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  • Profile photo of mpertilempertile
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    @mpertile
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    July 7, 2008 - 12:15 am

    Tugger,

    This is their property until settlement and you have to repect their decision, whether you agree with it or not, early access is their decision to make. As far as the advertising goes, I'm sure if you advertised it saying that it's not available until after the date of settlement, then there shouldn't be a problem, you can just make up a waiting list of people to see it once the property becomes yours.

    Profile photo of mpertilempertile
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    July 6, 2008 - 11:38 am

    Think outside the square – if you want cashflow positive property, read steve's bit on lease options, under "investor HQ".  Buy low and sell higher (usually a little higher than market value).  Lease options are really a low-doc loan from you to the buyer, so you can charge a higher interest rate than you are paying to the bank – that's where your positive cashflow comes from.  IMPORTANT TIP THOUGH – MAKE SURE YOU FIND A SOLICITOR THAT KNOWS THESE KIND OF DEALS TO DO UP YOUR CONTRACTS!!

    Profile photo of mpertilempertile
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    July 6, 2008 - 11:28 am

    I invest with an investing partner and we have a joint venture agreement drawn up by a solicitor to outline everything – we then do a partnership return at tax time and everything is split 50-50.  You can even do up a JV agreement between trusts. Although it sounds complex to set up, it makes things very simple down the track as each parnter knows their obligations and there are no disagreements as all was agreed on at the start, also, no disagreements on what happens to the money as it all has to be taken out of the partnership – half each – at the end of the financial year.  

    Profile photo of mpertilempertile
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    July 4, 2008 - 12:11 am

    Sorry, I meant corporate beneficiary (or if the capital gain is distributed to the corp beneficiary) – 7.33pm is obviously too late for my brain to function properly… 

    Profile photo of mpertilempertile
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    July 3, 2008 - 9:33 am

    I already managed to have them agree to waive almost $10,000 in LMI, so I won't push my luck…

    I'm considering a corp trustee, but don't need it yet – maybe down the track.  Also, no 50% capital gains tax discount with a corporate trustee…

    Profile photo of mpertilempertile
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    July 3, 2008 - 8:57 am

    Thanks Richard, these properties are positively geared, so the negative gearing thing isn't an issue – and the bank has everyhting under control re the lending, I am still getting a professional package with a low interest rate – I insisted on it.

    You are right about the perusal fee though – $350!! But after already paying for the trust, what choice did I have…  :-)

    Thanks again

    Profile photo of mpertilempertile
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    July 3, 2008 - 8:26 am

    I didn't think so – just thought I'd ask just in case  :)

    And I am talking about a DFT…

    Thanks heaps for your input Richard!

    Profile photo of mpertilempertile
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    July 3, 2008 - 7:23 am

    I'm not sure bond is technically income, as you either keep it to pay for damages, or it's given back to the renter, so it would probably have to be incuded in your 07/08 return to offset the cost of your repairs for the damages…

    Check with your acocuntant though…

    Profile photo of mpertilempertile
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    July 3, 2008 - 7:18 am

    As far as I'm aware, unless it's stated as a condition on the contract that they require the council to approve a 1000sqm building envelope, then they cannot terminate the contract, of course unless they were misled by either you or the agent. 

    All that being said, you only have a legal recourse in this situation, so you can either decide to let them walk or fight them legally. Did they pay a deposit on signing the contract?

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