Unfortunately all too many talk the talk of diversification, spreading risks etc however cannot see past offering 'products' from their baskets eg managed funds, LPTs and exposure to the stockmarket including a mix of local/OS stocks, even conservative funds which are supposedly low risk but have still taken a hammering over the past few…[Read more]

All depends upon how much the property is worth & what they are throwing into the deal eg marketing, exclusivity etc.

JM 'worth' and 'cost' are two different issues – worth equates to the present value of an improvement whereas cost is a known quantity derived from expenditure (actual or estimated). Quite rightly, you point out that it is possible to overcapitalise on a development/improvement – you will need to be aware of the local market and its ability to pay…[Read more]

Some issues for you to consider: is the conversion of the warehouse into single dwelling or numerous dwellings, zoning (what is permitted – may allow mixed use, commercial only etc), consideration of the loss of 'existing use rights', what is the 'highest and best use', amenity of the area (is it the remnant of an industrial area which is now…[Read more]

Dang, another licence fee! It'll be a while before I get 6 a year though.

Terry, would that be the case? There is generally no requirement for being buyers agent (I believe this is an unregulated market still but will/may have changed) however there is nothing preventing you selling 'your' property privately – all you need is to meet the requirements to transact the property or to assign the option.

There are no problems with turning the first property into an IP, the current loan would most likely be tax deductible ($200k). As you have not specified whether you have paid IO or PI on the first loan, I will assume that it was PI and you have built up equity in this property through loan repayments and capital growth. If you borrowed against…[Read more]

An option is a contract to puchase something (property or shares) for an agreed value at some time in the future with the person taking out the option paying the owner an 'option fee'. Eg a developer will pay an option fee to the property owners subject to recieving development approval or rezoning  within 6 months. The developer will outlay say 2…[Read more]

Getting back to your original question, does the occupancy time run to contract date of the sale (like CGT) or to the setttlement date?Even with the standard 6 week settlement period, the either party can delay and the other party will have to serve a Notice to complete.

Negotiate a price, put an option on it (with assignable rights) then seek a buyer. That way, you will pay a small premium (which will form part of the purchase price or be surrendered), have an exclusive dealing period and be able to sell what you have yet to buy at a decent profit. Even if you have a $10k option and you make $20k on the deal you…[Read more]

Your place sounds like it might be asbestos sheet – you may need a licenced contractor to remove the material (it can't just go to the tip) – the rules for who can undertake removal have recently changed in some states.Hardies products have been around since Noah was a lad. Long lasting, will need painting. The type and style you go for is…[Read more]

Get some evidence that it is your PPOR – have the bills go there ie gas, electricity & water (all in your name), dept of motor vehicles – change address on licence & regos (you can change it as many times as you like). but you can only claim one PPOR at any time.

And home buyers complain about housing affordability! I'd go in and see the Council town planners personally just to back up the costs in my own mind. You can't escape the council contributions however the cost to provide all of the infrastructure would be cheaper once it is tendered out to sub-contractors – the tps have only given you an e…[Read more]

CGT applies to the capital gain ie difference between purchase cost & sales price less any adjustments for depreciation claimed

Saw these stats this morning http://www.reiq.com.au/MediaReleases/view_media.asp?media_id=422

If possible, try to get a quote before you move ahead with a purchase so that you know how much it will set you back and how long it will take. Once the contracts are signed you can indicate when you want the job done (after transfer of property) to minimise your downtime.

No harm in asking for a 40% discount – but realistically who would pay $450k for a one bedder on a decontaminated tip near a medium security housing estate and with poor transport links? (ferry is on the other side of the bay isn't it and it takes 30-50 minutes to circular quay, maybe 20 by car on a really good day outside of peak hours).A drop…[Read more]

ffreedom wrote:
What are the negatives/positives of buying a house to renovate & re-sell in a very short turn-around time?  We have an idea to renovate and resell in order to use the profit to purchase the next property, and so on and so on.  We wouldn't be living in the property at any stage.  Whats the story with capital gains? And does thi…[Read more]

If you can have super in a number of public offer funds there should be no reason or obstacle stopping you from being a director or more than one complying SMSF – probably worth more investigation.

How does the trust distribute profits to non-existent beneficiaries if you are not a trustee and don't have kids? It may not be a problem if the trust does not make a profit but it may if you are paying rent to the trust.