[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 10, 2008 - 2:50 am

Canterbury has many gracious period style residences that are either exposed brick or weather -board.

If your new dwelling is in a mock period style, I'd say lay off the render. If it is modern or McMansion box style, you have the choice. I would look at the surrounding houses in your street and neighbouring streets and make your own mind up, based upon the streetscape.

Nor sure how far into the building process you are, however it is possible to have some exposed brick, some render and perhaps some feature stone, if the design allows for that. May give a more up-market feel to the finished product.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 9, 2008 - 7:40 pm

Thanks for that Richard,

Always keen to learn……..that has clarified a point for me that I was unsure of.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 9, 2008 - 5:37 am

In Victoria it is permissable to sign "Billwha and/or nominee" and confirm the entity/owner prior to settlement. The Co and/or trust needs to exist prior to settlement. Not so sure about QLD. Seek legal and accounting advice…….and don't rush. There will be other sweet deals.

It is very expensive to undo "wrong ownership" and transfer after the event, by way of stamp duty and if further down the track with deemed CGT issues.

If this is your first property, I wouldn't be too fussed to purchase in complicated entities. If your brother is the only one securing the loan you might wish to investigate (with your solicitor)  buying as tenants in common with him having 99 % on title and you having 1 %. That way the majority of the loan is deductable against his income and he cannot sell without your OK. You may then want to sign an agreement or memorandum/contract that indicates how will split subsequent profits, and who will provide the work/sweat in the renovation you are planning.

Best to get it all in writing first and be advised by a Qld solicitor……….and hasten slowly.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 9, 2008 - 1:13 am

Great question Peter.

I haven't used such financing however your term of  "money partner"  probably needs clarifying.

Do you mean a formal partner in a project or investment, where say they provide funds and you provide the leg work or sweat equity.?

Or funds used as seed capital (deposits) to gear up to a larger loan thru more traditional lenders?

As far as interest rates if it's the latter, it is similar to mezzanine lending which would attract maybe 20-25 % interest. If its the former the money partner would not receive any interest as they are a "partner" and invested their cash/equity in return for a profit at the end, whilst you have invested the leg work so to speak.

At the end of the day, there are no rules when it comes to creative financing.

You need a competent property solicitor to discuss your ideas with and to provide a heads of agreement and subsequent contract.

If anyone on the forum has been involved in such deals, please share so we can all learn.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 8, 2008 - 7:57 am

Mcubed82 wrote:

hey there, thanks heaps for your respones,
I don;t have a mentor, are u offering? i love getting advice on topics i love

cheers
Mel

Hi Mel,

Have sent you a PM.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 2, 2008 - 9:40 am

Sailesh C wrote:

Jon Chown wrote:

SaileshC wrote – The project should have a return of at least 60% return on capital invested…… Please explain?

With most small developments you will need around $100k of funds from existing equity to help you fund your purchase. This money will be used towards purchase costs, interest and development costs.

Therefore, if the project takes 1 year to complete you will need to make a profit of at least $60k to get a 60% return on your capital invested. Fortunately most projects have shown profits far greater than this.

Setting a minimum standard allows us to assess potential sites and we only recommend properties that pass the test.

Doesn't that assume that the borrowed funds are paid back in full (and with interest capitalised)?

Return on funds (hurt money) of 60 % is one perspective, however aren't the lenders/backers going to want to see a return of 20 % and then some on the project end value as part of the feasbility before advancing their funds?

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 2, 2008 - 1:08 am

Maybe they meant that the actual depreciation  schedule (and report) needs to be completed by the quanity surveyor by June 30. As I understand it, you can claim the past four years worth of depreciation (as long as you have owned the property during this period) retrospectively.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 1, 2008 - 2:38 am

And to add to seank,

1. House prices can (and have) also gone up.
2.If my tenants stop paying rent, I evict them via tribunal protocol and claim thru landlord's insurance. Get a new tenant.
3. Unlikely………rents would explode.
4.Please explainhow legislation change will affect my rent.???
5. My LVR and DSR is conservative
6. Insure life, income and disability.
7. Claim on my insurance and build a new house.
8. My rates are fixed. I do not gamble on trying to save on variable rate ups and downs. I sleep at night.
9. Gentrification and lack of land with amenity/infrastructure will not allow this to happen in solid metro areas.
10. LEP and DEP are likely to be up-zoned to optimise amenity, facilities and transport…..so value will increase
11., 12, 13. The world as we know it could cease to exist ……… so who cares. Any building, investment, business or owner occupied could be affected by storm, acts of god, etc. What's your point scamp.??

Where do you live?  As a tenant or owner accupier you need a place to live, so how does being negative help you in your home situation or investing?

Being cautious and sceptical is good policy at all times, not just in the current climate. However continual focus on the pain, and negativity of a "snapshot in time" without due regard for the bigger picture does not in my opinion serve any purpose, other than to scare people.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

June 1, 2008 - 2:20 am

Agree whole-heartedly with Jon, JTW and Mick.

Scamp you are welcome to have an opinion and free to post it here, no matter how negative and pessimistic it is.

You are even free to criticise, attack and rebutt the opinion of others, HOWEVER, you are not welcome to be critical or to attack the people themselves as you did in your very first post and subsequent posts on this forum.

There are not many here with rose coloured glasses and I perosnally do not belong to the pollyana school either. However as well as having conservative LVR's and DSR's with a robust due diligence process to everything I buy or plan to eventually develop, I am positve about my future.

What exactly is your agenda by playing doom-sayer and preaching the "the sky is falling down" ?

Be careful the amount of negativity  and fear you harbour doesn't affect your health. What we continually focus on tends to manifest and expand in our life.

Please do not attack the people themselves. Being rude doesn't enhance the credibility of your views.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 29, 2008 - 1:34 am

Is this another nexplan info-thread……..and did they all join yesterday (28/05/08)….

https://www.propertyinvesting.com/forums/property-investing/general-property/427076

Freya, if you are legitimately ineterested, duckster is correct.

Spend less than you earn (pay yourself first) and invest the difference in appreciating assets. Re-invest the income/proceeds to capture compounding growth.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 28, 2008 - 9:09 am

Isn't the power of synchronicity amazing, both Mike and Sandy with their query and GregA with his maiden post/response have joined on the same day (today). 

Please share the good fortune that they taught you Greg so that we may all learn and become financially secure just like you. We are all here to share the learning and would appreciate your further information.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 28, 2008 - 6:50 am

You mention it would be a tight squeeze, however if you could (option # 3) remain in your current PPOR and rent out the two new dwellings (? town houses/villa units) and ride out the financial side, you will find that the depreciation that is allowed as a paper loss on brand new buildings and accelerated on fixtures/fittings will assist you greatly with regards holding (out of pockets costs). It depends on what tax rate you are both on…….?? assuming that you are both working

Really it's a numbers game and how comfortable you both are to live a little leaner and having a buffer for rate rises. If they're nearly finished maybe lock some or part of ther loans for the shorter term or whatever allows you to sleep at night. Having said that your decision should not grossly impact on your lifestyle or make daily living a  huge struggle. If you can ride out the short term, you will have three properties growing for you in the future. 

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 28, 2008 - 5:53 am

H Mel,

At age 25 you have a great goal to "retire" or at least have more choices in your life by the time you're 35. Most people over-estimate what they can achieve in a year however they often under-estimate what can be achieved in a decade.

You have 10 years to live your plan.

First you need to decide "what you want". Quantify it. Is it  $ 100,000 net income per year, 200,000 or a million? Do you want $ 10 million of net assets, or some other figure. Where will you live? How will you spend your time, with whom? Often including others in your dreams and wishes gives more purpose to your vision and the impetus to follow thru on your plan.

Once you have established what you want and how much……. you need to work backwards and form a roadmap of how you will get there. You need a master plan and more manageable stepping stones (yearly and maybe six monthly). Will it involve passive investing (I note you have three properties from another thread you started) and funding purchases thru equity growth and your JOB. Or will you take a more active role, by adding value thru reno's and developing to manufacture/release more growth thru a higher and better use for the assets you own and will acquire.

It may be worthwhile thinking of adding other income streams such as shares (investing or trading) and/or some type of part time business.

I have proposed more questions than answers for you to ponder, but have found that unless you are clear on what you want and put a deadline on it, the discipline to follow thru may be lost. Goals are dreams with a deadline. Without some time frame and accountability along the way (milestones), dreams and wishes remain exactly that…..dreams and wishes.

You need knowledge (read as much as you can) and take informed action. Try and get around others who are where you want to go. Forums are great but a real life mentor who can challenge you and keep you accountable will hasten your journey.

Congratulations on your progress so far.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 27, 2008 - 3:27 am

Great post,

Generally what we see (and get served in life) is a reflection of what's inside. The bottom line is that real estate (in all facets) is a relationship business. Rapport is our most valuable tool.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 24, 2008 - 3:58 am

Hi Mel,

firstly congratulations on your progress to date.

Do not invest in property assets merely for the benefits of tax breaks and certainly do not rush to buy before June 30. No offence but your income is not that high (yet) at pushing such boundaries, and needing to rush. If you are able to deduct office expenses and there is a need then obviously make significant purchsases of these items before June 30 such as notebook computer, printers, etc. But do not rush for property purchases.

I am assuming by the above that you earn 75 K and that you have 10 K (?? in cash/savings). Some more info would be helpful in giving further suggestions.

How much net equity do you have to tap into?

How is your servicability to fund another purchase without it cramping/affecting your lifestyle?

Where are you thinking of purchasing and where are your current properties?

Finally, taking action is great, but…….HASTEN SLOWLY

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 11, 2008 - 8:00 pm

Whilst caution, due diligence and respect for one's own level of debt and servicability should be priorities in anyone's investing journey, you should not assume that every one here conforms to your opinion……..

"The fact you had to come here to get help means you are not prepared enough, or not smart enough, probably both.—Scamp. "

This is a forum of like minded people, plenty seasoned and some newbiews. Many come here to share, network and yes (heaven forbid) learn something.

It is not my only (nor main source) of knowledge/education, but a welcome sharing community of like minded people.

Welcome to the forum, but don't generalise that everyone here is naive and here because they are not smart enough.

You know what happens when you ASS-U-ME.  

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 9, 2008 - 9:02 pm

Go to

http://www.ccorp.com.au

Email or give them a call.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 8, 2008 - 6:09 am

Hi hengjin.li,

I would also be keen for a copy of the US Real Estate Options book. I have sent you a PM

Thanks

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 7, 2008 - 2:03 pm

In Victoria, stamp duty may be paid up to three months after settlement if purchase was cash (no borrowings). This is the only way I know of delaying the inevitable in this state.

If any one has any insights as to how to minimise it (and avoid it) legally, please let us all know.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

May 7, 2008 - 7:10 am

Hey Richard,

not sure about that arm of his operation, whether he contracts out or it's his show. Ring Metropole and find out.

Also Patrick Bright is big on the Sydney front.

Try:

http://epspropertysearch.com.au/home/default.asp?MenuID=3