The risk being though is that we don't see a similar correction in rents as we have seen with property prices. This may be driven by the lack of affordability for the rents asked pushing renters into the discounted properties and leading to a rebalancing of the market.It is a double edged sword having seen a correction in property values (hence…[Read more]

The only way that I understand that a property can be cashflow pos & neg geared simultaneously is as noted above – after tax taking into account depreciation allowances.The pitfalls being that the benefits of accelarated depreciation drop off rapidly with the property becoming negatively geared and that when you come to sell you need to add back…[Read more]

It is probably best taken up with the executive commitee – they are responsible (in conjunction with the strata manager) for expenditure, insurance etc on the property.If the area was working again, would it really add any value to the complex or only increase the body corporate fees for cleaning?

blogs wrote:
 Thats my point-sucess over the last year has been more a result of circumstance than any real skill. A fantastic result no doubt, and very much deserved by the sounds of it, but as for agents-well achieve those type of results over the next three years then I'll be impressed…

There are good opportunities out there and, I…[Read more]

There was a recent tax ruling on this issue – you will need to see the ATO website to find it. The reason being is that many developers like Meriton & Australand were having to rent their properties before finding buyers.

Banks have tightened up on 100% loans – how are you going to sell it to them?

Wayne – remember that structural additions does include any wall (as this is a defined term).

That is precisely why you do not take tax into account – everyone's situation is different.

Playa, isn't that a risky strategy? ie if the purchaser decides that they don't want to proceed aren't you stuck with the property? or what is in place to ensure you do no land with properties that you can't finance?

Playa, in Unzud (sorry I couldn't resist), do you have to purchase on the investor's behalf and then assign the contract or are you engaged & paid a success fee by your investors?

You probably won't find them at borders – try the University Co-op Bookshop at Uni or TAFE colleges. (Possibly a library which specialises in property eg Stanton Library)

In NSW you need to hold a real estate licence (restricted).

A couple of useful texts – Real Estate Planning & Management – Andrew Kelty ISBN 1 876 602 18XProperty Valuation & Investment Analysis: A Cashflow Approach – Jon Robinson (Law Book Company)A little bit of light reading in the latter however the models put forward are practical applications

Alluding to what I was saying earlier, all of my information excludes the effect of tax, depreciation allowances etc. The models that I use include DCF & IRR which, whether used for projects, investments or other transactions, produces profitability data. How you then use it is up to yourself.Tax is generally excluded as projects or investments…[Read more]

Search for another JV partner (whether it is finance only or equity) – offer an attractive 2nd mortgage rate to them.

From a true investment perspective, tax does not enter into the discussion as each investor has their affairs structured differently eg company vs personal vs trust.

It should be none too different from any other mortgage other than for your own protection note that the existing improvements are to be demolished hence you are buying the property at little more than land value. The vendor/financier may be a little concerned if the land on its own is going be worth less than the amount of mortgage (security)…[Read more]

Nothing too different in this from a standard vendor finance arrangement. Remember that you become a mortgagee and the vendor/financer holds the deeds until all debt has been repaid.

mill s wrote:
Does anyone think Bris is at the top of the cycle or is still going up?

Top of the cycle? Where have you been for the last 18 months? There is a price correction going on throughout the rest of the world. Has Brisbane missed out or has daylight saving got something to do with it? 

Shales, what you got the agent to do was go 'conjunctional' with the other agent and split the commission ie he was helping out a mate, not working exclusively for the buyer.