Forum Replies Created
After checking availability of the project I had in mind ther is only one 1 Bed + Study left available for 386k
So probably stick with the project you are looking at.
My contact details are visable in my profile if you would like to get in touch with me.All the best
I can put you in touch with a Melbourne office that holds information seminars at no charge.
Hi,
I would be happy to give intersted South East Queensland investors advice.
Hi MM
This is a great discussion.
I have to tell you all that I an a registered real estate sales person in Queensland. The laws in this state where changed in 2000 and it is not possible for agaents or developers to sell property at inflated prices here. Independant valuations determine the price of the property, not a money hungry seller.I also talk to prople about wealth creation through property investment, however I don't sell in bulk.
I have recently come in contact with a company here in Brisbane that does approach developers on behave of it's clients in order to bulk pruchase. http://www.jdlstrategies.com.au/
Maybe they can help you.
I hope you find this information useful and please get professional advice.
Hi Nix
I am going to make the assumption that the off the plan proerty you intend to buy is in a major city.
Buying off the plan in this situation can mean that you will benefit from the capital growth the property will see between now and when it is completed. The price you are buying it for is at today's market value, but you do not need to pay the settlement amount until the settlement date.
To understand how capital growth works you need to realise that there exists a Property Cycle. The value of properties in major capital cities in past years since 1960 has increase dramaticlly every 7 – 10 years. The last property boom that occured wsa in 2004 at which time properties in major cities around Australia say the greatest number of sales and therefore capital growth. At present we are just coming out of the mid point in the current cycle which means that many properties will see good growth until 2010/11. Now is the perfect time to buy.
In many cases property in major cities around Australian has doubled in value every 7 years.A deposit bond is not negotiable. Lending institutions require that you have 3 times the bond amount in available funds before they will issue your deposit bond.
The tax benefits you gain from a new investment, ie Building and fitting depreciation, plus the expenses involed in the property, ie. property management fees, body corporate, rates etc are all tax deductions. An Accountant can help you to fill out and submit a Tax Variation Form that allows you to pay a reduced rate from your weekly income, this provides you with increased cash flow to help service your loan.
I am sorry I have not read Steve's newsletter so I can't really comment on that.
I hope this information is useful and please do get professional advice.
My office is in Brisbane
Hello AdamTR,
I think the advice you are hoping for is something like this.
I suspect that the property you have in mind is not new and has been built a few years ago. I say this becuase a property near the sea in WA is most likely going to cost more than 370k if it is new.
You may be abe to get a Free Suburb Profile which will show you the growth for each year since 2003 here http://www.reports.rpdata.com.au/cgi-bin/vgmsg/RP_Reports/subprofile/rprephome.p?type=1
Whenever considering the possible growth of a property you should understand that there exists a Property Cycle.
The Property Cycle that has occured in past years since 1960 in major Australian cities has seen the value of property increase substantially every 7 – 10 years. In some cases the value of property in major metro areas has doubled every seven years.
The last boom that occured was in 2004, so an expected boom is approaching in 2010/11. At present the market is just coming out of the mid point in the cycle that sees the lowest number of sales and therefore growth. I hope you understand.If the property in new you can claim Depreciation of the building and depreciation of the fittings (Curtains, carpets, air con etc) as tax deductions from the income of all parties applying for the loan.
If it is not new than you can only claim the expenses for the property such as property management fees, repairs etc.
An Accountant can help you to fill out and submit a Tax Variation Form which will allow you to pay a reduced rate of tax from your weekly income, this will improve your cashflow and help you to service the loan.
I hope you find this information Usefull but please do get professional advice.
My office is in Brisbane
Hi Cyclist
Here is an investor definition for you.
http://www.investorwords.com/5651/marginal.html
You don't qualify, it's doing to well for you hehe.
Hi James007
Can you give us an idea of where you want to build.
I have access to a few builders that can do a start to finish job for you in South East Queensland.
Happy to help you out if thats where you are.
Hmmm, Hi
Some really good suggestions from people so far.
But I have another for you.
Firstly, a loan for an investment property is different to your home loan becuase lending institutions allow you to have a loan where you only make repayments for the interest charged each month. Where as your home loan, I'm sure you understand, you are required to make princilpe AND interest repayments each month.
Also, there are tax advantages to you and your partner from an investment property, most expenses are tax deductable. An Accountant can help you to fill out and submitt a Tax Variation Form which allows you to pay a reduced rate of tax from your weekly income which effectively improves your cashflow and helps you service the loan.In terms of financing you need to get professional advice of course but I do have an idea for you. I have no idea why the business they are trying to operate is failing, maybe they just need a little more capital for marketing. During the process of arranging finance for your new investment property you can talk to your broker about a Structure Loan Facility. This could provide you with a Line of Credit or Redraw facility which allows you to draw funds against the available Equity in your home and the investment property (provided the LVR is less than 100%). This redraw facility could help support the business until they get out of trouble.
I hope you find this information useful but please do get professional advice.
I appologise for any typo's
My office is in Brisbane
Hi.
Yes I agree, providing furniture in your investment apartment can cause you to incur additional expenses at time. There are a couple of upsides to having a fully furnished apartment – obviously or in- obviously you are able to claim the depreciation expense as a tax deduction. Furniture can be depreciated over 5 years, after which it may effectively be worthless and may also require replacement at times. It is essential you have a Depreciation Schedule drawn up usually by a Quanity Surveyor.
An account can then help you to fill out and submit a Tax Variation Form which essentially allows to to pay a reduced rate of tax from you regulary income each week, and this then has the effect of increasing your cash flow to help service you loan.
It is in your best interests to get professional advice about these things from an Accountant or Financial Planner.Having a fully furnished apartment, especially in a tourist location like Cairns, can provide a more attractive and marketable rental to your potential clients.
Regarding being able to live in your investment – There are two options to consider.
First, presenting your investment apartment to the market as Short Term Accomodation can provide you with a very fluid return.
There are Property Management companies around that specialise in this type of accomodation and it can be presented to the market at a weekly or even a nightly rate that enables you to effectively receive a higher rental return.
This can have the effect of transforming your investment property into a positively geared property that actually generates income for you.
If you choose this options and do infact have the property as short term accomodation, you can simply make a booking with the property management and enjoy your stay.Second, whenever you decide to change one of your investment properties into your own home ie. your principle place of residence, it may cause you to be suseptable to the following situation:- Normally the loan you acquire to buy your own home requires that the lender place a mortage on the property. This is different for investments as the mortgate only exists on your own home. If your move from your home to another premises and turn your home into an investment rental property then it becomes subject to Capital Gains Tax for the entire time you retain it until it is sold at some time in the future.
You are given a period of grace of (I think) 60 days from the date you vacate the property (your own home) during which the sale is not subject to capital gains tax. The advice I have received from an Accountant for one of my clients regards this is that they should sell the property immediately upon vacating it in order to pay the least amount of tax.I hope you find this information useful and informative, but please be sure to get professional advice.
I appologize for any typo's
I can direct you to a current Apartment Project in Cairns if you wish
My office is located in Brisbane.
