Hello everyone
I have entered into a contract to purchase an OTP dept in Brizzy completion date 2006, and I wondered if anyone has had experienced in this type of investment. I plan to onsell before completion date and reinvest in more properties. Any suggestions will be most helpful.
My first purchase of an IP was in a block of 62 units in Spring Hill within walking distance of the Mall. we had good onsite PM who got us good returns – the 11 sec rule would have been met but when I heard of Cathedral Place and some others happening we sold. Prices and rental tumbled once the others came on line. If you are going to on sell, don’t wait to the very last minute otherwise you maybe one of quite a number of other investors trying the same thing. I think Admirality Towers in Bris caused some concern like this a couple of years ago.
bribie
bribie
Thanks for sharing your experience and knowledge unfortunately I dont have Steves book to read and I’m sorry I don’t know what u mean by the 11 sec rule???, dont have a credit card to purchase book on line, does anyone know if it is on sale at the bookstores? I live in Sydney.
clownsta,
In Bris, all the bookstores now have supplies so try any of the major bookstores including Myer / Grace Bros.
We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.
bribie
Hi Clownsta,
Steve McKnight’s book is available in all book stores (Angus, Borders, Dymocks, you name it).
Cheers,
clownsta,
most independant bookstores stock it as well.
[
] Powmow []is it a commercial property? or residential?
We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.bribie
clownsta,In Bris, all the bookstores now have supplies so try any of the major bookstores including Myer / Grace Bros.
We had been getting $380 pwk for a one bedroom unit that cost $150K. The 11 sec rule – $380/2 x 1000 = $190K so buy at less than $190K fits the 11 sec rule for a + ve cashflow property.
bribie
Thanks for your replies much appreciated.
clownsta
When you onsell the property before completion, be aware that you will not see any of your profit until settlement!! We have one that we put on the market at least 6 months before completion to make sure it gets sold prior to. Failing that, we will have to put in a loan app just in case. Thankfully, this one has appreciated by $120K in the year and a half, so that shouldn’t be a problem, but I would prefer to sell than have to settle.
Cheers
MelMel
Would that make it subject to 100% capital gains tax?
Cheers
Leigh K[]Carve your own path and lead the way …
Hi Leigh
The discount on CGT applies from exchange of contracts to exchange of contracts. This was bad for us in that we signed to sell one property in June, and therefore last financial year – which wasn’t good tax planning. But it is good when you buy off the plan with long build times.
So for us, we exchanged in Feb 02 to buy, and will hopefully exchange in Nov 03 to sell, and so get our discount.
Cheers
MelThank you mel your so helpful and yes I prefer to sell than have to settle, sorry if I sound dumb but are u able to borrow against an OTP unit say 6 months or a year before completion????.
clownsta
When you onsell the property before completion, be aware that you will not see any of your profit until settlement!! We have one that we put on the market at least 6 months before completion to make sure it gets sold prior to. Failing that, we will have to put in a loan app just in case. Thankfully, this one has appreciated by $120K in the year and a half, so that shouldn’t be a problem, but I would prefer to sell than have to settle.
Cheers
Mel[/quote]
] Powmow [
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