Forum Replies Created
Manage it yourself.
Bruce
Mooloolaba, Qldghotib, I would suggest community gardens have been very successful in a number places, St Kilda VIC and Herston Qld are two I am familiar with.
These offer a very simple workable solution for people in high density areas to socialize and grow healthy stuff.
Bruce
Mooloolaba, QldHi Phobia,
Yes i have read Paul Pilzer’s book too. I believe there is an enormous need for health promotion. However, as a physiotherapist, I can assure you it is one thing to educate people, and quite another to get them to change their spots, eat better, and exercise more. I believe it will only happen when there is a concerted effort by government, the media, the AMA, and the scientific community to counter the damaging effects of fast food overindulgence and sedentary lifestyle. And in this respect, computers have a lot to answer for!!!!!!!
Bruce
Mooloolaba, QldMini, great thoughts. Am into the prefab thing myself but have been dissappointed with its cost savings to date. Had a quick squiz at fabprefab and will explore.
Venture capital in Oz is still minimal. We are obsessed with putting all our capital into our homes, which do little for the growth of an economy. The banks then use the returns from our loans to lend money to new home buyers or upgraders, and comparatively little capital makes its way to R&D and novel business start ups. Nevertheless, we need the government to recognise the imperative of investing in R&D and tax breaks for start ups. If we don’t, our exports will continue to decline and imports increase. ANd we might have a nice home, but an unsustainable standard of living.
Re health, I work in the field, and can reassure you that most health care costs are related to lifetyle choice. i.e. artherosclerosis, obesity, and mental stress issues. We already have the knowledge to live much healthier lifestyles, but there is a lack of WILL to do so. Since the 1960s there has been an erosion of morals, self responsibility, self respect, and a sense of community. I fear we have replaced these things with something of far more questionable benefit. The press and elites are very loud with talk of rights. But for every right we expect, there is a reciprocal obligation imposed on someone else, for which the media and elites rarely mention.
Bruce
Mooloolaba, Qldhi Bear and Mini, sorry to come across as a negative prat. Listen, I really think the internet and websites like this have so much potential for spreading not only information, but wisdom! what’s the old saying? bits ain’t bytes, bytes ain’t data, data ain’t information, information ain’t knowledge, knowledge ain’t wisdom.”
I just am interested in maintaining what Steve, who has a Christian faith, really seeks to achieve, and that is a win win situation. After all, what is the point of being the only rich guy in a town full of poverty stricken. To me the future of wealth creation in Australia is all about win win. Further, without love in your heart, all the wealth in the world is an empty and lonely affair.
I am only trying to encourage a higher standard of excellence in making the private sector much more efficient in matching capital’s potential to meet demand. A free enterprise market works much more successfully when this achieved, and when you add love for others on top of that, there is a paradigm shift in investment strategising.
One of the forthcoming needs I see a great need for capital investment is in supplying cheaper accomodation for Gen X’s and asset rich/cash poor boomers. Group titles, commune style living are some of the ways I am investigating to break down security grills and rebuild social capital. To me, Australia needs to stop investing in property and put money into smarts, like medical breakthroughs, cheaper power production, cheaper education, ethics, cheaper means of production, period. Only then does our standard of living increase. I would love to see a culture of venture capital develop in Oz.
Does anyone else here resonate?
Merry Christmas and a Prosperous New Year to all
Bruce
Mooloolaba, Qldno CG in 5 yrs….which is what it is all about isn’t it.
at the end of the day, investors want to put their money where it is most needed. that is free enterprise efficiency. if rental yields are less than 10% in the bush, with no CG, then why bother with property expenses, in/out costs, and tenant risks when you can go and stick your money in tree farms for 9% pa, or just keep upgrading tax free your PPR in the burbs.
I visit this website because I think it helps make the intergenerational redistribution of capital a more efficient process. And that to me is one of the strengths of a free market.
The public sector, and especially public housing has shown over and over it is less efficient than the private sector at providing accomodation.
Let’s all remember that an opportunity lost is just an efficient market prompting us to think more creatively and laterally, and will reward us manyfold for doing so.
Bruce
Mooloolaba, QldBear,
You said to me “Your facts are not correct for the properties i am talking about!!!!!!!!!!!”
Time has shown that you erred in judgement on this matter. I wonder what else you err in judgement on…
I found the properties before you emailed me. Besides, the info you provided in the emails was pre non disclosure. All I used was your info that the properties were on the Tassy West Coast. The west coast of Tasmania isn’t that big and only had two properties listed at 35 and 50k. Besides, Maurice is the agent for 95% of west coast properties listed, and told me heaps.
By all means try and make a buck by doing web searches for those who come to this newsgroup but don’t have the time or experience to search rural areas themselves. You could even take responsibility for their entire due diligence!
My point is you might want to give less information than ‘West Coast of Tasmania’ when advertising on the forum.
But my view is that I have come to this newsgroup wishing to share a high standard of IP experience that may benefit me as equally as others. I assumed most members would be reasonably savvy. Maybe I am wrong.
As things go, after a little due diligence, I wouldn’t invest in the town you are talking about. If anyone is interested in why, I am prepared to give them for free i.e. without a fee, the results of my insider knowledge on the primary employers in the area.
Bruce
Mooloolaba, QldYou mean Maurice Hodgson told me a lie about these properties?
8 BURY STREET
3 SELBY STREET
Bruce
Mooloolaba, QldBear, pardon me for taking the wind out of your sail, but I think you are going to have to get a little more creative on the +CF lead thingo.
It actually took me less than 5 mins on a dial up modem connection the other night to find the properties you refer to. A quick call to the agent found the properties weren’t +CF. i.e.
– the 50k one isn’t +CF when you include closing costs.
– the 35k one hasn’t been tenanted for quite a long time, which means not only no +CF, but no CF at all.
Further, the cost of maintenance to homes in this town is exorbitant, the property manager lives 2 hours away, there are around 10 other untenanted houses in this very small town for the same price up for sale.
The economy of the town is dubious indeed and requires very very careful due diligence, which I partially carried out.
If anyone is to make money buying a home here now, it will be more likely due to being the first in ahead of a crowd of people looking for cheap rural houses. However, the ceiling will always be what rent the local market will bear, and for many of these homes, the current prices are too high already for renters.
Bruce
Mooloolaba, Qldrolo, something else you can do while a cash poor but time rich student….
most students go and work for less than $15/hr for someone else in their considerable spare time. consider the following…
Steve McNight’s greatest wisdom in my view is that a positively geared property is better than a negatively geared one. plus there are less of them nowadays.
So put your thinking cap on and think about how you can turn your current house into a positively geared one. I’d encourage you to check with council and a town planner whether you can whack a second dwelling down in the backyard, if a big enough block. If not, then a lot of councils in Qld let you put a free standing granny flat in. You can then rent the two things out separately, increasing the property’s potential yield by 60-70%. You can then get it revalued and it would give a lot more than 80k equity.
So, if you know anyone with building skills, get them to go builder, and you and your mates do the labour. This way you learn some very very valuable building skills on a smallish project, you make yourself a job that returns much more than $15 an hour, and it isn’t taxed. Plus you increase your equity, and create a very desirable very rare cash flow positive property.
Now run along to your uncle and scab $15k off him for building materials. If you scabbed around and got seconds of everything, I am sure it wouldn’t cost you more than $10k, including slab.
Secondly, my recommendation is that you don’t worry about paying off HECS now. Many lenders don’t worry about HECS debts. Suppose they believe the uni education compensates for the added debt risk.
Bruce
Mooloolaba, QldI take your point, but the spin was that I am approaching people who hadn’t worked out all by themselves to sell privately. I agree those who advertise privately off their own bat, are savvy about maximum returns.
Bruce
Mooloolaba, QldBear, I am interested. But how come the untidy 35k 2bdr gets the same rent as the 50k 3 bdr?
Bruce
Mooloolaba, QldTrace, if you are a physio, then you are probably studying investment because you know the burnout rates of physios at a young age, and the high rate of 1stMCP jt athritic destruction and hyperlaxity, rendering it impossible to do manual therapy.
Bruce
Mooloolaba, QldRugbyfan,
I am sorry if i have pre-empted, but thought I would save your finger for 12 hours. Here is a link to your xls file.
http://members.dodo.net.au/~thefirstbruce/Landtax.xls
If you want to post it on your own bit of cyber turf, I’ll guide you through it via email or phone if you like- thefirstbruce AT hotmail.com
BTW, evem though an Aussie, I was happy to see England win. They have applied science and determination in their campaign. And I was glad to see them prevail over Eddie’s insouciant strategy. Jonny Wilkinson confirmed that life, and real estate investment, are like Monopoly. There are rules to play by, rules that strategies can be devised to exploit. (If rugby is all the more predictable for those rules, then change the rules).
Richard, thanks a ton for sharing quality info. I have been in touch with an architect, town planner and local council, so am reasonably certain that the building conforms with Pine Rivers town plan for strata titling.
As for additions etc, the block is 32 perches and I had considered converting the two ground floor flats for wheel chair access (remove walls between toilet and bathroom), and adding a free standing 5th flat down the back of the block behind the current 6 carports. But the town planner felt the set backs would suffocate this.
Your info re GST on individual sales of strata flats is much appreciated. Two accountants could not clarify for me. I understand though if I do sell off each flat individually, I am up for refinance and stamp duty costs. Do you have an opinion on this?
Once again, thanks for quality input.
Cheers
Bruce
Mooloolaba, QldIf you tell where the property is, maybe there is someone here who will go and make an impartial inspection and email the results.
I would do it for a small fee if it was in Brisbane or the Sunshine Coast.
Name your criteria and I’ll fill it in.
Though you may as well use a buyer’s agent in that case.
I also think buying remotely is less risky if you just want a short term thing to flip on a rising market. But if you want to hold for some time, I’d make sure you get it checked more carefully.
Bruce
Mooloolaba, QldIt looks neat and tidy to me. I’d throw some nice rugs on the floors, a couple of well selected wall hangings (local beach photos blown up) and whack some better furniture into it and sell inclusive. With the right furniture in situ, it makes a good impact at OFI- less hassles for buyers. And they can start renting it out straight away.
You could stick a bookcase in it too, and fill it full of all your old books you never look at anymore, and maybe a board game or two – monopoly anyone?
Bruce
Mooloolaba, QldIn case anyone is interested, below is the formula P&I loans use. It is called a Simple Interest Amortized Loan Formula:
PV * ( 1 + i )^N = PMT * [ ( 1 + i )^N – 1 ] / i
where
PMT = the payment per period
i = interest rate in percent per period (remember to divide annual interest rates by 12 to get the interest rate per month, which is the standard period.
PV = loan / mortgage amount (PV stands for present value, as in initial loan value)
N = number of periods (usually is number of months of the loan times years i.e. 25 yrs * 12 = 300.)
^ = means the following symbol is an exponent. i.e 2^3 = 8 2 is the base, 3 is the exponent.
most basic calculators can handle this if you are comfortable plugging in exponents.
_____________________________________________
The left side of the formula is derived from a Compound Interest Future Value formula. If you take PV away from FV, you get an idea of how much interest you pay over the life of a loan.
FV = PV * ( 1 + i )^N
where
PV = present value
FV = future value (maturity value)
i = interest rate in percent per period
N = number of periods__________________________________________
The right side of the formula is an Annuity Formula
FV = PMT * [ ( ( 1 + i )^N – 1 ) / i ]
FV = future value (maturity value)
PMT = payment per period
i = interest rate in percent per period
N = number of periods__________________________________________
Rugbyfan, I would love a copy of your xls too.
thefirstbruce$hotmail.com
Could I also suggest when you have something a lot of people want a copy of, it is a good idea to whack the file up on a web or ftp site, and post a link. If you don’t know how to do it, maybe one of the other members can help. Or if there is anymore interest, I’ll gladly help out.
Cheers and TIA
Bruce
