Forum Replies Created
We already did this last year on Somersoft:
http://www.somersoft.com/forums/forumdisplay.php?f=66
Enjoy!
Thanks for replies so far. Just a note that the new loan is with CBA, not NAB, as I mistakenly typed in the first sentence.
I might just put it all in, I don't think it's something I can hide.
GSJ
Agree the format of this forum is awful. Interestingly I've compared the number of 'active users' on this forum on several evenings this week, with Somersoft and Invested.
I'm seeing numbers averaging 70-90 on Somersoft, compared to 20-30 on Invested and 10-20 on PI.com!
I find Somersoft far, far better. Invested is good for managed funds discussions, but that's about it.
GSJ
Sorry not Coode Island, I mean the industrial areas and the ports.
GSJ
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
My concern with the inner west, particularly Footscray, is its proximity to industrial properties. Also Coode Island. I rang the council and there does not appear to be any intention to relocate this facility?
GSJ
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
Just skimmed through this thread, but 8.8% + extra costs is a lot.
I pay 5.5% (inc. GST) and 2 weeks rent is the letting fee for new tenants. Advertising is free (internet sites X 4). Also $3.25 per month for rental statement. That’s basically it. Inspections/condition reports free.
GSJ
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
Just skimmed through this thread, but 8.8% + extra costs is a lot.
I pay 5.5% (inc. GST) and 2 weeks rent is the letting fee for new tenants. Advertising is free (internet sites X 4). Also $3.25 per month for rental statement. That’s basically it. Inspections/condition reports free.
GSJ
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
Items that can be packaged outside the threshold vary eg, meals, parking etc. The investment loan interest could be packaged if they allow it or it could just be done separately. I would probably do it separately to keep the end of year accounting simpler/less confusing.
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
Hold up ther howie, don’t salary package your interest on investment loan!!! The interest on investment loan is alreay tax deductible. The salary packaging is a bonus because of your employer! Use the salary packaging for other expenses eg, rent, credit card payments, home mortgage payments etc…but not for the interest on the investment loan, this is done separately. It is a huge benefit of being employed where you are!!!
This is based on my knowledge of salary packaging, but some employers have different rules so make sure you check this.
GSJ
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
I thought you were taking a break from the forums Mr. Dazzling.
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
The point has been made a couple of times about people doing their own due diligence. I agree, that’s important.
But, still, any professional in any field must be accountable to somebody. In whatever way, eg. accreditation, licensing, a professional body, etc…
One of the aims of which is to maintain a certain standard of work in that field, and also, to protect the consumer.
Just as an example, when you go and see a doctor, do you do your “due diligence” on them? When the doctor tells you take certain medication, do you then do more due diligence, to make sure they’re not trying to con you???
For most of us, probably not! We assume, perhaps, naievely, that they know what they’re doing!
I think it’s imperative, in a field like property advising, whoever is going to regulate it, ensures a suitable standard is attained.
Less regulation and less “red tape” may be better for those in the business, but, most definitely, not for the consumer.
GSJ
(Do I sound like Neil Jenman?! hehe!)
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser
Hi Michael and others,
I think the PIAA organisation is a good thing.
The course is certainly a step in the right direction, in that, it attempts, in part, to provide some minimum standard of qualification for those in the industry – ie, of providing property investment advice.
But, it has its flaws.
I heard about this course some time ago through John Hopkins, who I understand was instrumental in developing this course, and has been in the industry for many years.
A brief course outline or syllabus is available on the “Deakin Prime” website. It consists of 5 modules (see below) the total cost is $2365 for non-PIAA members, and takes about 6 months to do by distance education (self-study/self-paced). There are no prerequisites to do the course.
For someone with some prior experience in this area and investments, it would probably seem pretty straightforward, maybe even boring. Could be done much quicker than 6 months too.
I think that having some sort of accreditation or licensing of people providing property investment advice is important. But, if someone with no prior experience in the area, no high school degree, no tertiary degree, no personal property investments (PPOR or investment property) – is able to do the course – in 6 months or maybe 2 months or less if they’re clever, in their spare time at home, and pass the assignments/exams, some of which are done “online” (say with a pass mark of 51%)- how credible are they really going to be? Would you take advice from a young upstart, just because he/she claims to be accredited or licensed by this professional body??? Would these people have some sort of “professional indemnity insurance”? I would still be very cautious dealing with someone with this qualification, just as you would be with, for example, financial advisors.
Just as an example from other professions, Archicentre has architects that do pre-purchase building inspections on properties. To do this an architect must have at least 7 years experience in his/her field. In the health field, there are some Master’s degree programs that require 2-5 years of field experience before you become eligible to do the programme.
Not having any prerequisites is quoted as an “advantage” on Deakin Prime website, but I feel it is the biggest flaw!
Any comments, thoughts?
EDIT: My additional comments to PIAA would be to “raise the bar” or the standard, by being more selective as to who can give this advice – we are dealing with novice investors and their lack of knowledge, lack of experience, hard earned money, large deposits and large borrowings into property. Matching these people with equally inexperienced advisors is a recipe for disaster!!!
QUOTED FROM THE DEAKIN PRIME WEBSITE, http://www.deakinprime.com:
“Module 1: Introduction to Property Investment
Module 1 provides an overview of property investment. This module begins with definitions of advice and discussion of the possible implications of Financial Services Reform, and outlines an approved process for giving property investment advice. The module outlines principles of town planning and land use, discusses architecture and building styles, examines direct and indirect property types, and considers the relationship between economic markets and property markets. The module outlines the principles of property valuation and the factors that should be considered when evaluating a potential investment property, and provides an overview of the main players in the property industry.
Module 2: Ethical Guidelines and Regulatory RequirementsModule 2 focuses on ethics, legislation and regulation. This module begins with a discussion of Codes of Practice, Codes of Ethics and industry ‘norms’. The module also examines legislation relating to consumers and legislation relating to property. External regulators and their roles are outlined. This module also discusses establishing and complying with organisational guidelines. Other important topics in this module are consumer protection, investment literacy, and due diligence.
Module 3: Elements of a Property Investment StrategyModule 3 provides you with the background to enable you to develop a property investment strategy, including principles of investment finance, how property fits into an investment portfolio, property investment strategies and principles of strategy development. This module also explains financial calculations and analysis of returns. Researching and analysing information about property is also explained. Finally, principles of property management and taxation of property are discussed.
Module 4: Determine Client Requirements and ExpectationsModule 4 outlines traditional financial planning processes for determining client requirements and expectations, but it does so with a focus on property investment and the property investment process. The module begins with the client interview and goes on to discuss explaining the property investment process to the client. The module examines how the client’s preferences, priorities and financial situation are determined, how decisions are made about appropriate ownership structures for the client, and how to establish the client’s property investment parameters. The module then outlines formulation of a strategy for a client, presenting recommendations to the client, explaining the principles of ongoing review, and preparing and filing client documentation.
Module 5: Implement and Manage the Property Investment StrategyModule 5 discusses the process of selecting a property for the client, showing the property to the client, and negotiating the purchase. This module explains contractual purchase and settlement, financing the property, establishing ongoing management, monitoring the performance of the property investment, and managing contingencies such as time without a tenant or a drop in property prices. The roles of associated people such as solicitors, bankers, insurers, conveyancers, accountants, financial planners and financiers are discussed. Finally, this module outlines processes for reviewing a client’s investment strategy.”
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
