Extremely risky.You essentially will have no recourse when things go wrong. One of my friends has just lost $120,000 by going into one of these schemes.You will probably find that the figures provided are biased. Property values are not as high as they say. You will have no security. They may offer a caveat over the property, but this is useless.…[Read more]

Hi JasonSorry for some bad news. Unless you have a deposit I think you are going to find it very hard to get an investment property right now as you don't have any equity. Just read everything you can while trying to increase the value and build up equity.

DYou had better consult an accountant as I am not sure.My understanding is when you sub-divide land you are creating new land. The would probably be GST charged on this if you were to sell it. But I recently purchased some new land, just sub-divided and there was no GST charged. I am not sure why???I also think if you are transferring the land…[Read more]

lordoftheundead wrote:
thanks terry big help.i dont suppose you have any experience with dealing with foreign investors? my partner is an aussie citizen but i am still classed as a temp resident and so am bound by firb criteria.as you probably already know this means i cannot buy 2nd hand property for investment purposes, it also means i cannot…[Read more]

Here is the correct details:Black v Garnock (2007) HCAhttp://www.hcourt.gov.au/registry/matters/JanFeb07/Black-Garnock.pdf

Hi FrostyAgents can't give legal advice, so do not get them to add clauses. Check with your solicitor.Settlements do fall over sometimes. Various unexpected things can and do happen such as major accidents etc where you can't think about continuing. Vendor may also just refuse to settle and then you may have to take legal action which could take…[Read more]

DarrenDepends who owns them.Assuming one entity (trust/company/all of you) owns the block.GSTConstruction and Land costs = $800,000 . GST paid = $80,000 approx (maybe no GST on land)Selling costs = $1,200,000 GST charged = $120,000Net GST shortfall = $40,000CGTSale price = $1,200,000Cost = $800,000Profit = $400,000From this you can deduct buying…[Read more]

I think she could. You are essentially onlending your share of the loan to her to buy the property. But check with an accountant.

Scamp,Average wage across Australia is now $1147 pwhttp://www.smh.com.au/news/national/average-weekly-wage-now-1147/2008/11/13/1226318805478.htmlAverage wage in Sydney is probably higher.

I think you cannot claim anything as you are not an owner of the property. Only your wife can claim.  Best to check with your accountant or download the rental properties booklet on the ato site.

Hi Petea) Directors will always be required to sign guarantees. Having one cuts down on the risk if something goes wrong and cuts your exposure to the banks. Beware, some banks may ask guarantees from shareholders too. So I would have one director only. But bear in mind if the director's income is low you may need the help of the spouse to…[Read more]

I read one big mine in Zeehan Tas has just closed down – last few weeks.

I think you have good chances of buying properties. Whether they will increase in the near future is a different matter.One problem you may have is how do you qualify for a loan to release the equity in the first place as you stated you are on a pension.

I myself would prefer a house – especially one with potential. It is hard to add another room to a unit!Also with the valuation – who ordered it and when? I would only rely on a bank valuation. Do you realise that you can only borrow on the price or valuation what ever is lower?

It is rather unusual to pay $50k more than asking price. Especially in this market where there are supposed to be less buyers out there. Will the valuation come in that high? At the very least I would not go ahead until the bank has done their valuation. So make sure you have a finance clause in there. I would also do a lot more research.…[Read more]

I think the problem arose because your term deposit wasn't just a term deposit, but security for keeping your loan open. You wouldn't be able to withdraw from this like you normally would and it wouldn't show up normally on your internet banking etc.

yes, normal rental principles apply.

BoshyWhat happened? Where was your money and why had it disappeared for so long?

Why not do both. Get constructing and buy some investments as well. Once you have finished construction you can sell and do again or mortgage the house and release some cash for the next ones- bear in mind it is getting harder to release cash these days.

life. But i thought I would add those as the st g one reverts to the normal discount after a year – you get a bonus during the first year. The BW one reverts to a higher rate, but 3 years of low rate and no exit fee means cheap to move.