Forum Replies Created
Thankyou for your reply I will follow this up.
Cheers
Lapua
Lapua
Hi there ,mainly that area is for 1st home owners I have had a sniff around 98% are home owners and the rest rental, young families looking too buy their 1st homes around that area, though Midland up the road is upgrading , be very careful some of the lower income rental area’s are a problem.
Regads [cap]
Lapua
From my experience your trust has to be done first then you buy and put property in it.You would i say pay capital gains when you transfer it into a new trust.
Not advice justfrom my experience
can help further.
email private.Regards
tolduI think that is correct on your principle home
Also you need your trust set up correctly.Ihave looked into this big time and found my trust is not worth the paper it is written on 95% i bet of accountants and lawyers wouldnt know how to set it up Bullet proof way.And when i asked for a refund no go still did not believe me.
This is just from my experience.
Let me know i can get you to a correct trust set up.
Regards
toldu[cigar]Originally posted by Martine:I am looking for an accountant in the Melbourne / South Gippsland area that has good/ excellent knowledge in IPs and deductions, can anyone help? Martine
Hi Martine
I see two aspects to your request:
1. Referral to a brilliant, rather than good, accountant. There are a few exceptional accountants here, and Dale Gatherum Goss is one of them (if he’s not too busy)
2. Your need to define, in concert with your new accountant, what their role is in relation to your property portfolio and wealth building.My definition?
“My accountant exists to MAKE ME MONEY. He’s too highly qualified to put my receipts etc out of a shoebox (I pay a Bookkeeper to do that).”In other words, depending on the size of your portfolio, your desired lifestyle, work/family commitments, your bookkeeping talents (or otherwise [cap]) you will ultimately need to employ 2 professionals (bookkeeper + accountant).
The working reality is to see, phone or fax your bookkeeper at least once a week, and your accountant a couple of times a year, with a set agenda something like: “How can you make me more money this year than last year?” [cigar][buz2][cigar]
Your accountant and/or your bookkeeper should help you set up your filing system to make it easy to manage and work from.
Good luck from here.
Cheers
Greg
PS: Have you paid a Quantity Surveyor to draw up Depreciation Schedules on all your IP’s yet?Originally posted by Derek:I would suggest that initially you put the money into a high interest bearing deposit with ING or someone similar for a 6 month period. This will give you time to really explore your investment alternatives and to narrow down the focus a little. During this 6 month period I would read some of the books reviewed on this thread as a couple of the books discuss a change the mindset approach too – which can be invaluable when you embark on an investment program.
https://www.propertyinvesting.com/forum/topic/6845.html
By way of another example my investment plan, in a nutshell is to buy well researched property in long term growth areas of Perth and SEQ and then to leverage off these as they increase in value.
DerekHi Bouncing Benny
I agree wholeheartedly with Derek, and I hope you appreciate the quality of advice he (and others) have already given you. You could do a lot worse than emulating Derek. As for your “What should I do now?” question, please DO NOTHING until you’ve:
1. Written up your budget
2. Read and meditated deeply upon the links provided by Derek
3. Written down your Business Plan
4. Put your 5 Year plan IN WRITING, with:
a) Your 5 Year Goal Statement
b) Your 5 x 1 year plans
5. Established your Family Trust structure/s
6. Bought Dale Gatherum-Goss’ 2 books, Trust magic and Tax Battles:
http://www.gatherumgoss.comThe list is actually much longer, but in a nutshell: This magnificent country of ours doesn’t have one single property market, but rather a plethora of mini-markets, many of them at vastly different stages of their OWN, PERSONALISED PROPERTY CYCLES.
To make yourself into a real property tycoon, I’d urge you to set aside $5,000 – $10,000 for your personal professional development, and get yourself off to a few highly-regarded seminars / “boot camps”. I hate the term myself, but they REALLY DO WORK, and the networking contacts they bring into your life are awesome.
Have you read Peter Spann’s “$10 Million Property Portfolio in just 10 Years?” (published 2004) or ever gone to one of his seminars? If “yes”, I’m thinking about Spann’s brilliant tips on how to PRACTICALLY APPLY Median Price Data to time your entry into the markets at the most advantageous point of a particular suburb’s cycle (Ch.13, pp56-66).
I was so impressed with this chapter, I even invented a “212” mnemonic to help me remember and apply it:
2 years + 1 year + 2 years = 5 year cycle
2 = 1st 2 years of cycle: RELATIVELY FLAT GROWTH
1 = 3rd year of cycle: STARTS MOVING UP
2 = 4th and 5th years: MAJOR GROWTH SPURT
ACTION/MORAL: Buy at the end of the 2nd year or early on in the 3rd year of the cycleSpann’s talking city suburban cycles here; I doubt it works so clearly in regional/rural towns, which are so sensitive to regional employment factors etc. Spann gives an example of suburbs which have risen ON AVERAGE 8% over a decade:
“You’ll see that property growth comes in spurts…. many suburbs follow this pattern: two years flat, one year up, two years jump, followed by a repeat – two years flat, one year up, two years jump. Let’s look at this suburb’s growth and plot it. The first year is coming off a flat period. Very frequently a big growth spurt will follow a flat period like this. Then the growth rate kicks up tp 7% in year 2. This is our warning of the growth spurt to follow. If we had bought then we would have picked up the natural growth of the next couple of years. Year 3 the growth is 16% and year 4 the growth is 20%. If we had bought a $100,000 property at the end of the SECOND year in the cycle, it would be worth $139,000 at the end of year 4, or a growth of just over 39% in 2 years. And this is all pure profit to us. The growth rate then stagnates for a couple of years – no problem, we just sit and wait – and then it moves up to 8% for year 8. This is our warning of the next big jump, and we see 14% and 21% over the next 2 years. That would mean our $100,000 property would now be worth $233,000. Pretty exciting! While you don’t have to be this precise in timing property to make money over the long term, it will shorten the time it takes for your property to double in value and it saves you buying before the stagnant years.”
Cheers
GregOriginally posted by Scremin:Me thinks everyone so rich they all gone to the Bahamas and forgot to pack me in their suitcase! Ho hum… Steph.
Hi Folks
New acronyms alert!
No 1. SRIGTTB: SO RICH I’VE GONE TO THE BAHAMAS[bike2][cowboy][drummer][santa2][santa3][xmas]No 2. SUIR: See U In Rio
No 3. BOM: Bags Of Money
Cheers
GregOriginally posted by The Mortgage Adviser:
Can you turn HTML code on???
The marketing possibilities are endless!
[blue]Robert Bou-HamdanHi Robert
Congratulations on your 1500th post (above). Do you realise you’ve made more posts than Steve McKnight? [biggrin][cigar]
Cheers
GregHi
I’m PMing you with a few recommendations in Qld, NSW and Vic. You won’t do better than Richard (Qlds007) in Brisbane for wrap advice, contacts etc.
Cheers
Greg FOriginally posted by grae1:“The greatest obstacle to discovering the shape of the earth, the continents and the oceans, was not ignorance, it was the illusion of knowledge.”
– Daniel BoorstinHi Grae1
Congratulations on putting one of the most uplifting, inspiring quotes I’ve seen in a long time in as your signature.
I think we could do worst than leaving the last word on this topic to the said Daniel Boorstein:
“The greatest obstacle to discovering the shape of the earth, the continents and the oceans, was not ignorance, it was the illusion of knowledge.”
– Daniel BoorstinMr Jenman et al should take note. Awesome!!
Cheers
GregOriginally posted by Qlds007:Mhhh the excitement of rubbing my hands with glee. Cheers Richard
Hi Richard
It’s got me pretty excited too! But you, better than most of us on this forum, know that the name of the game is to put your reading / expertise / experiences / contacts to use, and just “do it!” [cigar]
It’s all about subtle details, right? [smart] I’d love it if you could elaborate a little bit, giving us your thoughts. I’m not asking you to give us ALL your thoughts, chief. [chief][brave] But I know I speak for a lot of people when I ask you to teach us from the mountain top.
Cheers
GregOriginally posted by Monopoly:
No problem Dave, Again, size is not always the main issue, although the more populated the better, so at a guess I would assume minimum 3000 (if anyone out there has IPs in towns less than this please feel free to correct me). It is really more about INFRASTRUCTURE because without it, regardless of how many people you have, whether it is 3000 or 30,000…if there is insufficient amenities to support them, they will leave!!![blush2]Why not do a search on the net, specifying the town’s name and see what it has to say. For instance in your search engine (Google, Sensis, Yahoo, whichever one you choose) type “XYZ population” and see what it brings up. Try and find out as much as possible about the place, before you part with your hard earned dollars!!!
Good luck with your investing, JoHi Dave
The first keyword I use in Google is aimed at finding the local council’s site. For example, if I was looking at investing in Mt Isa, I’d go “Mt Isa Council” and click on the local council’s home page, plus all links thereon. It gets trickier if the town’s so small the council is part of a broader region with a more obscure regional name. You can get over this easily, however.
That’s the 1st 1/2 hour of your due diligence. Then go get yourself a cup of hot chocolate (winter) or bubbly stuff (summer) to settle in for the duration of many, many, many, many, many hours for the rest of your due diligence. In the process, you’ll start to filter out the useless websites, and find a few “gems”. I’d suggest you set up a folder in your Favourites to save these golden websites to (I have separate “due diligence folders” for most states in Australia, plus one on NZ).
Cheers
GregOriginally posted by The Mortgage Adviser:
While you are calling the lenders, why not call your phone company for a present and your electricity provider for another one? Maybe your health or life insurer might kick in as well. All I got was some crappy computer generated 10cent Christmas Cards from them.Hi Robert and Sonja
LOVE IT, Robert. Let’s do it! Deluge them with our expectations. When you said:
“All I got was some crappy computer generated 10cent Christmas Cards from them” were you talking about your banks? Even Suncorp? [confused2] I’d be pretty cheezed off too.And Sonja, re me being a pretty “special” guy, I work in Special Education/Learning Support, and I had a major health crisis 10 years ago when things looked so bleak for my chances of surviving 12 months wasn’t funny. My NAB manager saw a “dead man” walking into his office, and treated me with absolute contempt. This is why my wife and kids are so gobsmacked, realising the significance of our achievement. If you owe at least one of your banks around $800,000 – $1,000,000 on part of your INVESTMENT portfolio as opposed to your PPOR, then you should start to hassle them for a pressie. This is a pretty modest sum to any banker, right?
And Robert, if they treat Mortgage Brokers to a 10 cent Xmas Card, I’d be cut/ pasting / circulating this post to the so-called “Relationships Manager” from each of your banks and saying: “How about it?” Just wait until we get a few more posts, okay?
Cheers
GregOriginally posted by Monopoly:
Hi Greg, I was fairly certain that the links weren’t going to lead you to any information you didn’t already have at your disposal. As a teacher and investor I am confident, you would have done your homework and researched the topic thoroughly (exhaustively in fact).[biggrin] Which leads me to the main reason for my post; I cannot stress enough to anyone, be it a green or seasoned investor:
RESEARCH, RESEARCH, RESEARCH It is the key to doing one’s DUE DILIGENCE and although it is not a guarantee of success in your investing future, it can save you thousands upon thousands of dollars.
Cheers, Jo P.S. There is a “search” function available on this site (left hand side of the screen); it pays to use it at times!!!! Enjoy…..[biggrin]Hi Jo
Thanks for the compliments, and “right back at you” [biggrin]
To my mind, the key with due diligence, apart from doing it exhaustively, is to look for that “point of difference” that will make what you do unique from the bulk of other investors.
There are some major opportunities to be found whilst:
1. Reading all these links but more importantly
2. Reflecting on /meditating on the fine detail of what’s included in SOME of them.You know this already, Jo. This tip is for the newbies. I still need lots of mentoring myself in many, many areas, [cigar][buz2][cigar] and I hope I can keep calling on you all. Deal?
Cheers
GregOriginally posted by femaleage20:
Is it esentiall to have Landlords insurance?Hi 20 year old
I’m focusing on the part of your post where you ask if it’s essential to have Landlord’s Insurance. I posted a question on the same topic which ran for a couple of months, and generated a number of excellent replies on this question. Visit the replies at:
https://www.propertyinvesting.com/forum/topic/13982.html
I’m an experienced investor who’s very, very comfortable with no Landlord’s insurance (my wife and I self-fund it). In the aforementioned thread, we came to a sort of consensus that:
* When you’re a newbie, you probably need it for your SANF (Sleep At Night Factor)
* As you become more experienced / fearless, have a close look at the maths of self-funding Landlord’s Insurance, while NEVER NEGLECTING the more basic insurances.I hope you enjoy reading the posts.
Cheers
GregOriginally posted by Monopoly:
Hi Greg,
Try these links, they may be of interest:
http://www.qld.liberal.org.au/default.cfm?action=media_d&ID=252
in particular select “View all documents” as there is a recent update on this dated 23 December entitled “Government silent as regional plan boss exits.”
http://www.ybe2004.qld.gov.au/news/talkingPoint_regionalPlan.asp
http://www.oum.qld.gov.au/?ID=29
again, take a look at both the media announcement link provided, and the minister’s speech, AND…perhaps download the printable copy of the actual SE Qld Regional Management Plan.
Cheers, JoHi Jo
Thanks for the brilliant links. As usual in this investment game, each “downside” has its “upside”, and proactive investors such as ourselves take particular note of Steve McKnight’s motto: “Success comes from doing things differently.”
Greenies have legitimate concerns, and developers who take note of these concerns and build them into their developments will prosper: people might not vote Green, but they sure-as-Hell aspire to live in genuinely Green environments, right? I suggest proactive investors “Do a Google” with the keywords:
* Draft SEQ Regional Plan
* As a 2nd separate Google, type in:
1. Draft SEQ Regional Plan
2. The Council of your choice/investment interest (to see the more localised perspectives).Try this link, which details legitimate concerns about ruthless developers. Make sure you click on the Maps link contained in this article:
http://brec.ozecol.org/news/current/seqrecn_developers_dream.htmlHere’s part of the article:
A Developers’ Dream – New Draft SEQ Plan fails to protect Urban Bushland, Open Space or Quality of lifeThe SEQ Regional Plan, released today, gives developers what they want and throws open our few protected areas to more use, while failing to really grapple with the real sustainability issues in the region, according to conservationists.
“The State government should take immediate steps to rectify the Plan’s gaping flaws and really protect the values of South East Queensland,” said Michael Petter, Coordinator of the SEQ Regional Environment Coordination Network.
The New SEQ Urban Plan:
~ Fails to control urban development to protect regionally significant bushlands in the urban growth area. – This will leave over 22,000 hectares of remnant vegetation at risk of clearing.
~ Fails to protect an adequate urban break between Brisbane and the Gold Coast
~ Fails to commit to reduce air pollution
~ Fails to ensure adequate environmental allocation of water
~ Fails to commit to significant reduction in water pollution
~ Pushes more people into the western corridor, an area which has air pollution problems and landscape stability issues.
~ Leaves Stradbroke Island still unprotected and threatened by mining
~ Fails to protect the Wallum Corridor on the Sunshine Coast
~ Fails to fully protect the Flinders peak to Karawatha corridor
~ Fails to live up to previous principles and policies to protect the biodiversity and cultural resources of the Region’s Aboriginal Traditional Owners
~ Allows the expansion of urban development in the Redlands
~ Allows for massive urban expansion in northern Beaudesert and western Caboolture
~ Pushes housing into salinity affected areas in the Bremer River
~ Forces councils to allow extractive industries in floodplains, the Bay and areas like the Koala Coast using the new State Planning Policy for Extractive Industry
~ Increases the number of major roads including the duplication the Gateway Bridge and Gateway Arterial – pushes through the Western Brisbane Bypass
~ Massively expands existing road corridors mostly through bushland areas to the west and south of Brisbane
~ Allows Powerlink to continue carving up bushlands and local communities with transmission lines
~ Does make a commitment to modest demand management measures in the future.
~ Does slow development in good agricultural land but doesn’t prohibit urban development
Click here to browse maps showing native vegetation unprotected in the “Urban Footprint”
BREC Maps of “At Risk” Bushland
These maps where compiled using information from DNRM, OUM, Qld Herbarium, EPA and other public sources.
They show our draft maps of “at risk” bushland, inside the “Urban Foorprint”. Bushland “At Risk” is shown coloured black or stippled black. Protected areas such as National Parks, Conservation Reserves, Parkland and endangered ecosystems are shown in shades of green.Cheers
GregOriginally posted by brahms:it sort of looks like the state government is tiring of supporting infrastructure investment into further urban sprawl. Sounds good to me, just have to convince ‘can do’ and the team in the bcc. Cheers brahms Mortgage Broker
Hi Brahms
I think the Qld state government is:
1. Genuinely trying to address legitimate ‘green’ concerns caused by poor development models
2. “Tiring of supporting infrastructure development into further urban sprawl.”I think they’re taking as their model of “what NOT to do” the mess that developed around Sydney’s “3 Cities” (W’gong – Sydney – Gosford/Newcastle) not too many decades ago.
The Qld government is currently presiding over the development of one full-blown massive “city” from the Gold Coast (south), through Brisbane to the Sunshine Coast (north to, and including, Noosa Shire), plus out west through Ipswich and up the Range to Toowoomba.
The state government plus the collective shire councils really do need to do something to protect green belts etc and rationalise their infrastructure development supply/costs.
I’m in the happy position of living and investing in the shire immediately adjoining Noosa. We’re often characterised as “Noosa Hinterland”. Rural Res is well and truly safe for the foreseeable future here, as it is in all (?) other Rural shires in Qld. Frankly, I think rural/semi-rural shires like ours can’t do without a Rural Residential option.
Thus, when I said developers must act on Rural Residential projects they’re holding in their Land Banks within 2 years of the new SE Qld Plan being adopted, or they lose their Rural Residential zoning, this only applies from the Gold Coast, Brisbane and west up to /including Toowoomba, and the Sunshine Coast to Noosa.
It doesn’t apply to us, and I think I stand to profit handsomely from that key fact. [biggrin][cigar][biggrin]
Cheers
GregOriginally posted by DNL:Greg – cheers Yep – I suppose I had already decided to offer low. I’ve got nothing to lose and it can only work!! Regards and thanks for those other examples. David
Hi David
You said the vendor was happy to allow a 90 day settlement. If he “locks in” on price, try negotiating on terms (early access to set up/operate the business before settlement etc etc etc etc)
Check the net /Google search for books on negotiating RE deals (Peter Spann’s “$10 Million Property Portfolio in 10 Years” has an excellent chapter on negotiating deals).
If you come across some GREAT books with street smart, practical tips guaranteed to work, please pay back forumites by posting your findings here, okay? It’s all about co-mentoring. I’m particularly keen to learn how experienced sub-dividers go about building up their “land bank” for their future projects.
I’m still learning heaps about this game myself. There are a lot of subtleities /twists and turns / risks with various approaches.
Cheers
GregOriginally posted by DNL:Greg – Just another question for you. You indicate that you offered the asking for your commercial property. The property I am looking at has been on the market for three months. On initial enquiry, the vendor has agreed to a 90 days settlement – but as yet, I haven’t offered an amount until the initial inspections are done.
My question is: Is it a standard practice to offer full amount for commercial properties? I would imagine it is just the same as any other transaction, you make an offer and the negotiation begins. I think I’ll just offer well below asking and see what the reaction is. No better way to learn is there? cheers[biggrin]David
Go for it!! I have 2 examples, and so far have only given you one of them. In the final analysis, you have to make your own call, and if it’s been on the market 3 months, I’d be very tempted to start low too.
Example 1: I already gave you this one (in the reply above) re WA Govt being both the vendor and tenant. It was a set up, I’m sure.[buz2]
Example 2: A mate had a 12 acre block of land 10 kms from our regional town’s CBD. He put it on the market. The prospective buyer offered full price but put a lot of “subject to” clauses in the offer which tipped my mate off to the fact that his property was in the process of being rezoned, and could be sub-divided. If the “buyer” had simply put in a cash unconditional contract, with no “subject to” clauses, my mate would have been none the wiser. As it was, he pulled it off the market and is sub-dividing it himself. [cigar][biggrin][biggrin]
Example 3: MY JV partner and I had an arm wrestle with another competing vendor on a sub-dividable 60 acre block, when the vendor and both bidders knew it was sub-dividable. We offered 100% of asking, cash unconditional, 60 day settlement. Our competitor also offered 100% of asking, cash unconditional, 120 day settlement. We won on the terms only, but it was a very close call.[cigar][cigar][buz2][biggrin][biggrin]
Your call, mate, but I think I’d be starting low with what you’ve told us so far.
Cheers
GregOriginally posted by vyvyen:Bummer, aussie valuer does not cover western australia – will continue searching the net as valuer generals department was of no help. thanks again Vyvyen
Hi Vyvyen
Aussie Valuer is such a great site, but doesn’t cover WA? How about:
1. You copy/paste this entire thread to a blank email form
2. Email it to Aussie Valuer, letting them know their site is being widely promoted
3. Then point out the defect re WA, and ask them if they can help in some way.Let us know how you get on by posting your letter to them on this thread.
Also, click on “Forum Boards” in the top LHS of this site’s Home page, then go “Search”, then input “Aussie Valuer” to find all the threads this site has been posted on.
Do a similar search on http://www.somersoft.com.au forum, remembering to let us know how you get on, okay?
Cheers
Greg
