[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 30, 2009 - 1:05 am

I use AAMI, though they have a similar excess.

Jacqui Middleton | Middleton Buyers Advocates
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December 28, 2009 - 11:25 pm

Hi Daniel

Where is it that your parents live, and where will your job be located?

Jacqui Middleton | Middleton Buyers Advocates
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December 23, 2009 - 5:05 am

Terryw wrote:

You only get one property which is CGT exempt. (except for a 6 month overlap period when you can claim 2).

Hi Terry, just wondering what you meant by "except for a 6 month overlap period when you can claim 2" ?

Jacqui Middleton | Middleton Buyers Advocates
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December 22, 2009 - 4:39 am

Look very closely at Laverton.  Basically it is a suburb of fibro looking RAAF houses.  They tend to have large rooms and sit on decent sized blocks.  It is an area that is literally surrounded by new and improved areas, and they are closing in fast.  It is just a matter of time before Laverton follows suit by default.  And not much time, I wouldn't have thought.  12 to 18 months I would imagine.

Another one to look at is Melton.  Be careful about which areas of Melton you look at.  There are certain areas in which the council won't be keen to allow subdivision on.

Jacqui Middleton | Middleton Buyers Advocates
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December 22, 2009 - 4:33 am

Can't stress enough the importance of the right insurance. 

http://www.aami.com.au/home-insurance/landlord-insurance.aspx

I have landlord insurance with the optional extra of tenant protection insurance.

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 22, 2009 - 1:02 am

ok mate.  Touch back in with us if you need more ideas or a place to vent

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 21, 2009 - 11:28 pm

My knowledge on your second question is too limited to comment.  However is one aware that one can also run one's own super fund (SMSF) and that the said super fund can acquire property?  One could then sink extra money into one's super fund each year at a reduced tax rate.  This sounds nice since property is normally purchased with net income, often taxed at quite a high rate.

Of course, the super fund is a business and would have to charge rent to reside in the property. 

There are some other threads on SMSFs on this website.  Take a look

Jacqui Middleton | Middleton Buyers Advocates
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December 21, 2009 - 11:24 pm

ps lease options are probably more commonly referred to as "rent to buy"

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 21, 2009 - 11:23 pm

Another option might be to sell the entire property, provided that you can purchase an option to buy it back again.  Take a look at lease options if this sounds relevant to your situation.

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 21, 2009 - 11:20 pm

By the way, if you find these people to be threatening, it might be useful to take out an intervention order to keep them a certain distance away from you and your property.

Jacqui Middleton | Middleton Buyers Advocates
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December 21, 2009 - 11:14 pm

Hi matie

If they have no money there is no point billing them for the damages – and it does not sound like they are the kind of people that would pay up anyway.

Did you have landlord insurance with your home insurer?  If so, you'd be able to get some money back for lost rent, and some of the damage.  Other than that, you'll have to pay for the repairs yourself and write the whole affair off as a loss.  You would then get some of the lost money back as a tax refund at the end of the financial year.  I believe that losses can be carried forward – some of the other contributors might be able to comment on this.  If this is so, while the damages will hurt you this year, you ought to get a bit back in the next year or two on your tax return.

My heart really goes out to you.  The trickiest part is handling your local community.  Time will show them the true situation.  If these people are indeed accustomed to living like pigs, they will surely live like pigs in the house they've bought, and the neighbours won't take long to come to dislike them.  It is then that it might cross their minds that maybe you were not the bad guy.  At the end of the day, if you do not live in this town, then while it sounds awful, it is probably no big disaster if you haven't got friends there.  The difficult part is simply whether you will have problems selling the place.  I guess in that regard, a couple of options might be to use an agent out of town, and ask that they do not put a sign at the front of the house, but instead use internet advertising and so on.  That way it is less likely the townfolk will be aware the place is up for sale and therefore cause grief for you.  I have heard of people selling property on eBay as well!  Not sure if it is a good idea – I'm just aware that it goes on.

I'd strongly advise landlord insurance, and hiring a property manager to deal with your tenants in the future.  It ends up costing less than trying to deal with things yourself.  It also shields you from having to be up close and personal, seeing the disrespectful things that tenants do to your house.  It makes the whole transaction mere numbers on paper, which is probably the best way of dealing with it.  People probably won't treat your house as you would like them to, so it's best to be a bit removed from the situation.

Jacqui Middleton | Middleton Buyers Advocates
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December 21, 2009 - 1:03 am

Cheers for clarifying and improving on my suggestion Richard

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December 20, 2009 - 10:40 pm

Personally, I would steer clear of the unit idea.  They don't tend to appreciate as quickly as houses, and as such a unit might not provide you the option to upgrade to a larger dwelling later on quite as you hope.

I'd lean towards the house on a decent block idea.  Subdivide if desired. 

May I suggest an additional option?  Buy something, but rent it out.  Don't live in it.  That way, your bank interest and purchase costs will be a tax deduction (read up on negative gearing).  Your accountant would also be able to snatch more of your tax back for you by means of "depreciating" the dwelling.  So you'll get some of your tax back to help you with the shock of buying property.  Of course, if you choose this option, you cannot use the first home owner grant, and will waive  your right to ever receive it.  You've just got to do the numbers and work out which is more beneficial.

As for you and your wife, you could carry on renting elsewhere.  Perhaps in a little flat by the beach or something. 

Move into the big dwelling after a few years when the tenants have gotten the mortgage to a manageable level for you.

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 17, 2009 - 11:34 am

Quite.  Even if everyone starts with all good intentions, people can have a change of circumstance during a project.  Here are a couple of scenarios:

– a project partner could run into some marital trouble and wish to get divorced.  Under such circumstances, he/she might hope to pull his/her money out of the project at a time that is not particularly convenient to the other partners.

– heaven forbid it not happen, but let's say a partner takes ill and passes away.  Depending on what type of joint arrangement you have, it might be the case that by default, all other partners immediately inherit equal portions of that person's share.  Or it might be the case that the partner can leave his or her share to a beneficiary.  Suddenly you find yourself working with a partner you've never met before.   This person may not be able to offer the same skillset to the project that the original partner had.

that's just a couple…

Jacqui Middleton | Middleton Buyers Advocates
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December 17, 2009 - 5:53 am

ps you could also subdivide into two blocks of land, either before or after construction.  So you could effectively sell the backyard, either with or without a dwelling on it.  speak to council about this also if it interests you.

Jacqui Middleton | Middleton Buyers Advocates
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December 17, 2009 - 5:52 am

You would definitely require permission from council, yes.    The beauty here is that your mum already owns the land.  All that would need to be paid for is the dwelling.

You could ask to build a dwelling there, and then put perhaps a granny flat in as suggested in my previous posts.  Or you could build an entire house, or a freestanding unit.  Even the mainstream builders are offering that these days.  Refer here for examples:  http://www.metricon.com.au/victoria/multi-dwelling-developments/default.aspx

The prices as at a couple of days ago, to give you an idea, were;
"Bentleigh" design : $154,300.00
"Kew" design : $169,300.00

You'd need to check if this included GST, but it gives you an idea.  You could probably DIY build cheaper, but still have to pay an architect or someone to draw up plans.

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 17, 2009 - 3:51 am

Great result – smart man   Thankyou heaps for checking back in to let us know how you got on with this one.  It is a worrying issue.  We were worried for you guys.

What's the go with the backyard on your mum's property?  Any feasibility of building a small dwelling on it do you think?

Jacqui Middleton | Middleton Buyers Advocates
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December 16, 2009 - 12:36 pm

ps have a read of this thread; https://www.propertyinvesting.com/forums/property-investing/help-needed/4329963.  Might be a good idea to get in touch with the chap who has done some research on purchasing serviced apartments, and the implications of doing so

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 16, 2009 - 12:36 pm

ps have a read of this thread; https://www.propertyinvesting.com/forums/property-investing/help-needed/4329963.  Might be a good idea to get in touch with the chap who has done some research on purchasing serviced apartments, and the implications of doing so

Jacqui Middleton | Middleton Buyers Advocates
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[Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539]

December 16, 2009 - 12:35 pm

Phew, thank goodness!  Smart decision!!!  Do it matie.  Furthermore, do not stress if you not see the growth you desire in 12 months.  It's the average over a few years that matters.  An area can sit stagnant for two years and then BAM, up she goes 40%.

Jacqui Middleton | Middleton Buyers Advocates
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VIC Buyers' Agents for investors, home buyers & SMSFs.