[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 5, 2004 - 5:41 am

MonkeyMagic,

Stop trying to compare apples with pears.

Different demographics buy different properties & they go through different market cycles.

If you buy top-end luxury property you’ll find that it’s an extremely volatile market – you can make a lot or lose a lot.

Buying solid established around-median dwellings you’ll find less risk.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 1:41 pm

kathryn,

I can see the REA’s point that they want the place to be ready for someone to move in tomorrow….but they have to acknowledge that it is costing YOU money.

What would your agent say if you said to them – OK I can leave it untenanted…but I’ll take the market rental out of your fee for every week after the second that you don’t have a legitimite written offer.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 1:30 pm

Noam,

I suggest you wait for more comments than simply mine – other people have have differing views of the situation.

I don’t have the expertise to help you with selling the property. Speak to some excellent agents & get their views.

You do need to check your contract, it may be such that if you sell & the person you sell to reneges, it reverts to YOU and YOU are liable.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 1:26 pm

Originally posted by Sibo:

As long as prices dont recede it’ll be valuable choice, and it renovations make it +CF when we leave, all the better!

Sibo,

Check the history of Queanbeyan – retraces are quite common.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 1:22 pm

Originally posted by chrism9645:

Ok, we’ve read the book, we had two IPs before reading it and have subsequently purchased two more…but $1M in a year?

Jo,

It’s not a race.

Your strategy sounds fine.

It fits your risk profile & timetable.

Don’t get distracted from your goals.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 1:14 pm

hodgson,

The last two posts are absolutely correct, and only part of the story.

Trusts have a variety of benefits.

They do not pay tax, tax is only paid when profits are distributed from a Trust.

You can establish a set of beneficiaries (such as yourself and your kids), so tax is reduced across people.

Due to this beneficiary system, they get around death duties should you die.

You may wish to consider buying a book on the topic such as Renton’s Trust book (bookstores) or Dale Gatherum-Goss’s Trust Magic book (http://www.gatherumgoss.com/shopping.htm).

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 4:04 am

Note that 1 bedroom flats in Queanbeyan were going for under $40K about 18 months ago – so under $85K may look cheap, but the Queanbeyan market has had it’s big rise.

I don’t expect much from Queanbeyan for another 10 years.

Look at the history, demographics & services PLUS the price of new homes & units in the ACT

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 4:03 am

mattty73,

Give it to me.

Seriously, put a % into property, a % into shares & a % into lifestyle.

How you weight the % is up to you!

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 4:00 am

Exactly per Sibo’s comments.

Frankly I don’t spend more than 15% on a property.

Target the reno budget at $40-$50K.

Remember your aim is to sell (from your post anyway) – you need to take into account the selling costs & CGT and how it reduces your profit

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:57 am

Purple Title – Tenants in Common –
The land is held as Tenants in Common, the shares being in the same number as the units. Separate Title may be issued for each unit. Because of the “unity of possession” the land cannot be divided or partitioned. The sketch and lot number is for the whole of the land in the plan or diagram.

The Certificate of Title states the number of undivided shares contained and the sketch of the land used to be shaded purple – thus “purple title”.

See: http://www.reiwa.com/content-glossary-words.cfm?&letter=P

Time taken to find using Google: 3 seconds

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:52 am

Originally posted by tankbusterboy:

Now, I’ve missed the boat in those two areas that were definate winners. How can I stop this?

Stop sitting on your hands!

Use what ever justification you like – motivated by book/seminar, got a raise at work, kids left home – whatever.

Keep in mind that at the end of the day the only thing you need to do to walk the road is take a step.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:51 am

I’m not buying right now – and neither’s my wife!

hmmm – is that a good way to judge whether to buy

I’ll update you when I know the date of our next purchase (in the next few months) so you can buy on the same day – after all, safetly in numbers!

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:49 am

Noam,

You’ll undoubtable make money – but it may take an awfully long time.

Also keep in mind that effectively your return will be significantly lower than for someone who bought a decent dwelling in an established area.

The key thing you should worry about is whether you can afford the cost of the next five years to make that money…

Good luck!

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:46 am

Sibo,

Spotting is illegal in Australia if you do not have a Real Estate license. So when you move to Canberra this is probably something you should bear in mind.

New Zealand I have no idea about – but you should check!

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:45 am

Listen to the banks.

If they feel East Coast apartments are that risky – why would an investor buy one!

If the prices drop however that’s a different matter….

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:43 am

Sibo,

Come along to some of the investor get-togethers once you’re here

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:41 am

Originally posted by Celivia:

I suppose for people with 5 or more IPs they won’t dream of sending all these tenants gifts.

Some of us do

But not on calendar events, as a thank you at a random point in the year.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:39 am

Go Gatsby!

Finding your passion is most important.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:36 am

JaRRn,

Be careful when investing with friends.

Your priorities and needs may diverge over time. In certain cases preserving the friendship can become hard.

Cheers,

Aceyducey

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

April 4, 2004 - 3:33 am

Originally posted by kathryngene:
Now could someone help me and tell me what have i missed and why i am having so much problem seeling this is such a growth area, and at good returns.Would appreciate any comments,thanks

kathryn,

Aside from the spot-on comments by other posters, you’ve now struck one of the issues with buying in very regional areas – locating buyers.

Inc ertain areas it can be hard to locate buyers, simply because it’s hard to find out where those buyers look for property.

I think you’re right that you should consider using an intermediary – but use a legitimite Real Estate Agent, don’t try to get someone to show the property for you!

For one thing, it’s illegal in Australia to sell property that doesn’t belong to you without an REA license – so you may be asking a pensioner to risk a major fine.

For another thing, buyers go to Real Estate Agents….cause that’s where you buy properties.

Go to where the buyers are, not where they aren’t.

And considering the slowdown in property sales rates this year – be prepared to have it on the market for awhile. Sure the area looks like it’s booming, but that doesn’t mean that people are buying.

Perhaps getting a tenant in (if it’s not already tenanted) will help tide you over.

Cheers,

Aceyducey