Forum Replies Created
- Originally posted by shaunwalker:
yeah, i just sold my last IP in oz on friday,
50k profit, you’ve got to be happy with that! (sold place in darwin)
nearly ready for any correction, and then will start again.
cheersLead, Follow or get out of the bloody way
Noted on the radio early a.m. this morning that Darwin and Perth are the only 2 capital cities where property prices are still positive, all others are now declining!!
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAs Coastymike said its the pty ltd Co on the title..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorPost some examples so we can ascertain what is wrong..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorYou also increase income-add to that costs such as vehicles, tools + deductions etc etc?
viable?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by Dazzling:In the same area for around the same price you can purchase a 5 acre block…that’s 80 or 90 times as much land as those handkerchief type blocks.
With massive depreciation in the value of the new home, I reckon you’d be lucky to see any ‘growth’ for many years…what with the tiny land component having to overcome the big drop in value of the bricks and sticks.
Thanks Dazzling..I’ll get him to have a look at prices for land in the area as well, as with most of these deals I think it’s the developer who reaps the benefits (why not, he’s done most of the work), however, as stated before thats just my veiw and I think there’s better value elsewhere.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by kp:Is the proposal for him to buy one as a passive investor, or is he trying to sell it to you?
He’s looking at it as his first IP, I had a quick look at the deal he had..just wanted other opinions.
Personally I think he could do better 2nd hand and a bit cheaper, but that’s just me.
If you wanted an opinion from someone who prefers to build and therefore capitalise on the difference between cost and market price, I would say, do your own.
On the other hand, if you are a passive investor who does not want the hassles and headaches in going through the building process with the attached delays, it may be a reasonable deal.
I would question the rent return at $250pw, when that is apparently what a new 4×2 will get in the surrouding suburbs, and be wary of having a strata in such a relatively large complex, but thats just me.
kp
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHow about Depreciation as an add-back -imagine a house has $110,000 as the building cost (not land component which may be $110,000 also), 2.5% of that figure can be taken as a tax deduction, that is $2,750, every year for forty years?
Imagine the property had an income or rental of $250 per week then through the 2.5% building depreciation allowance, $2,750 or 21.15% of gross income, is TAX FREE..
Then look at other depreciable items, including those in the ‘low value pool’…imagine if the property is Fully Furnished or has white goods etc as part of the rental.
As well as loan costs for the first three years, loan interest costs, property expenses etc
Surely this must all assist your serviceability?
Then how about the benefit of completing the tax variation paerwork?
Sorry….thinking aloud here for my personal situation ;O)
Appreciate any feedback.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by Dazzling:
Looking forward very much to the figures coming out in a few weeks time showing what the property in the West has done.Dazzling,
Is that in The West Aust Paper?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAlready happening Flatout..
we’ve raised our rents not long ago and the tenants were happy with the slight rise..
There is another thread where a few of us have raised rents to meet current market rates, interestingly the vacancy rate in Perth/WA is quiet low in many areas (Wanneroo etc) and rents can be raised without concern to the new levels.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI’ve heard the same, that some lenders apply “add-Backs” and others dont..that’s why I prefer a Mortgage Broker to a Bank Manager..
More Options..
A Broker who is also an Investor is a *bonus*
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorListening to Aussie John on the radio he was more or less talking about apartments from what I heard, however, it was only a breif talk..
I’m not concerned for the properties I hold (I’m actually expecting more CG), but as we’re aware there are so many different ‘markets’ within the property market as a whole..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhey..do we have a few night owls here?
posting around midnight.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMy first property was an IP, we even lived in a caravan for a year or so; also lived in a shed (fun times).
I think i was paying around 13-14% interest back then, however the property cost me about $69,500 and rented for $95-100p/wk -wish i still had it ;o)
At the end of the day it gets dark..so you have to do what best suits your’personal’ situation and strategy…
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorFlatout-
If you buy up North and get good returns, you may be able to buy another IP in Perth as well depending upon the increased income wouldn’t you..kind of along SiS’s Offset Gearing.
Country WA property still looks interesting in many areas and possibly hit the peak in others, making the city still worth a look for CG and increasing rental yeilds IMO.
I’m now thinking my next Investment will have to be a deal where i value add in many of the ways available and sell it (or part thereof)to realise a profit, thereby increasing my serviceability and keeping the bank happy.
Its a numbers game isn’t it; working out if we stay at current holdings and property doubles every 10 years then in another 10 years we’ll have near $2M in property and around $600k in loans..the goal is to expedite the goal in the best manner.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorGood Idea DrX
Maybe one of the accountants can offer some advice here?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOnce you start doing a few properties the government wants their cut as well and see’s you as ‘being in the business of selling properties’and may look at you in a different light..and have different requirements.
The developers here like Michael and Ausprop may be better placed to comment here though.
Great effort though and well worth repeating IMHO next time save one for yourself though and maybe progress that way if possible?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator$330-350k[blink]
Why so expensive for you first house?
Then factor in all the other costs associated with a home..
I agree with Dazzling in that you will be hocking yourselves to the eyeballs for NTDD..
and you may have to forget about investing for a while.
The brokers here will be able to give you an indication of how much you can borrow, but I’m sure there are better ways to approach the starting point.
Have you read any of the posts/books on trusts at all?
CG is still going great in WA as you know and buying an IP, maybe value adding as well may be an idea as well?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhat type of Solicitor?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHow much equity do you have in the property..why not keep the property ‘and’ invest as well?
Maybe post some info on your situation so the brokers here can give you some feedback
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorIt’s WA’s time in the sun lately..how long will it last..dunno, supply will have to take over demand, which I dont think will happen anytime soon..
Then again..interest rates may rise again soon as well..
Value is based on supply and demand. And population is increasing ; have you recently looked at the population chart? There are so many more people who are looking for homes…which means there is less supply available…which also means the price goes up.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
