Recall an article by Michael Matusik about 10 years ago which stated, in part, that proximity to train stations & other transport nodes (Eg. bus terminus) had a signifcant effect on property values. This was more the case the property was up to 1km from the transport node – the growth of these properties was approx 15% higher than other…[Read more]

The underlying reason to 'pair up' is the key.

Being joined at the hip even in a trust needs to be carefully thought through.

If you are seeking a sounding board – find someone who is in the same sphere and meet up for coffee on a regular basis. Share ideas and stay on track that way.

Without knowing all of the details it may be to your long term benefit to look at shifting your loan across to a bank.

Grab yourself a decent broker – Jamie has already given you a lot of good advice so give him a call – and explore the plusses and minusses of moving over to a bank.

It may be a case of one step backwards to make many forward.

Your buy sounds a little like our first – we had lemon yellow walls with burnt orange bench tops in the kitchen, timber panellng on one wall in the third bedroom with wallpapered large ships on the other walls, burnt yellow carpet throughout and so on. 

We painted and profited and I am sure you will too. Start…[Read more]

If I am right I think you can get a better structure. Structure is more important than interest rates.

Agree with Jamie on deductibility issue.

I assume you would like to build your flat in WA.

Legislation relating to Granny Flats in WA has recently been relaxed a little partially in an effort to provide cheaper housing for the less well off and with minimal Govt assistance.

The WA Planning Commission recently released a new set of guidelines relating to zoning and by…[Read more]

Some of the issues will remain – particularly those related to market conditions which are always a consideration for 'longer term' contracts.

Have you inspected the block? Often with build contracts there are provisional costs for things such as landscaping costs. If your block has any slope the provisional cost allowance may be…[Read more]

Even if you need to refinance to 'tidy things up' it will be worth it in the long run. Clean is good.

I do recall reading an article written many years ago by Michael Matusik which claimed property located within 1km of train stations, bus transit stations, transport hubs/nodes out-performed the remainder of the suburb by 15% (from memory).

For this reason we tend to start near transport nodes and work from there when doing our…[Read more]

Try and separate the redraw funds into a second facility so it is nice and clean from a record keeping perspective. If you can do this there is no question, from a deductibility, ATO accountability perspective. 

Your bank statement/s will verify…[Read more]

And then there are others who see the value of professional service and knowledge and are happy to pay for it – in some ways this is an investment too.

The challenge is trying to work out who can legitimately charge the 'big bucks'

http://www.theaustralian.com.au/business/breaking-news/troubled-us-city-detroit-defaults-on-debt/story-e6frg90f-1226664247912

This is the key to your success – we do some work in this sphere and have had instances where planning departments…[Read more]

Might be worth a search of the forum – top right corner = search facility.

This statement is enough for me – walk away.

As Luke said – if all of the Big 4 don't like the property then potential resale later is somewhat problematic and as a property investor you…[Read more]

There is growth but yes, its very slow.  The good thing (i think) i may be wrong is that there are no rental properties available in this town at all, and the list is very long.  

My girlfriend has finished renovating the property and so has a complete new bathroom and kitchen, and…[Read more]

If your girlfriend has to sell to release equity it suggest the banks are not overly comfortable with the area, or the property's value has not increased, or there are underlying problems with the town/property. You'll need to investigate further.

How are…[Read more]

If you grab yourself an accountant with property experience they will be able to provide guidance and assistance with the tax aspects of your journey. A word of caution some accountant are very negative gearing focussed and they see saving lots of tax as a great thing. In reality if you are saving a lot of taxing you are often outlaying a…[Read more]

Only you can determine whether or not a NRAS property suits you and your portfolio.

For me make sure the property stacks up without any NRAS benefits. That is, is it priced fairly in comparison to similar properties in the area, does it tick the infrastructure/location boxes required for good property, is there a demand for such…[Read more]

Wasn't there a recent announcement to do with NDIS administration/centre being based in Geelong?

Given we were running on all cylinders + a couple borrowed from other states a 'slow down' was probably inevitable. 

Mind you some figures will be reviewed upwards/downwards/sideways (you choose) over the coming months when more detailed analysis will be done.

I notice Commsec had WA GROWING by 7.6% during the last…[Read more]

Coaches, in my opinion, are over-rated. What is it that you want from your 'coach'?

Sounds like you have done a fair bit of thinking and that will place you pretty well for ongoing success. See if you can refine your thinking even further and you'll be almost able to drive yourself.

If you let us know which coaches you have identified…[Read more]

http://au.news.yahoo.com/thewest/a/-/newshome/17499555/wa-not-in-recession-treasury/

My head hurts!

Amended R Codes come into effect in WA from 2nd of August this year.

Media piece – http://www.watoday.com.au/wa-news/the-rise-and-rise-of-the-granny-flat-20130501-2it7s.html

Another media piece – http://www.abc.net.au/news/2013-06-03/changes-to-wa-planning-code/4730278

And another one -…[Read more]

Re: Commonwealth Games Effect.

Not convinced the Commonwealth Games will do much for the GC property market.

The event itself is only 2 weeks (or so) so those seeking accommodation only do so for a relatively short period of time, particularly in property terms. Any upswing will be created by construction and as I understand it the…[Read more]

From memory Berri is that type of town you would deliberately drive to so you could appreciate all that it had to offer. The question is would the loss of much of the passing traffic be outweighed by a desire to go to Berri.

As Tom has said it will be interested (or not) to see what the knock-on effect will be across the country and what response we get from the state government who, I might add seem to have been quiet with this piece of news.

As for real estate – might mean some of the heat gets taken out of the market and we…[Read more]

You haven't placed any restrictions on your initial question so I am assuming everything is on the table.

Not convinced the property market is poised for a surge – methinks more of the steady cyclical market type movements.

Have you considered looking at strategies which allow you to add value (capital growth). By extension the same…[Read more]

What sort of price and rent are you looking at?

Sometimes projects like this can have higher than normal body corporate costs, particularly if there is a lot of common property to maintain. 

Location wise the project ticks a few boxes.

Remaining focussed when first starting out is often the hardest task – clearly you have managed to overcome this and your approach is admirable.

Have you spoken with a broker who will crunch your numbers to see how much you can borrow today?

With recent interest rates drops you may well find your capacity to borrow has improved too -…[Read more]

As I understand it any capital gains liability is determined by the date you sign contracts and not settlement date. 

I did find one source consistent with my understanding – check out this link

Note – I am not an accountant so double check this & as Jamie said make sure you speak with an accountant to determine which is the best option…[Read more]

Don't understand why you wouldn't show the valuers figure. Think it through.

You want the place.
You have paid for a valuation.
The valuation has come in below vendors price & at a price you are prepared…[Read more]

These two issues will erode your projected equity profits if not managed carefully.

We do JVs in Perth and buy our blocks through agents.

The agents flick us numerous properties and many do not make the grade and the delete button gets a fair workout. I would suggest you speak to an active local REA anyway and just listen to what they are saying.

Not sure where your block is located,  what the current zoning is…[Read more]

You need to have a budget too – have you seen a broker to establish your borrowing capacity?

No point using the process you have outlined if the suburbs identified are outside your budget limit.

Also look at where government and investment money is going to improve infrastructure. I have heard of people following Coles, Woolies,…[Read more]

No worries – understand the logic behind your decision.

If the situation changes and you want to revisit the PAYG option don't hesitate to drop me a PM. The offer stands.

Cheers

The last three years (in general terms) have been pretty average in many areas – so take the so-so performance of the property with a grain of salt.

If you do sell you'll crystalise your losses – can these losses be used to offset any capital gains you may have. Note I not advocating selling a performer to neutralise an…[Read more]

If banks require a higher deposit (see Terry's comment) then it means the banks have determined this type of property to be high risk. If they are risky for a bank then, by extension, they are risky for you too.

While chasing cash flow is understandable don't forget to make sure the underlying…[Read more]

Hi CharlieJoe,

Sounds like NRAS properties – which basically a…[Read more]

Good to hear from you again – often people come on, ask a question, never to see or heard from again.

Sounds like you have managed to turn the ship around ever so slightly. Good on you for doing so.

As I suggested in an earlier post it may also be to your benefit to submit a PAYG tax variation – depending upon your situation and the…[Read more]

Report in this morning's edition of Perth Now (Sunday Times online daily version) certainly casts some doubt on MAX and to a lesser extent the Airport link.

Report here.

Both projects were promised in the expectation a 'lot' of federal money would be forthcoming. The 'lot' hasn't been forthcoming and the time for delivering the money…[Read more]

Given the Federal Budget last night the two rail projects I expect we won't see light of day for approx 10 yrs. 

If you have identified MAX and the airport rail ink as 'look for' factors make sure you find out when they will be built. Mind you MAX, in particular, runs through good areas anyway and MAX may be the icing on the cake.…

Love your commitment – this will put you in good stead moving forward from here.

I am not a renovator so take what I say with a grain of salt but if you have learned 'something' from your first effort then you are on the right track. In my opinion those who claim never to make a mistake aren't being honest with themselves.

There are a…[Read more]

Historical price data – http://reiwa.com.au/Research/Pages/Price-growth-by-suburb.aspx

Suburb rental information – http://reiwa.com.au/Research/Pages/Perth-Rental-Data-Search.aspx?reg=perth

This page – http://reiwa.com.au/Research/Pages/Market-indicators.aspx – links to stats for regional areas too.

Drouin was always going to end badly – especially when you were trying to flip the property. Small market, finite and unforgiving timeline, and risky strategy. For these reasons I, for one, certainly wouldn't be making all future investment decisions based on your Drouin experience.

Perth is a major capital city and many of t he key…[Read more]

Or, ………………………………… lemons.