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

September 19, 2008 - 5:47 am

As Richard has mentioned, it's best to get a QS to prepare your report. It is VERY unlikely that your accountant can optimally claim everything that can be written off.

I've never heard of a depreciation schedule being done from someone's desk, without visiting the property.

In addition to the firms outlined above, if you are in Sydney or Queensland, Mitchell Brandtman are a firm I've used twice and would recommend them.

PropertySeeker, if you are in Melbourne, PM me and I'll provide a bloke I have used here numerous times.

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

September 13, 2008 - 6:15 am

Hey Mick,

Have a look here:

https://www.propertyinvesting.com/forums/community/heads-up/4324505?highlight=carly%2Ccrutchfield

and here:

https://www.propertyinvesting.com/forums/community/heads-up/4324196?highlight=carly%2Ccrutchfield

I've gone thru the home study and it is a comprehensive product. I'm going to the Brisbane 3 day bootcamp/seminar in Oct with my nephew (whom I'm mentoring) and can't wait.

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

September 8, 2008 - 8:06 pm

Dave,

you must have a twin:

https://www.propertyinvesting.com/forums/property-investing/general-property/4325792

How many have you bought sport?

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

September 4, 2008 - 8:42 pm

Hey K,

It is frustrating when they are first poster's and then they have someone else from the office come online (with another first post) and back up the uncalled for testimonial. They wouldn't have the intelligence to realise that the publicity will backfire and that all here is in the public domain.

Contrast this with some of the veterans here and on other forums, who provide a wealth of info and have a simple link in their signature block at the end of the post that one can explore. I certainly don't see anything wrong with that.

As with everything to do with investing, caveat emptor and perhaps the spam police could be more vigilant in deleting these posts

I used to reply to them and point out how obvious their strategy is, now I try to just ignore

It would probably serve new forumites well to have been in the community for a month or two and posted at least a dozen times or more with some useful info before they even think of tagging a link to their site.

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

September 4, 2008 - 12:21 am

That's true crashy,

very valid point. I was providing some input to stargazer's question when I thought of adding that into my post. Thanks for adding that perspective.

Due diligence with council and zonings, etc still takes priority, no matter which way stargazer goes.

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

September 3, 2008 - 10:03 pm

Stargazer,

these work best on corner sites, but can be achieved on standard blocks also. Not sure where you are situated, however best is to pick two or three suburbs. Become an expert on them as far as what they have to deliver to residents/tenants, facilities, infrastructure, amenity and all the other buying criteria…..I could go on however beyond the scope of this reply.

BEFORE you buy, go to the council (and also their website) and seek town planning advice as to the requirements for lot size per dwelling, minimum width (this will affect provision for a driveway if not on a corner), open space provision, etc. I would also ask your solicitor for some advice on your proposed intention.

Look for sales of other similar type subdivisions to what you are proposing in the selected areas and also what they are selling for, lot size, widths, etc. Be careful to allow for any easements on title of your prospective purchases. They should not be built on and may affect the position of any subsequent dwelling.

A good and simple/cheap book on property development in Aus is by Ron Forlee – Australian Residential Property Development. This book is available at all the chain bookstores or it can be ordered. There are other titles also but this is a good start.

Also, run some figures on build and hold yourself for the rear subdivision. Sometimes, with the depreciation of a brand new box (despite the obviously higher lend amount) and the higher rent from a new dwelling, the rear one costs very little if anything to hold. That way you've manufactured equity from fresh air by subdividing the rear yard and have two properties working for you by way of capital growth. Perhaps also run this past your accountant.

As you've sensibly mentioned in your post seek out all this info before you buy and ensure it can be done. Also once you've narrowed it down to a couple of properties, before making you offer, take the addresses to the council town planner and ask for guidance if you can achieve what you intend. There are no guarantees however, they'll be quick to point out if you can't

Hope this helps and good luck with the strategy.

 

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

August 26, 2008 - 9:58 pm

Hey etty,

what's the ball park depreciation on it for this coming FY 08/09?

What suburb?

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

August 24, 2008 - 9:15 pm

Earthling,

you've have good advice above. I personally wouldn't accept such a fluffy clause unless the property I was potentially selling was going stale and giving the perception of being a lemon if was on the market for a long time. They will tie it up for two weeks and have easy exit if they wish or they may begin discounting wars with you.

The use of such generic DD clauses tends to be more common with larger high end commercial transactions. Very uncommon with simple residential sales which I'm assuming yours is.

Make the terms of the "subject to clauses" tighter and more specific as mentioned above. Your solicitor needs to guide you with this. No one likes clauses. I rarely sell mine, however the few I have sold have always been unconditional. In a slow market clauses such as pest and building are a given. In a hot market properties virtually sell themselves

I've said it already, but again…………consult your solicitor.

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

August 3, 2008 - 6:57 pm

Qlds007 wrote:

C but it not about the numbers.

Richard is right. The numbers are merely the means of keeping score. It's who you become whilst playing the game, and what you can do to enrich your own and others lives on the journey.

For the record I am in B or C depending on criteria of measuring/quantifying "property". It could mean titles or doors/leases.

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

August 1, 2008 - 7:24 pm

The ATO is targeting Hybrid Trusts.

Have a look at this post and the link to the ATO:

https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4324208

Also my guess would be that with credit squeezing being flavour of the month (year), and due to the current conjecture and ATO's focus, the lenders are not keen to deal with such structures in anything but (perhaps) a full doc situation.

Have you secured finance before thru HDT?

I'm not sure who might finance such a strutcure at lo doc, perhaps some of the MB's here can assist.

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

July 27, 2008 - 3:02 am

Hi wangster.

Great post. Thanks for sharing your experiences.

People do your research on all courses that you may be interested in and on their teachers/founders. 

Not all courses are like this, however……………….caveat emptor!

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

July 23, 2008 - 4:01 am

Assuming from your post that they're on separate titles. If the house next door to the PPOR was purchased after Sept 1985 and was an investment property, I'd say that CGT would be due.

Is it an actual house that you rented out whilst living next door in the PPOR? Or, is it a tennis court/pool that (could be argued) you also occupied and enjoyed as part of your residence?

Also, ask your accountant.

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

July 22, 2008 - 7:39 am

You're welcome AH.In the US they are common, even the signs out the front of properties for sale, boldly state FORECLOSURE.

As I mentioned above,  I think banks here need to maximise their return and be transparent by going to auction with licensed agents. I read somewhere that they are also rely on two or three independent valuers findings in setting the reserve or at least being a guide to the reserve price.

I wonder if the borrower had LMI might make a difference to the sales process……although they would still need to be chased down for other assets to make up the loan if the amount wasn't satisfied at auction, and there was a short-fall, so probably not.

In the US the thinking seems to be that the buyer is helping out a situation by purchasing the foreclosed. It does not seem to be frowned upon.

In Aus the harvesters of tall poppies would be jumping up and down crying fowl-play and as Milt stated above, can you imagine the 60 Minutes stories and TT and ACA. As a nation we love to chop the rogue crooked manipulative property investor to shreds. Mr and Mrs average here don't see it as helping someone out of a predicament, whilst satisfying an investment purchase. It rarely is seen as win:win here. It sells more press and sob stories on the telly to paint it as WIN:lose.

Those who have ever seen Rick Otton's talk on warrior nations versus convict nations will understand what I'm talking about

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

July 22, 2008 - 3:07 am

This may help AimHigher,

Not sure if you're aware of this:

http://www.nmddata.com.au/index.php

I have a feeling that the banks must be seen to put the property to the market by way of auction and campaign with a licensed real estate agent to glean fair market value, and not do private sale deals with their customers or investors, who at the end of the day are buyers anyway.

I guess it's more transparent in this way.

Not sure of any MB's on the forum can shed any further light.

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

July 17, 2008 - 9:39 am

Next……..

Don't worry Sav. At that price a developer has bought it most likely.

Keep looking. Keep learning and keep asking. And……..keep saving.

Also make sure your finances as far as borrowing limits (including purchasing costs) are in order.

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

July 17, 2008 - 8:30 am

Have you got pre-approval from the bank? If so, to what level will they let you borrow? If not, why not?

What exactly needs doing. Is it major structural work? Or cosmetic?

Can you look at buying in partnership with someone and develop in tandem later?

More questions for you. But that's the only way we can help with our opinions.

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

July 17, 2008 - 7:37 am

Hey Sav,

that's a nice block of land to "land bank" for future development. For now though, can't you reserect the house to become a renter?  If you can spend say around 10-15 K to bring it up to scratch, at that price (and that's asking…..you may get it for less) it's looking good.

Is it vacant now? How long has it been since it was occupied? How far from the train? 

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

July 17, 2008 - 6:56 am

Hi Nathan,

you've answered your own question…..that's why it's called insurance.

You are debating about purchasing LL insurance on "one of your IP's" , does that mean you own others without it?

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

July 6, 2008 - 6:21 am

vish wrote:

Absolutely !!!!  Considering the rising fuel costs, it is getting very essential to buy near a good train connection. Parramatta superbly connected with Sydney CBD & other major suburbs of Sydney.

Previously, I thought of buying a decent 3 bedroom house in blacktown or Doonside. Yesterday, took a decision NOT to buy there as Capital Growth would be minimal.

Hi vish,

on what basis do you consider that cap growth will be minimal in Blacktown?

I would have thought that buying a house (with some decent land content) would have more potential in an area that has been in the doldrums for so long. Plus some upside potential for future development on the land.

Don't get me wrong, I consider Parramatta to have great fundamentals and own property there myself. Just curious (as I don't live in Sydney)  on why you consider cap growth to be minimal in Blacktown and over what time frame.? Don't expect prices in Parramatta to go gangbusters any time soon with current sentiment. It will happen but not in the near or medium term.

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

July 4, 2008 - 4:12 pm

Hey mick,

that sounds great. Income as well as future subdivision. As it's positive CF for you, that's a good one to hold.

Do you mind if I ask, was it advertised, did you seek and create the deal or are you a local who was familiar with the town plan?

In any case, well done!