Forum Replies Created
Thanks Cata,
But does that mean that income and/or losses will be trapped in the company as opposed to being passed to the HDT for distribution?
Hi elkam,
I got an email in from intelligentinvestor.com.au (their all about value investing in the share market). Not sure if it helps but here’s there opinion below.
It got my attention and thought it maybe of interest to clients but we are to busy with tax planning so haven’t had a chance to have a good look at it.
Another point to note is that there is no retail share offer on the IPO so you have to go through a broker with an allotment. Think you can get round this by using Investsmart.com.au if you are going to wack some cash in.
Babcock & Brown Residential Land Partners (BLP)
(Open)Closing Date: 29 Jun, 2006
Babcock & Brown Residential Land Partners has paid $203m for a portfolio of residential properties in ten locations on the east coast of Australia. It has now packaged them into a fiendishly complex structure from which investment bank Babcock & Brown will take a smorgasboard of fees. $175m is being raised in an offer of stapled securities which closes on 29 June. If you want exposure to residential property, the more usual method is to buy a house, but that wouldn’t provide Babcock with any revenue, would it?
Hi gwkite,
Love your thinking.
Unfortunately ,as with alot of good ideas, there’s rules against it.
Investing in property through Super can definately be done but, as pucci points out, as a general rule Super funds can’t borrow money.
If you had $2million in super, and wanted to buy a unit for $250K then it’s a possibility but unless you have enough in their to fund the whole purchase it makes life quite difficult.
Plus, rules governing super place stringent reg’s on investment such as the need to diversifiy. Hence, it would probably not be sufficent to have just enough to cover the purchase, you’d really need other investments in their as well.
At the end of the day I guess it makes sense though – the government doesn’t want a bank to be able to take your financial future if you default on the loan and you really don’t want your whole financial future invested in the one spot anyway.
After all is said and done you can still get property exposure in Super through Listed/Unlisted Property trusts, joint venture development projects and various other passages.
Its just the common ‘buy an IP an rent it out’ generally can’t be done.
PLEASE NOTE – this is not financial advice, should not be seen as any form of advice, does not take into consideration your personal goals and objectives and in no way should be relied upon. [king]
Thanks for the feedback Callender,
Do you happen to know what size block your neighbour is on? Iv’e heard the council likes each property to have somewhat of a backyard and frontyard but Im not sure of their specific dimensional requirements.
Any forumites developed in Ballarat? or had any problems with finding tenants for that matter?
Hi chrisconuts, callander & crickrobert,
Thanks a heap for your posts.
Quite interesting you noted the development side of things crickrobert, as a few of the places Ive come across have the potential for retaining the original house and building a second dwelling.
From what Ive been told the council is quite good for information too when it comes to developing and that appears to be reflected in your thoughts. If there’s development activity the council must hold positive views.
And rental rates are generally quite low? Another plus – thanks for the insite.
Haven’t looked at Frankston but may just have too Chris.
Any further opinions or feedback most welcome.
Hi MrIronman,
We have clients looking at a Gold Fund brought out by Merrill Lynch.
Minimum investment is around $5,000 and ML basically go out and invest in gold shares from around the globe. Just another option to consider alongside holding gold direct and buying shares direct.
Interesting to note that they say typically, for a 10% movement in bullion price, equities move between 20%-50%. Obviously that works on negative and positive movements.
Oh – and of course – in no way recommending or not recommending this or any other investment in any way, shape or form.
Hi juststartingout,
Not sure if ur questions were rhetorical or you were actually asking but good food for thought..
The house is our PPOR so adding value is a bonus not really a focus and as for the budget – as long as it doesnt break the bank and looks good – the’re the only parametres im working with.
Thanks again for everyones feedback – really appreciated.
Hi lisa.jason12,
Thanks for the info.
Interesting what you note in regards to the bamboo. I hadn’t considered the possibility of fading so I’ll check into that before purchase.
Don’t mind the idea of plastic ‘timber’ floorboards either. There’s alot of little vermits around where Im planning on laying the boards so plastic will be worth a look – im interested to see the cost comparison.
And funny you mention the plastic – we are doing a pebble lining along our driveway and thats what we were told before we start – plastic first or shoots later.
That sounds fantastic jhopper,
Never thought of adding a garden bed but thats an interesting option.
Not sure how much I’d be able to do myself (looking through all the work youve listed) but 80% of my mates are brickies, tilers, plumbers, sparkies so Im sure I cant convince them to lend a hand in exchange for a cold ale and bbq.
Would be great if you did have photos!
Hi jhopper,
The space – not quite sure but Ive been meaning to measure it so I shall do that tonight and post tommorrow. Just did all the clearing last weend to get a clear canvas to start the design process.
Definately would help if you did have that info on where you purchased the material.
And if you had time over the weekend and wanted to show off your finished product I’d love to see what it turned out like! ([email protected])
Was there a reason you didnt use thatched roofing?
Thankyou both (and appreciate the honestly all the same Redwing).
I think the pain idea maybe a good idea too.
Even if I go with the bamboo fencing, you’ve got me thinking that that alone will look a little out of place with the rest of the fence, so a slap of paint where the fencing meets the wall maybe just whats needed to ‘blend’ the old and new. Was there a specifc type of paint you used? costs?
Any other feedback – more than greatly appreciated!
Great..thanks Derek!
Much appreciated.
Hi andymitchell,
Sorry to hear about the current situation. On one hand the loss of value in your PPOR isn’t fantastic but the news that you have a little one on the way is!
I’d have to agree with Robo – there’s more to life than money and though it is important there are always ways to get to where you want to go with a little or alot of it.
After reading the previous topics and posts (which are worth a read if you have a second) and realising how many people have been in hard times and navigated there way up to bigger and better things it really is inspiring.
Im only in me early 20’s and my Dad passed away at the end of last year – greatest guy I know – and there’s been times when ive thought wow its just me and mum how will we get through financially and emotionally but the more people I spoke to the more I saw that so many people find themselves in seemingly impossible situations and yet they just find a way to push through, get to the top and come out even stronger than before.
Know your situation is in no way the same but I just found it ‘refreshing’ (and I hope that doesn’t sound bad) that lots of people have been lower and do end up higher.
If you set about working hard at what you can control the uncontrolable has a funny way of falling into place.
All the best…make sure ya post where your at in a few months. The dust will settle and you’ll be back on track Im sure!
Hi Ausprop,
I must admit I do take the scenic route and I guess I tend to stop in a Bunbury alot of the time – so its probably more like 2hrs 40 for me.
Get a bit light on the xlr8er when I see those ‘kangaroo’ signs.
Even if it is a slow drive its a nice one..no place in the world like our South-West.
Hi fernfurn,
Thats basically what I was thinking so think Im on the right path.
Thanks for your post.
Hi BeauMonde,
Great Question..think you’ll find that question is one many of us have.
From the replies I have read, on other posts, Cata seems well versed in the area so it would be worth sending him a msg.
On that subject can anyone recommend a high calibre trust accountant in WA (besides Chriss Batten of course)? It would seem somone who can answer the above is worth their weight in gold!
Hi dannii72,
I usually leave this area to an accountant but they could be referring to the lower Marginal Tax Rates that may kick in soon. As CGT is calculated on your Marginal Tax Rate, if they are reduced then it would effectively be like a reduced CGT?
Not sure, might be on the wrong path.
Hi again asdf,
Busselton is in the South-West region of WA and is about 3 hours (on a good run) from Perth and an hour and a bit out of Bunbury.
The below will give you a bit of an insight.
http://www.breakloose.com.au/html/adventure_articles/regional/wa/southwest/busselton.php
Hi kerrcorp,
There is definately alot going on down south at the moment – especially in and around Busselton.
I guess I’m a bit bias when it comes to SW as I was born in Bunbury and we are currently undertaking Stage 3 of a resort / apartment development in Busselton.
The area has experienced a wonderful level of growth over the past 5 years and whether that is sustainable will depend a fair amount on where tourism heads over the next few years and also what infrastructure is put in place to ease seasonal fluctuations.
From the level of enquries Ive seen there is still a fair amount of interest in Busselton – we had an RE agent promoting Stage 3 off the plan at a WA convention over the weekend and he took something like 40 enquiries and had half a dozen people sign EOI.
This is of course in no way a recommendation to or not to invest in the area.
Hi lisa.jason12,
Not sure im the right person to get into it but Im sure Cata will solve all your answers in the next few moments.
What i can help with is a good book. Know its not what you really asked for but I had similar questions and a good read helped answer a few of the basics – ‘How to Legally Reduce Your Tax’.. by Melvin & Chan.
The forum pointed it out to me and could hardly put it down. About to go through it a second time. Well spent $30. Won’t give you specific advice obviously and u’ll still need that….but great way to help fill gaps.
