Forum Replies Created
Don’t get me wong – I am not being negative for the sake of it.
I get calls from folks each week telling me they have discovered a great property in some remote tiny spot or even larger spot like Broken Hill or Mt Isa etc.
At the end of the day you need to concentrate on two things.
Will the property continue to rent easily. Even if there is a closure of a major industry in the town.
Is there any prospect for capital growth?
Remember we have just had one of the biggest booms in history where everything went up. Thanks to Steve’s first book people chased pos cashflow out to the ends of the earth (Australia anyway) and prices went up in towns where prices normally never go up.
Now that boom has finished you need to consider whether, despite looking attractive, this property is undervalued or overvalued.
Another minor trap with the cheapies is that, despite being cashflow pos, one decent repair job can blow the annual profit. A HWS for example – esp in a town where there may not be a resident tradie – can cost a lot when compared to yield.
Does the town have a PM?
But – having said all of that it may be a super deal.
The sort of research you now need to carry out is not in doing numbers. Put down the calculator and look at the town and the facilities and prospect for population growth.
Keep working mate.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Anyone can find deals with numbers but please tell us why you think it is great Phil?
You haven’t even advised the rental?
and I am assuming that this isn’t a thinly veiled ad for a property you are selling……..
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The transaction needs to be at arms length. If the property is transferred at anything other than full market value then you pay duty on the market value.
You may still get the FHOG depending on when you got your IPs.
They may avoid CGT depending on when they built the property too.
Best to see an accountant mate.
If you bought it for $5000 imagine your CGT when the time comes? [blink]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by lisabellan:We subdivided a block my mum owned and put the new block in my name and I had to pay stamp duty at the amount the valuer general valued the block at the time of title transfer. Love and affection unfortunately had nothing to do with anything with our family transfer. we live in Rockingham WA.
I think the difference lies in that it is between spouses.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by fernfurn:Just a thought, (read carefully) – if you are seperated and buying the other partner out, you dont have to pay stamp duty
Fern
Or the No More Love and Affection Policy?
Anyway Andy – call these guys and find out for sure exactly where you stand.
General duty enquiries
For conveyances, mortgages, contracts and premium property duty
Phone: 1300 139 814*
Fax: (02) 9689 8280
Email: [email protected]Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No. You may even get a stamp duty exemption and the FHOG if this is your first home.
They may have to pay CGT if the transfer value is deemed to have realised a capital gain and should seek advice from an accountant.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Your managing agent should be handling all of this for you. Give them a call for the next step they are taking.
Good luck
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Outside of my experience level.
Are these properties easily sold? Wil lthey go up in value?
Sounds like you need to buy a lot to make a decent income – lot of work.
Not for me mate but I wouldn’t even dream of commenting on it.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Blakeb:as the property market is extremely volatile at the moment. Timing is everything at the moment.
Blake can you expound on this please?
Most people are saying that the market is less than volatile with the poss exception of Perth.
I find that my buyers are in the driver’s seat and timing is the least of their problem?
Ta
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by basil:The example given to me the other day was as follows:
A tennant is in place, they have just lost their job but are sure they will be starting work again in a couple of weeks. They will be able to sort out any outstanding debt when they get their next pay – or over a couple of pays.
I did not want to evict them. The person I was talking to said they would have no trouble as it is an ‘us or them’ situation – the mortgage still needs to be paid.
Do unto others and all that…..
BasilLets be ruthless….. How long to get in a new tenant? How long to evict this tenant? What will be left owing?
Is this tenant good in all other respects?Win win can be win win, however if this person takes advantage then show them the road.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I almost agree with Maple above. Well I do agree but with one caveat.
There are sometimes people out there who because of their very nature or even just cultural differences need to get everything that can out of a deal and deny you everything they can. When you strike someone like this you have three choices:
Not do business with them.
Give in.
Treat them the same in return.
As distasteful as the third option is sometimes it is all they will respect. I am the friendliest guy in the world and lie awake at night worrying that everyone is happy. I usually walk when I get a client like this or am negotiating with someone like this. Takes too much from me. But as my wife says – I am soft [blush2]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Not much info here.
What effort will it cost you each week?
What is the risk profile?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by DLPP:simon – not much difference until you start looking at the requirements or penalties for not carrying it. I worked as a police officer for about 10 years so I can see many areas where it would be beneficial but I also have a bit of a problem with the big brother intrusions that come with these sorts of things.
I’m 50 / 50 on the idea. Documents will get copied and increased security features just means that the black market docs will cost more.
Positive Cashflow NZ Property Deals.Email to receive current deals & Free New Zealand Information Sheet [email protected]Difference? On Christmnas Eve my wife drove some drunks home as she doesn’t drink and they couldn’t get a taxi. Smiled as she got booze bussed with a righteous feeling. Left $75 poorer for not carrying her license – she hadn’t planned to drive but being a good citizen was no excuse apparently!
I find it hard to imagine Australian society insisting that we carry it outside our homes at all times. Maybe it will just be necessary for times when we need ID – travel, banking etc etc
Would certainly make this a lot easier – esp if it was a smart card with medical info, drivers license codes etc etc stored on it. Maybe even use to pay for things with a small change type swipe card. Swipe now for the newspaper, the big mac or the bus ticket. No PIN or keys needed.
I reckon this can be good if it is done right.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sounds like you are happy to are happy to stick with Wizard.
Just remember that they will run out of lending before mainstream lenders. If you keep buying there will be a time that you will need to refinance. Hopefully after the four years [baaa]
I have little experience with FHOG and trusts. Sounds like you may be OK. Might be worth calling their helpline on Monday. Look up the OSR in your state.
I hope it works out for you mate
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What is the real difference between an ID card and a drivers license?
maybe just that only 98% of the adult population carries one?
(I just guessed that stat [blink])
I carried a workplace issued ID card for years and found it nothing but useful. Was accepted everywhere as ID etc.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon,
1.2% penalty if you sell within 4 years. This is up to $4200 penalty.
Rate isn’t everything mate. List what you wish for in a loan and then reexamine the Wizard loan to see if it suits. You may find it lacks some key features.
But if rate is your only criteria it may well be perfect.
Depending on when the first property was purchased you may be entitled to the FHOG. Are you on title for this property?
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If it reduces fraud then I am all for it.
Apparently we are a favoured destination for visits by foriegners to use our medical system for surgical procedures which are unaffordable in a user based system or a less sophisticated medical system. Borrowed Medicare Cards make it a hell of a lot cheaper.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Just quickly – Interest only is the way I generally take my clients.
[biggrin]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Have you spoken to Derek yet?
He is a well experienced investor and a compassionate man. Rest assured he will give you a kind ear, reasoned advice and he has no hidden agenda. You will soon understand why he has offered whan you ask him what he does for a living.
I understand that you feel some despair. Rest assured that your family will not starve here in Australia. Many people go through these challenges and come through OK.
I think you should endeavour to retain the unit. Try to think of medium term as 20 years and long term as the rest of your life. Selling now might give you a short term fix but will do nothing positive for your future.
Can you move back with parents for a while? I cannot imagine any Mum not wanting her pregnant daughter and then new grandchild living with them for a while? Might drive you nuts but is that worth it?
Renting something much cheaper may also help. You can claim some tax deductions on the interest etc on the property and the rent you get will help with the repayments. Might be worthwhile running the exercise on paper to see if heading out west might make a difference.
Can your wife run any sort of a home business on the side whilst she is confined? An old fashioned word but strangely appropriate here.
She might enjoy the contact with adults and the additional stimulation. But bear in mind she may also have her hands full with the new baby etc. Women seem to either find more energy or lose all of it with a new baby. My wife coped admirably but I know I didn’t cope well with the sleep deprivation at first!
I have clients running eBay businesses. My 12 yr old daughter also supplements her pocket money the same way.
A paper round can provide well needed exercise and fresh air for the both of you as well.
But it is a viable alternative to sell the unit and cut your losses. As you say, you are both young and resilient. Now you have been through buying and selling once you will know how to do it, maybe slightly better too, when it is time for the next buy.
Perhaps one positive thing I can leave you with is from my own experience. Before we had children, my wife and I saved very little. We had the freedom to go out a lot and also to travel at the drop of a hat. When my wife was pregnant she stopped teaching and our income was halved. Funny thing is that we saved more from that point than we ever did before.
If I can help in any way, in a personal rather than professional way, please get in touch.
Warmest wishes and congratulations to you both
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:Mate – we al lwere at that stage once.
Once you knock those debts over then start paying the same amount into your offset or redraw account. Very soon your equity will build to a point where there is a deposit just waiting for you to use.
Then you have two properties working for you plus your income. Next deposit is even easier.
I have a bit of a strategy for debt treduction – nothing startling and nothing new but if you are interested drop me an email. It is about time I got it down on paper and out to people. I am not selling anything nor do I want anything in return. Just like seeing people reduce non deductible debt.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for al lthe emails – got me off my bum and just spent this morning trying to put my thoughts into coherent order. I now have a new found respect for Authors and I only wrote ten pages!!
Did it whilst listening to some great Aussie Hip Hop too [headphone]
I have emailed those that asked and will email more to anyone else. Send feedback please.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
