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  • Profile photo of Alistair PerryAlistair Perry
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    @aperry
    Join Date: 2004
    Post Count: 891

    Try Frank Perry at Perry Town Planning. He is my father, so i am biased of course, but he has spoken at a few of Steve’s events so is pretty well known in this community. The web site is http://www.town-planning.com.au, you can get contact details there.

    Regards
    Alistair

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    The information you need to determine what you can do can all be found by searching for the property at http://www.townplanning.com.au. This will give you a map showing zoning and any overlays for free, as well as the section of the planning scheme that relates to your property. To check for easements and potentially other things that could effect the particular property you need a copy of the title, you can also get this from the same web site. Hope this helps.

    Profile photo of Alistair PerryAlistair Perry
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    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Guy,

    If you can send me some details of what you are after I should be able to let you know pretty quickly if something can be done in this timeframe. In particular I would need the purchase price, the LVR that you need, location and the proposed ownership structure.

    Regards
    Alistair

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Unless you think that Government and bureaucrats know how to spend your money better than you do then there is no choice but the party that promotes the least economic interference. Out of these options the Liberal Democrats are clearly the only rational choice.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Jan,

    It’s certainly worth getting a second opinion, but at some stage all residential property investors hit a funding wall. This doesn’t mean you have to stop investing, you may have to change your strategy though. A lot of successful investors end up moving to development or commercial property as an example.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    You absolutely should get some legal advice re the settlement and see if you can optimize your ownership and loan structure.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Which State(s) are the properties in Sami? In Victoria you can transfer titles between spouses without incurring stamp duty, this is not the case everywhere but you may be able to restructure ownership as you wish.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Hemi,

    I haven’t looked at a scenario like this for a while so I’d have to refer the question to one of my brokers who is at the coalface. While I am sure you can fund a deal like this still, there are a few issues you may come up against. Most lenders don’t like the idea of you not putting in any money and some won’t agree to the vendor financier securing their interest behind you, particularly if you are looking at a deal like this because you don’t have any savings. For a property to be worth only $100K it must be in a small country town where there is very little in the way of settlements, this means you are likely to come across post code restrictions and also issues with getting the property valued if there are no real comparable sales.

    Without knowing anything about the deal, it seems like it would be a lot of work and management with a lot of forward risk without the likelihood of very high returns. Having said this I’ve experienced plenty of examples of virtually worthless land suddenly becoming very valuable. so what do I know!

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    We are all dying a death by 1000 cuts anyway. The fact is land tax, as with GST, is a very simple tax to implement and very difficult to avoid. It is unambiguous and simple. This is far preferable to income tax which is anything but. The problem is that if it was introduced it would be on top of the current system, not replacing it. The most efficient way of funding Governments would be a land tax for the States and GST for the Federal Gov, with all other taxes and levies removed. I know this will never happen.

    Profile photo of Alistair PerryAlistair Perry
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    @aperry
    Join Date: 2004
    Post Count: 891

    Great post Benny,

    I wouldn’t be too concerned about having the properties in personal names, most people start out this way. It would be worthwhile making a full appraisal of your structure and work out a strategy for future purchases and also what to do with any money crystalized from the sale of any of the exiting properties. All investors should do this periodically, as your situation is always going to be fluid.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Hemi,

    At the moment I have a white labelled home loan product priced at 3.99% variable, interest only or p&i, it has an offset account or can be structured as a LOC or a combination with no change to the rate. I also have a team of experienced brokers who have access to a wide range of other products, as no one loan is going to be most suitable for everyone. There are some great fixed rate products around at the moment with other lenders for example, which are proving very popular.

    In the not too distant future I hope to introduce general insurance and life insurance offerings and we are currently working with a software provider to offer an internet based service which is very much like a Xero for property investors. This is being trialed at the moment by some pi.com customers and we have had some very positive feedback, hopefully it will be ready for release by the time Steve’s 3 day conference comes around.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Frances and Attila,

    I would encourage you to look at what you need the most. That is, if you already have an income but not a lot of capital behind you, then you should really look at improving your capital position as a first point of call. A more active strategy such as renovating, revaluing and accessing the manufactured equity for further purchases is a good example of a strategy many investors have employed successfully. Cashflow is obviously important, but it isn’t the only thing you need to concentrate on. Not knowing your personal position I couldn’t really comment on your current plans, they might be very suitable, this is just some food for thought.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Hemi,

    I have worked with Steve on some of his personal investments on and off for a number of years. I certainly wasn’t the only person he dealt with over this time, but we have had a business relationship for a long time. I sold my old business last year and am now working out of Steve’s office, assisting him in creating a range of products and services for the pi.com community. Broking is the first and has been up and running since October last year. We started it by negotiating a special rate on a white labeled products, which is a 3.99% rate with no penalty for interest only or if you want it or a split structured as a Line of Credit. We had the same rate for investment properties for a while, but this has now gone up slightly although it is still at a very attractive rate.

    We will have a number of announcements over the next 12 months as things progress, but if you would like to have a chat some time give me a call on the number provided by Benny or email me through my signature below. I’d be happy to catch up for a chat.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Stamp Duty is an absolutely horrible form of taxation, it makes entering the market extremely difficult and inhibits mobility which has both a social and economic impact. The fact that its removal would increase the number of speculators is not necessarily a bad thing, speculators and traders would increase the liquidity of the market, as they do in the share market, and as such make it easier and quicker for others to transact. The introduction of a land tax on all real estate, as a replacement, would have the effect of forcing people to use property more efficiently eg there would be fewer single people in large houses.

    Having said all of this, I would have an issue with the current system being reformed in isolation to the rest of the tax system. Land Tax is a very efficient tax as it can’t be dodged, The Federal Government, if it could work with the States, could conceivably offer major personal tax cuts as an offset against the introduction of a broad land tax, with both themselves and tax payers being better off. It’s an interesting argument regardless.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    If you have any further queries re how different loans work, please add them here. This topic is very important for people who are new to property investing because, as Terry put very succinctly, you can’t unscramble an egg. Mistakes with structuring can be very costly over the life of a loan.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
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    Join Date: 2004
    Post Count: 891

    Hi Dana,

    Nobody has a crystal ball. You seem to have thought through your options pretty thoroughly so you should be happy that whatever decision you ultimately make, it has been an informed one. Only the future will tell if your decision is the best one or not.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Offset accounts are very useful because they change the interest calculation but not the loan amount. In most cases investors should have both an offset account, for personal use, and money in redraw or a LOC for investment use.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Elizabeth,

    Your current lender would be determining your accessible equity using the valuation they have on file, which may or may not be old, depending on when the loan was set up. If it was a while ago, you may have more, the same or less equity available, depending on the market you are in. It would be well worth your while engaging a broker to look at your current situation, so they can advise you on structuring, and also get them to order a bank valuation so you know for certain what is available to you.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Adam,

    It doesn’t make a lot of sense to make a decision based on what has already happened, if anything it should be easier to decide to sell at a loss as you receive a future tax benefit rather than a liability if sold at a profit. I strongly suggest that you make a decision as to what the future holds for the area and how holding the property effects your ability to invest elsewhere. How does it effect your:
    1. Borrowing capacity
    2. Cashflow
    3. Does it tie up capital that could be better deployed elsewhere

    Once you’ve weighed up these factors, your decision should be pretty clear.

    Regards

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Dana,

    The only answer you will get to that question is in hind sight. Sometimes units perform better, other times houses, depending on the time frame you are looking at and the demographics of the market. In the very long term land does not lose value while buildings degrade, which would suggest something with land content should be a better investment but you are looking at very long time frames there. If you already have an investment in Newcastle, it would seem sensible to make the next one in Sydney, from the point of view of having exposure to both the markets you may want to live in. In your position I wouldn’t be too concerned about the type of property, more the location.

    I hope this helps.

    Regards

Viewing 20 posts - 1 through 20 (of 881 total)