Tips – be nice to your mum and get a good education.

No – I’m not being smart.

Be nice to your Mum because maybe she will let you use her equity to give you that headstart.

And get a good education so you know what you are doing.

That is what I would do if I was 18 again – in property anyway – GIRLS – now that’s another story.

Petters

Don’t sell it – use the equity to help buy you another property.

This type of property investing is not meant to be short term. If you sell in two years then you will be luck to muck anything usually.

If this property keeps growing at the rate you mentioned (about7.5%) then it will be worth about $900,000 in ten years.

Profit then will a bit [] higher.

Investing for capital gain not weekly income must be treated as a long term investment.

My thoughts

Petters

$100,000 construction cost back in 1987 would be a substantial size property. Be careful not to over estimate what you think the property cost to build back in 1987.

Construction prices have gone up incredibly since then.

Sounds good though.

Petters

If you transfer to an unrelated party then there will be double stamp duty. I have done this on off-th-plan purchases a few times.

As far as I am aware the last purchaser becomes liable to pay all the stamp duty for the orginal purchaser/s. There is then a disbursement via solicitors at settlement to refund the stamp duty payable by the vendors to the last purchaser.

A bit messy but solicitors seem to work it out OK.

The point for you is that you as an individual should never pay double stamp duty but the SRO may get two stamp duties on a property in quick succession.

We are all in the wrong job – get rid of stamp duty or at least call it a tax because that is waht it is.

Petters

Low Documnet loan would be the best way to go for now as you do not have a job. But if you plan to get a job in the short term then be careful locking into a product like this. Some have substantial penalties for refinancing.

If you are going to get a job in the short term banks will look at the following points.

How long have you been unemployed
What was your previuos employment.
What are the conditions of your current employment?

The reason for this is that the bank will usually like to see at least 3 months in a job where you have not changed vocation. If you change vocation they may ask for 12 months worth of time in the job.

So if you get a job soon in the same feild you worked previuosly then you may only have to wait 3 months to get your finance approved.

I usually suggest that onec you get a job you go for pre-approval and they will put a condition on the loan that you have worked in the job for 3 months. Then you can potentailly buy – subject to finance – and do it all in about 4 months.

My thoughts

Petters

Hi Gman and others,
I am doing my first property trade at the moment as opposed to the strategy of buy hold rent sell on other properties that I have.
My question to those out there who might know.
IS Can I charge the company that I am sole director of , for a consulting, come administration Bill if you like for overseeing all the renovation work etc that has been done on the house that I hope to sell quickly.
Why I want to do this is because CGTax will take half my gain as I am selling the property under 12 months. Which really puts a major dampner on the project for all the effort that I have spent getting it organized. I thought it may be a way of making the project worth while and minimising the capital gain on the property.
The CG tax situation really makes me question whether it is all worth it???

What do you think out there?????
Thanks in advance
Isagold