Hi,

I recommend you take a few days off work and turn up to BH for a visit so you can see for yourself.

I’d still be an accountant if I listened to my friends who told me that I would be crazy to invest in the country.

It wasn’t until I drove and saw for myself that I realised there was opportunity where others saw doubt.

Conversely, I…[Read more]

Hi DanielKTan.

Thanks for your post. That site has been in the news for a long time since Kennett sold it off many years ago.

There is no doubt that the site is in an excellent location – clost to town, transport and parks.

If looking at the site for a residence, the key issues I can see are:

1. Affordability
2. Abiliity to borrow
3. Is it…[Read more]

Awesome answer Julie. Thanks for taking the time to make the post.

As I understand it, renos don’t carry warranty protection but anthing that requires a building permit probably does, particularly if it is structural.

In Vic, I’m told that renos greater than $5k require a building permit, and so I would imagine the builder would require…[Read more]

Hi Neville,

Thanks for your post. You ask a great question!

When weighing up whether to proceed or not, there are two questions I would consider:

1. How much of the cost will be recouped through a higher end sales price? That is, what is the price differential b/w selling ‘as is’ and ‘selling fixed’? Your real estate agent should be able to…[Read more]

Hi,

There are some very good posts made here – particularly by LA Aussie.

Some further comments I would add:

1. Your accountant should be advising you on the financial consequences of various decisions rather than telling you how to invest. It is wise to get a second opinion, but be careful that you drive the outcome you desire.

2. Watch out…[Read more]

Hi Ryan,

Interesting question.

I like to keep my home as debt-free as possible on the basis that if all my property investing turns pear-shaped, at least my home is debt-free (and in my wife’s name).

However, as a concept, you will be be ahead if the after-tax return achieved from your investing exceeds the interest payable on the portion of…[Read more]

Hi Ben,

Thanks for your post and welcome to the forums. It’s great to see you here!

Building costs are quite subjective, with the final price varying substantially depending on:

1. The location and availability of trades
2. The type of construction
3. Size of dwelling
4. The ease of building
5. Weather conditions
6. Builder’s margin

As you…[Read more]

Hi,

In the past I have had success in finding potential vendor finance clients by running classified ads in local papers.

I’m not aware of anyone who ‘finds people’ for vendor finance, but if they exist I would want to make sure there was careful due diligence over the selection / qualification process.

In recent times, VF has come under…[Read more]

Hi,

Zoning changes are rarely straight forward. It requires a length petition to council who must then contact neighbours and other affected parties.

It’s not impossible, but it can certainly take six months, or more, for it to go ahead assuming everything is okay.

As a rule, it can be a tougher ask to have something zoned from res to…[Read more]

Hi,

Trusts are generally seen as an attractive way to control wealth without owning it.

However, since a trust is usually set up just prior to buying, it often lacks the necessary financial history to properly comfort a lender (such as 2+ years of financial statements).

Even if a relatively low LVR is sought, the bank will want some surety that…[Read more]

Hi,

We’ll see what we can do to restore the history.

I’ll check the unread posts Terry.

We had to make this move as the site had expired its life on the old platform.

There is another look and feel happening – a major, major upgrade – that is about 3 to 4 months away from going live.

– Steve

True enough, but who would go into a contract with a contingency such as this where you only had a downside?

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

G’day Chief,

I hope you enjoy the book!

CGT is really only applicable if no other tax already catches the profit.

In this case, because the profit will be taxed as income (i.e. a trading profit), CGT does not apply and therefore there is no discount. Hence the entire profit must be included as assessable income.

I hope this is a little…[Read more]

Hi Supagirl75,

Thanks for your post. Welcome to the forum.

By ‘owner occupied’ I assume you mean live in…?

In that case what you are doing is making a lifestyle decision while trying to maximise the financial outcome.

I say this as it is important to make this observation as many people mistake their home for an out-and-out…[Read more]

G’day,

Thanks for your post. In the early days it can be quite tough if you have limited time and money.

Therefore, the biggest constraint to your early success is time because a good deal will always attract money.

My suggestion is to go and find a property that has a problem you can solve and look to ‘trade’ few a few early deals to build a…[Read more]

Hi,

It is likely that the ATO will view your activities as a business given your intention to ‘trade’ properties.

That is, your choice of investment structure (that is, the entity) will not be able to get around the tax treatment of the transaction.

For example, it doesn’t matter if you use a coy or a trust, the profit will be taxed and not…[Read more]

Thanks for your post.

There are a few informal groups that have started up from those attending my seminars. Check out the ‘Heads Up’ forum board and see if there are any group meetings near your area.

Happy New Year,

– Steve

Hi,

Yep – Dave and I have shaken hands, thanked each other for the memories, and decided to part ways.

There is no gossip or hidden agenda. We had simply reached a point in our business relationship where we wanted different things.

Rather than compromise and end up with a lose-lose outcome, we respected each other enough to end on a…[Read more]

Hi,

I find it funny that people who jump to Dale’s defense here openly defame me on another forum site. Good old tall poppy syndrome.

Anyway, without any agenda, I have met, heard and chatted with Dale on several occasions. While I would regard some of his tax claims for personal expenses aggressive, he creates a reasonably arguable position.…[Read more]

Wow,

That’s amazing! A mini-me and I didn’t even know it.

I can assure you that I wrote the piece, and it was done on the flight from Bne to Mel!… it’s even on my laptop!

I’ll make some phone calls tomorrow and see what the deal is with lifting my content.

I did write some material that was being syndicated as part of a mortgage…[Read more]