I am a great believer in taking a profit, especially if you have returns as you stated. Everytime i have sold, the person has payed way too much for property and they would show a negitive return if they had to sell today. I am no expert in predicting the top of the cycle, Perth second most expensive city for housing is amazing, everything is pointing to a bubble to me, no one ever went broke taking a profit. Maybe sell a few and keep a few, each way bet.

Don

djr

Hi Xenia,
You may want to check your web site for spelling mistakes before paying for it, investors on your “Our Company ” page is not spelt right. I enjoyed reading your history of investing, well done and good luck with your business.

Don

djr

Hi Tara,
ATO has had a ruling on investing in tree farms, all I know is it is 100% tax deductable. We have invested in Great Southern in Western Australia, I believe others are around and the next time I will go for olive farm to diversify. You can contact Great Southern in Perth for the nearest financial advicer in your area.

Don

djr

Hi,
I would be sniffing for any putrid smells, which explain where the owner is.
No seriously, I would check the council for rate notice and if they are being paid, someone must be collecting mail, try the local post office for clues.

Don

djr

Hi Dom,
Arranging sale of 2 properties after subdivision for $655K to tenants in the next couple of months, hoping to move onto duplex project in Isa after that which has been approved on another property we have. How is your project going in Isa? First house has started in the new estate.
Don

djr

Hi,
My wife and I have different strategy, at the moment have 4 investment properties and we buy to develop more equity.
Once I have subdivided or built, I sell. Most of the time I use banks money against our home, we like to keep our profits as a safety net. I think the first property we bought we had a conbined income of $40,000 and our out of pocket expence was $50 a week
I know some will say why sell, but we have built up nearly 3/4 million in 6 years with little outlay, have money in the bank .
We then look for another property, may take 6 months but when you are making this sort of money we can be picky.
The capital gains tax we offset by buying trees which are a 100% tax deduction, have to wait 10 years though for a return ( hopefully ). Touch wood we have not bought a dud property yet, we always look for a property to subdivide and is undervalued.
When we first started we bought at the bottom and sold at the top of the property cycle in Brisbane, then bought in Mount Isa which has gone up due to resource boom.
We tend to go on our gut feeling and if it does not feel right, we won’t buy.
So if you are willing to spend some time looking and have an income with some equity, the bargains are still to be found.

Don

djr

Hi,
We have our own super fund and it has not held us back from investing in property, you can go partners with your super fund to buy property or if you have enough super, buy a property outright. You cannot borrow with your super fund and all super funds are checked by accountant yearly to make sure you are complying with rules. We have used our super fund with ourselves as partners 3 times now and have had no problems, buying a property to live in with your super fund is something I would check out with an accountant. Super contributions are also a means of creating a tax deduction when needed.
Don

djr

Hi Salacious,
Some info for yourself and anyone else thinking of buying in Mount Isa, a 3 bedroom house in good condition is now renting for $280.00 – $300.00 a week, I know this because I keep in contact with my property manager.
Mount Isa City Council just sold first stage of housing block development $50,000-$90,000 each, i believe in one day, 2nd stage is looking good after 1st auction.

Houses for rent are in short supply, more units available for rent than houses, waiting times to find a tenant for a house is not long.

Hope this helps with your decision in investing in the town.

Cheers
Don

djr

Hi KP,
Your a lot ahead of me in that I have’nt done anything because of waiting for approval in my DA with town planner and council, yours is a straight out building application for the building section. I did have some prices on transportable homes from a company in northern NSW that were very competative and from memory was around $9000.00 delivered and stumped, still have power, phone, sewerage and water to hook up. My plan of the duplex was block construction and had very little timber in the building, less to damage when renting. My wife and I liked Mount Isa and could see nothing wrong with living and working in the town, some people have been there all their lives and wouldn’t be anywhere else, the country around Mount Isa is full of minerals and it will be a mining town for many years in the future. Good luck with your project and keep the furum up to date with how you go?

djr