Points to consider;

RULE 1: THE DEVELOPER WILL PHRASE THE CONTRACT TO SUIT HIM; NOT YOU.

1. Find a property lawyer before you sign anything. If you don’t like the contract try to change it.
2. You save on stamp duty, but quite often the finished product is above market value anyway. It’s an old marketing trick to suck you in.
3. The contract…[Read more]

Originally posted by elkam:
EH??????????

Since when did 1/3 or 1/4 become more greedy than 1/2 ……..or am I missing the joke here ? [confused2]

It is academic- asking for any amount above what he offers is being greedy (in his eyes).

I think Bridgebuff meant to say 2/3 and 3/4?

Hey HookhamC – I know; youre right! I have to slap myself…[Read more]

It may be adviseable to start with a trip to the local council and ask the pertinent questions regarding zoning etc, then talk to your accountant and then talk to a couple of builders about costs.

You only need to strata title if you intend to sell, and even then you don’t need to, but it is a good way to add more value to the property for…[Read more]

If you are handy, have a lot of tools and the time, you could do most of this yourself.
I have done 3 renos, and did everything except the compliance stuff – plumbing, gas, electricity. I got the plastering done as I can’t do that (yet).
Allow about 50% more time than you think and more dollars than you expect to get the job done.

If you are a…[Read more]

Good question; no – we put a new pier next to the old one, about a foot or so away. Too hard to remove the old one.

There are still a number of the original piers, as well as our new ones. By the way; we went overboard a bit to make sure the job was A1.

Reserve a weekend, grab a good mate, a slab of Vic Bitter, plenty of snags and chops for the…[Read more]

Originally posted by Dazlaine:
I am extremely new at this, and I have not purchased my first property yet. I have only had my mind opened to investing in the last few months and wish to act on this in the next few months.
I wish to buy interstate and I have found a few positive investment properties. I cannot get to these properties my self to…[Read more]

Hawthorn is a good area for long term growth, but I would doubt if you will ever get a decent rent return – very neg geared.
Are you after cashflow or growth?
If you are a growth investor, read up on Michael Yardney and Monique Wakelin. They favour cap growth properties, and will tell you what to look for in areas such as Camberwell, Hawthorn,…[Read more]

Hey, I don’t want to appear too greedy – he might get upset. Can’t have that.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

I did a floor level and re-stump on my PPoR a few years ago with my brother-in-law. Some places were 1.5 foot clearance – not nice, but very do-able. The house was 75 years old, so a lot of the old concrete piers had crumbled. The floors were like trampolines!

We used a car jack to raise the floor. We put it under the beams, resting on a sheet of…[Read more]

ask for a reduction in the purchase price or terminate the contract.
a basic guide to the price reduction may be the size of the extension x the construction cost per square metre, plus any repair work required after the removal.
I think basic construction costs start at around $5k per ‘square’. A builder could tell you the going rates.
A ‘square’…[Read more]

To Dr. X – agree entirely. Mindset is everything. “Think and Grow Rich” – Napoleon Hill is a great example.

To Elkam – another great book by John Burley – “Money Secrets of The Rich” is actually a nuts and bolts guide to wealth for the non-rich.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

A few ‘house-keeping’ tips for your list of things to know;
1. Get your finances in order and improve your financial knowledge. Do some financial statements on both yourself and a few future hypothetical properties to gain some experience on running the numbers.
This will help you to recognise a potential property more quickly when you crunch the…[Read more]

Banks as a rule will only let you use 80% of the equity in your home, less any outstanding loans. Some banks will let you use more, but personally I think that is pushing the safety factor pretty high – not the banks; yours. Personally, I won’t go over 60% LVR (Loan to Value Ratio).

To answer the first question; you can set up your loan in two…[Read more]

Basically, they pretend they have access to an unclaimed deceased estate of several million dollars. They tell you that you can become a part recipient of it if you agree to help them access the estate, and of course, you will need to provide details and open a bank account to have the money sent to you.
Usually they offer you about 50% of the…[Read more]

Yes, that is true. No cgt on your PPoR.
You pay cgt on any Investment Property.
If you sell your I.P within 12 months from purchase, you pay cgt tax on 100% of the gain, at your marginal tax rate on your salary.
If you sell the I.P after 12 months from purchase, you pay cgt tax on 50% of the gain, at your marginal tax rate on your salary.
If you…[Read more]

I agree with Terry;

get rid of the non-deductable debt, then immediately redraw some of the equity to invest in more assets with deductable debt.

The accountant can advise on the structure.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by petlover:
I am about to embark on buying my first investment property, but don’t know wether to buy a negatively geared property in a proven high capital growth area, or buy a positively geared property which may not have much capital growth, but may enable me to hold on to more property in the long run?[hmmm]

You’re…[Read more]

go down I hope.

Actually, I think that if the housing market starts to show signs of a recovery around the main areas generally, and if the consumer spending doesn’t slow down a bit, then the rates will continue to go up some more I’m afraid.

Stop buying doodads you idiots! (forumites excluded – I know you’re all with the program).

Being that…[Read more]

Quite often an equity partner can be as close as your circle of friends/contacts.
If you find a deal and can’t do it alone, and you have a few ‘cashed up’ friends, run the deal by them and give them the opportunity to see all the details. They may be receptive.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

quick update on my loan application with ‘barrywire’. After a few attempts to get them to send me the loan application forms, and them asking me to send details ‘in order to proceed’, the correspondance stopped. Damn; I was having so much fun.
Oh well, at least I’ve still got a few Nigerian email scams on the hook until they work out I’m pulling…[Read more]