[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 22, 2003 - 6:38 am

Elysium,
The agent was actually selling for the principasl of agency who had bought several of these units! Yes the agent wrote up the contract, and thelawyer obviously needs to go back to law school. I am pretty sure I can sue, but who has the money to do that!

Brett, not sure I want to divulge ‘on air’ If you want to email me perhaps we can meet up, and then I’ll tell all. Perhaps also we can share some ideas. (that means I could pick your brains.)
Cheers, Trish

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 3:52 am

I have been using CUG, but not direct as it is cheaper to use an agent. I have been using Anon, ANZ also an agent but Anon seems better. Found out that RAC also does Landlords. Their deal was even better except that they wont cover fibro must be brick. A friend of mine is a property manager and she prefers St. George.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 2:52 am

Hmmm, Well I think I need a lesson on how to cut and copy. Never mind it got there. So, Simon, any light you can shine on that will be appreciated.
Bye and thanks. [?]

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 2:49 am

The lease agreement is very important with commercial properties. It’s going to have to be part of your due diligence. It should deal with stuff like who’s responsible for maintaining which parts of the property, default procedures, etc.

There are also additional risk factors with commercial property, some of which may be unique to the particular use of that property.

For example, what are the potential problems with a truck depot? Excessive loading or wear and tear of vehicle driveways and parking/loading areas? Contamination of the ground by leaking/spilled oil and fuel? These things could cost a lot of money to fix up (or “make good”, in lease-speak). Part of your due diligence will need to involve checking whether these could be a problem in the future. Also, does the lease impose any responsibility on the tenant to fix any of these problems?

You also need to work out the GST issue. For example, if you’re registered for GST, you may be able to claim the going concern exemption when you buy the property, and don’t have to pay GST on the purchase price. If you’re not registered for GST, you’ll have to pay 10% GST on the purchase price – I don’t know if you can claim that as an expense – it may go towards the cost base of the property. Also, if you’re not registered for GST and collect GST on your rent payments, that’s illegal. Tricky eh?

What it boils down to is: Know what you’re getting into.

Cheers
I’m going to try and paste Elysium’s post from 16th here so you can comment on this GST for me.

Posted – 16/09/2003 : 12:54:15 AM

New Topic Reply to Topic Jump To:

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 2:42 am

Mia culpa!
Sorry, Simon. I just got so excited at getting answers I mixed up the names. It was on the reply I recieved from my mail on the 13th of this month!
(I think) now I’ll go and check that post.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 2:34 am

Simon, what is a ‘pro package’.?

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 21, 2003 - 2:22 am

Thanks, Simon you are a gem! I now have a nice little list of ‘to do’ and now I won’t look like such a twit when I go to view this depot. Looking for an accountant that gives better advice than the one I used last time. Her answer to most questions was ‘ring the tax department, they’ll know.’ I’m not sure of what the GST is you mention, as I’ve not heard of this in relation to properties before. I shall now check it out. Will post how I get on. Thanks. []

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 20, 2003 - 5:08 am

Damn if only I had logged on earlier!! Of course it is Perth! that’s me waving at the camera from the penthouse just above the M! Well, it could be!
So Scremin, looks like a lot of teachers here! I taught in UK in ’97 on my backpacking trip. Thought I was going slowly mad! Now at a private school which has a great discipline programme, so quite like it. Except for the marking!!! Which I shall get on with as soon as I get back from buing a new back pack!! You know, to use when I get rich!!! [] Nah, next week in Bali.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 20, 2003 - 4:40 am

Thanks mortgage hunter, you always come up with the goods. Yes, it is to get + income, but I’m just not sure what I do with the tax problamos when my income goes over the 50,000 as it seems there is no tax relief on commercial, that I know of. Then again, I suppose it is not unheard of (is it?) to give the tax man some money back? Just remember I’m getting creaky and want to lose the full time job in two years time, and then maybe some part time, plus my cash flow props, so need to be helped along a little. what about my paying the savings off the principal at the end of the year. Any thoughts on that?? Thanks from the ‘older woman’.[:0)]

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 15, 2003 - 11:30 am

Thanks Picja, I am overwhelmed, teary eyed at the very thought that someone out there in the ether has replied!![]
Hmm, so I can check that out with the manager. So Let’s say I could come up with the 40% are commercials as safe as houses (Ha! finally a literal meaning to that expression!) I shall stay on line for a few minutes more with baited breath!

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 15, 2003 - 11:06 am

Er, um what’s LVR??[]

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 15, 2003 - 10:55 am

Nothing worse than no replies so here goes. what I have done with both my (negative sob sob) homes is had a ‘tenant only’ deal with the PM. a few don’t do it, but most will. the deal is you pay one weeks rent, and any advertising. They do the bond papers then hand over. My agent sent me all the tenancy application to check and then I made my choices. They of course charge the tenant too, but that is always the case. so far this has worked well for me. I also have copies of the tenancy agreement papers in case I want to rewrite a lease. I do my own property report and get the tenant to sign off on this. Then do one or two trips (one i do none as she is brilliant)to inspect. Hope this helps.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 15, 2003 - 10:43 am

Unless your father trusts you implicitly how can he put his home on the line for your benifit. You need to pay the advice fee with a contractual lawyer, as you might have to sign some sort of contract. You could go tennants in common, or joint tennants; one being if you ‘fall of the perch’ your dad get your share, the other if the above happens the other’s share goes to the dead persons next of kin. Others may know of a way.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 13, 2003 - 5:45 am

quote:

---

Patricia

Welcome to the forum, two things; first I would not finance 100% with that much equity, you would be wasting it. Use the 170k for 20% deposits on more than one property of course this is best if the properties are +cashflow.

Work out what your goals are that will help you to determine your future strategy.
Thanks for message, but I am not quite sure what you mean. How can I use equity to put down a 20% deposit?

Second, Most of the points you asked about in your post are very common questions and more detailed answers can be found by using the search function located at the lop of this page. Check it out and if you can’t get the answer you are looking for then post for more info.

Cheers
Leigh K[]

Read, learn, grow but most of all do it.

---

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

September 7, 2003 - 8:51 am

Thanks for that part of the question Simon. I don’t have a mortgage on my home, and after buying half a unit with my sister, and a small rental in the country (bad planning it is negative,) I now have about 170Ks of equity left, so I guess I could, if I can find them, buy two or three rentals on 100percent loan.Not sure how the offset would be effective on an interest only loan? I’m pretty hopeless with money, just know I have little or no super and want to have at least 35-40ks when I give up work.[]cheers

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

March 15, 2003 - 5:59 am

Thanks for taking the time to answer this. I have now been to a conveyance lawyer on this matter. My deposit was sent back, and no discussions would be enterered into. It would seem that someone is trying to Gazump (?) me which is illegal over here. I also had mail telling me as a new owner I could put 150 into marketing the property for rental. Then of course the next day back came my deposit. We now have a caveate on the property. I shall keep an update on here.
Trish

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

March 9, 2003 - 6:20 am

Thanks for taking the time to answer that, Steve.
I am still a little tempted to hang on to it. One because I will be managing the rent aspect, and two because I have full equity in my home, three I do have a little capital to help if things go wrong, four as each time a new canlal lot gets built the prices start at around ten to twenty more than the last project. This development is one of the best as it is about three hundred metres to the estuary, and town. Then last night some development types were saying that because of the capital gains here (highest in WA) the property will definately be around the 400.000 mark within a year or less. You are right of course, my greed glands are trying to override my sensible ones, but as I am 57, with no super I don’t think I have time to let positive gear (or positive cash flow -damned if I can make out the difference) support me in the old age. (oh, well much drumming of fingers here.) thanks, Trish

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

March 5, 2003 - 2:08 pm

Hi, Brett,
Yes I saw the story and read the paper. I managed to stop myself from opening my veins. I have put a post up regarding the Perth investors, and hope to rectify my problems, if it is not too late. I listened to too many people talking about negative gearing, when I was in the perfect postion for postive. Never mind, hope to fix all that. What is DEPro, or should I say are these companies everywhere.
trish.

[PatriciaMember@patriciaJoin Date: 2003Post Count: 20]

March 5, 2003 - 1:50 pm

Well you all make me feel ancient! I am in my fifties, and am just learning all this. I live in Mandurah and have watched a few hundred possible homes go to people with your smarts. I have just made a bad deal, but would like to join in with all your information sharing. I am quite happy to host a meeting at my home here in Mandurah. You could then berate me for my stupidity. Plus teach me about the tax side of positive gearing. there might be hope for me yet.
Trish. [email protected][]