[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 15, 2003 - 12:41 am

Maggie,

Traditionally real estate agents represent the vendor (seller) and as such get the best terms for them. A buyer agent is someone who represents the buyer and tries to locate properties for them whilst also negotiating the best terms for the buyer. Saves busy people having to locate property.

Of course you can just as easily locate the property yourself and even talk directly to the vendor. The vendors agent will not be happy about this though and you should never try to cut the agent out of his commission.

—
Jam for the Great I Am!

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 14, 2003 - 1:52 am

M&K,

I like your thinking, I’ll have to keep that in mind for the future

—
Jam for the Great I Am!

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 14, 2003 - 12:19 am

Its also better to keep them seperate for asset protection.

I believe if you transfer the properties, from your name, into a trust you will also be up for CGT. Maybe someone else can clear this up.

—
Jam for the Great I Am!

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 13, 2003 - 11:46 pm

Generally if you are borrowing => 90% of the value of the property you have to get mortgage insurance. It all depends on the lending institution.

Whether or not to get mortgage insurance is a personal matter I think. Obviously if you have a larger deposit and thus don’t have to incur LMI costs this is better. Sometimes though saving up the extra deposit money will take too long. All up LMI is a rather small amount compared to the whole transaction

—
Jam for the Great I Am!

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 13, 2003 - 10:08 pm

As westan said, fix the interest rate. Problem solved.

Jam for the Great I Am!

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 13, 2003 - 5:44 am

The only way to completely avoid capital gains tax is if it is your Primary Place Of Residence (PPOR) ie your family home.

If the property isn’t your PPOR and you sell within a year you will have to pay CGT on 100% of the profit. If you hold the property for longer than one year you only pay CGT on 50% of the profits.

The rate at which the CGT is calculated is based on your nominal income tax rate. So if you are in the top marginal tax bracket you will be paying 48.5% tax on you Capital Gains

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 13, 2003 - 12:01 am

Yes call them. It’ll save you countless emails and time wasted waiting for email responses. You can also guage the agents mannerisms far better over the phone than through email.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 10:15 pm

Hi Trisha,

Once you have got all the facts and numbers you should come out with a definite figure that tells you if you are +ve or -ve. From this value you should calculate you cash on cash return which will give you the yield. It is then up to you to decide whether the yield is high enough (you can do this by comparing to a term deposit or other investment opportunities). You should have a plan that states what yields you are aiming for and only invest in properties which satisfy your plan.

Hope that helps.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 10:01 pm

It is possible, you just have to look harder.

I have found at least one in the last week, though the numbers were rather tight it was still positive cashflow.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 7:55 am

Alternatives:

1) Find her another place to move into with cheaper rents.
2) Offer her some money to move. Whether this be cash or letting her keep owed rent.

I’m assuming that your friend MUST move into the unit?

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 7:10 am

Compare the rent you are recieving to other rental properties in the area, then you will have a ballpark figure of what you should be charging in rent.

However it is true that if you have good tenants you may deem it beneficial to forego some rent so as to keep the current tenants.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 7:07 am

Seems decent. See if there is any leasing arrangement with the local mining company.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 12, 2003 - 7:01 am

From what I gather in commercial dealings the leasee pays for the rates and insurance. So don’t include that as cash outgoings in your calculations.

[deckartjazzParticipant@deckartjazzJoin Date: 2003Post Count: 14]

August 7, 2003 - 11:46 pm

Hi Spanner,

In the first year you can rent your PPOR out, get the FHOG and then move into it before the end of the first year. So you get say 11 months rent + FHOG.

May be an alternative?