Forum Replies Created
Matt,
Focus your time on creating value. Don’t sweat on the small stuff.
I think you would soon come to the realisation if you were to have a few issues, that a PM is definitely worth having. In addition there is a requirement to have a solid knowledge of the relevant legislation. Sometimes, an inadvertant error can cost you.
On the whole, IMO, they are worth their money.
James
Its a blip on the downward slide, the fundamentals just aren’t rightStrong economy, still low interest rates, record low unemployment, tax cuts again in July. Sure the boom is over and there will be some pullback, but I wouldn’t have thought these factors are pointers to a downward slide.
James
Not sure what others think, but if you were to be paying for example, 75% of the costs of the property, why don’t you purchase as tenants in common.
Therefore your legal share of the property will be reflective of your contributions. Just a thought.
James
I wouldn’t necessarily say that townhouses are an inferior property type to houses. It will depend on location, demographics, and supply and demand.
Understand what you can afford, look at a few areas & select the right property.
Residex property reports can provide you with some insight about future capital growth suburbs. I have recently bought one and found them quite informative.
James
PP,
Well, its hard to say what you should do in january 2007. Things will undoubtedly change in 2 years.
However, if I was in the position you mentioned today, I would be purchasing a property to re-develop (2-3 site development). But of course, I have been investing for a little while and have eventually come to this point. So it depends on your skills and comfort level to do this.
However, I think over the next few years, this will be the best way to create best value in property.
James
Nick,
Taxable Income FY1 (financial year 1)
10,000 – 15,000 = -5,000
The $5,000 loss will be carried forward to FY2 as losses to offset against other taxable income.Not sure if there is any difference for uni fees though
James
Hissho,
1. Google, its fantastic, for example
http://www.google.com.au/search?hl=en&q=strata+title&meta=cr%3DcountryAU2. Don’t pay a voluntary tax to Mr Carr. Don’t sell
Settle on a property in May and am busily researching market (Melb) to locate property for re-development probably in mid to late this year.
Depending on the feedback regarding interest free loans, would most likely re-finance one of my existing properties.
Look at renovating another IP (previous PPOR), or at least have the costing and designs completed in my mind for 2006 re-furbishment.
However, I am debating (and have been for the past month), whether I go overseas for a holiday in August/September 05 and to visit family as well, whilst OS. Have had 1 holiday in 10 years, so I am probably due, however it would delay purchase for another 12 months ie mid-2006. Not keen on that. Dilemmas[confused2]
On a lighter note, of course, if there are some (well one at least) hot, sexy, intelligent female then that might also be a good investment!
Watch Collingwood win the 2005 GF. [biggrin] No comments thanks, I hear the laughter
Do a search on Renting Own Home. This has been discussed many times and I am sure you will find the information you are looking.
Dan
Peter combden’s web-site has some useful information, one which is a development checklist that they will send you (no cost).
http://www.smartpropertydevelopment.com.au
James
Investron, you are right. I often type faster than I think[blush2] $10k-$12k per sqaure is what I should have said.
One more thing I just thought of, and I not sure what the legislation is in SA, but there is scope in other states’ residential tenancies act where the relevant State Tribunal has the poiwer to terminate the agreement if you can show hardship. Not sure the exact mechanics of this however.
James
Alexei,
Given that you have an agreement, there is little you can do, as the tenants have a right to occupy the premises unless they breach any of their obligations. And as you mentioned this is not the case.
You could get your agent to assist them in finding a new premises in the area and agree to cover their costs to do so. You might even have to offer them come compensation ie incentive for the move. Outside of this, not sure what you can do. Can you not take a 6 month lease in the meantime until the current tenancy expires?
James
Dan,
I think it’s 1 square = 9.6 sqm.
James
Had a similar, yet very brief conversation with a friend, whose family is in the building game, and mentioned $10k-$12k per sq mt. (This is building costs only though!)
Waysolid,
You have reminded me about my ex-girlfriend.. [ohno]
We frequently discussed (at my prompting) our future finances and the best way to achieve a bit of financial security. Talked about various options, however whenever it was time for us to make the decision, other things got in the way for her…like a sports-convertible car, shoes, holidays to Europe, more shoes and finally a few more shoes. Yes, I now know women can never have enough shoes.So after a few false starts, I decided to do it myself. Now in conjunction with other factors (which only Dr Phil could adequately deal with),this commenced our growth down different paths. She was resentful of what I had started but never actually did anything about it. Even with my offers of assistance and countless conversations.
In retospect, my investment career not only commenced (hopefully) the start of a secure financial path but actually helped me realise things about her character that I chose to ignore previously but only became visible when i decided to start investing myself.
Ah life…what a journey![wink]
Globe,
Talk to a couple of brokers to understand alternative financing options. Interest only seems like the obvious options.
(Much discussion regarding Interest Free loans elsewhere in this forum…)Given you have entered into a 12 month lease, there is nothing you can do from that perspective, until the lease expires. Of course any minor reno’s in another 12 months will depend on what value in rent and value you could attain v. cost
When doing your tax return (well before actually)it may be worthwhile examining a tax depreciation schedule from a QS for the purposes of claiming depreciation, if you have not already done so. Not sure how old your property is.
James
If you agree with the proposition that property at least in this current cycle has completed its growth spurt and in the presence of the sharemarket having shot up approx. 25% last year, do we all do nothing?
Even in a bear market, some companies share value increase and of course, the converse is also true. Telstra’s share price didn’t appreciate in line with the All Ords in 2004. (Sorry T2 investors[grrr])
Whilst I enjoy reading the divergent views on where we are heading, as we are all arm-chair experts[biggrin], surely more importantly today, is how we best identify and create value to our property investments, if that is, we choose to invest in property. We won’t be getting the free kicks that the property market has provided to most of us who have held property over the past 5-7 years.
This will come down to the wording of the option in the lease agreement.
Under the Qld Land Titles Act, the new purchaser is bound by the original agreement including any options, as long as the agreement is less than 3 years.
The commentary about compensation ie the fact that the tenant could agree to leave early and in return have compensation paid to them for having to leave early, removal costs and other costs is correct.
James
The easement should be clearly shown on the title drawings and would be visible, however, I have heard of circumstances where they are not, so I would suspect the missing information is where your solicitors earn their money.
In Victoria at least, it would be included in the vendor’s statement, which includes copy of title, planning information, details of existing mortgages, outgoings, building restrictions, building permits, any other agreements.
My understanding is that there is inaccurate or insufficient information a buyer may be able to withdraw from the sale or take legal action.
Stieglitz v. Prestolite Battery Division (1980) OHC
· P’s search disclosed vendor’s title subject to unregistered easement
· held that appropriate test not whether defect patent or latent but whether purchaser faced with acceptance of property materially different than bargained for
· purchaser entitled to rescindJames
