[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 15, 2004 - 1:39 am

I dont think it is tax dedustable as a PPOR has a lower stamp duty to start with. (QLD 50% less) so you save from the start. If you manage to sell it after 12 months there is no capitial gains tax either. If you are nomadic you can turn properties over this way. One a year though but a good start

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 15, 2004 - 1:32 am

I generally take out insurance from the time the contract becomes unconditional.( building and pest inspections completed) I figure if something goes wrong before then then the inspection will find it and negotiations entered into. A cover note is usually enough as you dont have to pay for it for a couple of weeks if the contract flops for any reason then just call the insurance and remove cover without cost. Just a lot of correspondence! I always inspect before settlement, not that there is much that can be done without causing major upset. I guess because I do my legals myself I follow the contract and all the protection It can offer. Another Thing I have found is that if they percieve you are going to inspect they are less likely to try anything naughty![]

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 15, 2004 - 1:16 am

I think from what I am reading to enjoy the present is so important. Theere is no better way than to realise some capitial gains to begin. The important thing is balance. Do you spend the money on lifestyle or reinvest it to get more. I have bought a boat; it is definitely not an investment and seems to cost me heaps, far worse than houses and not tax deductable[]But so much fun it is definitely worth it. I am thinking I need another IP to fund my new habit[] such is life. It is a pity you carnt get the same amount of fun out of houses.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 13, 2004 - 1:31 pm

bulk insurance is like multiple policy discount. One trick I have used is to list all property with my family name (omit initials) this was when the company types in the name not only do my details come up but also my parents. I also use their address as a postal address. It is a matter of playing with details to make them work. Having several policys due at one time also gives leverage when negotiating. though on the downside requires careful budgeting!

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 13, 2004 - 8:38 am

I find cash is the best to negotiate around improvements and mointance for property. Trades men know the value of cash and the slab of beer. A credit card just does not cut it! For bills I can see the benefit…Rates…$700 use the card and save interest. It adds up over the year especially with big bills.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 13, 2004 - 8:18 am

I have crunched the numbers for owner builder. It is a goer if you have the time and skills, but a huge commitment. I think unless you are after something specific, to buy and renovate is a far more cost efficient option. Ther are heeps of hidden costs in finishing a house. Establishing gardens, turf, letterbox, clothes line, light fittings. all these costs add up as do plans and council fees. ther is also a lot of down time in building a house where you have money tied up and no income from it. A house can be renovated fairly fast and tennants put through before it is even finished. I have often lived in a half finished house…semi built not too comfortable. second toilet is always good…use one while the other is being renovated

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 13, 2004 - 8:03 am

If people work hard and are rewarded there is nothing wrong with that. It is labeded the domestic ecconomy. Pocket money for kids, tips and other insignificant monies. Some are generous in their interpretation of tax policy.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 13, 2004 - 7:54 am

I feel wrapping can have a detrimental effect on the wrapees. The principal that they percieve they own the house makes them take care of it if they really carnt afford it then it falls in a heap and the only winners are the wrapers with the wrapee worse off. To wrap as a favor can work for family. My family gave me a hand up when I first started out and I would help my family out.

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January 13, 2004 - 7:44 am

Fixed rates are an option. I find that even if things tend to go bad a good property will have potential. When the lease expires if the market can take it put up the rent. You wont make any friends but will keep property positive. Think about it would you move for $10 a week increase. moving costs make moving difficult.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 12, 2004 - 11:51 am

Everthing goes up. The trick is to hold things that go up rather htan get old and become worth less. Property is always a up on the long term. unfortunately boats for me have been a down as have cars. Luckly property can be entertaining I think there will be some correction all round this year. prices fall, rents catch up

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 12, 2004 - 11:39 am

I think these are the best buys. People are prepared to let their porperties go below cost and take a loss in orde4r to keep their credit rating in good condition. bit of a win loose but they get to keep their credit rating. dont let it happen to you!

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 12, 2004 - 10:55 am

the secret to keeping tennants content is knowing the law and your responsibilitesand theirs. Be upfront and honest with them. I find that it changes over time. they are not going to be overly fond of you after a rent increase. Who is fond of bills conning in! I manage myself, In doing so I ask the tennant the urgency when they ring me up and demand maintance. Usually they are pretty good. Also tell them when you inspect is something is not up to scratch and ask them when they will rectify the problem (overgrown gardens minor damage) then negotiate a time to check it has been done. The check is verry important. Once they know you do this it will become less important (the check) accountability is important as is letting them know their options small claims if not happy.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 12, 2004 - 10:06 am

I think to save on tax if you are up to it move every 12 months or so, saves stamp duty on purchase. If the market is right sell if not rent it out. 12 months of slow renovations. convienent as you are on site. market wrong rent it out. trick is to keep money in an ofset account to keep investment money tax deductable and ppr with little debt little interest. a trick I use.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 12, 2004 - 9:51 am

I was not thinking of the wrapers rather those who had been wrapped. they paid a high price for the property (If it is theirs) and are paying a high rate of interest. Often working in unsecure jobs which traditional means would not give finance. These jobs may be lost unable to keep up payements the “wrap” may fall in a heap especially if those wrapped feel their hose is not worth what they are paying (A fall in the market) The property goes back to the wrapper, I would think in poor condition (annoyed feeling ridded off people rarely take good care of things) then unable to rent it out as it is the wrapper has to renovate and rent it out or sell at a reduced rate in a poor market.[V] I guess that is why they charge a preiminum to the wrapee who eventually ends up a loss in this instance.

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 11, 2004 - 10:14 am

One thing for certain is that no one knows the future. I have seen in my local area a lot of new realestate agents poping up, this leads to fewer listings in each agency. The market will correct these factors. I find that I am in a strong position to negotiate, even commission. I have just sold one of my IP and have already seen a drop in price since selling. I am now looking out for bargains as they have started to appear. What is a bargain is the question! No doubt people who are in too deep, in wraps, will take losses and create bargains. It is a win-lose but such is life. get greedy and end up losing! Now is the time to keep ones eyes open!

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 11, 2004 - 1:50 am

the market seems to dictatewhat we can do. I have just sold an investment property and am eagly awaiting the “doom” with any luck the doom will be bad enough for me to buy two properties with my proceeds. With doom and boom come opportunities take hold of these and do well. There is a time for everything!
[:p]

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 11, 2004 - 1:32 am

Sound advice, I like it a lot. Just sold previously thinking I wasted close to 6k on agents[]

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January 10, 2004 - 11:35 am

It is a elaberate game of building a relationship and having a punt. By all means you will win a few when people are in to deep. YOu may even snare some investors who have attempted to wrap. Make money after some one else takes a loss. sounds evil but seems to work. All parties consent to the deal even if it is unhappily.
Brendan

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 9, 2004 - 12:45 pm

It is all about playing with the numbers, moving cash form one place to the other. Redrawing on loans is also a good trick to get around stamp duty on the loan. sell one and buy another with the proceeds. If you have the equity

[MonkeybamMember@monkeybamJoin Date: 2004Post Count: 32]

January 9, 2004 - 12:41 pm

so you guys dont have enough property in the local area. I feel it difficult to know the marked intimately enough to purchase in different markets. I prefer the local markets and certainty…I guess I am just careful!