[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 6, 2003 - 5:35 am

Youngie, the ultimate decision is yours. You either swim or sink with it.

Comments presented come from people who probably have seen a boom & a bust in both property & shares. I’ve been through the cycle & I agree with what they have said.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 6, 2003 - 3:18 am

My apologies Peter. I misread your question on the railway station.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 5, 2003 - 4:26 am

The railline has gone past Edgewater. There is a railway station at Edgewater.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 5, 2003 - 1:49 am

I agree with David on Joondalup & his comments on Clarkson. Two areas not mentioned are Edgewater & Heathridge. Both are just next to Edith Cowan as well.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 3, 2003 - 7:14 am

The answer is NO.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 3, 2003 - 7:13 am

I would suggest that if you value your friendship with this old couple that you think very carefully about borrowing money from them & paying them a higher interests.

What if your investments went horribly wrong? Where does that put the old couple? What if they then loose the roof over their heads?

Can you live with that even though your intentions were good?

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 3, 2003 - 4:13 am

As your deposit is coming from the sale of units, I hope you have taken your tax out of your equation. Otherwise, you may have to go back to the drawing board.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 2, 2003 - 2:39 am

Good advice, David. May not be a very wise move to invest in those area.

I suggest if you want +ve geared properties in Perth, look at commercial properties. Otherwise, look out of town.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

June 2, 2003 - 1:44 am

Basically, if you buy a commercial property with an operating tenant, no GST is payable. However, if the property is partially let, you may have to pay GST. And if the CP has no tenant, GST is applicable.

Also with CP, you have to register for ABN & GST as your rent includes GST & that must be remited to the ATO.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 30, 2003 - 1:51 am

With regards to Curtin Uni, look at Wilson and Karawara as well.

For Edith Cowan, consider Joondalup. In fact, I believe Edith Cowan will eventually shift its entire Churchlands campus to Joondalup. You can still get a good buy in Joondalup.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 30, 2003 - 1:40 am

Not just expensive. You’re being ripped off. You can basically get all your answers for free on this discussion board.

The depth of experience from contributors is quite astounding. Best of all, all are genuine in trying to help out where possible.

So Andrew, don’t be afraid to ask a question, regardless of how basic or stupid it may sound.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 28, 2003 - 5:24 am

Suggest you have a look at Blueboy’s post on page 9. You might find your asnswer there.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 28, 2003 - 5:12 am

The bank would like a copy of the rental agreement. They also prefer the rent received to be directly debited into your bank account. However, I would think receipts should suffice.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 28, 2003 - 3:58 am

Yes, there are both legal & tax issues involved.

Legal issues include third party injuries & insurance-both claims & injuries.

Tax issues include losing portion of your CGT exempt status ie you’ll not be entitled to claim the full CGT exemption.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 28, 2003 - 1:19 am

As you are the ultimate consumer of the product, you cannot claim the GST.

Even if you can claim the GST, you cannot claim it in one lump sum as it has to be spread over the period of the loan as in a hire purchase arrangement.

However it would be interesting to hear what your accountant has to say.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 27, 2003 - 3:21 am

Most of us can understand your excitement about buying your first IP. However, please don’t just “dive in”. You must do your due diligence. Accidents can happen. OK, you can get someone to do the work for you, but you learn nothing. Use your own gut feeling. You’ll be pleasantly surprised. There are also books that can help you to come to a decision.

If you are buying a commercial property upwards of say $750,000 maybe it’s not a bad idea to get someone to check it out on your behalf. Then their fees would be worthwhile.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 26, 2003 - 8:11 am

Canning Vale is ok. There are some fairly large industrial sites around catering for the likes of Swan Brewery. I don’t know the area very well, but I think capital growth is fairly normal.

If you are looking at Carramar, check Wanneroo out as well. The area is in for some developments.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 26, 2003 - 6:08 am

Treatment of income & expenses are exactly the same in any entity, be it individual, partnership, company or trust. However the trust gives you the flexibilty to distribute the income as you see fit. For eg, if you stopped work, all the income can be distributed to you & none to your partner. Hence for tax planning, a trust is more flexible. However if you continue to work, then perhaps a partnership is cheaper.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 26, 2003 - 5:59 am

Implementor has a point. It’s not just management fees that you save. There’s inspection & leasing costs. The biggest savings are in repairs & maintenance. I’ve noticed managed properties tend to have more repairs done to them.

Sure, time is a constraint. However, once you find the right tenant, they can be there for a long time.

[trueblueMember@trueblueJoin Date: 2003Post Count: 142]

May 26, 2003 - 5:49 am

I tend to agree with f-j-o. There’s no substitute for education. Why can’t you go back to study but keep the present property as a rental?