Forum Replies Created
We’ve just sold a unit (in a complex of 17 with a pool). Value has doubled since we purchased two years ago. Main reason for selling was a special levy being introduced over three years to repaint the complex. This, on top of the normal body corporate fees and rates, made it just not worth hanging on to. Personally I wouldn’t buy more units (we still have four). I feel that Body Corporate fees are a bit of a rip-off as the majority goes into Admin fees. I wouldn’t mind so much if more went into the Sinking Fund.
I know that the Admin fees cover insurance premiums but what else does it normally cover? Can anyone enlighten me?
Thanks
ShirleyHi – we live in Townsville. Mid year we purchased a 3-bed double garage 10 months old house in Condon for $220k and it rents for $250 per week on a 12 month lease. We have several other properties in Townsville which we bought over the past three years. It’s hard to get a good return now. Probably our best buy was a duplex (two separate 3-bed ensuite houses) at Kirwan for $275k. They were a couple of years old at the time. Return is $485 per week. We looked at a similar new duplex (without ensuites) at Kirwan recently and the price was $510k. So glad we started when we did!
Cheers
ShirleyHi – we live in Townsville and have investment properties here. Would be interested in meeting other Townsville investors.
ShirleyWe have two LOCs – one private and one purely for investment purposes. Works well for us and keeps all deductible expenses separate in the one account.
Wayne, contact the local Council. It doesn’t cost much – we’ve paid between $10 and $50 for copies of plans from different Councils. If you intend using a Quantity Surveyor, he will also need the plans when working out a depreciation schedule.
Hi Pumpkin – we live in Townsville so we watch the market pretty carefully as most of our investments are here. Can’t advise you on whether to sell or not but Townsville still seems to be going well. Some ads in the paper show “Reduced to…..” but there aren’t that many. We haven’t been actively buying lately so can’t give you a definite answer. You might have trouble finding cashflow positive properties elsewhere in the current market and you need to factor in your selling costs as well.
Your best bet might be to phone a few local RE agents.
Shirley
When we were first married, we rented a nice 2-bed, furnished flat right on the ocean in Qld for $15 per week…..used to listen to the waves crashing in over the rocks at night….and we could buy half a loaf of bread and a bottle of milk for 31c, delivered.
Yeh, OK, we’re now in our fifties so it was a long time ago! Wish we’d started investing then.
Shirley
Hi
We’ve also struck a deadend with the National. They won’t accept the security we’re offering for our next investment property. They are also dropping LVR on investment properties to 75%.We’re planning on switching to Bendigo Bank – very friendly and helpful.
No one has raised this issue yet but does anyone know what happens in your tax return if you don’t have private insurance? I understood that you were charged more for the medicare levy if you do not have private insurance and that this varies depending on the coverage you have. We only have ancillary cover with MBF which costs us about $40 per fortnight and I’m wondering if we are charged extra in the medicare levy because we don’t have FULL private insurance. Anyone know how it works?
Thanks
ShirleyBendon – unless you actually purchase a property I don’t believe you can claim your travelling or accommodation expenses.
ShirleyWe’ve purchased our investment properties in joint names – should have known about trusts earlier. Noel Whittaker had an interesting point on trusts in his recent newsletter:
“Over the last three days I’ve been making speeches at the Brisbane Money Expo and then talking to people afterwards. Every time I attend one of these functions, I’m amazed by the lack of thought that people put into their investment strategies. As I’ve said repeatedly, the first question should not be “what shall I invest in”, but “in whose name shall I invest”.
One couple told me that they’d formed a family trust and then bought an investment property in the trust’s name. They have now sold the property and are facing big capital gains tax bill. When I asked them why they’d used a trust, they were unsure but said they felt it would enable them to distribute the proceeds to their adult children who were on low incomes and receiving a wide range of Government benefits.
They had not taken into account the fact that a distribution by the family trust could wipe out the benefits the children were receiving and also trigger the repayment of a HECS liability if the children had one. It would have been much simpler and cheaper to have bought the property in their own names.”
Just to break up this ‘all chocolate club’, my favourite is lemon meringue!
I like my report “Smooth, sexy, & articulate with your hands, you are an excellent after-dinner speaker and a good teacher. But don’t try to walk and chew gum at the same time. A bit of a diva at times, but you have many friends”
except for the warning not to do two things at once and ‘bit of a diva’ bit!
Shirley
+gearers as follows:
Purchased
Duplex $275000 rent $420 week
Townhouse $89000 rent $175
House $119000 rent $185
Unit $75000 rent $150
Unit $77500 rent $140
Unit $77000 rent $150
Plus two blocks of land – one producing fruit crop.All Regional Qld. Have just had a revaluation with a CG of approx. $100k over 12 months.
However we look forward to our tax return – have spent additional funds in air conditioning, painting etc.
Kay Henry – is that correct? I thought if there wasn’t a Will, the government stepped in to take over the assets.
A colleague owns one in Brisbane and is happy with it. He’s keen to obtain another. I believe they could be better than a Defence Housing deal.
We’ve paid $400 plus GST for each property in Townsville.
Our first (and probably best) purchase was a 4 yr old duplex in NQ of two separate 3-bedroom ensuite houses for $275,000 just over a year ago. Rent is $420 per week and we’ve just had them valued at $330,00 to $340,000.
Simon – reminds me of friends who bought an advertised ‘5 bedroom’ house only to find it is technically a 3 bedroom house (with 2 bedrooms in a ‘loft’). I don’t think there were any other complications but our friends were very annoyed and at first wanted to sue the vendors or real estate agents for misleading advertising.
Shirley
Hi – we helped our 19yo daughter into her own unit by providing $18k so she could avoid taking LM insurance. She has a $10k per annum university scholarship so could show the bank she had the ability to pay off a loan. She received the $7,000 FHOG and rents out the second bedroom to a fellow student.
Things have worked out well and she now understands quite a bit about property investing. We will claim back our $18k when/if she sells the unit which has seen about a 25% increase in 18 months. It’s good to be able to help your kids into real estate.
S.I.S. – We’re with the NAB but no they weren’t trying to sell their insurance to us. A friend just suggested we look at our insurance options and we found out that NAB do offer something called National LoanCover.
We won’t be making any hasty decisions and will be checking all our options, including contacting an insurance broker – thanks, Shushar, for your suggestion. Do you know of any on the forum?
Shirley
