Forum Replies Created
- Originally posted by Terryw:
….. What would happen if one was to continue to increase the loan on an investment property year after year and then died. The person’s estate would have to pay CGT on the property, but with the loan up high, there could be a shortfall after paying CGT and the loan back. ie you could possibly leave a mess for your children……
Terryw
Discover Home Loans
North Sydney
[email protected]Terry, there is a simple way around that. Most high nett worth individuals would not own properties in their own names, but in trusts (with companies as trustees).
This entity survives the death of one its beneficiaries so the assets would be passed on with no tax payable as the beneficial ownership does not change.
It avoids CGT, vendors tax, stamp duty and something we had years ago called death tax.
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 the_aimbot:Quote:Originally posted by westan:[/iI agree I’m not looking to learn how to invest by becoming a real estate agent I’m looking at it as a way to marry two passions.
While real estate sounds glamorous as a job, it is a lot of hard work and very few succeeed.
The average wage for a real estate agent has recently risen to $41,000 per annum. And there are lots of nights and weekends.
Having said that there is plenty of room at the top for those that are willing to work for it.
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.auOriginally posted by q:I am a student very interested in property development. I am currently doing an assignment in which a plan to develop beachfront land hypothetically, into a block of units. I want to do everything except for construction. Things like development plan, risk assessment, loan applications etc.
Can anybody please tell what is involved during the planning stage of developing property?
I think I may be able to help.
I have described the development process on our web site http://www.metropoleprojects.com.au under investors learning centre
or have a look at
http://www.metropoleprojects.com.au/files/RPZBI8BSQR/the%20development%20process.pdf
&
http://www.metropoleprojects.com.au/files/PQ9BWYG8RK/development%20approval%20process.pdf
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.auOriginally posted by billwindsor:Hi
I’m thinking of pulling down my house and want to have a new one built by a reputable builder eg Burbank Homes, Henley Properties, etc
Can anybody recommend any good reputable ones who can provide a quality build?Thanks
If it is to be your home,you also need to find a design your are a happy with.
Try looking at some of the display villages where you can see the finished product and level of quality from a range of builders.
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 Humus-King:I am building a unit in South Caulfield Victoria, and I am in the process of arranging plans for the council. I have a VERY tight budget and I am looking for a licensed surveyor to measure the existing property and survey the surrounding properties.
Does anyone know a reasonable surveyor in Vic?
Help
JonathanTry Bill Patterson from A-Line surveying (03) 9870-6443.
We have used him for years and his fees are very reasonable.
You could also try Stuart Connelly – 9555-9992
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.auOriginally posted by buxton:How do you work out the value of a property if it has a negative return of 8% and had similar for the previous 3 years?
What do you mean by negative return?
If you mean cash flow negative, then cash flow is not the way valuers or the majority of buyers (who are owner occupiers) value property.
Remember 70% of properties are bought by owner occupiers and they are not looking for return.
If you mean that the property value is decreasing, I would be interested to hear where your property is located. I don’t know of an area where property prices have dropped 4 years in a row.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auIt depends a lot upon your property, but the first thing you should reaslise is that in this flatter market it is unlikley taht you as the owner will get a better price or the same price as a savvy agent would get for you.
If someone buys directly from you without an agent, they expect a discount and you don’t get a benefit.
Auctions still work well for unique properties where there will be more than one interested bidder. I have seen many proeprties sell for above market price and the reserve recently becuase 2 or 3 interested bidders became emotionally involved and bid too high.
In general a private sale using a “hungry” agent, one with a “fire in his belly” will get you a good price.
If you are in Melbourne I could give you the names of some agents you could approach.
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.auThere is little doubt in my mind that a good agent can get a few more dollars out of prospective purchasers. We have proven this many times by choosing hard working agents who “have fire in their bellies”
I am not sure I would say they are aggressive, but they are far from conservative.
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.auThe commercial equivalent of realestate.com.au is http://www.realcommercial.com.au I think it is restricted to agents only like its sister site.
There is also http://www.commercialrealestate.com.au and http://www.propertylook.com.au
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 jgray1982:Michael,
The reason i have looked at Norlane is because of the prices….. Is there a problem with looking for barains? Or is that not your style? Would you prefer to buy an overpriced house?
Cheers
Hey please don’t get defensive. I was not being judgemental, but asking a serious question in order to help answer your query with some thought.
You see..my team and I have bought about 40 properties so far this year, so I definately understand the need to buy below market price.
But cheap prices do not make a bargain. A bargain is when you buy a good property below market price. That is very different.
If you are wanting to investigate the area I suggest you buy a report from Residex http://www.residex.com.au and get a history of sale prices in the area as well as a history of the growth in the area and their predicted capital growth for the next five years.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.auOriginally posted by alee:Hi all, just wanting to know what is the usual % you pay a property manager to look after a rental property. i am currently in the middle of purchasing a unit rented for $110.00 and the property managers are charging 3.5% on rent commission, 5% management fee plus $8/ month for admin expenses. is this about the norm??
Don’t skimp on this – pay for a good property manager, they can add considerable value to your property.
Fees vary from state to state and are derugulated so agencies can charge whatever they want. WHat you have been quoted is on the low side, so I would check carefully what you are getting for your money.
If you wnat to know what to look for in a PM check this link
http://www.rentingmelbourne.com.au/html/s02_article/article_view.asp?art_id=109
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.auOriginally posted by renarcher:Can anyone recommend a Tax Accountant in Melbourne who has experience with negative geared property investments. Would love to take full advantage of my tax return this year.
I know a few good accountants who understand property well who we frequently refer clients to.
I am not keen to put their names up here, but please email me at [email protected] and I will send you some names.
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.auOriginally posted by jgray1982:GUys,
I was wondering if anyone can give me advise on NORLANE, Victoria.
I am looking to invest in that area and was wondering if anyone knows much about the area. The prices seem very cheap.. I was wondering if it was a Housing Commission area or just a bad area.
Any help would be great.
Cheers
Of all the 1,00’s of suburbs/towns in Australia, what made you consider Norlane?
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.auOriginally posted by resiwealth:I noticed u have 70 projects under way currently M.Y from an add in the API mag, care to list some for us …
resiwealth
Its currently 87 projects at various stages from concept to completion (there are 19 people on our team) Past and some of our current projects are listed on our web site some with photos.
But it has already been suggested that this post has gone way off topic and has become a “spruik fest” for me so let”s leave my business out of this.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 MiniMogul:My word, what a spruik-fest this thread has become Michael.
You are correct, but it was not instigated by me and fortunately I don’t need the publicity.
I find I am continually asked to justify my business and commercial descisons.
I am comfortable with that and sure it is good for business, but I would rather a more constructive discussion that helps other forum members.
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.auOriginally posted by resiwealth:So M.Y what is your seminar content and how do u justify the price you charge??
resiwealth
What I charge is a commercial decision, I am not sure why people keep asking me to justify how I run my business. I don’t ask my dentist or solicitor why they charge what they charge. I bet I pay my accountant at a higher hourly rate than you pay yours and the same with my solicitor. I get good advice but it is expensive. I am prepared to pay for it.
A long time ago I learned that if you are the smartest person in your team you are in trouble.
Anyway…. I am going to give you the answer you probably want to hear, but probably didn’t expect to hear.
I charge that much because I can.
I only run this workshop once a year and every year it sells out.
The attendees can ask for their money back at the end of the seminar – but no one ever has.
Each time 5 – 10% come back the next year and bring a friend. This year 3 people are returning and bringing their teenage / adult children and 4 others are coming back for a 2nd time.
But remember this is an advanced seminar and not for everyone. It is definately NOT a get rich quick seminar and NOT for beginning investors.
I guess I can get away with charging what I charge because of the content much of which you won’t hear elsewhere. That’s why many professionals come.
Last year the Reno Kings came as attendees and paid full price. They run their own seminars. Each year many of the attendees are in the property industry. This year there will be 4 estate agents, 3 builders and 2 project managers attending. I guess these people recognise that I know a little more than them and are open to learning more.
I know most people can’t fathom why anyone would give up 3 days and lots of money to listen to me. And that’s all right with me. I’m not aiming at the beginning invetsor.
The attendees are sophisticated investors who are prepared to pay for their education.Many poeple I come across think thow know everything about property or can get it in books or the internet. Welll I disagree. There are things I have learned over the last 30 years that you don’t know that you don’t know.
The fact that there have never been any complaints or disatisfaction with my workshops probably says a lot.
I give an outline of the content on my web site. I see no need to repeat it here.
By the way, just in case you thought I was just in it for the money, every year I give away 2 FREE places to needy people and 2 half price places to peole who can’t afford to come. For example one of the free places this year went to a lady from Queensland who has nursed a 23 year old retarded daughter and who’s husband had a brain haemorrage 3 years ago and can’t work.
Last year one of the free places went to a deaf lady who had a “signer” there doing sign language for 3 days.
I do this each year to give something back to the community. In fact I give quite a bit of charity, I am fortunate that I can help others.
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.auOriginally posted by MikeJackson:Michael Yardney,
Are you a registered building practitioner with the building commission. I think that is what colbert was asking. With all due respect, Being a member of the HIA does not ensure you have the appropriate insurances in place etc, my dog could join the hia if he wanted to and he could put their stickers on his kennel. Also does your project managment service carry public idemnity insurance and if so how much 10 million ? more ? less ? I think you must be a nice guy to put up with the mud slingin from colbert. I think he wishes he was you.The answer is yes and yes
I own 50% of a company that is a registered building company. My partner in the company is a registered building practitioner and has been for years and years. I do not have the time or inclination to run a construction company nor do I. I have never suggested that I was a builder.
Our construction company has a clean record and no complaints have been lodged against it.
Does this company have public liability insurance of $10,000,000 – YES it does.Does Metropole Projects carry professional indemnity insurance as a project manager. YES of course we do. Is it hard to get? – VERY. Is it expensive? – YES – but we must protect our clients
Do clients funds get held in a government guaranteed trust account that is externally audited? – YES they do.
Do we try hard to act professionally in the interests of our clients? – YES we do.
Does everything always go as we plan? – NO it doesn’t.
I started Metropole in 1979 and it has traded profitably and professionally since then. We are not one of the new cowboys.
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.auOriginally posted by colbert1982:Must be a MASSIVE donkey if it is Comparable with your backside.
Anyway, i am more interested hearing from Mrs Yardley.
Cheers
I don’t understand what you are waiting for.
I repsonded to you yesterday with a private message and explanation showing you that you were wrong and that my building company is a mamber of the HIA and has been for 13 years. I laso offered to discuss the project you thought went wrong. I offered to meet personally so you could speak with me face to face about this issue and the problems you obviously have with me.
I really hoped to show you that I am not so nasty.
I didn’t want to continue a public slinging match as it denegrates the value of this forum and does not help delboy who started this thread and requested advice
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.auOriginally posted by colbert1982:Wow, its looks like Michael has a new word to use ‘prudent’.
Michael, it is in your best interest to advise people to seek developers advice as it keeps your industry ticking over, as a result, you are not the best person to reply to this topic as you are biased.
One more thing. Tell me how much of your ‘millions of dollars’ worth of building work have turned pear shaped? I know for a fact that you were heavily involved in a job in Patterson Lakes, Victoria that went horribly wrong.
Cant wait to hear the excuses!
Pull your head out! GAF.
Cheers
You are correct – things sometimes go wrong in developments.
Hence my PRUDENCE
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.auIf you’ve never done this sort of thing before be very cautious.
Have a look at the post on the risks of property development in this forum.
Then have a look at Residex’s predictions for the SE Qld unit/ townhouse market for the next 5 years.
They predict NO GROWTH for 5 years, based on the fact that historically every time there has been a boom in Australia of the magnitude that there has been over the last years in Qld, there has been a slump or bust that has lasted at least 5 years.
Maybe its not a good time for a beginner.
If you still wnat to proceed get someone experineced to hold your hand.
Have a chat with Sailesh Channen of Developers Edge –
http://www.developersedge.com.au/he may be able to help you.
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.au
