[OPMMember@opmJoin Date: 2003Post Count: 110]

March 10, 2003 - 7:17 pm

Hi BorisS,
I’d check with your accountant, but i’m sure that it’s ok to depreciate new carpet, fittings etc which is put in before the tenant moves in.
And i’m also sure that the ATO will consider this a capital cost that can be deducted from the selling price for CGT.
Maybe somene can correct me on this?
Either way, i’d do it before the tenant moves in to get a better rental return initially. I don’t think the tenant would be happy if you did this after they moved in and then you tried to jack up the rent on them (even though they’d be on a lease).

~ better to die on your feet than to live on your knees ~

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 10, 2003 - 7:09 pm

Hi Rick_H,
Generally speaking, if you are looking for a long term investment, i’d go for a buy and hold approach in a good location (usual factors such as close to public transport, schools, shops etc).
Depending on your age, units usually provide a higher yield (which is what you want if you’re close to retirement) than houses.
But houses usually provide better capital gains (based on the land content) but also need more maintenance.
Older style properties within 5-10km of the CBD show the best growth over the longer term.

Good luck and all the best with it.

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 10, 2003 - 6:53 pm

I’ve only recently decided that it’s time i put some roots down and get some direction happening in my life as i’m getting old now and need to think about the future [xx(]

I’d love to be able to retire at 45-50 and that’s why i’ve recently discovered these property investing forums to get some advice…so i can indulge in my love of travelling. I can live really cheaply and don’t need a fancy PPOR or all the fancy toys (but a Ducati would be nice). When i travel, i do it with a backpack, stay in dorms/hostels and eat street food.

I guess the main thing i want to know using “creative finance”, is how i can avoid selling the unit (i’d prefer to hold onto it and i can abort the auction), and also buy my PPOR with little/no debt on it. Of course i don’t want to pay interest on my PPOR which i cannot deduct.
I guess that would mean using my equity as extra security for the PPOR and take out a bigger loan – but… would i be able to get finance considering i don’t have a job at the moment?

Also are there any thoughts on what’s the best way to retire on property investments – i.e through rental income or capital growth?

I’ve always thought that rental income would be the way to go, but that would mean having little debt and/or cashflow +ive properties, plus paying tax. I figure that to get to this point, i’ll need to do some renovations and sells to pay off some debt, or accumulate more properties that are cashflow +ive…but then again i have that tax thingy (PAYE?)
I guess using capital growth could be done be either selling a property when i need some cash and living off the proceeds (paying CGT…yuk [!]), or drawing on a LOC to live off.

Not sure which is the best way to go here…any suggestions on what is the best way to do it? Has anyone come to any conclusions?

Muchas gracias,
Quentin

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 9, 2003 - 5:51 pm

Hi Greg, my e-mail is [email protected]

Contact me if you’d like to talk about investing together.

Cheers,
Quentin

~ better to die on your feet than to live on your knees ~

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 8, 2003 - 7:01 pm

Hi Greg, I’d continue with the repayments and wait until you get back home so you can start having a good look at other properties to invest in.

You must have a lot of equity in your property by now and if you keep the repayments up, you’ll have a +ive cashflow property as well as free title to it which you can use as security for your next property.

I’ll be on the Gold Coast by mid April if you’d like to talk about doing some investing together.
If interested, send me an e-mail at [email protected]

Ciao,
Quentin

~ better to die on your feet than to live on your knees ~

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 8, 2003 - 6:38 pm

I agree Steve. I’ve always been passionate about property and get a kick out of renovating properties which i find very satisfying.
I also love architecture and often see run down properties that i’d like to give a spit and polish to.

~ better to die on your feet than to live on your knees ~

[OPMMember@opmJoin Date: 2003Post Count: 110]

March 8, 2003 - 6:31 pm

Hi again, an update:
After much uhmming and ahhing (are they words?), i’ve signed up with an agent and will be auctioning the unit on March 29 at 11am on site at 15/12 Tivoli Rd, Sth Yarra. If anyone is interested in a well located, solid investment that will show excellent growth, come along and make a bid!
Am i allowed to put down the details here? I asked earlier but had no response, so here i go:
Invest or Occupy: in this top floor North facing 1 bedroom apartment which has been freshly painted and recently carpeted. Features a sun drenched leafy outlook, direct access to Rockley Gardens and the South Yarra library, built-in-robes, laundry facilities and is in a sought after location in leafy Tivoli Rd. Literally minutes away from Toorak Road and Chapel Street – enjoy the cafes, restaurants, bars and shopping in this blue-chip location.

Sounds good ey?

It was a very hard decision for me to make because of the CGT and stamp duty that i’ll have to pay, but i figure that it’s the only way i can buy my own place to live in without taking out a loan (which i probably wouldn’t get without a job). As i mentioned, i haven’t worked for the last year so it may also be a good time to realise those capital gains even though i believe in the strategy that you should NEVER sell.
I like the idea of buying something that can have some value added, revalue it and then borrow again for the next IP.
I also hope to have my cake and eat it too by buying my residence on the Gold Coast, add value to it and sell it after 1 year to avoid CGT…i think that’s possible? So in effect, I’m back where i was in terms of property held though 1 will now be my PPOR with no/little debt.

Hi Greg, thanks for the reply. You sound just like the person i’d like to have a chat with and it would great to hook up and see if there’s anything we can do together.
I hope to be back on the GC by mid April, so please get in touch if you’re interested.
Can we put e-mail addresses on this forum?

~ better to die on your feet than to live on your knees ~

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March 7, 2003 - 3:56 am

Thank you all for your advice.
Matthew Kelly: I am in the process of getting in touch with Stuart O’Neill at his website to see what services he can offer me.

Steve McKnight: Thanks for your insights – they are appreciated. I should probably explain that i am very reluctant to sell a property down here to finance my PPOR in QLD because of the costs involved as well as the fact that the property i intend to sell is a solid investment and will definitely show future growth. (Is it ok to mention the property address, description and auction date here?)
However as i mentioned, i am presently unemployed so will be unable to get a home loan. My only option i can see is to sell something in Melbourne to finance my PPOR in QLD.
You also make the point of not confusing a lifestyle decision with an investment decision. I’m going to try and have my cake and eat it too by purchasing my PPOR with the intention of adding value to it and reselling it after 12 months to avoid CGT. I understand that it is possible to do this with your PPOR and not be considered a property developer by the ATO as long as you hold it for at least 12 months.
That’s why i also may rent and use the proceedsfrom the property sale to start me off with my first renovation.

Bianca: I was told that there will be new new zoning laws introduced on the Gold Coast in April which wll effectively make it easier for developers. Chevron Island (amongst other areas) will have height restrictions lifted. I was told by Council that the area my block of flats is in, will also be reviewed and i can go as high as 7-10 levels depending on the size of the footprint.

I’ve been pretty lucky with my property investments (nil vacancies, good tenants and good capital growth) but have also had some shocking losses in the sharemarket which i now avoid.
My property manager is also pretty slack and needs reminding about his job description at times.
I have been taking a slow approach to my investments unlike some stories where i hear of peple buying 5 IP’s in a year!
That sounds unbelievable to me. I bought my first at the age of 19 in 1990 as my PPOR and renovated it while i lived here. I then got the other 3 over the last 10 years while i rented elsewhere.
I probably could have accelerated this process but it wasn’t a priority for me at the time.
However, i’m now at the stage where i’d like to “crank” it up a notch and be more active. As mentioned, i’m also unemployed so i have a lot of spare time on my hands. I’m also pretty handy and have done most of my renovations.

Anyway, if i can offer any advice about my experiences in Melbourne or the Gold Coast property market to anyone, i’d be happy to pass it on.

Adios mi amigos,
Quentin

~ better to die on your feet than to live on your knees ~

[OPMMember@opmJoin Date: 2003Post Count: 110]

February 28, 2003 - 4:04 pm

Hi there, can you please give some more details about this propery that you think is a good deal?