Hi Goanna Girl,

This is really an individual thing, but it should be treated as any other business. You must have a certain level liquid assets or immediate access to cash to meet current and known future obligations.

I always have redraw/ loc equivelant to 3-6 months of all Interest and Expenses. I only have a few properties, and this may not be feasible the more properties that are owned.

Mal

Getting out of your comfort zone, can help you become comfortable

There is currently a 2 bedder available for $340 pw. in Proximity.
As for Darlinghurst there appears to be a rather high vacancy rate there at the moment.
Check out http://www.realestate.com.au for suburbs Darlinghurst and Wolli Creek (not Arncliffe).

Wolli Creek is a new suburb created over the last few years, with a very large development going on there, that is supposed to continue for another 8 years. All development are units.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Maruco,

I have used Morrow Peterson solicitors a number of time and was extremely happy with the service, they were able to get me out of a very sticky situation once that was due to my lack of experience and knowledge at the time. Very reasonably priced professional fees also.

Tel: 07 4052 1199.

You can’t go past NQBR for your pest and building reports. They organise the Pest through TKO.
see http://www.nqbr.com.au or call 07 4041 1660

Good luck

Mal

Getting out of your comfort zone, can help you become comfortable

Hi,
Check out this link.
http://www.ato.gov.au/businesses/content.asp?doc=/content/43486.htm&page=20
It basically says yes, normal CGT rules apply, with the acquisition date deemed to be the date shares were originally purchased, not the date of inheritance.

Mal

Getting out of your comfort zone, can help you become comfortable

If it was too easy everybody would be doing it !!
But like markpartick said they are not always visible to the inexperienced or those that do not already have some financial backing to make it happen at the drop of a hat.

In the past month or so I have found a couple of properties that were cash flow positive. The first like you say is in a country area, there is no real estate agent in the area to manage it etc. But I think I know a way that I can make it happen, because I’m starting to think outside the square.

The second was a place worth 1.1M with a weekly income of around $2500. The bulk of the income was deposited directly into the vendors account by the government. Meet the 11 second rule no worries. Rates were about 2K pa. no BC fees. It sat there on the internet (Realestate.com.au), for all to see. It was located within 20km of an international airport. The area has had 50+% growth in the last 2 years, and still there is a deal like this.
Not everyone could go it alone on an investment like that. But somebody obviously had the funds or the know how, to put the deal together quick smart.
I knew about the property before it hit realestate.com.au, but my inexperience stopped me from getting a piece of the pie. Even though I was in no position to do it myself, I bet if I’d simply offered to birddog it so someone on this forum, I would have been getting Personal Mails left, right and centre.

And, no it no longer appears on the recently sold list for the web site.

There is no substitute for experience, you have to get out there and do it.

Mal

Getting out of your comfort zone, can help you become comfortable

Q: Do you sacrifice capital growth for positive cashflow??
A Hell No!! Not in the long run. But they both have a place in a portfolio. If anyone that owned property over the last couple of years did not make more in Capital Gains than the Positive cash flow, then something is wrong, even if you were in the particular investment for cashflow. However, cashflow can be forever, Capital Gains (that you can get access to), will come in spurts.

My Q.
My wife thinks I spend to much money, is she right?
Sorry that was a retorical question, she is always right.

My real question
Many people say that if they won lotto, they would help out their family of friend financially, would you?
If you had the same windfall through your dedication to your investments, would you still help the family or friends out?

Mal

Getting out of your comfort zone, can help you become comfortable

Milly , I’m assuming that you are in QLD.
You don’t mention if the buyer terminated the contract.
Firstly, if the contract is subject to P&B and an Inspection date is specified on the contract, then if the buyer did not terminate the contract before 5 pm on that date, then it goes unconditional, regardless of further negotiations. It’s up to the buyer to terminate it.
Secondly, yes, if you ask for the buyers for a copy of the report, they must provide it without delay.

If they did terminate the contract, get a copy of there report anyway. 20k in damage, did they tear the wall lining away, to check the true extent ?? Did the seller do the inspection and quote themselves ? The Inspector must also be qualified and hold a current licence.

Hope you have a solicitor!! If the buyer hasn’t walked away, then the ball is still in your court. I think you can claim the expenses of your own inspections and quotes for repairs involved in selling the property. Not sure if they are expensed or form part if the cost base.

Mal

Getting out of your comfort zone, can help you become comfortable

Too many states, too many differences in contracts. Thanks for the correction on the cooling off period in WA PurpleKiss. Thank for the idea in the dancing girls calvin34, your way ahead of me.
I like the WA contract. I’m not really a fan of the cooling of thing, being able to get out of a contract for no reason at all. If you really think you might want to get out of it, don’t get into it, or put into the contract the conditions that may allow you to get out of the contract.

Mal

Getting out of your comfort zone, can help you become comfortable

One thing that I noticed in WA was that the standard contract does not have anything about being subject to building inspection. Only Finance and Termite infestations. If you have already signed a contract, and you are concerned at all about the place structurally, get a building report done within the cooling off period.
If you haven’t signed stick the condition in the contract.
As a buyer I would generally go with a settlements agent/ conveyancor. But as a Seller setting up a contract with specific conditions, I’d use a solicitor.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Liz,

I have a couple of IP’s in Cairns area, furnished and unfurnished. camder is right, you do not have to spend heaps (although it does depend on the type of unit, mine are not waterfronts). I’ve been lucky that the tenant in the furnished one in a keeper, he looks after the place, has repainted at his own expense etc.

Where I have found the benefit is in with depreciation, as all my furnishings fall into the Low Pool category. I.e I can get a better return now and I can claim the bulk of the depreciation in the first couple of years. 18.75% year 1 and 37.5% of balance in subsequent years.
Thus the depreciation benefit can outweigh the rent benefit.

Say $5000 in furniture.
Interest on this to borrow at 7% = $350
extra rent = $15 week or $780 year
Depreciation year 1 = $938
Depreciation Year 2 = $1524
Depreciation Year 3 = $952 , 4= $595 ,5 = $372

If it’s goint to be fully furnished, you need to think of everthing. Kitckenware, wall hangings, maybe a bookcase etc. It has to feel like a home.

Worth thinking about.

Mal

Getting out of your comfort zone, can help you become comfortable