whats the best net return you have got from a property recently

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.

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.

Keiko

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

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.