Forum Replies Created
At the risk of sounding like an ambulance chaser, let me let you in on a little secret I thought up, and worked hard at for a number of months.
Firstly, good reasons for houses on the market? Divorce, deceased, mortgagee in possession, job transfer, etc.
I thought that if relatives were out of area, there would be a better chance of them wanting to sell, wheras if they were local, they might be wanting to move in . Therefore, although the local paper had a hundred probate notices a week, I only looked for sydney lawers, with central coast addresses.
Scan the smh back pages for probate notices.
Circle all central coast properties (where I live)Ring up solicitor. Ask to deal with the solicitor handling the estate of Mr Jones. Introduce myself as wanting to buy a place in that area, dont like dealing with REA, and would the owners be interested in a private sale (assuming I want the place, $’s etc)
This would lead to three responses.
i) Are you a REA touting for business. Absolutely not, I am wanting to buy a place, and your clients may like to save 10k commission by avoiding the agent. Politely leave my name and number.
ii) I will discuss that with my clients, may I have your contact details please? Politely leave details, remind them of saving 10+k commission if all turns out well.
iii) (the most common response) (in a very rude tone) I would never discuss any clients details with a stranger. And my trump card to this? Absolutely, I understand, as a Dr myself on the confidentiality of your client. May I leave my details, so if your client specifically asks to contact me, then they may do so? After all, if they were to sell, they may have a quick sale, at a fair price, and save over ten thousand dollars on the rea commission. Politely leave details.And the results?
A lot of work, a hell of a lot of phone calls, about 150+ phone calls. The third time I had left a number, I had the vendor ring me up very excited THAT SAME NIGHT!. Unfortunately, her daughter (who was the owner), was handicapped, and a suitable place needed to be found for her, numerous issues dragged on, and she decided to stay.
Another three rang back, but unfortunately I had just signed on an ip, with no cash left!
Moved soon after, with a different phone number.
PS forget the public trustee, they are like dealing with multilisted unmotivated vendors!
I hope that lifeX, castle dreamer and Kay realise that this is far from ambulance chasing and morgue crashing.
Am not in the market, but it is worth a try. But, first, you will make many, many calls for each retuned. If you dont have good manners, you will sound like a weirdo, and, worst of all, you are not in control, as you have to wait for probate, etc, . Still, if you only wanted to pick one or two up a year, could be worth a try
Mmmmmmm. If the house around the corner is worth less that 265, why is this one worth 285 (which is really what the owner is getting, as it sounds as though he is saving the agents fee, not you!)
Im with the loanarranger, find out NOW from council about any future developments possible ie easements, covenants, etc, else you may not be able to do anything
Is it in nsw? I seriously think the bottom has fallen out of the market. There are almost no buyers, and everyone wants to sell now to avoid the VTT. My view is that unit prices are to crash and burn, and houses will correct and plateu for a while.
Pisces, I gotta agree, agree, and agree with you entirely on this one.
(wrappack jumps up on his high horse, a fine, muscular palamino mare)
1) Being hooked on smoking. 40-50 bucks a week down the drain, but in pre tax dollars, probably 70-100 dollars.
13 years ago a friend was going to give up the smokes when they hit $5 a pack. Yep, hes still at it today.
Unfortunately, smoking fucks up the whole immune system of the body, not just the lungs. This is why, for example, women who smoke have twice the rate of cervical cancer than non smokers.
If you live a long life, if the lung cancer doesnt get you, the emphysema sure will. The lung loses its elasticity, so you can breath in okay, but cant really exhale at all.2) Hooked on booze. Ditto, but with the liver instead. Unfortunately, they almost go together. Almost all alkos are heavy smokers, and most smokers are also drinkers.
Sadly, my theory is that women are about to have a huge increase in their booze intake, curtesy of the lolly water industry. In forty years time we will look back and wonder how it all was allowed (and in fact was encouraged by the govt)
Sadly, the govt sees only the incoming tax dollar, without thinking about the paraplegics from the car crashes, the alcohol fueled crime, and the shot livers.3) Yep, got a relie who blows all of his money on the pokies.
My theory on human beings- we are all bedazzled to some degree by flashing lights.
Disagree? Well, lets see, the shops- ever spent more than you intended- they are all airy, and very well lit. My kids on the telly/xbox- nuff said. Yours truly (and no doubt a few others reading this post) on the internet.
What is it about human beings and flashing lights?Pisces, may I add a fourth?
4) Being hooked on shopping. “the practical art and science of constantly spending beyond your current and future means to procure non essential and frequently unused goods and services”and a fifth
5) Being hooked on cars. Buy a new car, it will cost you $150 a WEEK, bare minimum, and if you add up the opportunity cost, significantly more. Why is it that dopey arsed men love their hoonmobiles (small penis and ego, perhaps), and , for some women , they are a necessary fashion item?(wrappack now decends from his high horse)
My 22c worth.
It would depend on income (no use neg gearing on the pension!), and also your intention.
Is your intention to buy one expensive property that will be a prime development site in 20 years time? Or do you wish to be getting tenants, etc.
I saw this question of yours and immediately thought of ‘the answer’, which is ‘it depends’
One point I thought someone was going to raise was that with neg gearing you are effectively limited to a certain level of borrowing, but if you could get a number of 10% yield properties, you could effectively own as many as you want over a period of time.
Or mix’n’match with a bit of both
I’ll also lay my cards on the table and go into bat for all of us.
I think Russ’s first post would strike a chord with over 90 percent of people in the street. ie made sick by a house full of rubbish and filth
Yes, a few of us (particularly in the health field) have broader life experiences involving mentally ill people, and can guess on the ladies psychiatric condition(ocd/chronic hoarder)
But, in real estate, it takes three to tango, the vendor, the buyer, and the bank.
If the house is overpriced, then leave it alone. End of story.
If if needs major work ie 5k worth of cleaning and rewiring (and add to that the time and effort) plus whatever else will turn up (which it will) then this must be deducted off what we determine is a fair price.
Even after the cleanup, will all the smell be gone? (ps small note to smokers and pet owners- us non smokers can smell your house quite easily- the smell is in the curtains, walls, floors, etc. This makes them very hard to rent/sell to the 70% of the population that is non smoking)
If the general condition is that bad, one can also assume that absolutely no maintenance (gutters,etc) has been done for 14 years. Again, take off a couple more thousand for the inevitable repairs.
Thus, if Russ tries to help this lady by maybe trying to cut into his fair profit margin, he may wind up doing a huge amount of work, only to have an unrentable smelly house. Sounds like a win/lose situation to me.
Another problem is the ladies financial one, in which she ‘needs’ about double the fair value of the house in order to move.
I think that anyone trying to tango in the above situation will very soon realise they are between a rock and a hard place.
This is not to say this unfortunate lady does not have my sympathy- indeed she does, and yes, society does, as a whole, let our mentally ill patients down very badly.
I’m going to have to disagree with Steve on his point #2. The 50% exemption for indivuduals making a capital gain is only when the asset has been held continually for 12 months or more. Thus, if you flip, or sell 364 days down the track, you will have the glorious honour of paying your marginal tax rate on all of the profit.
It sounded from your last post that when you sell (either ip/backyard), you will pay down your ip loans. Dont do this!
Pay any extra money off your ppor, as this is not tax deductable
A couple of numbers for word-
If the bank will lend you 160k, then why not buy 2 pos/neutral/slightly neg geared, in the same area which you think will go well in the long run?
As for renting to the ex- well, in the same way that you have let someone else marry her, let someone else tenant her!
He talks about buying properties with a twist, ie a church that can be renod into 2 stories, a corner house that can be rented as a business.
Anyone else got any ideas about “properties with a twist”?
Good to see you are thinking laterally with regards to centrelink.
Couple o’ thoughts
Try to think about what you should do disregarding centrelink. So often people do something ‘because of centrelink’ or ‘to save tax’ that just loses them money.
Thus, do all of your sums, ask centrelink AND a qualified accountant PRIOR to actually doing something.
I dont know much about centrelink, but I think that your ppor doesnt count as an asset, but your ips do. Thus, if you sell your backyard and pay off your home loan, centrelink payments would probably not have changed (of course, you would be out of debt and able to borrow heaps more!)
Can anyone answer this question- would it make any difference to Millys situation if her properties/future properties were in a company or trust? Or would CL be interested in this as well?
If it came down to selling, if an ip was sold, then that loan would be cancelled, and your loan on ppor would also decrease, and CL benefits would not decrease.
Can you just put a granny flat on the backyard, instead of going to all of the hassle of subdividing?
Mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm.
Heres my .22 of a cent worth.
If you EVER intend to form a partnership, simply ask a lawyer to explain the words ‘joint and severally liable’ to you. If you have a fraction of functional grey matter, you will not do it.
Read monopolies posting about the restaraunt bill about thirty times each day you are considering this deal.
If you are purely focused on the tax deal, why not just let yourself get screwed by the annual end of fin year agricultural scam? Pay less tax by earning less or losing more! Doesnt sound like a smart deal to me! (unless cap gain in future to offsett the loss)
FORGET ABOUT THE TAXATION ISSUES, AND CONSIDER THE INVESTMENT IN ITS ENTIRETY. Is it good, bad, or indifferent.
Consider WHY they want you to ‘go you halves’. In all honesty, it is probably because they cannot afford it on their own!
Even if you got the loans, (I assume) you would be jointly and severly liable (ie forget it)
Avoid, avoid, avoid.
But, after crushing your hopes, there is a way out, where all parties will gain.
You mention that it is a small farm. Great, sign some papers saying that you will purchase subject to subdivision, and your friends will buy the other half. Vendor gets paid, you and your friends both physically get half the property, and your affairs stay seperate.
Sometimes, I astound even myself with my brilliance[biggrin][grad][thumbsupanim][wink]
Many thanks for your replies.
My idea (or as baldrick would say, my cunning plan, but I digress) is to get some large acreage (or mid size acreage), then to subdivide into smaller acreages (possibly with dual occupancies).
Then, move multiple properties (long term, would just be doing one at a time) to rent out.
As for type/size, it would come down to the largest size available and transportable (dont like the idea of chopping the house in two and rejoining!). I assume the best I would be able to get would be three bed 1 bath.
I assume an authentic restored queenslander would be a large premium over a standard house.
ps found a web site drakehomes.com.au , but was quite taken aback at the $ they charge 40k+ (just for house and moving, not reconnections
I would try to get council permission, and after it is approved, then try to source the house, and shift it.
Am I a qlder? Not really, have only spent a week of my life up there, and was drunk as a skunk the whole time (schoolies week)
Many thanks for your continued appreciation!
Thorpie back in [biggrin]
I would probably get new (v.low) valuations, then go to centrelink and get things changed.
When *not* if, they find out, they will totally screw you for back payments which will drain you financially.
You may find out that you may be best to sell an IP, and get the home loan down.
Talk to an accountant who knows about centrelink issues prior to doing anything
Gotta agree with russ on this, that if you dont know the rules, better off playing another game.
But, I am still undeterred, as I just need another paid member on my team who can tell me what is/not possible.
If I was going to an area, who (apart from the local council) would I be best to talk to, when subdividing a very large farm into medium sized farms and putting one residence on each? WOuld it be a town planner/architect/surveyour??????
Any bright ideas?
In a similar vein to this thread, my wife and I claimed the fhog on our house.
I am interested in buying some acreage in qld in our 3 kiddies names.
If I could find acreage on three titles (easily done), can I get 7k times three (assuming they stay in the kiddies names and I guarrantor and pay the loans)?
Looks like Mr T will be vf 20% of the purchase price for 2 years. At least then he will-
get 80% of the price he wants
avert a meltdown for a couple of years
keep a few units for himself . He usually keeps a few as serviced apartments/rentals, as it is very handy to control the body corporate!Its really very easy to get a rea working hard.
IMHO, there are only two ways. Firstly, get some bailing twine, a telephone, baseball bat and a cattle prod. Abduct and tie up all the rea family, relatives, and friends (the last is the easiest, due to the minimal numbers involved). After they are all tied up, break all of his bones with the baseball bat, leaving the index finger of the right hand unscathed. Start using the fully charged electric cattle prod to get the rea over his mental block of getting on the phone to prospective clients. After he starts ringing, success will follow.
Alternatively, (and this works great when a sole agency is soon to expire/has expired), have him round for a chat. Okay, the house is 200k, and he is probably taking 3% commission, ie six grand. His pay will be 40% of that, ie four grand. Remind him that if he sells the house, he gets four grand in the hand, if not, he gets nothing. Ask him what he will be doing, and watch the little bastard like a hawk. Gentle reminding and name dropping of other agents is very persuasive. You have the upper hand in that the sole agency ( I assume you had three months) has expired, and you can get rid of him quicker than last nights extra hot vindaloo.
Many thanks for your help.
Russ, I realise that out of town is there predominantly for farming/difficulty in geography.
I came across a property of about 200acres, and around the property were some of 10-400acres.
If I could subdivide the 200 bit by bit into even 20 or 40 acres, this would turn the property from a ‘real’ farm into a ‘hobby’ farm or a horse lovers place, or people who hate the city.
Any thoughts?
Majic, the 2.25% (on gross sale price) will apply to all properties sold after a certain date (I forget), as long as it is about 15 or20% more than was paid. It is not just for ips bought ‘after’ a certain date- as happened with the CGT in 85
Pisces, I think that my duplex idea is brilliant, but i fear that the overall investment climate has sudddenly chilled. In the paper today, auction clearance rates on the central coast was 32%, and this ignores the ones pulled prior to auction. For sale signs have sprouted on many lawns, even ones that were recently sold (last year or two- ?new landlords getting out of the game). In the same way that a rising tide lifts all boats, a falling one must also do the same. With apartments about to be in free fall, and some townhouses untenantable, I dont think nsw (or certain parts of it) have any value. Yes, our population will continue to increase much greater than every other state, and the supply of land is basically fixed, but the oversupply of ips must hurt the market at some stage. I think six months is a good time to sit on the fence.
And Mysta, for 44c, lets see, my work rate is about $300 per hour, so 44c is about five point two eight seconds.
