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It certainly is a great way for the developer to fund his land. Buyer beware
I would have thought that in the current cycle there are better places to invest than Perth. Concider Melbourne where you will recieve much better capital growth.
Nigel Kibel | Property Know How
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As the market booms so will all the new property investment companies. More and more crap
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Keep in mind that in New Zealand interest rates are already over 10.5%. The effect is that the market is now slowling. Anyone who has lived in or owned a home for 5 years or so has a lot of equity. Many will just eat up some of the equity that has been created.
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We are not going to see a collapse of 30-40%. To even suggest this is silly. Even in the United States the slump has been nothing like this. In fact6 in cities like San Antonio in Texas the market has incraesed by 11.5% in the last 12 months. It is important to remenber that America has a population of 300 Million. The reason the market has not collapsed is the same it will not collapse here. A strong economy and secondly anyone who has owned a home for say 5-10 years is sitting on a larhe amount of equity, which most of us can access.
Frankly if you waqnt great cash flow property take a look at the United States.
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Typical nonsence you would expect from 4 corners which is about the same as today tonight. The reality is that it has hit the American housing market. It is now difficult to get money from second tier lenders, however banks are still lending money, it is also likely that the US fed will cut rates by at least .25% but it could be as high as .50%. What is important is that it is a great time to invest in the United States. The market is in my opinion at its lowest point.
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Anyone selling properties full stop must eithert have a full license or work under a licensed agent. While I commend any education especially when it invoves ignorant real estate agents it is highly unlikely that ASIC will control investment properties as real estate comes under state control while ASIC is a Federal body.
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I have just traded my audi A. 6 on a Mercedes Benz e320. It only has 85,000km. It is a fantasitic car. It is dream to drive and very safe for my family. My wife has a landrover discovery.
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There are indeed it just that in many parts of Texas while the rest of the United Staes has been going backwards in San Antonio the market has grown by 11.25% in the last 12 months. If you are looking for good cash flow I am told that Indianapolis is worth looking at. You will get higher eturns than Texas but not as much growth. I am hoping to go back to both places before the end of the year.
Nigel Kibel | Property Know How
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I do not think that the rate rise of .25 will have any great impact of the market at all. Interest rates mainly hurt the bottom end of the market. Most other people have equity in there homes so while they may lose a lttle equity it will not effect there affordabilty.
An interesting comparision is New Zealand. The prices in many parts are comparable to Australia rates are now at 10.55. There are some signs that the market is slowing a little. Keep in mind that when the market slowed in Australia it keeped going in New Zealand. There is a lot of pent up demand. Do not expect the market to move down anytime soon.Nigel Kibel | Property Know How
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If you are buying in Australia, there ae major disavantages in buying in a company. Changes were made to capital gains tax a number of years ago. If you own a property for over 12 months and you sell it you will recieve a 50% discount on capital gains tax. In other words if you make $100,000 you will only be taxed on $50,000. However this only applies if you buy in your own name or a trust. If you buy in a company there is no discount, you will be taxed on the full amount of your profit.
The only benefit of a company is if you are a trader. If it is your intention to buy and sell properties within 12 months of purchase.Nigel Kibel | Property Know How
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The market is booming around Australia, unless you are looking in mining towns where there is a lack of accommadation why would you expect to buy positive cashflowe property apart from dying one horse country towns.
Nigel Kibel | Property Know How
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Most if not all positive geared property is located in one house country towns. As the market begins to heat up these areas may fall. As an example Ballaret in Victoria, hardly a one horse country town with a population of 80,000 has a lot of properties on the market. The volume of sales is way down.
The bestopportunities for positive cashfloe remain in the United States. The market is flat there. You can buy properties in main cities that will cashflow.
Nigel Kibel | Property Know How
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I have been buying property for clients in Melbourne and other parts of Australia for some time.
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My advice is to go there and inspect the market yourself. I spent a great deal of time in Texas last year and their is nothing like seeing and experiencing a market for yourself. Do not buy over the internet sight unseen and always question what you are told.
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I ran a real estate agency and an investment company in San Antonio texas for much of last year. I would be only to happy to have a chat.
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I think you will find that any area located near the watwer will increase in value. The greatest issue with Franston is access. With the new freeway that will change the other problem has been that the rents have been limited. That too is changing. How many areas in Melbourne can you buy a house for under $300,000 and also over $1,000,000. As a comparison just look at Geelong. It has changed and grown greatly over the last 7 or 8 years.
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Speak to Andrew Clark at Clark Jacobs [email protected]
He is an accountant based in Sydney who does both Australia and New Zealand tax returns.
In terms of where you borrow the money it needs to be in New Zealand because an Australian bank cannot take security of a foreign asset. It is not hard to get a loan however you are paying New Zealand interest rates which are high at present.
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Hi Dean
I am based in Melbourne
Nigel Kibel | Property Know How
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Hi Dean
I am based in Melbourne and run a buyers service. I have purchased properties for clients from Australia to New Zealand and the United States.
Nigel Kibel | Property Know How
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Hi Kate
I am currently establish a bird dog services in the United States with a base in Texas and Indiana
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