All Topics / Creative Investing / whats the best net return you have got from a property recently

Viewing 7 posts - 21 through 27 (of 27 total)
  • Profile photo of CentralChoiceCentralChoice
    Participant
    @centralchoice
    Join Date: 2008
    Post Count: 64

    Hey clones,

    For clarity:

    Deal 1 – one of the more memorable ones: the auction was at the real estate agent's office 3 days before the actual auction and the agent had a "written bid" of $330,000. This was on a Wednesday at 5pm; god knows why the agent held the auction at that time. There were 2 bidders and the agent sat us both in different rooms and walked around with a clipboard from room to room so we couldn't see each other or "intimidate" each other. The other bidder did not have faith in the entire process and walked out. We were therefore the only bidder left, incredulously, the agent said make an offer over $330,000 and it's yours. My whole body was trembling and I almost had the gumption to offer $330,001 but as a good faith gesture went to $331,000.  

    I will happily pay full asking price for something so drastically undervalued. Now why would I want to sell it and pay capital gains tax when I was able to leverage it and get another $150,000 out of the bank???

    Deal 2 – You will be surprised at how much a coin laundry can make. Think average customer = 2 machine washes x $3 or 1 large machine wash of $7 and average tumble drying of $3 and you will have a profit of about $10 less outgoings of water and electricity. Some of my customers come every day to do their washing, and there are some regular faces who will bring car loads of clothes to the laundrette as part of their "washing clothes" service business and wash THEIR customers clothes (ie I pay you $20 to wash my clothes and you only spend $10 at my laundry = profit of $10.)

    Deal 3 – One thing about Footscray is the State Government is pumping in $50 million to rejuvenate the whole area and remodel the station. Part of this process is to demolish the station and older looking shops I believe to add another platform. All the traders who have businesses along the station side are being paid out compensation for the compulsory acquisition of their business/property. This property in question is across the road from the station. Initially, this was a risky deal given the vacancy, but obviously proves the value of calculating the risks and doing your research.

    Finally, we do not operate a real estate business; we are a finance broking company based in Footscray. If you're ever in the area I'll happily give you a guided tour.

    Profile photo of BandRBandR
    Participant
    @bandr
    Join Date: 2005
    Post Count: 3

    Bought a duplex block with B.A approval for $299,000 on the Goldcoast in July, found a local builder who built the duplex for $350,000.holding cost plus other bits an piece came to just under $50,000 Just sold bought of them and  got $399,000 and $395,000.  so made $95,000 for just under 5months investment

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Band R

    Dont want to appear negative but i think your figures are a little out there.

    Firstly the Stamp Duty on the property when you purchased it would have been around $8000. If you financed the deal you could have added another $3000. If the property only had a BA then the title, surveying and Dept of Nat Resources fees let alone the Council Contributions would have come to around another $10-12K Min.
    Interest assuming that you financed 80% only would have given you interest of around $20,000.
    Now based on the fact that you didnt sell them yourself REIQ on $399,000 & $395,000 is around $11K each.
    Margin GST on the sale would have come in at circa $10,000.

    And then Tax on the profit at even 30% (assuming you didnt do the project in a SMSF).

    Might want to revisit those figures again.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    Richard maybe thats what the $50k covered 

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Keiko

    Maths was never my best subject at school but it comes to a lot more than $50K !!!!
    And my figures are very generous.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BandRBandR
    Participant
    @bandr
    Join Date: 2005
    Post Count: 3
    Qlds007 wrote:

    Band R

    Dont want to appear negative but i think your figures are a little out there.

    Firstly the Stamp Duty on the property when you purchased it would have been around $8000. If you financed the deal you could have added another $3000. If the property only had a BA then the title, surveying and Dept of Nat Resources fees let alone the Council Contributions would have come to around another $10-12K Min.
    Interest assuming that you financed 80% only would have given you interest of around $20,000.
    Now based on the fact that you didnt sell them yourself REIQ on $399,000 & $395,000 is around $11K each.
    Margin GST on the sale would have come in at circa $10,000.

    And then Tax on the profit at even 30% (assuming you didnt do the project in a SMSF).

    Might want to revisit those figures again.

    Hi Qlds007,

                          Your right i did forget to add that the $95,000 was  pre-tax,  i sold them privately too.
                          But the rest of my figures are right.

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    Turned 2K (86) borrowed into $1.8 million (08) gross value or 1 million net.  Not fast but a nice portfolio for me.

    Not from property.

    (1) Foreign exchange

    Transferred 50K to Japan when OZ was at 105 and then back to OZ when it dropped to high 60 a little while later.

    (2) Cars

    30K all up getting a car to OZ that sold for 95K.

    (3) Best of all.

    $10 on a pub meal that has turned into a very happy 10 yr  marriage and now a 10 month  baby daughter.

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