Hi Cautious,

I assume you are contemplating a purchase in the resort.

As such you will find there are a number of issues you need to carefully consider; are the occupancy rates real or projected? – I am assuming they are projected given that the resort is currently under construction or recently finished. How achieveable are these figures? What…[Read more]

Hi Jobee,

Ask them if the block is able to be subdivided and if so what minimum lots sizes will they allow and boundary clearances.

Will they endorse a subdivision application?

Then ask about services (power, water sewerage etc) and chances are they will refer you to the appropriate authority.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Marisa,

I am sorry but I really disagree with Lucifer and Geo on this one.

Assuming weekly rent is $180 (current Perth median rent) and he is four weeks behind – that is $720 of your money – and that is without the two weeks in advance he should be.

On re-reading your post – I am amazed the tenant rings you directly – what on earth is your…[Read more]

Hi Wejons,

A lot of ‘media experts’ are of the opinion that the inflated Aus $ of recent months was one of the reasons the Reserve Bank held off from raising interest rates. That along with the ‘interest rate slap’ of the end of the year did stifle some confidences around town.

The dollar retreating (against US$) tends to indicate a growing US…[Read more]

Hi Cheata,

Banks will look at two issues when determining your borrowing capacity – income and assets.

Based on the lower of your property value figures you have total assets of $360K. The bank will typically recognise 80% of the value of these ($288K) less the existing debt ($245K) which realises $43K which you can use for deposits and…[Read more]

Hi Jobee,

I have already PM’d some development website references before reading this thread in full.

But………………..wait for it………………
If the two is only 5000 people I would hazard a guess that there is still plenty of land available for Joe Public to buy and live on.

As such there may be two crucial issues for your…[Read more]

Hi Rebecca,

Really you are the only one that can answer the question but there are some issues you will need to consider.

Any sale of an asset within 12 months of purchase will realise full CGT – you make $50K you will have $50K added to your gross taxable income – if you can hold on for a year and a day (at least) you’ll have $25K added to your…[Read more]

Hi Beales,

A couple of others that come to mind;

DA – development approval
BA – building approval
ATO – Australian Taxation Office
LVR – Loan Value Ratio
DSR – Debt Servicing Requirements/Ratio (or similar)
LMI – Loan Mortgage Insurance

Derek
derekjones1@bigpond.com

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

Hi Jo,

For information on City of Brisbane try http://www.ourbrisbane.com.au
For rental details in SEQ try
http://www.seqrents.com.au
For details on proeprty available in the respective area try
http://www.domain.com.au or
http://www.realestate.com.au

For details on respective cities/shires etc try google search by locality/town/city name.

For information about large…[Read more]

Hi Danny,

The ballon payments system I am most familiar with typically applies to car leases.

Under these circumstance you are required to make an agreed number of payments for an agreed duration of time and when the term of the lease agreement expires there is a lump sum or ballon payment required to clear the debt.

For example I am currently…[Read more]

Hi Karenne,

I have personal concerns along the lines of your real estate agents friend’s namely their resale value.

Additionally there are potential problems with finance as some banks get a little nervous lending to niche markets and will not go to a normal 80% lend. Then there are potential difficulties further down the track when banks may…[Read more]

Hi Marisa,

Yep you are giving the tenant too much slack. Rent is payable in advance so effectively he can be up to six weeks behind depending on how the days and weeks line up.

For me the issue is the property manager is not doing their job. No wonder the tenant is a late payer with a PM who doesn’t apparently know what to do and who seems…[Read more]

Hi Kiara,

Depending upon your individual circumstances you could also consider a tenants in common arrangement where it is possible to apportion ownership according to your levels of contribution. TIC shared arrangements are possible from 99%/1% to 1%/99%.

There are a couple of trust related books you may find of interest; Trust Magic by Dale…[Read more]

Hi Tina,

See the following thread – you can’t go wrong.

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=9557

Derek
derekjones1@bigpond.com

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

Hi Plastered,

I would suggest you keep your $3K and put it towards something more useful like your next stamp duty bill or…………

As Russ indicated a good book will set you back around $30 – I would recommend at least 2 books Steve’s and a book by Jan Somers – sure they have conflicting points of view. And then there a whole lot of other…[Read more]

Hi Piece,

When lenders are assessing your borrowing capacity they will consider your ability to service the loan (make payments) and also the amount of security you have.

Initially lenders are primarily concerned with your core income level which does include a varying recognition of rental income (your DSR). Some banks have a more generous…[Read more]

Hi Falcon,

All income is supposed to be declared (whether you do or not is your call – provided you are willing to accept the consequences).

I would suggest under the circumstances outlined there is a possibility that ou could be checked on and as such I would be declaring income.

Some of your costs would become deductible (or partially…[Read more]

Hi jwhat,

Yep – guaranteed rentals are generally built into the purchase price and tend to be above market rates to make the ‘deal’ more attractive thereby moving more product.

You need to consider who is paying the rental guarantee (usually it is you) and who is the guarantor. Sometimes it can be a $2 shelf company and at other times Insurance…[Read more]

Hi Chan,

Works on the forum – haven’t seen how extensively it works elsewhere yet.

Derek
derekjones1@bigpond.com

Property investment support – starts but never stops.

Hi Lucifer,

As I understand it loan mortgage insurers also have some ‘no go’ areas and even though the bank may say yes if the LMI says ‘no’ no loan is forthcoming.

Certainly worth considering but needs to be checked out before embarking on any project.

Derek
derekjones1@bigpond.com

Property investment support – starts but never stops.