Redwing

Old saying, “To take no action is in itself an action”.

Yes with the neg gearing one tends to run out of cashflow at some stage, but with (most of) the pos stuff you want to be putting regular money into the loan else you run out of equity. I know this has not been strictly true in recent years but I think this has been an abboration and…[Read more]

Redwing

The example you gave does highlight the downside of a negative gearing strategy. Success with negative gearing is contingent upon astute selection of property among other things. The example you gave would be typical of a poor investment, be it due to poor location, lack of desirability etc. In fact it sounds like one of my early…[Read more]

Redwing

Ultimately only you can decide this. It sounds to me as though you are not clear on what you want to achieve from investing in property, what your timeframe is and what your strategy is and hence the analysis paralysis.
Do you aim to replace your income with passive income in a short (as possible) timeframe or build a substantial asset…[Read more]

NATS12

Your predicament sounds rather similar to what I just went through.
I have an IP in WA which had been rented to the same people for 2 years. As I was considering selling I wanted to take a look first hand to see what needed doing and whether it could be done with house occupied.
The tenants lease agreement had expired and had now reverted…[Read more]

Interesting topic

I am 38 and I definitely agree with Postie about the apparent need in the younger people to have everything now. Delayed gratification is a rare commodity it would seem. Many of the young first home buyers we know are getting a nice new 200 sqm plus 4bed 2bath brick tile home with all the trimmings from day one. No small houses…[Read more]

Hey Wrappack

I thought an option wasn’t an option, so to speak.
Yours is a very bold plan. I hate to dampen your obvious enthusiasm but it is a big project for your first development. My advice would be to try something smaller to begin with like a triplex or similar. You will be surprised at what can go wrong and how the costs can get away from…[Read more]

Hi Wrappack

Just an idea.
What about using an option on this site you have located? Set the expiry at 6 or 12 months, long enough to arrange plans and secure your DA then sell with DA approval.
I have never used an option before but I am sure others on the forum have so they would know how they are structured etc.

Regards
SMTM

Hi Penguin Jr

If you are looking for CF+ property then yes you are looking for a high cap rate.
There is a reason why properties have different cap rates though. As an example when McDonalds sold some stores here (WA) they sold at a price which represented a cap rate of 8.5 because purchasers were prepared to pay more for a quality tenant. In…[Read more]

Hi Frank

Websites and books specifically pertaining to commercial property investment are scarce indeed. I have not yet found one of either that impressed me. I read a book by Chris Lang and Martin Roth but it was extremely basic.
Sorry I can’t help.

SMTM

Redwing

I am no commercial guru but we do have commercial property.

Because I am a bit of a sceptic, whenever I see a tenanted commercial property for sale I immediately think, why?
Of course the reason could be anything but in many of the deals we have looked at it has become apparent (after digging around) that the tenant is not going to take…[Read more]

Hoarel

Generally the outgoings are paid by the tenant in a commercial lease.
As for GST, if the commercial property is purchased as “a going concern” there is no GST payable. A going concern is a property that is tenanted.
I would have thought the deal you quoted would be a going concern.
As mentioned previously the quality of the tenant and the…[Read more]

Hi Jars11

This is a position we have often pondered, usually while in Broome, Yallingup or in the snow over East.

We have made the decision that we would rather spend money on a holiday at a destination of our choice and at the time of our choice rather than be committed to one location and not at peak times. I don’t know if you have children…[Read more]

Gday lino

I am a Mandurah resident myself. Have bought but not sold any property in town for many years.
When you refer to experiences are you meaning with agents or the general market itself?
If you purchased the blocks 12 months or more ago then I am pretty sure you will be sitting on a reasonable capital gain. Selling them will of course…[Read more]

Phil

I have a Wrap Pack and in it there is a letter from a solicitor named Jeremy Malcolm. It sounds as though he is someone to speak to.
Ph 08 9213 0800

Can’t vouch for him personally as I do not do wrapping.

Regards

Clive

Hi PurpleKiss

Don’t know about a downloadable version but the Non REIWA forms can be purchased at newsagencies.

Clive

Gday Redwing and WA Investors

For the coming year the plan is to optimize our existing portfolio rather than purchase any other property. The reason being that I have not been able to find anything that makes sense and would rather wait until people are discussing their sharemarket successes again.

Plan is to complete an ongoing triplex…[Read more]

Enough to keep me working,
Not enough to stop.[]

BB

How has the unit performed as an investment? Does it still make sense, are it’s future prospects good? I wouldn’t go selling a property just because it is a -ve CF investment. Has it delivered capital growth over and above the cost of owning it plus CPI?
Remember that selling will see some $$$ disappear in taxes and agents fees. As Redwing…[Read more]

All

This is a situation I found myself in sometime ago. The tenants said they would not be renewing their lease unless the place was airconditioned. An increase from $250 to $260 pw was negotiated. The ducted evap system was installed for $3900 and they signed on for another 12 months.
In my mind it was worth it to keep the tenants in place,…[Read more]

Thanks Mel

Clive