Hi Wilko,

Things starters I consider;
1) Collects rent on time and informs me if tenant is late to pay.
2) Returns my calls – makes calls without me having to initiate them all of the time.
3) Keeps me informed about rental changes in the area.
4) Deposits money early in the month.
5) Provides good property condition reports and undertakes a…[Read more]

Originally posted by GreatPig:

(like the 100% pa return)

Wayne

Hi Wayne,

The 100% return is a bit of a ‘smoke and mirrors’ trick.

I suggest that the salesman was referring to 100% return on your money as follows (I have simplified the numbers consistent with my maths ability)

You purchase a property for $100K and use a deposit of…[Read more]

Originally posted by kay henry:

Derek, I think you’re a lovely guy, but I do remember you said on this Forum that you wished to mentor people- and to charge people money for that mentoring. If that is still the case, then you have an additional purpose to merely “sharing information”. I think you give great advice, and as I said, you’re a lovely…[Read more]

Originally posted by Coldy:

One more thing… I was just wondering whether it is legal to buy an apartment off the plan then sell it before completion. Thanks in advance. I’m finding the postings on this site very informative.

Coldy

Hi Coldy,

This is commonly referred to as ‘flipping’ and was used by some investors very early in the current…[Read more]

Hi DD,

Thanks for the unsolicited ‘plug’ but I must highlight that I am not a financial advisor and my sole purpose on this forum is to share information.

Sure if people want to contact me – fine – but I am not interested in open solicitation beyond a signature ‘ad’.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi Wezwaz,

The only(?) reason a lender requires a valuation is to protect their money. They generally couldn’t care less if you overpaid for the property as long as they have sufficient asset security to hold over you and get their money back should things go awry. It is for this primary reason that many of the two tiered marketing groups…[Read more]

HI Falcon,

If you have non-deductoble debt then definitely go I/O on your investment loans.

If there is no non-deductible debt then it becomes a matter of what are you trying to achieve, how do you feel about a debt that doesn’t get smaller, and what is your planned exit strategy.

For me my priority is to clear the non-deductible debt and then…[Read more]

Hi Scott,

There is no definitive answer to the question – it is a case of what works for you and meets the ATO requirements of a good records.

For me (and my accountant) a simple excel spreadsheet for each property does the job.

Ultimately it doesn’t matter how good the software is, if you don’t have good book keeping practices then you will…[Read more]

Hi Wayne,

I haven’t done any developments – I live a little too far out of Perth to ‘supervise’ a building project. I have certainly dreamt of completing such an undertaking – one day.

Project feasibility assessments can be undertaken with software vailable at http://www.devfeas.com.au and for some information on property development try…[Read more]

Hi HHH,

Unfortunately that can happen as you found out. I use a broker to support the valuations I have supplied.

It does beg the question why won’t the bank accept their valuers figures – the cycnic in me says it is so they can ‘instruct the valuer’ and influence the final figure.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Originally posted by vkolaj:
JamesR:

It can apply to the property as well if it satisfies an active asset test.

Vkolaj

A couple of useful documents to assist with the definition of active assets.

http://www.ato.gov.au/content/downloads/n8384CGT.pdf

A search on ‘Active Assets’ as defined in the ATO’s legal database revealed a section 152-40…[Read more]

Hi PurpleKiss and others,

Be aware that raw figures baased on median prices do not always tell the full story.

Some of the ‘better growers’ have undergone significant renewal and redevelopment programs and as a result the very nature of the median priced property has changed in many of these suburbs. In effect comparing median prices is not…[Read more]

Hi Wilko,

I ‘all’ you are wanting to do is investigate possible loan restructuring (if necessary) then I suggest a chat with a couple of brokers.

They won’t charge a cent and will only be paid if you do restructure.

Please note I am not advocating wasting their time but rather if there is a genuine ‘better way’ they should tell and assist you…[Read more]

Hi Mel,

Bugger – you type too fast[biggrin]

But in answer to the question – the $26K is deductible because the funds have been used for investment purposes – even though security is provided by your house it is the purpose of the loan which determines deductibility.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi Karl and Rita,

You are on the right track but with a couple of clarifying points.

Assuming the bank recognises th evalue of your property is $125K they will allow you to lend up to 80% of this ($100K) less your existing loan ($74K). As such you have $26K of equity you can use towards the deposit and costs on other property.

Assume you find a…[Read more]

Hi Wilko,

If you want a financial advisor with a leaning towards property as the core investment vehicle then I recommend Navra Invest http://www.navrainvest.com.au – they have offices in Sydney and Brisbane.

Be aware they are growth focussed and as such may not suit you.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi all,

And factor in very high insurance premiums for buildings when doing you calculations.

Elvis, is Gorgon project really going to have that much of an effect on Exmouth property – when I was living in the Pilbara many Hedland, Karratha & Dampier employees flew in and out from Perth where most of their families were based.

Given Karratha to…[Read more]

Hi Avranjes,

And your definition of high growth is?

I would suggest that finding high growth in the short term isn’t, in the main, feasible in the current climate.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Wayne,

Congratulations on your achievements to date.

I noticed from your thread that you are contemplating a trading approach to property investment.

Be aware that everytime you buy and sell property you will be hit with CGT and also stamp duty. As such your profit margins will be severely eroded and compromised over time. You may find that…[Read more]

Hi Wayne,

Give Patrick Thatcher a call 93809533 – he is based in Subiaco.

As with all matters tax – you will need to have a discussion with Patrick to see if he suits you.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.