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

May 13, 2009 - 8:08 am

This is unlikely to be considered an arms length arrangement……..and at less than market value………….big can of worms here.

Also the asset needs to be real business premises not resi. On that basis, unless zoned 4A is a business or industrial zoning at present it is resi (not real business premises). No need to worry about bare trust and warrant loan as I doubt you can achieve what you're proposing anyway.

This is merely my understanding, best to check with your accountant and fin advisor who is familiar with SMSF transactions. 

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

May 7, 2009 - 8:39 pm

Great maiden post symon_natalie.   Couldn't agree more. Welcome to the forum.

 Unwired, I'm assuming you've read this entire thread thru and more than once. If not, do so.

With current interest rates and rent demand in most places, these deals are all around. Do not think that you will be spoon fed the properties and be cautious of those promising to sell you CF + with a vested interest of commision off your purchase. Not all are shonky, however caveat emptor. Do your homework and due diligence.

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

April 29, 2009 - 7:18 am

Some discussion here should help you:

https://www.propertyinvesting.com/forums/property-investing/creative-investing/4324169

Enjoy the read.

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

April 18, 2009 - 12:49 am

Hi Charyn,

Please check your INBOX, I've sent you a private message with some specific follow up questions.

Thanks. 

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

April 15, 2009 - 1:11 am

Agree with Paint. Most visual impact with the largest surface areas. So paint walls and then attend to flooring, whether it's boards or carpeting, or tiling.

The most bang for your buck is to address the largest surface areas first. Keep themes neutral.

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

March 29, 2009 - 11:46 pm

Hi keiko,

Here's a construction cost estimate table from bmt quantity surveyors: http://www.bmtqs.com.au/construction_cost_table.htm

This will give you a guide, however, not sure about just the cost of materials with you doing the assembly work.. Hope this helps get you started…..perhaps give them a call to ascertain costs break down between tilt slab and labour. Perhaps there is a percentage guide that they use. If you find out, please post back as there may be others on this site who are interested.

• This reply was modified 10 years, 1 month ago by  Michael 888.
• This reply was modified 6 years, 9 months ago by  Forum Moderator.

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

March 28, 2009 - 7:51 pm

You guys are just incredible.

Both first posters and helping each other out. I am so touched.

You do realise that this is an Australian site so your spam for US services won't go far here.

I suggest you don that green parachute and jump………….actually better still why don't you go jump without the parachute

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

March 26, 2009 - 7:28 pm

So mb0000, a newbie, with three identical posts,

Why don't you bless us with your knowledge……………………we won't pay you however because that would make us all "easy picking" suckers according to your post.

If you took the time to read the posts above, in particular my more recent one, you will see that I present a very balanced view about people who asked about the mentoring. Don't commit just for that aspect. Make your decision based on receiving content, not only support.

For the record I have been investing in property for over 20 years and there is no product to my knowledge in Australia with the course content of her DVD home study. I've read a few books on developing, however her course puts it in a structured logical format..

mb0000 her course is not 10,000 or 25,000. It is sub 5,000 and despite my prior investing knowledge it gave me the information and resources I needed to proceed with my future strategies. I have no affiliation with her or ccorp. Nor am I ashamed, despite significant experience to admit that I don't know it all…………hence why I enjoy learning.

People should make their own minds up. I have put some curly questions to her personally and her responses were on the money  and helped me with a situation I had reached a stallwart with.

Open your mind mb0000 and be considerate of the fact that some of us actually learn better with different presentation styles. Some reading, some, audio and some with DVD or in person events. I prefer a variety of media to cement the learnings and make the information sink in.

Have a most enlightened day

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

March 25, 2009 - 12:31 am

Good for you K………hasten slowly. I'm sure you'll pounce when the numbers stack up.

It amuses me that vendor's reasoning for a sale price is based on their own exit numbers from a deal (or self created me$$)…..must be part of the greater fool theory  

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

March 24, 2009 - 9:36 pm

Hi K,

what price range are they in? Are they at the bottom end of the market (below median for the area you're looking to buy in)?

I still see bottom end stuff flying out the door in the 250 K to 400 K range in Melbourne. Anything around 500 K – 600 K is stable. And stuff above one million is very slow and some good buys are to be had.

In this market, I would want 25-30 percent return to allow for any further softening over and above the contingency for construction costs.

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

March 23, 2009 - 5:48 am

Having joined today, you may not have had time to look at this:

https://www.propertyinvesting.com/forums/property-investing/help-needed/22508

Read it in its entirity.

Enjoy the learnings

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

March 22, 2009 - 7:24 am

A very general question with far encompasing yield ranges to be applicable.

For me, I have found units in Albury that have a gross yield of high 7's. I'd look for a whole block on one title for around 8 % plus.

On the basis that Albury and Wodonga is quite a large inland hub with significant catchment population, if I were looking at 8 % there, then in Mildura or Wagga I would want high 8's or into the 9's. Not sure about those markets however. 

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

March 22, 2009 - 7:19 am

A higher clearance rate is due to shortage of stock. Anectdotally, I am noticing fewer for sale in Melbourne at least, so what gets listed and has reasonable vendors, will sell.

We haven't bottomed as a market collectively, although there are sub-markets such as fringe FHB suburbs. The large development houses (Delfin, Devine, Stockland, etc) are laughing with the enhanced FHOG, encouraging young ones who haven't lived thru any economic slow down to go full bore on instant gratification by buying an (affordable) brand new box on land in places with no ( or little) amenity. Some have barely saved for the closing costs………expect some pain to be delivered to them.

These people fund the whole purchase with FHOG as deposit and whilst DSR may be OK for now, wait till they lose a job or take a pay cut or  as will be inevitable interest rates rise again.

Some more pain to come………these are opportune times to be cashed up with folding stuff or equity (with skinny LVR's) and pounce when the deal is good.

It is always darkest before the dawn…….I expect a little more nightfall and then the cycle will again begin with daylight.

Let the games begin.

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

March 12, 2009 - 9:22 am

Rastuss wrote:

I just drive a 93 nissan patrol but i had to laugh a young bloke at work just married went a got himself a brand new hsv ute at around 70 Grand which he pays $400 aweek on repayments.
Asked him why he didn't buy a house he said you can't drive a house!

Be grateful for people like that ………..provides for tenant demand. Oustanding, he's probably running 40 profile tyres so that makes it really useful as a work vehicle………hahahaha fantastic.

I haven't posted in this thread yet, so for the record, I'm driving a 9 year old Jeep  Grand Cherokee. Nearly changed over two and a bit years ago, however I bought a block of flats instead so the car lease saving went to funding slight negative gearing. They are now positive cashflow.

I would not be averse to picking up a bargain this year, however……………something like an X-5 or an ML just over two years old but still with a small time left on the new car warranty so I can take up a three year extened warranty on it. I will be greedy however and this purchase will need to be sub-50 K. I might be asking for too much, however corporate softening may see some high level cars going, going, gone. If not, that's OK my current vehicle will keep on Jeepin'on.

As the typical millionaire next door, I am not what I drive. And for the record, there's nothing wrong with driving exotic vehicles as abundance should be about beautiful automobiles also………just don't be caught looking rich, rather than being rich with a decent net worth. 

Some folk have it the wrong way round as they say in Texas, Big Hat…..No Cattle. 

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

March 10, 2009 - 3:22 am

Matt007 wrote:

spam spam spam spam spam spam spam spam … get rid of this monkey..

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

March 4, 2009 - 5:27 am

SeekOptions,

you've posted your last post above twice within 40 minutes in this thread, without any context or flow to the thread and you've also cross posted the same content under the Seminar – Mark Rolton thread. It's getting a tad annoying now.

What is  your intent?   

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

March 4, 2009 - 5:08 am

SeekOptions,

what are you actually doing?

You've cross posted  your last post here:

https://www.propertyinvesting.com/forums/community/opinionated/4324896?&page=2#comment-186681

Have you actually done the course now and are you an affiliate?

You've asked many questions in this thread over the last couple of months and, motioned that you will purchase the course. Please share your experiences with the material you've encountered.

If not, are you merely spruiking without relevant contribution? What the agenda? 

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

March 1, 2009 - 8:12 pm

Go here:

http://www.realcommercial.com.au/

put in the criteria and compare the asking rent for professional rooms with the asking rents on duplexess in that area. Also ask local rea's what they perceive the difference to be. Depending on the lease strucutre all (or most) of the outgoings should be payable by the tenants of these potential professional rooms, thereby increasing your return beyond what a resi duplex would return especially on a main road.

If you or the entity that owns these duplexes are registered for GST and you receive commercial rent, then you would charge GST. If you are not registered, even though it may be commercial lease, you do not, unless you have such income over $50,000 p.a. (I think).  Please double check that with your accountant.

g_o_m, there is no fee to ask questions of the council town planner, however if you engage a private firm, obviously there would be fees payable to them.

Good luck with it RubberduckyAU. Perhaps post back your research findings and if indeed you were able to extract a higher and better use from your duplex purchase.

Is there much you would have to change inside to reconfigure them to what you are proposing? Also what is the car parking requirements of that particular council?

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

March 1, 2009 - 9:54 am

Check with council what the zoning is there and what is permissable. In the event that yours is zoned resi and you have offices next door, you may have a case to apply for some permitted change of use to your duplex as there is precedent next door to yours.

Best check with a town planner at the council for permitted use and and restrictions.

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

February 25, 2009 - 7:55 am

I might be stating the obvious, however we will only know where the bottom is with the benefit of hindsight and the retrospectoscope. I agree with much you say. We may be at bottom and trend sideways with volatile swings or we may have further falls.

I bailed the last of my holdings last June. I currently own no stocks. I'm sitting on my hands waiting to refi a couple of fixed IP loans coming up later this year and will likely continue to hold cash…….poor return but capital preservation is king at present. I may add a couple of doors to one of my holdings to enhance yields….depends on bank's sentiments and willingness to loan for such. We have falling interest rates and concurrently falling LVR's. It is wise to keep portfolio LVR's skinny in this environment, say less than 70 %, preferably round 50-60 %. Gives a buffer for any further softening in values. Now is not the time to be aggressive, unless opportunity comes along and lending can be conservative. There should be some decent pickings later this year and into next year.

We also however cannot be sure that the next highs will be as far as 10-15 years away. To be sure we my have higher highs at that time than now, however in keeping my strategy going forward as basic as possible…….buy a rising share and sell a falling one. I will be more vigilant with stop losses going forward and will be starting by going long and simple.

Good luck everyone