Forum Replies Created
If at the end it all turns nasty – let the ATO know he has recieved a profit not derived from a PPOR – then at least he has to pay tax on it. Poor consolation I know. So all the very best and seek good council.
MickHi Terry,
As always your comments are thought provoking and informative. Do you know of where I can find more information on this? I was of the understanding that there were certain documents that needed to be included for it to constitute a contract (eg council searches etc). Just curious.
Thanks,
MickI tried to find a few address and kept getting "unable to find that property". Tried substituating surrounding suburbs in case it was entered incorrectly to no avail. Oh well.
"i trusted a group to build some town houses and lost six hundred thousand dollars"
?Home owners warrenty insurance? Is it applicable to this venture?Valuation – if you disagree with the valuation you can always get your own independant one and submit it to the lending institution.
Mezzinine finance – Personally I do not know details of this but others on this forum do, try the search function
Jules, it sounds like you have had a tough time and may not be through it all yet. I do hope that there will be some helpful replies for you. All the best, Mick
Have you tried talking to TICA?
Try offering another incentive,
suggestions
– 2 weeks free rent
– $$$xxx petrol voucher
-$$xxx grocery voucherIf a prosepective tennant percieves your place as one where they are getting something for nothing then the time will not be an issue. Less detail is required. Youare only offering a 6 month lease. Why is your concern, no one elses. I am not suggesting that you be deceitful, a 6 month lease is just that. It allows both parties an out clause if something isnt working out.
As a fip sugestion, is there any way that you can move into it now, then it is you PPOR from the start. Then as you need to be elsewhere, move out and then getyour 12 month leasee in place. I guess you have considered this, but just covering all options
Mick
Rudi,
You are right, there are no crystal balls, just educated (or in a lot of cases, uneducated) guesses. Some areas will remain stable and others will go up even in a nationally declining market, that is the nature of statistics and humans. At the end of the day, it is only your butt and $$ on the line, so that is why you must carry out and be confident with your own research (due diligence), especially in the current market. If you are unsure and not confident in the market, then there is no shame in holding off. OK, so you may miss an opportunity, but that is something you will learn if you stick around the game, there are always "opportunities". If you do decide to proceed, factor in a higher interest rate and see how you feel.
Just my 2cw, Mickkeep pushing the banks. Even once you have written approval, keep pushing them so they are able to settle on time. I have just gone through both a buy and a sell where I had delays that cost me money, in both cases it was delays on behalf of the bank. No one taking responsibility, documents waiting to be signed , blame game (sydney does the discharge, not us type of thing)etc. From now on, 3 weeks out from settlement I shall be asking to have all documents signed as that is the length of delay I experienced in both cases. Total out of pocket $almost $2K for the buy in penalty interest to vendor, $1500 for the sell in extra interest payments when the loan should have already been paid down. OK not sheep stations, but that is over $3K for nothing, make a hell of a Christmas party if I was just going to blow it!!!
MickTalk with your accountant, perhaps if it is viewed as an investment, it could be considered a capital loss to be written off against future capital gain, making the loss not quite so painful. Just a thought and please not I am not an accountant.
Hi jjsl,
Whilst you cannot claim the interest on land (unless you can show that his is your trading stock, ie you are a land developer and it is your main source of income, then the CGT discount wont apply), you will be able to add it to the cost base when you sell so all is not lost.
Dont be pressured in to jumping into the market as you feel that anything is better than nothing. It will only lead you to many sleepless nights. Work out what you hope to achieve and then work out an area that suits you price. Know everything you can about that area so that when anything hits the markt you can be objective and say "yes, good deal" or "no, bad deal" and more importantly know WHY. This way you will make a much better buy and get alot more sleep at night.
All the best
Mickwithout question, YES.
FHO,
I have plenty of support for a would be FHO. However, most should be realistic with their expectations. The McMansion complete with 40 months interest free furniture looks very impressive when keeping up with the Jones. However, that is not what the majority of investor purchase. I am tired of the continual "poor me – I cant find a house" mentality. There are a lot of investors currently buying properties with lower price tags. Ok, so it isnt where you would want to live, neither was my first home, a dated town house in a complex of over 100. I never viewed it as "the dream" it was merely considered a stepping stone, and a prospective rental property. Unfortunately we have become a society of gotta have it and gotta have it NOW!!!!
If houseing affordibility is too high where you are then move. If you choose not to, thats fine, but remember you ALWAYS have a choice and you must be willing to accept the choice you make, and not play the blame game. Thats the easy way out.
Undoubtably there are are alot of people who have made a little money and probably a few who have made a lot of money, but as mentioned above, there are far more that didnt make any or even lost money due to the product and promotional (motivational) purchases. You mention you were invited to a "business meeting", why, because if you were told "come to an Amway (N21) meeting" would you go? Probably not as there is such a negative sentiment about it, which puts you on the backfoot to start with. When young and naive, yes I went along and signed up. Was talked into buying all the positive tapes etc. Fortunately didnt put to much $$ in as I was a uni student and the day I was told I should be at the "meeting" rather than studing for finals, I quit. Look closly at the motivational costs and where does that $$ go. Methinks the ones who push the peripheral stock make more $$ than those that try and sell the product if you follow.
Follow your gut,
Micksq metre of land or house size?
As you are looking at being at uni and being based I assume in the one area, consider the possibility of something that will make good student accomodation. You can manage whilst you live there and will have an ongoing investment. Check of course with an accountant, but if it obviously your PPOR prior to any rent, then you have 6 years after it becomes a rental without paying CGT if you sell. It would be a very unique situation to be in and one well worth taking advantage of.
By the way, a HUGE congratulations on what you have achieved so far. There are not many at your age with your frame of mind. I look forward to hearing of how you retired before you even finished uni!!!
MickEven on a sq m basis, it is still not like with like if one has budget inclusions and the other top of the line. That is why you need to be an expert in th earea you wish to invest in. Know that the price increase on $60K on property A is not due to capital growth, more due to the $50K they spent on their reno, which is not reflected in the statistics. That is one reason to take the figures for what they are, just a guide. It only takes a few "odd" sales to skew figures.
Mick
In the mining towns I have invested in I researched the $$ spent on infrastructure. Outside of the game, we may find it difficult to make the call on what world coal prices will do, I certainly dont pretend to understand the economics behind it all, HOWEVER, I collect confidence from the confidence of the big players in the field. That is always a good place to start. Yes, mines may eventually close down, that is something that you need to consider. But to a degree, price decline can happen anywhere. Look for a town that has other sources of employment as well.
Mickfirst stop is the council, they will tell you if you can and then run through all the thinngs you will nedd to consider. Then cost it out and see if the numbers work. It is a lot more involved if it is a rental preoperty and not just a teenage retreat for you eldest. What I am getting at is although it may be OK to compromise if YOU want to sleep in it, that wont cut it for a rental (eg smoke alarms, fire safety etc)
mick
I forgeot to make an obvious point. Assuming you are a couple that is looking at the long haul, whilst it may not be on the cards, pitter patering little feet have been known to cause a huge reduction in income and increase in costs. They certainly have a habit of coming along before that loan is paid off. My point, dont forget to factor in these events, sickness, loss of job etc. Not to be doomsday, but a realist.
Mick
Call the PI office, I am sure they will give you the details of the charity. It certainly does exsist and has certainly assisted those that need some help.
mick
