256bw,

1. You have a contract. It’s a long term lease and the mortgagee will probably step into the owenr’s shoes and collect the rents/profits. Having possession of the property should also give you some leverage to enforce your option contract.
2. Yes they can as you haven’t bought it until you exercise your option. Any landlord can…[Read more]

Hi 256bw

You have a fixed period lease of the property so you can/(must) occupy it, and stapled to that is an exclusive option to buy the house at a fixed price for a period into the future. You pay a fee upfront for the option -varies but around 2-4% of the price of the house possibly.

Meanwhile, part of each rental payment you make will be…[Read more]

I agree – they are Tier 1 and you will pay an enormous fee for it. Appropriately, because they are a huge ntaional law firm.

If you are buying commercial properties perhaps a firm in the realm of Minters is appropriate. If you are buying single family residential I am sure some forum posters can provide the names of lots of smaller specialist…[Read more]

At it’s peak the mines in Broken Hill employed about 9000 workers. The last Perilya mine is now down to 480 but guess what, the town’s still going. Hasn’t disappeared as one would think with all those jobs gone.

Still 22,000 people there approx., a decline of about 2000 over the last few years so yes some leave with the work but tourism is…[Read more]

Hi,

I would concur with Derek’s comments.

Also, we always invested automatically 10% of our gross income and we never touch it, we never take on personal debt and we add a further 10% of our gross income to the minimum payment on our home mortgage so that it will be gone soon.

I have had annual household/personal budgets since I was 20 (quite a…[Read more]

Niki,

Just a suggestion if you are looking for a creative solution to your portfolio problem.

Why don’t you write to each of your current tenants asking them if they would like to buy the house they live in at fair market value, at a reasonable interest rate on vendor terms.

The repayments on a high yielding property will probably be lower than…[Read more]

Good question, I am interested in the answer also.

Cheers
skippygirl:))
[biggrin]

Maybe you could think about not relying on the market for capital gorwth but adding value to the property yourself. We have a +CF property in a regional town and spetn alittle on paint/carpet etc and added another $10K to the value after costs.

Cheers
skippygirl )

Clearly it was a joke, Joyce.

Cheers

skippygirl )

Yes maybe a panel of monitoring organisations could stratify the market into, for e.g., 2 bed houses, 3 bed houses, 4 bed houses, 5 bed houses, 1 bed flats, 2 bed flats, 3 bed flats, etc etc and run a normal statistical analysis for each strata, and the medians and other measures would be a bit more meaningful.

Inside each strata they can look at…[Read more]

Felicity,

That was the solution I posted too.

Marc, you seem to be the most expert – how would Centrleink view the extended capital repmt situation if she sold the house?

E.g. she sells for Full Market Value (there you go Kay H) say $150K, 5% deposit = $7,500 then $7500K per annum for 19 years paid as monthly instalments? Or $15K pa for 9.5…[Read more]

You don’t say if the house is near her current home (was it the neighbour’s house or a house somewhere else that the neighbour owned?) but couldn’t she move into the house she has inherited (if that’s the term) and immediately sell it, so no CGT becuase it’s her PPOR, and structure the payment for the house over 20 years plus a 5% deposit to pay…[Read more]

Beautifully said, Dave.

BTW, one of YOUR ideas is working for me right now so if you learnt it at a seminar you’ve now passed it on to me. I call that abundance.

Cheers
Skippygirl [biggrin]

IMHO the agent is completely in the wrong – you are entitled to make any offer you like, the vendor is entitled to reject it. But, no emotions, it’s just business and the path of least resistance is best.

No point trying to re-educate or punish the agent – pyschobabble is ingrained sometimes. Just move on to the next house, next…[Read more]

Hi Bennido,

Just my $0.02, I agree with the comments made, mostly. Especially the strategies given to minimise the weekly cash drain.

We don’t know your investment strategy so it’s a little hard to tell what your goal was when you bought the flat but I gather (since it was pre-Steve) that you thought the negative cashflow would somehow be paid…[Read more]

Leebus,
I bought a property 1100 kms from home.
You need a TEAM to be your eyes and ears.
That is, a local solicitor/conveyancer, maybe a buyer’s agent, a builder to do a building report, a pest company to do the pest report, someone to take lots of photos inside and out from all angles including the adjoining properties and views from the…[Read more]

Thank you Julie, I appreciate the info. I’ve read those various ATO statements several times over other threads and I guess I’m pretty thick…can anyone use a numbers example as I am still working this out.

If I am “caught by all the criteria” it sounds like there is no CGT so the profit component of every wrap payment received over time is…[Read more]

Richard,
Does this mean the interest component of the payment stream is regarded as income each year, and then when the contract is paid out and title transfer takes place, then any CGT liability has to be paid for that tax year?

If anyone could show an example using numbers over say 3 years that would be great.

Cheers
skippygirl

Scott,

One of my dearest friends (who also happens to be a property valuer) is in Turkey right now. She’s been there many times and says it is the best part of Europe. I know she’ll be looking at the local prop market – we both can’t help it wherever we go.
When she returns in 4 weeks I’ll get her feedback about the market and if there is…[Read more]

Just my $0.02…..a friend of a friend of a friend happened to work on several of the towers that were built in Southbank and Docklands.

They recently told me, that if anyone was considering buying an apartment down there, to try to make sure they do an inspection on a really windy day. Seems some of the towers move (they are not office…[Read more]