[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

July 17, 2014 - 9:55 am

Hi Theresa
I tried to do similar in NZ in 2000. I was putting up the land, the builder was building the house and we were to sell and split the profits. Perfect … as long as all the ducks are in a row solicitors, agreeements etc before you do ANYTHING. I got caught as I confirmed the extension of the land to proceed (I already had a deposit on the land to hold it before I met him), then while we were doing the agreement phase the builder pulled out and I heard later went bust. At the time he had a good business going so you can never tell. I couldn’t raise the $ at the time for the build alone so ended up selling the land and losing money.
Moral of my story is…(which I have learnt as a costly lesson)..MAKE SURE all is in place BEFORE you start, and you are well covered in an event of unforeseen circumstances. I have matured since this exercise and learnt lessons :) Is like any other business deal really. Due Diligence so important as mentioned by others here.
Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 9, 2008 - 9:02 am

Thanks again. Your statement Jon, whatever one looks at, of…
maximise the return on the investors dollar outlay
should be what I should look at when buying the right ball in the crystall ball shop, as well as cash flow required in the interim. All else is consideration, but keeping the plan and strategy in mind uppermost.

Cheers

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 8, 2008 - 11:49 am

Thanks. Just have to figure out which definition of 'high demand  location"  is the right calculation for a 'yes' on that regard. There are many factors to consider I know, and most of all wish someone would tell me where to buy the RIGHT crystal ball! lol

Cheers!

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 8, 2008 - 11:44 am

HI again

Forgot one other comment…on the contract..what does it say about the transfer of title being necessary for settlement? Check the fine print..then maybe a new contract signed or altered as worst scenario PRIOR to handing over the dollars??

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 8, 2008 - 11:42 am

Hi
Not sure which state you are in but maybe contact another solicitor for a second opinion? or the REIQ or similar in your state for advice perhaps?

If it goes bad..who is at loss..you or the seller..who would pay insurances if anything happened to the property ie WHEN does it become yours..on title, or date of contract? I have worked in Real estate (administration) in qld and there was NO WAY we would ever give out keys to new owners until we had confirmation from BOTH solicitors that ownership had changed hands…ie..the settlement had happened AFTER all monies had been paid over, then the title handed over also. A fine line I would say..but if were me..I would want to know 100% that it was MY property when I paid all my money over. Hope that helps. SOrry cant recall finer details but those contacts would be sure to know the bottom line surely. If the bank say is ok..maybe get them to sign a stat dec perhaps. I am also a JP and you would have a legal binding at least if went bad. Also would be a sign of good faith..but if they wouldnt do that…ask yourself why not?
Good luck!

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 8, 2008 - 11:33 am

Thanks all for your posts. All very interesting and worthwhile reasons to study more about. Great food for thought for me. MOre questions another day when digest a bit more info and study a bit more, meantime watching everyone elses posts/questions/answers.
Cheers!

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 7, 2008 - 5:17 am

Hi all…very interesting comments above. And great inside knowledge too! Thanks!  Im also just starting considering mining towns as a potential $ maker with property so thanks.
A thought tho alongside all the property and investment info and considerations…what considerations/issues might be expected to be thought aboud due to the council amalgamations happening in QLD? 3 councils of those areas (Nebo, Belyando and Broadsound) are amalgamating into one..Isaac. Other councils amalgamating also in other areas. Not sure yet what effect this will have on current rules etc as my work is taking me into these fields very shortly and hope to know more first hand later but maybe keep an eye on this website for info..especially zoning and other developments etc that may change at first thought off my head?
http://www.localgovernment.qld.gov.au/?id=4461

Cheers

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 7, 2008 - 4:51 am

HI

Not an expert by any means as also starting out myself altho know lots about tax and other areas…but no one above has mentioned the benefit if you dont want to use all cash and have a negative effect on the property dont forget about the Witholding Variance form the ATO makes available to utilise the refund in tax expected at the end of the year due to neg gear situation(depreciation costs etc) to use weekly or however often you get paid. You get to use the money when you need it or want it through the year instead of waiting for that big fat refund in one hit EOY.

Cheers

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 7, 2008 - 4:41 am

HI there….

and a wee thought for you…I have only been on this site a few weeks altho did a few years ago..but I am VERY impressed with the wealth of knowledge from most in here and very open and direct comments and advice..

maybe we should all get OUR questions together..invite (no..CHARGE EXORBITANT PRICES FOR THEIR ATTENDANCE!) these 'experts to come..and see who can offer the best deals/answers/variations/reasons etc according to OUR needs! ? Interesting thought

For me for now..will stick to my accountant that I know and trust, others who have been there and done it (made or lost money) and especially this website which is GREAT!..and…free!!

Cheers all and many thanks to the person/s who invented this site!

Sandy

Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

September 7, 2008 - 4:28 am

HI all who have responded. Much appreciated and sorry no reply till now.
In answer though (and yes..have done a bit more research about it off the net and you all have good points Ive been asked outside this forum..)

Purchase price including the 100k..no. would be MV then receive that after purchase or at the same time but separate contract.
INcome lost in first year..yes..thanks…realise it now and altho 100k looks GREAT!..(and of course..I started thinking hard about what I could invest it in while it was waiting to be used for rent!) but alas..50% approx lost in first yr. That would be great if I wanted to show the loss but my tax problem not THAT big yet! Maybe one day!
If she wanted to move before 6 years up? well…the contract would cover that for sure! And had I gone on with the deal (which Im not by the way) then she would have lost her money in my book!! And i would have had the balance of the time paid up front..no refund sorry!! 
Dropping purch price by 100k yes..affects cap gains when sell. Thanks. I thought of the positives on that one too as is my first investment property (altho have owned own homes before 5 times) but dont want to put much in that I dont have to.

So thanks all for your help and great advice!  I havent gone back to her (and maybe would of if could have thought of a better way around it) because it turns out the body corp on the unit is about 165 pw and other costs not making it an overall outstanding investment on its own without considering any benefits on the rent up front..so couldnt think of a better option more my way than hers so are back to drawing board looking for a better deal somewhere else. Was worth considering tho..an interesting one..thanks all again very much for your efforts tho for me.WOuld have been a lovely property to have though..but ..moving right along to 'next!!

Cheers

Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 12:25 pm

Thanks again. re my enquiry above if you would be able to assist otherwise maybe I should email you directly as you are in Brisbane and so am I. But if you dont work with 100% loans anyone you could point me to that is decent?
Cheers

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 11:59 am

Forgot to add..when I looked into investing about 2 years ago I also got Rams as a poss but will need to check if they are still offering 100%.. Just a note fyi to add to my picture

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 11:56 am

Thanks Richard. Any ideas who we should look at initially? She has done some basic searching and came up with Aussie Home loans as a potential according to the mortgage broker (her contact as overview initial meeting) but I have no other facts on this tonight before I chat with her again tomorrow. Is this something you work with your clients if the 'picky bits' work or do you like to stay away from these loans? ie maybe I should come to you? I see you are in Brissy..so am I.

Cheers
Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 11:00 am

Hi
The biggest one I think is realestate.com.au gives the ability to search on any area etc.
Domain.com.au another
Theres a couple of the top of my head. Hope that helps.
Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 10:42 am

Thanks Dukster for all links and info. Yes am arranging to see my acct this week as first option but want to make sure we have covered most options and thoughts we should have. She has had investment property before but with a boyfriend (now sold tho- the property not the bf lol) and was in NZ but had a type of prenup with him so is aware of the necessity etc. Will look at all your links much appreciated.
Sandy

[sandy.vgParticipant@sandy.vgJoin Date: 2008Post Count: 19]

August 31, 2008 - 10:34 am

Hi Richard
We want to go in on 100% so no deposit from either of us if possible. Not sure about Tenants in Common rules versus investor. Am new to this although I have good background in tax and investing etc workwise but just not personally yet as an investor, and was a while ago so rusty on latest rules etc. Neither of us will live in it (at least not for a long time if any) Will check out the rules and advantages for both options and see how I go from your site you suggested. I need a tax deduction (earning high salary) but we want to try and find something positively geared also (after tax deds considered) if that makes sense.
Thanks for your reply though Richard.
Sandy