How are you supposed to make a decent income through real estate?
The first step is to establish a strategy.
This:
Our aim is obviously to replace our income and ensure that we are making a steady and regular profit NOW from our properties and also draw from the equity to continue buying more properties – not just have the rentals pay the…[Read more]

Hi Westan,

Changes… or a foothold for a CGT?

Pressure from the Greens:
Scrap his plans to liberalise foreign investment laws and instead bring in tighter controls, both to limit speculation on property and to focus the inflow of foreign capital on new, productive investment.
Look at introducing a capital gains tax on properties other than the…[Read more]

Originally posted by MiniMogul:
In NZ you can depreciate all properties, no matter how old or new. Another great reason to invest there, apart from no stamp duty, no cap gains tax,
OT, but I’d watch this one closely MiniMogul. NZ have already started to clamp down on foreigners withdrawing CG profits from the country without being taxed, and…[Read more]

Well I just can’t work out why Melbourne’s house prices are stagnating / falling at the same time it’s population is booming![blink]

Hi Shelley,
This is not unusual at all. Real estate agents tend to overquote to attract business, then pressure sellers to lower their price once an exclusive deal is done.
The banks usually take valuations from more reputable sources, after all it is in their interest to ensure their money is secured. It is interesting to note that in some areas,…[Read more]

1) You can’t borrow against a 100% financed house. You’ll need to own a minimum of 20% first.
2) The horse is named Friday.

Cheers, F.[cowboy2]

[blush2]Of course!
I was thinking in reverse – that the protective value of purchasing properties through a trust is that private assets would be protected from liability in claims against the trust,
whereas,
the protective value of a trust is that trust assets are protected in the event of a claim against the investor.

So do lenders require a…[Read more]

Unfortunately weatherboards come in all different sizes – matching your old ones might be difficult (or you could be lucky and find them easily!).
If you manage to match your boards you can replace single weatherboards or small sections. Just be sure to have a stud behind the join to nail the ends into, and seal all joins with a paintable…[Read more]

Full Report Here

Interesting that PMI are forecasting significant interest rate rises in 2006.

Apparently so is Alex Erskine
The RBA will soon have to come clean on just how bad the inflation outlook really is. This will be a matter of shame for the RBA – imagine overshootig next years’s target (a range of 2-3%) not just by 0.25% (which has been…[Read more]

Start from the bottom?[biggrin]

Originally posted by kay henry:
Gazundering- quite the worst concept I have heard of… I would question the legality of it.
No question really – contracts may be amended by either party until exchange.
Gazundering is simply the buyer’s equivalent of ‘Gazumping’ (vendor accepts an offer then chases a higher offer from alternate buyer/s) which has…[Read more]

Originally posted by PurpleKiss:
Not sure you can Gazunder in WA as our offer and acceptance that we sign and countersign when negotiateing in WA is a legal document.
I could be wrong, but I think you’ll find that even after the exchange of contracts, the buyer can pull out during the ‘cooling off period’.
Or perhaps WA have their own laws… I’ve…[Read more]

Originally posted by collie:
How do you actually practically access equity?
How do you get to that money?
Sell you house![biggrin]
Alternatively, aquire some additional debt using the increased value of the house as security for the loan.
Cheers, F.[cowboy2]

Gazundering – Simply lower your offer before contracts are exchanged. The vendor stands to lose legal, conveyancing and perhaps agency costs by pulling out. It doesn’t work in a booming market, but as sellers become less secure this can be a great way for the unscrupulous to get a good deal!
Cheers, F.[cowboy2]

Sorry richmond,
I didn’t have time to write a full reply. I was pointing out that the article is a thinly veiled promotion by a vested interest (the newspaper) for a vested interest (the RE advertisers) who are the main source of income for the newspaper. I wasn’t in any way referring to your good self, and I congratulate for your successful…[Read more]

So if the trustee is potentially liable for losses incurred by the trust, in what way does a trust structure protect either the investment assets or personal assets of the trustee?
Thanks in advance,
F.[cowboy2]

Call back tomorrow with your original offer of $175k. Regardless of the EA’s response, explain that you will lower your offer by $2500 every day for a week then go elsewhere…
The vendor is prepared to negotiate and your cash is king. Make him/her know it.
If you’re absolutely ruthless don’t forget to gazunder the week before contracts are…[Read more]

…and not a VI in sight![blink]

Does the use of a trust structure absolve the trustee of personal liability in the event of insolvency?

Well, here’s the thing tom; while HPI isn’t included in CPI, it is at least in part (IMO largely) responsible for some of the inflationary pressures now and into the next few years. There are 3 main ways that domestic supply of money increases – government spending, foreign investment, and debt (consumer and business).
Australia is nearing an…[Read more]