Forum Replies Created
- Originally posted by pgrim:Quote:Originally posted by matca:
If not, has anybody started out investing in their own name and then transferred assets over to the trust?im also interested in this question as im purchasing properties privately in my own name, is it possible down the track to form a trust and put the properties i own into the trust?
thanksSelling to a trust is a change in ownership in the eyes of the law, as a trust is a separate legal entity.
This means stamp duty is payable as is CGT. If you try and avoid the latter and sell for the same price you paid for the property the State Revenue office will send youa “please explain” letter and you will have to justify the selling price as is not “an erms lenghth sale”
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auSorry to be a spoil sport, [blush2]but have you ever wondered why banks don’t want to lend for the type of property you are looking at.
Remember banks are money shops- they make their profits lending you money.
But they have also been around long enough to know that property prices in “one horse towns” are very volatile and even with a 20% buffer (that is – your deposit) they could still loose out.
And….so could you.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auHave a look at http://www.buyingmelbourne.com.au
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by Shelley230672:Can anyone give advice on using a buyer’s agent for interstate purchases?
In which state are you interested in purchasing?
Michael Yardney
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FREE subscription http://www.metropole.com.auWe regularly engage demolishers to demolish houses as we are involved in proeprty development.
PLease not that you will need to get a demolition permit from a council or building surveyor.
If there is salvagable materials, then the demolishers charge less. In Victoria the cost of demoltion has shot up about 12 months ago because every property that is to be demolished now needs an asbestos audit and finding asbestos (often in the eaves linings) means an extra expense.
Allowing $7-8,000 should cover you
Michael Yardney
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FREE subscription http://www.metropole.com.auOriginally posted by workfree:[biggrin]
Thank you for your response Michael. It reads like sound advice. What does that mean for rural PI here? How does one avoid -ve CF investing in a major city? My idea of on selling in short period is to try and generate +ve CF then reinvest. That is a multiplication by division approach to wealth creation through IP’s. However you’re saying that this approach to turn over will not work in current enviro but perhaps in the next upward cycle – so I should purchase IP with the view to hold on 1-4 years.
I would much prefer a portfolio with quality IP, a stratergy advocated by independent advisers like the Wakelin couple (Streets Ahead 2002) but it takes so long. This also means my financial independance is strapped to PAYG for a lot longer than I want.You are right
Property investing is a long term strategy. I know Richard Waklein well, we are good friends. I agree wholehearedly with his strategy.Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auThey will probably charge between $400 – $500 per property
Michael Yardney
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FREE subscription http://www.metropole.com.auI think that this approach is frought with danger.
I agree that you should try and keep the emotion out of the purchase equation, but buying properties site unseen is a very naive and simplistic approach. It suggests that properties are like shares – all the same. You can buy you NAB shares site unseen – it makes no difference which one you buy, but this DOES NOT work for property.Each property has some speicial attributes that make it unique. And as crj suggests, you could be buying yourself a heap of trouble
Michael Yardney
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FREE subscription http://www.metropole.com.auIf the builder organised for the drafting of the plans and paid for them – then they are his.
You could always buy the plans off him and then you will have the right to let another builder build your property
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auOriginally posted by workfree:[biggrin]
Well all the discourse on Aussies investing in NZ property on the forum. That is, positive cashflow properties in the poorer socio economic towns of NZ. The towns that sound like the Ballart of old that the Administrator wrote about in his first book. They say no CG tax and no stamp duty and potentially an extinct phenomemon so get in quick before there’re all gone.
One of my duaghters lives in NZ and so I have developed a fair understanding of their property market.
Most Aussies buying there are overpaing heaps at present (but think they are getting bargains becuase the compare ther prices to Melb or Sydney)
They will get little or no capital growth for many years.
I firmly believe you become wealthy in property through capital growth, not by earning $10 a week +ve cashflow (taxable)
I am sure that most investors would make more in the long term by purchasing a good established property in a major capital city in Australia at below market price and adding value through refurbishment.
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 workfree:[biggrin]
Thank you for your reply Michael
How do you think this approach compares to chasing the HOT NZ scene.
Anyone?
What do you mean by hot NZ property?
Michael Yardney
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FREE subscription http://www.metropole.com.auThe cost of $10,000 per square that woodsman mentions is the right ballpark for Melbourne prices.
For this you would get a well finished unit, carpets, airconditioning, wooden floors, granite benchtops etc.But then there is the land cost which varies from subub to suburb and the cost of getting your planning permit/DA. This varies considerably also.
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auOriginally posted by workfree:[biggrin]
Hello fellow PI’s
Thank you for rapid response. Plane is for quick exit stratergies using industry contacts for efficient reno’s. Ideally quick turn over and move to the next. Approach is local and potential
for several project. Not sure just trying to get something started. Thoughts?The concept definately works. We buy exactly this type of property for our clients (to see examples subscribe to our newsletter – http://www.metropole.com.au
But there is not sufficient profit in these to turn over for a quick trading profit. Not in today’s market and especially when you take stamp duty into account.
Last month we bought 3 individual apartments in great suburbs for clients who paid around $280 – $290,000.
In general they will spend $10- $12,000 doing up their apartment. This could add $25-$30,000 value and increase the rent by $20 – $40 per week.
The technique builds equity and inreases return, but there is not enough profit in the current market to trade these properties.
And why would you want to. Property is a long term investment.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auHi Malcolm
In order to find a good property manager you may find the report below useful.
BY the way, with the internet nowadays, you don’t necessarily need a property manager who is just around the corner from your property.
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.auAn exclusive management authority cannot last more than 60 days in Victoria, so you are NOT locked in. You are free to chnage agents if you wish.
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 The Mortgage Adviser:I am familiar with SIG but I am not a big fan of the Somersoft locals. I believe they consider themselves better than everyone else. They also don’t take kindly to newcomers or competition.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auI have been a poster on the Somersoft forum since its inception, but I must admit I have not been to many of their meetings.
You are probably being a little harsh.
Some are a little aloof, but most welcome newcomers with open arms, especially if the contribute to the forum as I am sure you could
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdMichael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auOriginally posted by femaleage20:could you tell me more about wealth creator. Whatb info does it contain? cost?
I might buy another FR paper and make it my mision to sit down with a ditionary and read through it (might also help with my spelling)
Wealth Creator comes out every 2 months and is not only about property. It is aimed at the Generation X’s and talks about wealth creation in general.
Its worth a read at about $8 an issue. They also hold monthly networking meetings in most Melbourne Sydney and Brisbane.
Another source of property information you could consider is Property Investment Update that I author. It’s a free monthly e-magazine of about 15 pages that is read by over 10,000 investors each month and is now in its 4th year of publishing.
Subscribe at http://www.metropole.com.au and get an ebook on How to be a Power Negotiator for free.
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 terryw:Michael
Couldn’t he get access to the deposit if the purchaser agrees to its release?
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meNot according to Victorian legislation. I am told it must stay in trust so the vendor does not have access to it for the development.this is for “off the plan” type developments.
Otherwise for a normal property sale the vendor can access the deposit.
In this case the vendor wants the full amount – this is a no no
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by morty:G´day guys, been reading the site for a while but never written in so bear with me.
My question is this: I´ve got an old house in brunswick, melbourne on quite a large block that i want to demolish and build either 2 or 3 townhouses. I´m not sure where to start as far as plans and permits are concerned, could anyone recommend a good architect/town planner that i could go through to get my plan underway?
I´d appreciate any imput. Thanks, Morty.
That’s exactly what we do and we are currently involved in project managing 80 developments for clients such as your self. We organise the plans, permits, working drawings, engineering, builder selection. In fact the whole lot from beginning to end.
And there is no one in Mebourne project managing or developing more projects than us.
Have a look at our web site http://www.metropoleprojects.com.au
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by JULES1:I also thought it was a bit strange that the Bank would not provide the loan based on the great deal that this looks like being. I don’t really want to provide the full sum up front and wait until the subdivision before I can sell.
But the land really looks good. So I don’t know what to do
Jules1[blink]
I can tell you what to do – stear clear of this one.
By law in Victoria he can’t use your money anyway, it is held in trust until settlement to protect you. But even if you did –What if you pay him your money up front and things don’t go to plan.
And how would you finace it? – you don’t own the property so you can’t use it as security.
This doesn’t sound like a deal you should be looking at
Michael Yardney
Metropole Properties
http://www.metropole.com.au
