Hi Tim,

According to this mornings SMH Ed Burton requires you to sign a waiver:

Qutoe from the article “However, Mrs Reed said she had to sign a waiver before she entered the seminar last Saturday. “We had to sign a declaration saying we weren’t going to sue them.” End quote.

Gee – that would fill you with confidence wouldn’t it !

For the full…[Read more]

Hi Kbeeh,

You can have you cake and eat it too.

One of the myths surrounding property investment is the belief that you need to save a cash deposit before you can buy a property – as a ‘rule of thumb’ this is only true for your first property.

Thereafter you can use equity to create additional ‘cash’ and then you are in a position to launch…[Read more]

Hi Wormit,

As Lucifer has indicated there are some specialised issues to be considered when undertaking commercial investments. This is a highly specialised area and needs thorough research – a better place (in my opinion is solid residential) to start as people always need somewhere to live whereas in times of economic doom and gloom businesses…[Read more]

Hi Taz,

Building depreciation comes in a two part deduction.

The first is known as building (or capital depreciation) and provides opportunity for the investor to claim a deduction of 2.5%/annum of the construction cost (as distinct from purchase price) for the 40 year depreciable life of the property. To qualify the building construction need…[Read more]

Hi ab (mind if I call you ab?)

Yes that is the 11 second rule but (there is always a but [evo]) there are as many equally other important issues that need due consideration too.

Finding a property meeting the 11 second rule is important if you are cashflow focussed but then there is also rental demand, short, medium and long term prospects for…[Read more]

Hi Chan$

SA = South Africe? [biggrin]

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Wormit,

There are two primary issues a bank considers when determining how much you can borrow.

Initially they consider your ability to meet any loan repayments (serviceability or DSR).

Typically banks get uncomfortable when your total repayments reach around 30-35% of your gross income. In determining this figure banks will consider…[Read more]

Hi Wormit,

I have a different investment belief to most people on this board as I am a growth focussed investor who prefers to invest in areas closer to the city which have a long term growth history and which meet my criteria.

As to whether or not 8% is manageable, or good, for you only you can determine the answer to that question. Without…[Read more]

Hi Simon,

Hmmmmmm – an interesting dilemma.

Gold Coast prices have moved significantly in the last 12 months and all projections are that this will continue. Brisbane is in much the same boat although Matusik or Shrapnel are predicting some slow down in 2/3 years time for the Brisbane market.

I am currently looking at either Gold Coast or…[Read more]

Hi Spot,

I am not a mortgage broker but as I understand it mortgage duty is a state levied tax and as such is imposed in the state the mortgage originates from which in your case is SA.

The other stamp duty often referred too is property stamp duty (tax levied on property being purchased) this originates from the state where the property is…[Read more]

Hi Wormit,

Peter has replied to this question in the other forum board.

I’ll add a few comments to his (read them too) – you have just read a book that has motivated you to invest in cashflow positive property – that is the easy part.

There is so much more you need to do – see how much you can borrow, explore the need for a trust etc, getting…[Read more]

Hi Bec,

Don’t confuse being able to identify kids at a young age and doing nothing to assist them.

While we can identify the kids we certainly do spend an inordinate amount of time trying to work with parents to assist the little tyke.

Without fail every year goes by and my staff have and continue to say to me at the end of the year – I wish I…[Read more]

Hi Hawko,

Based on your description you will be eligible for the 6 year CGT exemption clause.

As the stamp duty issue is a new, state based tax I would recommend a phone call to the Office of State Revenue (or equivalent in NSW) is you best option.

In the meantime try this link

http://www.smh.com.au/media/2004/04/09/1081326934602.html

I…[Read more]

Hi Doji,

Give Patrick Thatcher (Subiaco) a call 9380 9533.

As with all matters financial, property and accounting you will need to conduct your own checks to see if he meets your needs.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Kbeeh,

Assuming you are eligible for the FHOG and have the financial capacity to buy a property in your prefered area then I would suggest you buy a home, qualify for and get the FHOG, do some cosmetic upgrades/improvements (depending upon budget limitations) and when you have met the FHOG criteria move out and convert this property into an…[Read more]

Hi Powter,

Hmmmmmm – an investment plan. Buy lots of property and then retire.

In all seriousness a plan is something that gets you from ‘A’ to ‘B’ and until you know what ‘B’ is you won’t have direction. And until you clearly understand your current situation ‘A’ you will not know where to start.

At this stage the forum knows nothing of your…[Read more]

Hi all,

A couple of others.

Deregulation of the banking industry has also played its part – alternative lending criteria, different lending policies, widespread acceptance of equity loans, a changing mindest towards debt and establishment of mortgage broking as a service industry (its all Simon’s fault).

Shifting population demographics and the…[Read more]

Hi Shirley,

Hmmmmmm – definiately one for the experts. My advice (for what it is worth) ask the Queensland Office of State Revenue as ther is nothing worse than a government that has been ripped off.

Check out http://www.osr.qld.gov.au/gas/fhog/
and if that fails get on the phone and record the details, including the name of the person you spoke…[Read more]

Hi Just Starting,

I would recommend you use a Queensland Solicitor for a Queensland purchase – this will ensure they are more likely to be familiar with any subtle and/or significant state legisaltive differences that may exist when it comes to property purchases.

Most people tend to develop a work pattern that reflects the areas they regularly…[Read more]

Hi Redilia,

Land tax is a state based tax and as such the threshold levels and collection rates vary from state to state. I suggest you log onto your state’s Office of State Revenue (or equivalent) and see what you can find out.

Land taxes are levied on the land value of the particular investment property and as such the value of the land…[Read more]