formal building or development background and now run one of the biggest devlopment companies in Australia – currently project managing over 90 residential medium density property developments.Property development is an extremely creative process and property developers are creators. They take a project from the conception of an idea in somebody’s mind through the design and approval phase, financing, construction, marketing and then eventually the leasing or sale of the project.
Its been said that successful property developers are a bit like movie producers. They assemble a highly talented team of people and skillfully lead them to develop a profitable outcome.
Developers need to be proactive and make things happen. They must also be creative, flexible and adaptive to take their project through this maze
Developers follow a sequence of steps from when they first conceive a project to the time they complete the physical construction and begin ongoing asset management. While the sequence may vary slightly, usually the development is broken up into the following elements:-
 coming up with the idea
 refining it
 testing its feasibility
 negotiating contracts
 making a formal commitment
 constructing the project
 completing the project and finally
 managing the new project.Obviously a successful developer must be able to handle and thrive under intense pressure and uncertainty.
There are a few key basics you are going to have to if you want to move along the path towards becoming a successful developer. You are going to need to:
• Educate yourself
• Take your time
• Do the researchand have accesss to a lot more money than you think you will need
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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