Forum Replies Created
Mark,
This should help or at least start your research.
http://www.washingtonbrown.com.au/uploads/Draft_Dep_Ruling.pdf
James
Geo,
I think what Terry was refering to was from an asset protection perspective. If there was a situation in which something when wrong with one trust, you are not exposing all your assets in that one trust.
I am not aware that it would increase your borrowing power at all, because ultimately you are as trustee (individual or corporate) guaranteeing the due performance of the loans.
Unless there is something I have missed Terry(?)
James
Back to the Future….again (its same IR policy for the last three elections for the ALP). They’re consistent that’s for sure
james
BlackJack,
At least in Victoria, bonds are required to be held in trust. Please refer below.
Specifically 29. Bonds – where it syas the landlord is to hold the security deposit in trust for the tenant. Receipt details under 31
In addition to the ‘renewal fees’, did they mention this to you at the commencement of managing the property or is it referenced in the property management agreement. if not, I would ask for it back. Make some representation to the REINT.
Good luck and let us kow how you go.
James
My word – I will say a few prayers to the property Gods for you.
As for the management agreement with the agents, and I am not sure if this is different in each state, but there should be no penalty to break away from your agreement..maybe a period of notice, but sometimes that is not even outlined in the Property management agreement. Ultimately, check the detail in the agreement.
As for the bond, you will need to set up a trust account yourself to maintain the deposits of your tenants. This should not be difficult and you would need to issue a trust account receipt was the monies were transferred into that accont to the tenant.
James
Alas, I was confused…..I was mixing up the roles.
Thanks for your responses and clearing this up. (in a twisted way in my mind I was correct….really!!)
James
You say tomato and I tomato….Seriously, I don’t think there is a right or wronf here.
Personally, I am looking to expand my portfolio and have decided to pay interest only. I am comfortable with assuming increasing amounts of debt. Others however, psychologically, like to know they are paying it down.
Admittedly, in the first few years, a very samll proprtion of the amounts you would be paying off would be principal. I gave one of my loans as an example on a similar topic last week, where on my $257k loan, P&I is around $1650 and I/O is about $1380. $270 isn’t huge, but I would rather have access to this in conjunction with other savings to be ready for next IP purchase.
From a financial viewpoint, I really don’t think it matters greatly.
James
This could be the start of something beautiful….
[wink]
James
Tenants in common are a lot more common method of purchasing in UK for that very reason. In years to come, it may become an increasing trend here.
On the issue of UK prices, I was throwing out some old magazines yesterday, and one which a friend had brought me back from his visit to the UK in 2001, had an add for apartments in London. I forget the exact location but were called St George…there were 2 bedroom apartments being sold for 430k pounds. Based on todays exchange rate that is $1.075m!!
James
Tell me, how does one achieve financial freedom on $1646 profit per year and the probability of a very small or negligable capital return. Even a 10% increase on $25000 is only $2500.
James
You can pay for information at HomePrice Guide (www.realestate.com.au) for information at each specific post code.
James
FYI,
Loaction in Vic is;
Level 6, CU Tower, 485 Latrobe St MelbourneJames
Mizui5,
Just think of it as forced saving…You can still access your money through a LOC when you are ready!!!
James
Geo,
I think you might be wise to consider a unit trust for partnership purposes. Makes it easier to manage people entering and leaving the partnership.Do a search on this forum and http://www.somersoft.com and you will get some good information.
James
George,
Was interest rates your key criteria for going with CBA??James
Purchasing +ve CF property in small twon with limited capital growth, static population growth, and no job growth is BAD
Yield is only one part of the return equation. (Greater the return, the greater the risk as well)
Historically, if you look at property prices, their returns are around 2-3% above inflation anyway (similar to shares). If you are confident enought to know when the next boom starts, then good luck to you.
Just another perspective
James
Holly,
Credibility (or perceived credibility)with agents that you are dealing with is paramount.I would suggest speaking to a mortgage broker first, understanding what you can and can’t do. Maybe even pre-approval…It gives you more bargaining power (I believe) with agents.
Not sure whther you might be at this stage yet, but worthwhile considering in the near future.
James
Whilst agents technically represent their sellers. At the end of the day in terms of commission – a few extra thousand dollars on the price will not be significant in terns of extra commission. An agent will help you the buyer (as much as the seller) if they can see you are serious and want to buy.
The agent will prefer the certainty of a sale at a slightly reduced price than the prospect of losing the sale and marginally increased commission to them. They will work their ‘magic’ with the seller for you!!
James
