[Gazza21Participant@gazza21Join Date: 2012Post Count: 54]

March 10, 2013 - 12:29 am

Some ‘doom & gloom’ from the states..

http://mobile.bloomberg.com/news/2013-03-08/u-s-stocks-cap-best-weekly-rally-since-january-amid-jobs-data.html

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March 9, 2013 - 11:47 pm

China’s balance sheet is ok?
http://www.forbes.com/sites/kenrapoza/2013/01/28/is-china-next-to-suffer-a-debt-crisis/

They’ve actually had to take steps to slow property prices down?
http://m.brisbanetimes.com.au/business/china-moves-to-stall-housing-boom-20130305-2fjfk.html

I like to hope that the Chinese aren’t stupid and are capable of managing their finances a bit better than the yanks and Greeks for eg?

Do people like those at Perth airport do any kind of research before they invest $120m on a new terminal to service fifo demand or have they just built that on a whim?

And if global demand for food is set to increase/double faster than supply can keep up what effect will that have on prices?

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February 28, 2013 - 9:30 am

Facebook is the largest database you’ll ever have access to, to market your product.

You can select who you want your ads to show up for based on all sorts of criteria like age, sex, interests/hobbies,marital/relationship status and location. For example within a 50 mile radius of Perth city.

You only pay when somebody clicks your ad, not just for the number of impressions so if nobody clicks it hasn’t cost you anything to try.

Social media advertising doesn’t work for everyone who tries it nor does tennis, but I would argue that its slightly more targeted than taking a shotgun to a crowd or paying for a big billboard that anyone could drive by.

A good way to increase likes/page shares etc is to run a competition, just make sure you’re giving away something good enough for people to bother entering.

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January 26, 2013 - 2:34 am

Can you increase the rent? Or make any improvements that will justify a rental increase?

Can you refinance or do anything else to reduce the holding costs?

If there’s nothing you can do to improve the situation, I’d suggest having 3 rea’s value the place and work out what it will cost to sell. Work out exactly how much you’ll get out with, apart from the saving you’ll make each week.

Then have a good look around imagining yourself as a buyer with that money and see what else you could achieve with it.

I realise you’re probably off setting that loss against your tax bill but personally I wouldn’t ‘invest’ in anything that takes money out of my pocket each week! Find something that pays you..?

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January 25, 2013 - 11:05 pm

Maybe because I was in England when the GFC hit and have seen so much worse, I can’t help but feel pretty happy with the financial situation in this country. Certainly at least by comparison.

The government almost operate neutrally, with a slight deficit (compared to UK/US/Europe etc) pretty sure that’s rare. Unemployment is low, the currency is strong (would you rather it was weak?), interest rates are coming down, national savings are bulging, economic growth is solid and there’s a mining boom on.

I’m one of the bad statistics with credit card debt. But I pay it off in full every month, how many others do too? It’s obviously a portion of my income spent servicing debt but that’s all it is, my every day spending!

Maybe things will get a bit worse in the future, maybe they’ll improve! But I can’t think of anywhere else in the world I’d rather be right now working, earning, saving and making a future for myself than here.

I know the freckle thinks the outlook is dire here I’m just seriously happy for his heart he didn’t live in the UK or US when it hit the fan. Not sure he would of pulled through. And as bad as things are in England, double dip recession etc, house prices didn’t plummet!

http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0Main+Features10Dec+2011#Contents1

http://www.treasury.gov.au/PublicationsAndMedia/Publications/2011/Economic-Roundup-Issue-2/Report/The-rise-in-household-saving-and-its-implications-for-the-Australian-economy

PS Happy Australia day

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January 24, 2013 - 1:49 pm

Its not really property investors who are facing foreclosure though typically its first home buyers and low – middle income earners  who are most at risk? 

http://www.brokernews.com.au/article/foreclosures-to-dramatically-increase-143913.aspx

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January 23, 2013 - 2:24 am

Doing all your spending on a credit card with low/no annual fees gives your savings an extra 56 days to earn interest before you pay it off in full each month.

you get a lot more buyer protection and can get other perks like air miles etc too.

just need to be disciplined and make sure you always pay it off, and never draw cash out on a cc you get charged interest on that from day one..

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January 15, 2013 - 1:47 pm

sounds like you turn it into a HMO (house of multiple occupation) ?

For that you need stuff like planning permission (not always easy to obtain as you often need adequate parking), fire doors and smoke alarms to all habitable rooms, sprinklers, emergency lighting, fire extinguishers, emergency procedures etc (pretty much what you need in a b & b) and to put a cleaner in there each week for the common areas (kitchen/hall/bathroom) and maintain the garden?

do you put the property back how it was at the end?

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January 15, 2013 - 2:20 am

If you’re around Clarkson I know of an agent charging 2.5% on the basis any more would be a bit cheeky as properties are pretty much selling after the first home open. We’re finding there are a lot of people at the home opens we got to (as many as we can fit in) looking to spend the kind of money you’re looking for.
Feels more like a seller’s market than a buyer’s!

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January 13, 2013 - 12:25 am

Down 3.8% in 2011 and 0.4% in 2012, does that mean the downward trend is slowing?

If you look at the graph here instead of the media release it shows it in a bit more detail, with units included not just for houses so you get the bigger picture;

http://www.rpdata.com/research/monthly_indices.html

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January 12, 2013 - 9:08 am

Could result in a number of investors finding themselves with property they can no longer afford to hold, especially if their employment situation were to change too?

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January 3, 2013 - 5:51 am

Arnold Scwarzenneger.

I've never been a massive fan of his movies but after reading his book 'totall recall' you can't be anything but inspired by the things he's achieved over the years. Every new year he would write down goals and then pursue them tirelessly. Any normal person would feel successful if they accomplished even one of the below;

Bodybuilding champion. 7 times Mr Olympia – a record that remains unbeaten

Successful property investor/developer

Successful businessman (became a millionaire before the movies)

Author of 6 books

Owned a 747 jet that he leased back to an airline

HIghest grossing hollywood action star making hundreds of millions

Becoming state governor of California

And there's a hell of a lot more than that above including charity work and visiting the armed forces in Iraq and in hospitals etc. Anyone who thinks they work hard might not be so sure if they read his book. It's a shame he fathered the love child and his marriage broke up.

There's more to him than I ever imagined. The books definitely worth a read.

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December 6, 2012 - 10:46 am

Try Mr T

[email protected]

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December 6, 2012 - 8:28 am

Thanks for your help!

I appreciate I only get the FHOG & stamp duty concession when buying first ppor, so I guess the only question remaining is how can I buy an IP now, without fhog but I will have to pay stamp duty and also without forfeiting my eligibility for those two concessions when I buy a ppor later next year!?

Surely there must be a structure/entity I can set up to purchase the IP in now so i'm not strictly/personally the owner. That way when I purchase a ppor next year it will as far as the taxman goes be my 'first' property and I can qualify for FHOG and stamp duty concession for that one?

Sorry if I sound stubborn (& annoying) i'm just confused!  If a certain type of trust set-up helps with asset protection if someone tries to sue me because I wont technically own the property how does it stop me qualifying for the stamp duty concession, but not the FHOG (with my situation)?

For example: I set up some sort of trust, and company. I'm director of the company that is benificiary of the trust. The trust buys an investment property (paying stamp duty) and i'm guarantor for the loan. Next year I personally buy a ppor, and receive fhog and qualify for stamp duty concession? 

Thanks,

Gazza

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December 5, 2012 - 1:43 pm

Thanks jclimie.

I figured it probably had been covered at some point but couldn't find the thread when I searched.

I have been told since that I can still qualify for FHOG later but will lose the stamp duty concession by buying IP before PPOR. However, according to http://www.finance.wa.gov.au/cms/content.aspx?id=2011 if you qualify for the FHOG, you qualify for the stamp duty concession. I think like you say I need to contact them in the morning and see if I can get this confirmed and see it in writing (fingers crossed it won't change before I want to buy again).

The plan is 10 more properties in the next ten years so really I should be setting up a trust structure to purchase them in. I also thought that if a company was trustee and I was just a guarantor for the loan then it wouldn't affect me qualifying for the FHOG / stamp duty concession. Setting up a trust is something that is easier to screw up than buying a IP from what I've gathered reading this forum almost daily.

No matter how good the IP is I've seen it seems insane to lose out on 25k worth of incentives towards a purchase if I can help it! Surely someone has found a way to achieve this? I'll keep digging..

Thanks for your help

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December 5, 2012 - 8:07 am

Any ideas anyone?

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December 4, 2012 - 11:36 am

I have no problem with a bath with a shower over and think it will appeal to more potential tenants now and buyers later.

It's also much less plumbing, tiling and grouting (costs!) than two separates.

If anything, Is there room for a bath that gets slightly larger at the shower end without overcrowding the bathroom?

PS I know in WA they tend to only brick in baths before tiling but it's much cleaner, cheaper and far easier to access later if you build a timber framework and fix plywood to it like the one on this page http://www.carpentry-tips-and-tricks.com/making-a-bath-panel.html (and it can still be tiled)

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December 1, 2012 - 2:21 am

Thinking about it do you have an offset facility on your home loan should probably put the 70k in there to reduce the interest, will still be accessible when you need it?

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December 1, 2012 - 1:04 am

Have you tried grovelling

What a shame, fingers crossed you get all you’re entitled to

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December 1, 2012 - 12:58 am

Why the hell do you want to quit your job, can you survive on 18k a year? Your home loan repayments must be around 14k a year, before bills? Do you have a car?

How will you quit your job but still earn 18k, just work part time?

Are you refinancing ppor to buy investment property or using the 70k cash? Is that the money you talk about overseas or is there more stashed abroad?

I don’t think buying an investment property is too risky as long as you research first but I wouldn’t quit my job so I could keep my income below the minimum tax threshold unless you’ve got so much money stashed abroad you can survive on it. Pretty sure there are no tax implications for living off savings, you’d just get taxed on interest you earn from it.

If that is the case, might be worth paying off your ppor first before you quit working?