All Topics / General Property / First Investment Property

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of clownstaclownsta
    Participant
    @clownsta
    Join Date: 2003
    Post Count: 16

    Hello everyone

    I have entered into a contract to purchase an OTP dept in Brizzy completion date 2006, and I wondered if anyone has had experienced in this type of investment. I plan to onsell before completion date and reinvest in more properties. Any suggestions will be most helpful.

    Profile photo of bribiebribie
    Participant
    @bribie
    Join Date: 2003
    Post Count: 67

    My first purchase of an IP was in a block of 62 units in Spring Hill within walking distance of the Mall. we had good onsite PM who got us good returns – the 11 sec rule would have been met but when I heard of Cathedral Place and some others happening we sold. Prices and rental tumbled once the others came on line. If you are going to on sell, don’t wait to the very last minute otherwise you maybe one of quite a number of other investors trying the same thing. I think Admirality Towers in Bris caused some concern like this a couple of years ago.

    bribie

    Profile photo of clownstaclownsta
    Participant
    @clownsta
    Join Date: 2003
    Post Count: 16

    bribie

    Thanks for sharing your experience and knowledge unfortunately I dont have Steves book to read and I’m sorry I don’t know what u mean by the 11 sec rule???, dont have a credit card to purchase book on line, does anyone know if it is on sale at the bookstores? I live in Sydney.

    Profile photo of bribiebribie
    Participant
    @bribie
    Join Date: 2003
    Post Count: 67

    clownsta,

    In Bris, all the bookstores now have supplies so try any of the major bookstores including Myer / Grace Bros.

    We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.

    bribie

    Profile photo of DilettanteDilettante
    Participant
    @dilettante
    Join Date: 2003
    Post Count: 5

    Hi Clownsta,

    Steve McKnight’s book is available in all book stores (Angus, Borders, Dymocks, you name it).

    Cheers,

    Profile photo of powmowpowmow
    Member
    @powmow
    Join Date: 2003
    Post Count: 91

    clownsta,

    most independant bookstores stock it as well.

    [;)] Powmow [;)]

    Profile photo of milen007milen007
    Member
    @milen007
    Join Date: 2003
    Post Count: 58

    is it a commercial property? or residential?

    quote:


    We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.

    bribie


    Profile photo of taylah111taylah111
    Member
    @taylah111
    Join Date: 2003
    Post Count: 10

    quote:


    clownsta,

    In Bris, all the bookstores now have supplies so try any of the major bookstores including Myer / Grace Bros.

    We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.

    bribie


    Profile photo of clownstaclownsta
    Participant
    @clownsta
    Join Date: 2003
    Post Count: 16

    Thanks for your replies much appreciated.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    clownsta

    When you onsell the property before completion, be aware that you will not see any of your profit until settlement!! We have one that we put on the market at least 6 months before completion to make sure it gets sold prior to. Failing that, we will have to put in a loan app just in case. Thankfully, this one has appreciated by $120K in the year and a half, so that shouldn’t be a problem, but I would prefer to sell than have to settle.

    Cheers
    Mel

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Mel

    Would that make it subject to 100% capital gains tax?

    Cheers
    Leigh K[:D]

    Carve your own path and lead the way …

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Hi Leigh

    The discount on CGT applies from exchange of contracts to exchange of contracts. This was bad for us in that we signed to sell one property in June, and therefore last financial year – which wasn’t good tax planning. But it is good when you buy off the plan with long build times.

    So for us, we exchanged in Feb 02 to buy, and will hopefully exchange in Nov 03 to sell, and so get our discount.

    Cheers
    Mel

    Profile photo of clownstaclownsta
    Participant
    @clownsta
    Join Date: 2003
    Post Count: 16

    Thank you mel your so helpful and yes I prefer to sell than have to settle, sorry if I sound dumb but are u able to borrow against an OTP unit say 6 months or a year before completion????.

    clownsta

    When you onsell the property before completion, be aware that you will not see any of your profit until settlement!! We have one that we put on the market at least 6 months before completion to make sure it gets sold prior to. Failing that, we will have to put in a loan app just in case. Thankfully, this one has appreciated by $120K in the year and a half, so that shouldn’t be a problem, but I would prefer to sell than have to settle.

    Cheers
    Mel

    [/quote]

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