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

July 5, 2011 - 8:51 am

Terryw wrote:

You would probably be able to claim a deduction based on the rate for the engine size x KM travelled for IP related matters

Good point Terry.

In the event that one has numerous holdings and investment related km go over the 5000km limit, do
investment related km (inspections, repairs, and other income related activities related to that portfolio)
qualify to be attributed to a vehicle log book type documentation?………maybe 26 weeks(6 months) to be more reflective
of investment related activities rather than the traditional 12 week (3 month) business log book. THat is the situation I am
in.

Also does IP related travel in a motor vehicle for SMSF holdings get attributed to the trustee (or director of trustee
company and also member) or to the super fund itself? The SMSF doesn't own motor vehicles, so km can't accumulate in
that entity.  I am wondering if such km accumulated can also be attributed to me and go toward a log book type scenario.
Depending on value of vehicle, a log book is more tax friendly (to me as a tax payer than a pure per km rate.

Any insights would be appreciated

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

June 26, 2011 - 9:13 am

Thx for that BG. I had read those articles……..
 
This Westfield development has been promoted (spruiked) since 2004. Prices have since softened in the new house and land stock there. I have been following it sonce 2006/2007 and fortunately I didn't buy. Even within 1 km of the train, which I must admit is a unique piece of infrastructure to be able to walk to a train station on the Gold Coat. Not a common thing.
 
I understand that projects and development of this nature take time, however as a good place to buy for future capital growth?……………………….how far into the future? Whatever is purchased there will be a negative gearing play…….how long will it take for rents to rise and demand to provide growth?………………….there is no housing shortage on the Gold Coast anywhere.

I was addressing keiko's comment. My opinion is that Brisbane will ostensibly outperform the Gold Coast by a long shot when it turns to the upside. I don't trust councils and developers to deliver when/where they say………………….this thing has been promised for a lon time. This will likely eventuate and possibly GFC and other leverage issues with Westfield may have deferred this project from starting. My take is (like buying a rising share/stock)…..wait until this thing has started before committing funds there for IP's. It's not as if the market is booming there or anywhere near there ………………..yet.  Merely my 0.02.

I do however agree with your notion Bluegrass about renting versus ownership. Saqib,  It is generally (mostly) cheaper to rent where you wish to live/reside than to actually buy there and furnish mortgage and other non-deductible costs. Funds may then be directed toward investment assets where debt servicing is tax deductible.

There is one aspect of owning though rather than renting and it does not involve financial criteria, but rather the intangible feel good comfort of owning. This cannot be discounted and will be different for every person. The great aussie dream is not dead just yet.
 
Saqib, step back and establish some goals as to what you want from property. Be very careful from paying too much for brand new housing to entities who will benefit on many and varied levels from selling you their stock. Look for amenity and where you (or you tenants) wish to live and that will have greatest demand. Keep reading through this forum and search the sub-forums then narrow down you selection to a few suburbs. Research further and if you are not confident, engage a buyers agent/advocate. I haven't had the pleasure of meeting Andrew in person yet, however have read enough of his posts here and moreso on another forum…..IMO you could do much worse than engaging Andrew Allen to assist you should you feel the need.

Good luck.

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

June 24, 2011 - 8:08 am

keiko wrote:

Yes Coomera is a good place to buy, I beleive you will see good capital gains in the future

Hi keiko,

do you have any data to back up that assertion. Coomera……………….  Boomera has been promoted as the next big thing. I have yet to see Westfield commit to that town centre. If beach side Gold Coast is struggling, what elements will make the family suburbs have good capital gains. I have just moved to the Gold Coast for lifestyle from Melbourne, however have been familiar with this area for quite some time. I am a (waiting and looking) investor however in this market I would stick to Brisbane proper………….BTW I have investment property on the coast however would not buy there now or for quite some time………..keen to hear your thoughts keiko on what will make Coomera become Boomera. IMHO gains here will take a long, long time.

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

June 19, 2011 - 10:00 am

Depending upon wording of lease, strata costs should be borne by the tenant. your closing costs should
be as with any other resi IP. Stamp duty, legals and other sundry title fees. Stamp duty on mortgage and
commercial fees (assuming you're using the comm asset as security) for borrowing usually have higher
establishment loan fees and of course a higher interest rate. Check with your lender or MB.

7 % is OK but not that special. I look for higher yields than that to hedge the higher risk with commercial assets.
Check if all outgoings are paid by tenant including land tax (portion on single holding basis) and usual DD with lease, rent reviews, car parking, etc.

SNM, I have PM'd you also.

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

May 31, 2011 - 4:33 am

Nathan Birch wrote:

My number is 0406886284 just text me and I will meet everyone wherever you all are….

Nathan.

Will you be wearing your top hat? 

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

May 9, 2011 - 7:50 am

Here's a post from another thread:

https://www.propertyinvesting.com/forums/property-investing/general-property/4336587

May help with some considerations and direct your further research and due diligence
about the Gladstone region.

Careful with brand new in regional centres. Haven't been to Gladstone to investigate personally (YET), however my
slant is older box on decent infill land where they can't make any more. Then there is potential to value add as others have suggested. Whilst Gladstone SEEMS to have good fundamentals and enough projects to keep things buzzing for a few years, this would not be a long term buy and hold if it were me. Milk the (likely) cap growth of the next few years whilst enjoying reasonable rental return, however at/near the top when the market is saturated and the prices get silly, I personally would get out and take my proffits to put them into a metro area……..merely my 0.02.

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

April 29, 2011 - 7:01 am

Hi ya D,

Thanks for your input. Along the lines of your Camberwell example, I am also finding the over 1 Mill price point
to be struggling to the same tune. Specifically it's Bayside (10 km to CBD). Renovated (bling, bling) properties are
flying and for silly prices, and the rest are struggling to get even fair value contracts other than fire sale offers. Patience required. The buyers are in control in this segment much to our frustration.

We are trending sideways now after some softening since last year. Personally I smell 1991 in the air. Those old enough  will
remember those times. I am not intimating that we will see interest rates old enough to vote, however the sentiment and mood of property may follow that tune of the early and mid 90"s. I'll hedge myself with the markets within markets caveat, however I reckon things will just bubble along……and watch this space if any more smoke and mirrors type fiscal collapses come out of the the US, other sovereign mishaps or worse still any road bumps in China.

Keen to hear other's experiences in the above median markets.

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

April 28, 2011 - 8:39 am

** Bump**

Anyone with on the street views about Melbourne and some of my points raised below?

Steve McKnight?

Would be appreciative of some opinion and views.

Thanks,
M,

Michael 888 wrote:

Hi All. Looking for some opinions on the current Melbourne market.

Steve, please feel free to add your take on things. I am currently residing on the Gold Coast, having left Melbourne a couple of months ago for warmer climes and a different lifestyle. I missed your recent tranche of updates (in Melbourne), having attended the Gold Coast one in early March.

I listened to Steve McKnight's update last Nov (2010) in Melbourne and whilst the market was starting to soften, clearances did do quite well. I was surprised to hear that Steve expected the market to be sluggish until Autumn and then begin another up-cycle. My feeling on the ground at that time was that we would track sideways for some time with perhaps some softening of the over million dollar markets. I am significant;y invested in Melbourne currently and am selling one down at present. The higher end has come off in Bayside Melbourne and the buyers are well and truly in control.
 
Not sure whether to persist or take it off the market for a few months and go again around Aug/Sept. Obviously everything is for sale at a price and whilst my expectations have been amended, I don't wish to give it away either. Problem is opportunity cost of those funds locked up in a property and not in the bank (for now) earning 6.5 % or so and the opportunities that will present in Brisbane for example that can be invested in.

Steve's thoughts from the recent Melbourne update would be appreciated as well as anyone else who attended that event or has their own insights on where they see the Melbourne market going in a general sense.

Personally, I see yields in Melbourne as very low at present compared to Sydney and Brisbane. Sydney ostensibly still has legs IMO and Brissy missed the run that Melbourne had over the past two or so years and that Sydney is currently enjoying. Superimpose the unfortunate floods they had and I reckon, Brisbane will be like a wound up spring that will have rapid capital growth whenever it takes off…….prognosticating 2012 or thereabouts. Yields are pretty good in Brisbane and so cap growth will see those come down a bit to reach a circa 5 % equilibrium point. THere should be decent equity gain IMO

Anyway, people's thoughts on current Melbourne and medium term prospects would be most welcome.

Thanks.

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

April 26, 2011 - 9:46 am

This has been a very insightful thread.

I have been researching tax liens investing and I have a few questions relating to the logistics and practicalities of doing this purely online from Australia and making it efficient and optimising returns.

   What are approximate accounting fees to lodge a US return for an LLC in other people's experience?

   What income (as a minimum) would be reasonable from tax lien investing  as a critical mass to make this
endeavour worthwhile in the expeience of those doing this now from Oz?
 
   Taking into account fees for LLC set-up and annual reporting, filing fees, etc., and accounting, fees, what sort of lien interest income (aside from the currency exchange risk that erodes profits if money is repatriated) is needed?

   I am under the impression that one doesn't need to lodge a US tax return with the IRS if interest income or  profit is under $10,000. Is this correct? Or is it that they don't pay tax on income under 10 K?
 
   If so, even though one doesn't lodge in the US, one still needs to declare ALL income sources in Australia. So, tax will be paid here (with exchange risk) and then if the income accrues with further interest earnt in the US, more tax there also (kind of like double dipping). I appreciate there are tax treaties that the two countries adhere to, however logistically what has been the practical expeirence of others doing this from Australia?

   I have an interest of pursuing this thru an LLC (I know it's cheaper in a personal name with an ITIN) with a family trust in Aus as the member and beneficiary of the pass thru income. I then have all the discretion as to where that income is distributed.  Is anyone else doing this with a family trust or only as a single person pass thru LLC?

Would be very keen to hear of other's experiences on these matters who are doing this from Australia.

Thanks

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

April 26, 2011 - 8:28 am

Hey there Angel,

happy to do that however I must clarify, this isn't an investment. It's our
former PPOR. You could of course rent it out or consider it as your own PPOR,
however as a yield play it will be woeful. It would be a land bank in the best street in the precinct
with a fair bit of house there to provide some income to assist holding.

If you are still keen knowing this let me know and, I will email you the link.

I don't wish to use this forum to advertise it, however would still be
keen to hear opinions on Melbourne as indicated in my opening post.

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

April 26, 2011 - 1:29 am

Jamie M wrote:

Michael 888 wrote:

You'll recognise me by my avatar    

Keanu?

LOL. Yep, Mr. Reeves does bear a striking resemblance )
………..thinking wishfully at this end.

Look forward to meeting you Nathan. I shall be in touch closer to the time. Perhaps we can even do one of those looooong lunches you so enjoy.

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

April 25, 2011 - 8:45 am

Hey there young Nath,

I intend going. It would be nice to meet you. I have enjoyed reading
and celebrating your accomplishments as detailed moreso on another site.

 If you're inclined, we should meet up for a coffee.
You'll recognise me by my avatar    

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

January 4, 2011 - 7:57 am

Hi BJ

Can't help you with a dollar value to increase the rent by.

Unless it is a high end property you are renovating, for an IP, a spa is a liability. If it were me, I would get rid of it as even if it is in disrepair at start of lease, in some states you are obliged (as a landlord) to fix it and keep on fixing it just becuase it exists.

Edit:

Oh, and also be sure to check how it is impacted by any pool fencing regs in your state/territory.

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

January 1, 2011 - 4:01 am

lpalad wrote:

thanks Michael. If you don't mine asking you… you got 4 or more properties which put in 5% of savvy IP investor ?

Hahahaha………LOL.
 
Dunno if I'm savvy. I know my way although I certainly don't profess to be The Stig of the property world.

Leo,

also have a look at council websites (LGA's) of the suburbs/regions you are targetting. Handy info as far as potential
projects and other demographic resources that you may be after.

Happy New Year.

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

December 31, 2010 - 11:06 am

lpalad wrote:

Thanks…I already knows those sites which give you some relevant info about the suburb. But, I looking for more stats data that I could use (e.g.,  demographic changes, what drives the population increased, etc).

Prepare to read widely. Australian Property Investor magazine; Your Investment Property mag, Fin Review (Tue and Thurs). The Age Wed. Primespace in The Australian thursdays. Some is available online. Follow the local paper in the cities/precincts you are keen on by reading online articles that might be relevant.

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

December 31, 2010 - 3:36 am

WinstonWolfe wrote:

Hi Mr Michael. In 2011, I'll continue to read widely and deeply on what really drives house prices, and post about it. ……………………………………………May all your attainable New Year's resolutions be attained. 

Thx WW. The personal one's are back on track and (to date) looking the goods.
 
Investment wise, I shall be a very careful observer in 2011, however ready to grab opportunity by the scruff of the neck when/wherever it presents as long as it  is on special and it  cashflows.

Ausprop, the smilies and avatars are also more dynamic/kinetic here   but you already knew that.

Happy New Year to all 

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

December 7, 2010 - 11:03 pm

units4me wrote:

Welcome Winston. You were one of the truly great contributors on SS. I look forward to your imput here.

And I also.
 
Your economic analyses and snippets of fiscal wisdom help keep us grounded in the current landscape, Mr. Wolfe. Passive sit-back and pray strategies, are unlikely to work in the current environment. Due diligence has always been important, but more so now. It is the new black.

Will follow your charts thread with interest. You also appear to be enjoying the wider array of smilies on this board.

Be well.  

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

September 13, 2010 - 7:57 am

How do you get a discount…….simple, just ask!

I see that circa 2-3 % is the going rate that most pay. I accumulate and  I have only ever sold two and I didn't pay anyhwere near that either, although the rea was also the PM firm looking after the rentals…..long history and we understand each other
and our mutual expectations.

Five and six per cent is nonsense. I might offer 5 % on any amount over and above my reserve and even that
reserve would need to be ridiculous, however the bulk of the commission would be around the two's.

Don't know about other's experiences, however whilst I don't intend screwing the agent to the point
where they're not going to promote your property with the energy and diligence that it deserves, I also
don't think paying them an amount equivalent to the stamp duty on purchase is going to receive any different
outcomes.

Be very pleased to hear other's views also.

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

September 11, 2010 - 7:11 am

mrtender wrote:

I suppose the thing that I am not sure about is … are there buyers out there looking for commercial properties with a return of 8% or 9%?

I reckon there are, however strength of lease, nature of bond/guarantee, strength of tenant, amenity, flexibility of the box to attract a variety of future tenants upon vacating, etc, etc are a few of the issues that I would look at.

As long as it has road infrastructure and amongst other established sheds/warehouses/businesses and not out in the boonies, this hedges the future leasability of the asset.

Personally, I would be looking at a CBD location, however the trade off for potential future tenant demand is yield.

If you're buying at that price and can finance it adequately and you secure the tenant even if you cannot sell as quickly as you wish, the arbitrage b/w net return and likely interest rate should leave funds in your pocket.

If you're after a quick flick as you indicate be as certain as you can that you have a tenant. IMO an empty box on the Golden Coast is (in this climate) going to be challenging to let.

Good luck.

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

September 11, 2010 - 4:24 am

Depends where it is and the cap rate of the precinct. Burleigh Heads versus Molendinar versus Bundall versus Stapylton versus Nerange versus Yatala ????? …………..all are different. Ask an independaent commercial rea up there what the cap rates should be for what you are entertaining. Use them as a guide.