Cost of managing tax affairs - what about my time?

In regards to the cost of managing tax affairs, in the past I have just used my accountant fees.

As the time it takes to meet government tax compliance increases more and more each year, this year I had to take two days off to gather all the data and do all the ringing around, calculations and Excel spread sheeting to do my return. As an IT contractor this cost me two days not earning my regular income to do this.

My accountant tells me I cannot claim my time (or opportunity cost).

What do people think about this?

Cost of managing tax affairs - what about my time?

Info on a company gone into liquidation.

Hi all,

Just wondering if a company goes into liquidation and you have paid for something, is there any chance of getting the money back.

They just bought tiles from MacArthur tiles and they were supposed to get delivered today and now they are closed down.

Info on a company gone into liquidation.

Property and suburb portfolios

Need to do some research on property and suburb portfolios in Brisbane before i purchase a property.

Looking at trends, best performing suburb, school around the suburb.

I know rpdata is the ultimate tool, but is there any other tool or free sites around?

help is much appreciated

Property and suburb portfolios

Financially distressed seller

Considering buying an property that has 4 separate mortgages and 2 caveats on it. :eek: Never seen anything like that on the title documents before. Clearly vendor is under financial pressure to sell it, but the current asking price is well above the market value based on comparatives. My offer would be below the asking price.

I do not want to be in the situation that the vendor accepts an offer and in the settlement day I found out that he can not settle because he does not have means to clear debts and caveats can not be lifted.

Has anyone been in similar situation before? Is there a way to add the condition to the contract stating that transaction is subject to vendor providing a proof that he has suffient funds to clear mortgages and caveats on the settlement day and proof has to be provided by purchases satisfaction by xx/xx/2015. What would be the right legally sounding wording for the condition?

Financially distressed seller

Structure

Howdy

We're looking at purchasing property number 4.
Property numbers 1,2,3 are all tenanted with IO repayments.
There is enough equity to draw down from property number 2 and property number 1 for property number 4 deposit, serviceability is good as well.
Only Problem is We've reached baby making time and the pressure to settle is increasing daily...
I suspect property number 4 will be a PPOR( this is also a tough one as property number 1 has had massive Capital gains and is currently deemed PPOR)
The Plan is to purchase next year, in the interim i'd like to get back into share trading( as its hard to keep still)
So my question is, whats the best way to structure this?
Current Broker has some idea's but thought it never hurts to get a second opinion.

Thanks Again!

Structure

Question for mortgage brokers

What if you are on an interest only period with bank A and have the ability to borrow $300k more with them. Then you borrow say $400k with bank B, because they have more relaxed criteria.

When it's time to renew your interest only period with bank A and they review your serviceability, you may not meet their requirements given your new loan with lender B and it may switch to principal and interest which may not be feasible from a cash flow perspective? Could something like that happen? Keen to hear peoples thoughts.

Question for mortgage brokers

How Do I monitor the quality of my build?

Hoping someone can provide me with some advice or a helpful link.

I'm currently building a home north of Brisbane with Burbank. The build has only started in the last few weeks. My question is, how do I monitor the quality of the build? Do I hire another builder to check the progress of the build at each stage, and report back to me? Or is this something I needn't worry about?

I'm sure it's a simple process, but I'm just unsure as to how it all works. If anyone could spare a second to let me know, it would be very much appreciated.. :)

How Do I monitor the quality of my build?

first time investors...nervous and excited!

Let the fun begin.....
Hubby and I have started looking for our first IP and will be checking out a few properties this weekend. Have done a lot of research but this forum is above and beyond anything else I've found.
We are looking in the western Sydney suburbs with a budget of $450k for our IP. A question for you experienced investors....we currently are in a 3bdr 1bath house and don't yet have kids so we are considering 2 options:
1. Purchase a new property as IP and stay in existing
2. Look for a new property, bigger than current place, for us and move there and rent out exisitng property (budget for this up to $550k)
What are the pros/cons about each option? We are wanting a buy & forget IP and plan on building a portfolio over next 5-10yrs.

Thanks in advance, hope it wasnt a stupid question ;-)

first time investors...nervous and excited!

Obtaining neighbours OK to run stormwater pipes through their yard.

Hi all,
This is my first ever post so I'm officially a newbie on here! I've just put a contract on a property in Tarragindi (Brisbane QLD) which is a run-down post-war on an 810m2 two-lot block, with the intention of demolishing and building two new homes, and are currently just a few days into due-diligence.
Town planners have advised that due to the slope of the block (slopes away from the road, approx 3-3.5m slope across the length of the block), we would need to obtain the rear neighbours approval to run a new stormwater pipe through their backyard, or there's no chance of progressing a development on this site. Does anyone have any experience with tackling this sort of situation, and any tips for how best to approach the neighbours? Odds of agreement? On the positive side, it would be positioned down their property boundary (not cutting through the middle of it), in an area clear of structures (but does have at least one tree), and I'd be happy to compensate them for the inconvenience and return the lawn etc to it's previous condition etc. However, as I understand it, they are completely within their rights to say no, so therefore I presume the best strategy would be to find this out now, and if they indicate they wouldn't cooperate, i presume we should probably pull out before the due diligence period comes to an end? Have any of you been in this situation? Any advice would be much appreciated!

Obtaining neighbours OK to run stormwater pipes through their yard.

Damage from Demolition company

Hi guys,

We've received an email from our neighbours who were away on holiday while the demolition was happening. They noted that there has been a bit of damage to the fencing between our home and theirs. The neighbours also emailed the demolition company. Usually the demo business owner is quick to reply and defend their work (whenever we've raised questions), however today they haven't responded. So, is damage to color bond fencing their responsibility? --> I haven't contacted them yet and they haven't responded to the neighbour, and I won't be surprised to brush it aside. At least glad that the nighbour raised this and not us..

Second, the lot doesn't really look levelled. I appreciate it was raining when they were demolishing so possibly they couldn't clear everything through their sieve. They didn't remove all grass either. Claim was that they will make the lot look 'pretty' but it doesn't feel so....So I'm not sure what really to do as they say it's not the first and the last lot they are demolishing. Pics here: http://ift.tt/1bhnJVE

They come highly recommended by the builder and seem to be really proud of their reputation. However, we aren't as satisfied given the amount we've paid....and feel a bit robbed as everytime anything is raised via email or phone, we are the ones who end up feeling like we don't know enough...

Thoughts?

Regards,
MsAli

Damage from Demolition company

Property management fees... advice needed

Hi i'm renting a property out for the firs time in Brisbane, this is what the property manager wants to charge.

8.5% of the weekly rent.

additional fees and charges



is this standard?

Property management fees... advice needed

Help- North Brisbane area for second IP?

Hello all,

After researching for what seems like forever I'm ready to purchase my second investment property.

I am from Sydney but am looking to purchase a house at the 350k mark in the northern brisbane area. With the intention to do a cheap reno and rent it out and hold. and repeat.

Suburbs which i have narrowed my search to are Zillmere, Geebung, Banyo, Taigum and Deagon.

Does anyone have any opinions on these suburbs, any current purchases people have made, things i should watch out for or even another location that suits my intentions and price?

Thanks in advance, every bit of information will help.

Thanks again.

Help- North Brisbane area for second IP?

How rare is it for a seller to pull out of the contract when finance date is breached

EDIT: to clarify the title, I don't mean breached, I mean when the buyer asks for an extension before the deadline and the seller refuses and pulls out.


I've had to ask for extensions on so many contracts due to delays in getting finance, and every time I freak out thinking the seller is going to cancel the contract and sell to someone else, but every time they agree and it's been OK. My broker said in his 14 years he's only ever seen it happen once, and even then it was a very exceptional case.

Is it really this rare? It seems to me this should be a more common thing.

But...I guess the owner wouldn't want to wait another 3-6 weeks for a new buyer's finance to come through (even then there's no guarantee that they will be able to get finance either), and cash buyers would ask for significant discounts. And I suppose the agent doesn't have any incentive to encourage the owner to cancel and take a higher counter offer because their commission on say another 20k is minuscule anyway right? Does this sound about right?

How rare is it for a seller to pull out of the contract when finance date is breached

Looking for feedback on my strategy/ideas

Hi, not sure if this is the right section but couldn't see it fitting anywhere else.

about myself, 23, I am currently fifo monday-thursday out of brisbane and moved back in with my parents roughly 2.5hrs away from Bris when I moved back from NSW.

I have a 20% for 300k property. Don't want to spend anymore than $350k as I'd prefer to not "go all out" on my first property.

Recently I've been thinking of making my first purchase a PPOR rather than an IP, but only for around 12 months. I am growing tired of leaving brisbane every weekend then driving back on monday morning. and I don't want to rent someones place for the sake of a few days, id rather pay my own mortgage.

Would it be a decent strategy to buy a PPOR and live in for 12 months, by that stage id be looking to buy another property either as IP or PPOR (portfolio now equal PPOR+IP) then hopefully a new IP every 12 months?

Looking for feedback on my strategy/ideas

How to buy in auctions when interstate ?

Most houses go to auction in melbourne. I'm interstate so how so people buy when it's auction ? Do you fly over or can you trust the agent to let you know over phone what is happening with the auction?

How to buy in auctions when interstate ?

Capital gain Airbnb and renting out a room in house plus a

Seems you lose part of your tax free concession when renting out a room in your own home. And you get taxed on the rent received

Seems like double taxation to me?

Are people who rent out on Airbnb aware of this?

Has anybody been hit by the ATO and lost some of their capital gains for renting out a room in their own home?

Capital gain Airbnb and renting out a room in house plus a

AirBnB Neighbours Wrecking Our Lives

Our neighbours have turned their home into an AirBnB.

Although I would normally be a fan of AirBnB, the bogan types who regularly move in every week are more than a nuisance.

The noise, the marijuana smoke, the late night parties, the constant swearing......its all too much.

We live in a decent neighbourhood, on the waterfront, in a residential area that some would consider "upper crust."

What's the most expedient and diplomatic thing to do?

AirBnB Neighbours Wrecking Our Lives

Decks

Hi

I am trying to find out if you add or have a deck on to the second story of a house is it a (Qld) requirement to have a stairwell leading off of the deck to the ground as a fire exit?

What I was told by one builder was if you had a deck on the second story that you needed to have a stairwell to ground access in case of a fire.

Another builder told me that it wasnt needed

I've had a look online but cant seem to find a written requirement to have stairs - but at the same time the info does show what the standards are if you do.

Would anyone have any insight?

Decks

Renovating for deposits (buy, reno, hold, repeat).

Who of you has had success in renovating properties to produce deposits to do more?

Ideally:

• Buy at 80% LVR
• Renovate
• Val shop
• Refinance with new lender at 88% (taking out more than your deposit/purchase and reno costs combined)
• Renovated property = cashflow neutral or positive
• Repeat

If so, I?d love to know about the projects (numbers, timing etc).

Renovating for deposits (buy, reno, hold, repeat).

Frontage requirements

Hi just wondering what the minimum frontage requirements for an R20 block is? If the total frontage is 18, can I subdivide to split blocks with 2 x 9 frontages? Or a 10 + 8?

Frontage requirements

Colyton - Thoughts?

Hi,
I'm looking at buying two properties for about 1300sqm in total in Colyton, possibly about $900k in total, current rental about $800pw combined. I would look at sitting on it for a couple of years, then potentially develop it and have a few town-houses on it.

As I haven't had any development experience, wanted to know what the general consensus is on Colyton, and whether this would be a project that you might consider or not as part of your own portfolio?


Thanking you in advance for input.


Regards

Colyton - Thoughts?

How to Utilise Sunset Clause

Hi All,

Hoping someone can guide me in the right direction here.

I have purchased an apartment off the plan where construction has drawn out considerably... For a few reason I have decided I will utilise the sunset clause available to me at the end of June in to rescind on the contract.

I have a few issues. Firstly the real estate agent that sold the property is borderline impossible to contact. He also works for a smaller firm where they do not have a specific premises so cannot meet him face to face to deliver a letter stating I want to pull out. Never answers phone or email.

He has elected a conveyancer which has sent out some documentation for signing to me and other buyers to sign in order to push out the sunset clause (obviously chosing not to sign this). Would it be possible for me to simply notify them in writing once the sunset clause date has passed as opposed to the agent?

If not, does anyone have any recommendations?

Thank you in advance for your help.

How to Utilise Sunset Clause

Happy Birthday Jacque

Hope today is a good one.

Happy Birthday Jacque

No more property investing.

If investing/trading in residential/commercial property was banned, what would you do?
This is assuming you could only hold a single PPOR per household.
What's your plan for financial freedom now?

No more property investing.

Capital gain tax on home with study office

Can you run any small advisory business from home in your study for a couple of hours a week without it affecting capital gains tax on principle place of residence?

ATO does not seem to cover it that well. It talks about a business of convenience. Does anybody know what that means.?

Considering many people operate small part time businesses from their studies these days there does not seem to be enough info out there,
.

Capital gain tax on home with study office

Property Manager (Cairnlea, VIC)

This is my first investment and your help would be much appreciated.

Any recommendations for property manager in west Melbourne? I just bought in Cairnlea (I'm in Sydney, NSW) so can't manage myself.

I could go with the agency who sold it, Professionals Taylors Lakes, (6% monthly/1.5 weeks letting fee) or Barry Plant Deer Park (5.5%/1 week letting fee). I see Barry Plant is quite large in VIC? Are they any good?

Thanks.

Property Manager (Cairnlea, VIC)

Boundary clearances for reno in brisbane

Im looking at doing an extension to the rear of my existing house, which is on a 20m x 20m corner block in brisbane, but i cant find anywhere that refers to the side and rear boundary clearances for these types of blocks. I know the old city plan specifically sited corner blocks as being considered to have both boundaries as side boundaries, but the new plan doesnt have this. The old plan was 1.5m clearance to both the side and rear boundaries. Given that the new side clearances for small lot blocks are now 1m, would any learned people here know whether that means the clearance for a corner block is now 1m for both side and rear boundaries, or is it still the same? The difference would be huge with regards to our possible designs. Cheers.

Boundary clearances for reno in brisbane

Why do you Invest in Property?

Why do you Invest in Property? What made you start? Why do you keep going?

Why do you Invest in Property?

Dual Occupancy

Hi,

Just wondering if anyone has had success renting out a Dual Occupancy property with an upstairs downstairs configuration?

I'm looking at a place on the south side of Brisbane in a blue chip suburb which has the option to rent out the top and bottom separately. I'm after any advice on what works or doesn't work with this method.

Pros:
- Higher then normal rental yields
- If there is a vacancy, half the rent will still come in if the agreements are staggered etc

Cons:
- Power and water are not separated (owner will have to cover costs)
- Are people prepared to rent out the bottom possibly hearing foot steps above. etc


I still need to do some Due Diligence with the council approvals etc. However can anyone fill me in on the types of council approvals needed? That would be much appreciated. (The sales agent tells me that only the building inspection certificate 21 is needed?) however I will check with council.

Any advice would be much appreciated.
Cheers :)

Dual Occupancy

Gutters and tax

This F/Y coming to an end and like everyone looking to maximize deductions !

An IP I own needs new gutters as they have rusted out pre bad .

If i get them replaced and get the company to state on the invoice that the old gutters were in need of repair will the new gutters be written off or depreciated ?

Theodore

Gutters and tax

Is this the best time to buy/Sell?

Hi All,
it seems house prices are up again but is this because of the low interest rate?
I thinking of selling my house in Caroline Springs and moving to the South East area but it seems the gap in prices is not affordable.

Any tip as to when to do this or just wait?

Thanks in Advance

Is this the best time to buy/Sell?

Applying for new loan whilst a IP is vacant

Hi everyone just wondering what the chances are off getting a loan across the loan whilst a property is vacant. I have 9 properties currently tenanted and one I just bought that is currently untenanted and needs a bit of work (happening in the next week or so). I've found another property I want to buy and I always use quick deals(settlement asap and put down the deposit on the day the price is agreed, no cooling off etc) I desperately want this one to add to my collection. Will most banks be iffy especially if using equity or should I pay with a 20% deposit?

Applying for new loan whilst a IP is vacant

Right loan structure for IPs ?

Hi mortgage experts, my girl friend has a main residence property already, which is worthy about $750k and $600k of equity. we are looking for investment properties and we know that she can use the equity of her main residence property as deposit to purchase investment properties. in addition, we prefer interest only loan and may to use equity portion to purchase more than one lPs in the future.
our question is what loan structure could show ATO clearly that the portion of interest from main residence property used to purchase the IP/IPs.
Any suggestions will be appreciated.
many thanks

Right loan structure for IPs ?

Gold Coast Property Group Meeting is on Thursday 7th May

Hi to all of our Queensland based property colleagues,

It?s time for our next Gold Coast Property Group meeting, on Thursday, 7th May 2015; for those of you who are new to the group, we?re a friendly, supportive bunch and everyone is welcome to attend. We have everyone from those who are excited yet nervous about entering the realm of property investing, and others who have been investing successfully for many years ? and of course, every level in between.

There is a minimal cost to attend of $10 per person to cover venue hire, and you get a property magazine upon entry. Plus of course, tea, coffee & quality bikkies!

You can register via our Meetup page here for free (you will need to join Meetup, which will then notify you of all our future meetings if you choose):

Click Here

We have a big night planned, and as we head towards the mid point of 2015, let?s ramp up the momentum with other like minded investors and keep your skills sharp; don?t miss this event!

First Up, We Have?

The well known and very popular Nhan Nguyen from Advanced Property Strategies.

Nhan is one of those guys that is out there taking big steps in the property world. On top of running is mentoring program, Nhan has been implementing some very profitable strategies in the current market.

Those that are in the room will get to experience Nhan first-hand and hear him share on how to find cracker deals on the coast ? not to be missed!!

This Month?s Real Deal

Will be presented by Russel Gray.

If you haven?t attended before, this is where a member of the group actually gets up and shares their latest project, complete with numbers, photos and more importantly, mistakes and lessons learned!

Russel shares with us details of his latest project; a Development Approval for 1 into 2, which the turned into 3 lots ? with some creative strategies! Be warned though, this was no walk in the park, and you?ll get to hear all the nitty gritty in person.

Finding great deals in the current market requires ?out of the box thinking so if this is something you need help or inspiration with, be in the room to hear all about Russel?s awesome Real Deal!

Last But Certainly Not Least?

Jolene Sukkariah from My Financial Group is back! Jolene will be doing a 15 minute question & answer session on long term wealth creation.

Jolene is an absolute expert on financial planning and SMSF so be sure to arrive early and bring your questions for Joelene to answer about anything to do with your wealth creation goals!
_____________________________________________________________________________________

We will have some special prizes on the night for those that are in the room, including best selling books and some other great surprises that you will just have to be in the room to see!

Venue: Burleigh Heads Surf Club

Address: Corner Goodwin Terrace and Gold Coast Highway, Gold Coast



Date: Thursday, 7th May 2015

Registration (& cuppa time): 6.30pm for a 7pm start



Finish: 9pm

Payment: The cost to attend this event is $10 to help pay for the venue hire. You can pay online when you register or pay cash at the door.

How to RSVP: To register online, simply click here and you?ll be directed to the Meetup page where you can RSVP. If you?re unsure of the process or have any difficulties, just pop us an email to admin@propertyresourceshop.com

If you become a member of Property Resource Shop Membership site you get discounted entry to all our property meetings (Brisbane, Sunshine & Gold Coast), which also gives you access to the video, audio & slide shows of the night, simply email us to find out more.

If you are a Property Resource Shop member there is no charge, simply log in to your Meetup account and RSVP via the Gold Coast Meetup page here.

Hope to see you on Thursday, 7th May 2015!

Cheers, Matt

Gold Coast Property Group Meeting is on Thursday 7th May

Bank loan rules regarding PPOR

Hi folks,

Firstly, apologies if this is a repeat question (I searched the forums, but haven't found a thread discussing this topic specifically).

My question is regarding bank rules regarding PPOR:

Is it true that if (most?) banks agree to lend 95% of the property value, they require that the buyer use the property as a PPOR (i.e. reside in the property he/she buys)?

The implication of this is that if the borrowing is 90% or less, the property can be bought as an IP.

If this is true, what do the laws/rules say? I have a pre-approval from a bank that explicitly (verbally only, through the customer service personnel) forbids buying a property as an IP because I can only come up with a deposit of 5% at the moment.

Please shed some light.

Thanks in advance.

Bank loan rules regarding PPOR

Cheap buys with good prospects

Hi All,

Looking to buy another IP and have short listed a few of the cheaper suburbs around our capital cities. Already some of these markets have started to move,but I was just interested in everyones opinion on the future of these suburbs and whether the ripple affect will improve prices more once inner suburbs get too expensive.
These suburbs are: Deception Bay (QLD)
Logan Areas (QLD)
Goodna (QLD)
Salisbury (SA)
Thanks

Cheap buys with good prospects

A week without power

Oh how good was the hot shower I had this morning :D I have a new appreciation of home comforts.

While appreciating the SES, Ausgrid etc, I also have an appreciation of McDonalds at Salamander where the staff slaved 24 hrs to feed us - KFC and Dominoes also did their bit. The shopping centre atSalamander was open but no point in buying food as no cooking facilities for most of us on the Tomaree Peninsula.

Shopping centre at Nelson Bay closed only opened Monday, Shoal Bay shops without power until Tuesday.

I feel for the others whose homes were damaged and flooded.

A week without power

Intro/Subdivision questions...

Hello everyone.

I just found this forum and simply had to join. I've many questions that I would like to ask but when ever I ask about property I am directed to financial advisers... who inevitably try to sell me a share portfolio.

Don't get me wrong. I am in no way, shape or form asking for financial advice. I only wish to introduce myself and give you an idea of my situation and direction. I definitely encourage all feedback, comments and ideas. I value all opinions and comments (even the negative trolly type ones). I'll sift through any overly positive or negative comments and take out the gem's of information which hopefully will give me more avenue's to explore and research.

I had a MASSIVE post written up but just deleted it all and thought I would post some simple data below, and then follow it with a description of my plan's for the future (and open questions) in the hope that someone with experience or know how might be able to suggest options that I have not considered. As always, the standard applies. "I will consider if any suggestions or advice are suitable for my own financial situation and conduct further research and seek professional financial and tax advice before making any changes to my financial direction".

Currently, I am 35yrs old. My wife (35) who is currently doing a doctorate is a dependent. We also have a 2yr old son, and another child on the way. Cudo's to my incredible wife by the way who managed to raise a 2yr old while I fifo, while completing her masters of pharmacy and working part time as a research assistant for the university.

I've managed to obtain 3 properties so far. PPOR, then an IP, then after meeting my wife accessed some equity to purchase a 3rd property which became our PPOR, turning the original one into an IP. My main questions relate to the original property. Here are some rounded stats on my situation.

Primary income: Just over $200,000 including super

1st Property
Purchase Price: $175,000
Mortgage: $295,000
House: 3x1
Land: 904sqm
Location: High Wycome, W.A.
Rent: $370/week

2nd Property
Purchase price: $350,000
Mortgage: $360,000
House: 3x1
Land: 750sqm
Location: High Wycome, W.A.
Rent: $440/week

3rd Property
Purchase price: $710,000
Mortgage: $615,000
House: 6x2
Land: 2500sqm
Location: Wellard, W.A.

So, I feel I am probably a little debt heavy and most of it is in my PPOR which is not ideal for tax but it was the best I could do and this place is definitely our forever home!!

The interesting turn of events is Property number 1. It is scheduled to be rezoned soon (fingers crossed) into R25/R60. So if I can satisfy the requirements for R60 by my calculations I could fit a maximum of 5.4 dwellings on the block. Of course, there is the street frontage etc that needs to be satisfied but even if I could split into 4 I think I would be going great guns.

Having NO IDEA about the process (yeah, I am reading through these forums and researching but got excited and needed to spill my beans) my thinking is if I could build say 4 dwellings at $130,000 each I would need $520,000.

I'm neglecting the administrative costs and the demolition costs I know. (been told about $15,000 by a local demo mob... I was going to rebuild at one stage).

So if I say, $600,000 plus existing mortgage of $295,000 then that is $895,000 worth of debt. Using my bank's poor online calculator I can only borrow $850,000 and it tells me repayments would be somewhere around $3,392/month.

Now nothing in the area is sub $300/week rent. Median asking is $450. A reiwa search just then found cheapest to be $365. My location also has the advantage of bus stops within 30m and a shopping complex within about 150m. So if I use $300/week x 4 dwellings = $4,800/month. I think this means I would be paying tax which is always a good thing. However, I could also claim the depreciation of 4 dwellings to offset this plus my own wage provided the government don't move the goal posts on that. Is that correct?

My maths is pretty bloody loose I know, but do you think I am looking in the right ball court? If the re-zoning goes ahead would I be wise to follow this dream? I can't find any information on what it would cost to build 4 townhouses or units so I am taking a guesstimate. Am I way off?

Also, do you guys use unit development companies? The ones that specialize in subdivision and cramming as many dwellings on as possible? One comes to mind but I don't want to be paying a premium for any kind of service if its not needed.

I'm looking forward to stalking these forums quite heavily but unfortunately I still feel like a novice so I won't be able to give any advice or opinions with any kind of conviction so for the most part I will be keeping my trap shut.

Thanks for reading my very long intro/question/thing. :)

Cheers. Red.
P.S. I had no idea what subforum to post this intro/questions/thing!

Intro/Subdivision questions...

Claiming 10% Deposit after default.

Has anyone any first hand experience with claiming the deposit held in trust after a purchaser defaults on contract (after notice to complete). So many threads have comments stating that you just keep the 10%. My solicitor says it can be a difficult process and of course, he would know, but I'd like some real life examples. We aren't there yet, but I'm starting to get a sinking feeling! :(

Claiming 10% Deposit after default.

'Eco'-friendly termite treatment products?

I had a building and pest inspection done on a house today in Brisbane.

The property has a significant amount of relatively new untreated timber paling fence.

Is anyone aware of effective eco-friendly termite treatment solutions?

I did some research and found this product.

http://ift.tt/1ENp8RD

Apparently it can be used on concrete and has also been tested by the CSIRO for effectiveness against termites and borers.

Are these products actually effective? Are there other products or treatment methods I should consider?

'Eco'-friendly termite treatment products?

Melbourne - $350,000 - Buy or not?

Hi everyone.

I am new to the forum and investment property. Started renting out 5 years ago so I thought was the right time to start thinking to buy a property. My budget is really low, let`s say around $350,000. I am looking for an IP in Melbourne and repay the loan with the rent. I need to borrow around $270,000 which will make $1780/month @ 25 years.

I`ll be renting out another place.

Do you reckon it is a good plan? 25 years look a bit too much to me but it is the only way to make it. There is also the chance I`ll be relocating overseas within 5 years so that`s another reason to buy an IP.

Thank you all,
Luca

Melbourne - $350,000 - Buy or not?

Seeking Renovation For Profit Workshop Partner

I would like to get in touch with someone from the Wollongong or Shellharbour areas who is interested in attending Cherie Barber's 3 day Renovation For Profit workshop in Sydney in May or November this year.

I'm keen to find someone to enrol with together so we can get the discount (with an extra set of materials). I am also considering the idea of a renovation partnership to get started. Even if you are already enrolled, whether or not you have done any property investment or renovation, if you would like to make contact with another local student, I would like to hear from you.

Seeking Renovation For Profit Workshop Partner

Refinance - was I overcharged?

Hi I refinanced from ANZ to NAB Homeside.

Facts:
$215,760.78 ANZ final payout

NAB loan $215,000 facility limit. The debited the following:

• $250 legal fees
• $222 land title fees
• $600 application fee - they agreed to refund this fee
• $214,528 loan draw down
  
• $215,600 Total loan

They therefore exceeded their facility by $600. They took $1,832.78 from our offset, being $1,232.78 shortfall for ANZ ($215,760.78-$214,528). The other $600 was apparently to bring the facility back to $215,000 given they overdrew. They then credited the loan to refund the $600 application fee.

Question - did I still get overcharged $600?

On a cash basis from NAB's perspective:

Paid ANZ $215,760.78
Paid me $600 (refund for application fee)
Loaned me $215,600
Charged me from my offset $1,832.78
= Fees for NAB $1,072, being $250, $22 and $600

Therefore I did not in theory get my $600 application fee back. Even if you ignore the $600 fee in the first place the monies taken from my offset should have been $1,232.78 ($215,760.78-$215,000+$250+$222).

How they have transacted is very confusing.

Any advice is appreciated.

Refinance - was I overcharged?

Converting IP to PPOR

Hi

There have been many topics covering converting PPOR to IP but I would like to know if I can convert an IP into a PPOR for tax purposes

For the loan I have looked to have it initially rented for a period but then will look to have it become our PPOR. I would like to live in it and would like to know if capital gains tax will apply if it converts from IP to PPOR

Is this possible and how would I look to structure it?
Will I have to pay capital gains later on as it will be registered for stamp duty purposes as an IP

We are looking to develop and want to know if I will pay tax on building down the track

Converting IP to PPOR

Sunshine Coast Property Group Meeting is on Tuesday, 5th May

Hi to all Queensland based property colleagues,

It?s time for our second Sunshine Coast Property Group meeting for 2015 ? on Tuesday 5th May; for those of you who are new to the group, we?re a friendly, supportive bunch and everyone is welcome to attend. We have everyone from those who are excited yet nervous about entering the realm of property investing, and others who have been investing successfully for many years ? and of course, every level in between.

There is a minimal cost to attend of $10 per person to cover venue hire, and you get a property magazine upon entry. Plus of course, tea, coffee & quality bikkies!

You can register via our Meetup page for free (you will need to join Meetup, which will then notify you of all our future meetings if you choose):

Click Here

We have a big night planned, and as we head towards the mid point of 2015, let?s ramp up the momentum with other like minded investors and keep your skills sharp; don?t miss this event!

First Up, We Have?

The well known Paul Copeland from William Buck Accounting.

Paul is back by popular demand so that he can answer all your tax structure and GST questions.

Paul has done a stack of property developments himself and knows from experience how to best structure and manage your purchasing entities for maximum efficiency.

Every question Paul gets asked, he is able to answer efficiently and with plenty of humor so bring along your best questions to stump him!

Paul may even do a whiteboard scenario where he assesses someone in the audience to ensure they are investing in the most tax efficient way.

This Month?s Real Deal

Many of you will remember Kate Cleary, who has shared an amazing Real Deal with us in the past. She?s a little pocket rocket, and is back to share a new project with us!

This one is a large renovation, and if you?ve heard Kate share before, you?ll know her enthusiasm is contagious ? and she shares the good, the bad, and the ugly! Make sure you come along to hear the latest on Kate?s project.

Last But Certainly Not Least?

Jolene Sukkarieh from My Financial Group will be joining us.

Jolene & Matt are fast becoming the go-to people for anything to do with super and property investing in QLD. Don?t miss this opportunity to learn how you can maximise your earning potential with superannuation!

__________________________________________________________________________________

We will have some special prizes on the night for those that are in the room, including Robert Kiyosaki, Rich Dad Poor Dad books, and some other great surprises that you will just have to be in the room to see!

Venue: Goodlife Community Centre
Address: 100 Buderim Pines Road, Buderim


Date: Tuesday, 5th May 2015
Registration (& cuppa time): 5.30pm for a 6pm sharp start

!
Finish: 8.30pm
Payment: The cost to attend this event is $10 to help pay for the venue hire. You can pay online when you register or pay cash at the door.

How to RSVP: To register online, simply click here and you?ll be directed to the Meetup page where you can RSVP. If you?re unsure of the process or have any difficulties, just pop us an email to admin@propertyresourceshop.com

If you become a member of Property Resource Shop Membership site you get discounted entry to all our property meetings (Brisbane, Sunshine & Gold Coast), which also gives you access to the video, audio & slide shows of the night, simply email us to find out more.

If you are a Property Resource Shop member there is no charge, just email us and we will RSVP for you: admin@propertyresourceshop.com

Hope to see you on Tuesday, 5th May!

Cheers, Matt

Sunshine Coast Property Group Meeting is on Tuesday, 5th May

Undeveloped & Undivided Land in Western Sydney

Hi,

I've come across a project of buying a block of undivided and undeveloped land in South West Sydney. The total land area has not been rezoned yet. It'll take roughly 3-4 years for the rezoning and DA approval process. I'm pretty optimistic about the growth in that area with the proposed Airport (which has got the final confirmation), proposed M9 & M12 in the vicinity of the project. Since I'm new at this I was wondering what are the risks of committing to such projects. I could think of the following ones:

i) the rezoning process gets delayed than the expected time frame (my investment will be stuck for longer period of time)

ii) the finance - is there any loan available for the DA approved properties? (the land block won't still be under my name until the actual development happens, it'll still be under a single title of huge undeveloped land.)

Please share your thoughts of what other risks there might be in the project.

Cheers,

Undeveloped & Undivided Land in Western Sydney

Family trust overkill?

I want to start investing and want to make sure I have the best structure. I've heard that a family trust is really only worth the hassle if you are expecting a >$10k ROI p.a

Basically my situation is: wife & 2 kids under 18. Wife payg $30kish & me payg + s/e sole trader $50-70k (day job + small home based online business normally running at a loss)

Currently have ppor in joint names (around 80% lvr) & about $11k share holding in my individual name (owned outright).

My plan is:

- to start a share portfolio using margin lending with my existing shares as security.
- invest in Steve McKnight's US managed fund using home loan redraw funds split separately.
- setup an LLC and buy & hold in several US markets as well as some flips with a team on the ground.
- potentially buy and hold Australian property (funds/equity allowing)

(realistically, initial investments would be $<50k each investment except for Aussie property purchases)

The specific loan structures etc for some of these I will address separately.


My question is, while a family trust may be expensive and somewhat overkill in the early stages, I want to ensure I can start out right. I want to be able to 'go big' without tax & implications etc later.

I understand also that for privacy & liability etc that many investors use a trust or pty ltd to own a US LLC.

The main factors that concern me with any investment structure other than our joint names is the cost, complications and borrowing aspects. Basically the trust will own nothing initially and I would need to lend to the trust. Also I would imagine getting any finance approved will be more painful than in personal names.

Any general advice would be appreciated

Mike :)

Family trust overkill?

REA issues

I'm not sure how I should deal with this. The agent is taking multiple 0.25% deposits and having multiple people sign contracts. I haven't dealt with this before, other agents seem to just get the highest offer to sign. Is this normal? It doesn't seem ethical.

We do want this house, but he's not giving anything away and thus I'm not sure how to offer. He said they will just take the highest, so I'm thinking that means no negotiation?

Thinking of just offering the asking price...

REA issues

Struggle Street

http://ift.tt/1JwLHLv

A TV Show by SBS show casting the trouble streets in Sydney, first up Mt Druitt.

I thought these areas has been clean up substantially? or it's just the Media playing their game?

Struggle Street

Distance between benchtop

Hi All,

Have just had my new flat pack kitchen delivered for a current renovation and have had a realization that my kitchen is HUGE and larger than I had expected.. When I say huge, I am meaning in relation to the home size (smallish 3 bedroom, 2 bathroom 80's built brick veneer).

I am after opinions on the recommend distance between benchtops.. The kitchen I have ordered has a distance of 1500mm which I feel is slightly larger than normal. Unfortunately my kitchen/dining is incorporated into the same area there for the larger kitchen has reduced my dining area to approx 3 x 2.8m.

I have made the return bench width 900mm to allow sufficient underbench space for breakfast bar.

Basically it is too late to make changes as all items are cut to size (including bench tops) although worst case I can rip my 900mm sink cabinet down and reduce the space between cabinets to 1200mm?

I'm probably just over-thinking and would prefer a large kitchen over a small one so should just get to it! Keen to hear thoughts/feedback anyway! :D

Attachment 14384
Attachment 14385
Attachment 14386
Attachment 14387

Attached Thumbnails

       

Distance between benchtop

Plumbing issue / drain blockage - please assist

Hi everyone

Have encountered a plumbing issue :eek: and would greatly appreciate your comments / suggestions / wisdom. Thank you in advance.

Have a 4br brown-brick house IP probably built in the 1970s. Tenants (family of 5) moved in Jan.

2 months ago, there was a blockage in the toilets. I sent plumber out who sent a camera down the pipes and identified a likely blockage near the boundary between my IP and neighbour's property (the blockage is on my property). There is a small tree/plant (about 1.2m tall) on the neighbour's property in the immediate vicinity of the blockage point. Plumber thinks tree roots from neighbour's tree may have crept into the ceramic pipes. He suggested to me on the phone that I consider replacing the ceramic pipes with plastic ones. Quoted me $3k plus (the pipe is under a concrete driveway but there is an inspection outlet on the drive way).

I happened to be in the area and told him I'd drive by to have a look in person. After I turned up, the plumber identified a more significant blockage at another section (closer to the kerb) which likely involved Sydney Water's pipe.

The neighbour apparently told my plumber earlier that day they also had some blockage issues recently, but I don't have any details (eg: where, what was the cause, whether it involved SW's pipe etc).

In any case, my plumber called Sydney Water who came out and supposedly cleared the pipes (tenants confirmed this with my property manager the next day). My plumber sent Sydney Water his bill and I have not heard from either of them since then.

Tenants have just advised that there is a blockage again.

The family is 2 parents with 3 young children. All previous tenancies had only2-3 people in the house and no blockage issue was ever raised in the 8 years I've owned the property. Does the larger family increase likelihood of blockage?

The tenants seem like lovely people, I would like to try my best to keep them happy.

Should I:

1. Send my own plumber out again.

a) If it's Sydney Water's pipe again, then ask SW to deal with it and SW will pick up my plumber's bill.

b) If it's the blockage at the boundary due to neighbour's tree:

(i) can I ask neighbour to remove the tree? I'm happy to pay for the removal of the tree, but if they do not let me I suppose I cannot force them to have it removed even though it is the most likely cause of the blockage?

(ii) If neighbour doesn't let me remove the tree/plant, should I consider replacing the ceramic pipes with plastic pipes - it's a hefty cost but should hopefully be one-off and will save future plumber call-outs. Would the plastic pipes resolve the issue?

2. Call SW direct and ask them to go out to check the problem.

a) If it's their pipe, they will clear it like last time and not bill me for the work.

b) If they say it was my pipe, they will send me their bill (which I assume would be fair and reasonable?!)

Thank you so much for reading! The trials and tribulations of owning a house. I would be so grateful to hear your thoughts.

Plumbing issue / drain blockage - please assist

does a house Alarm add value?

So you pay for a house alarm to be fitted , I think there about $1000 /1500 .

Do you think it adds value?

does a house Alarm add value?

group title. What does that mean in practical terms?

I was looking at a house on a group title in qld.
No body corporate.
The group title is due to an easement the agent said. I think shared driveway.
Small land less than 200m2 but in a very inner city suburb.

Could someone please explain the implications of a group title?
Thank you so much.

*When I say 'looking' I mean getting to know the market. I'm not yet quite ready to buy but I need to understand these types of things in case this sort of thing pops up again.

group title. What does that mean in practical terms?

Rear property - possible issues if front house is under renovation?

Folks,

Found a property with potential. First look seems promising. 500sqm block, 3 x1, 20 year old house, 10 km from city.

One big risk seems to be the house in front. It looks old, and the owner is doing renovation. REA said that he sold the front house to current owner who is a FIFO.

Looks like a massive job. Possibly a character home. The wooden flooring of front porch had been ripped out. Not sure how long the reno is going to take.

Do you think there will be an issue getting a tenant in Perth's current soft rental market?

Rear property - possible issues if front house is under renovation?

Property Manager in Frankston or nearby recommendation

Hi

Can you recommend PMs for managing an IP in Frankston?

Thanks

Property Manager in Frankston or nearby recommendation

Sell PPOR or convert to IP

Just after different peoples opinions on what i should do.

currently living in PPOR and starting to build a new PPOR
should i sell or convert to IP?

have probably over capitalized slightly as i wasnt intending to build a PPOR so soon. and plans changed, so has put my structure out slightly.

very solid house, have replaced mains water pipe to house,option or rain water or mains water to house by switch of a tap, put shed on, has solar panels, fenced side yard (corner block) the list goes on. apart from HWS (over 10 years old) i cant see any maintenance issue in the next few years that might arise

have tidied it up a bit after valuation. doing bathroom reno atm and look at tidying kitchen up.

i could rent it out for about $250/week. loan is only 136k valued at 200k in the slow market (i think its undervalued though by around 10k min bore my additional work) . id be wanting around 250k but thats probably more than its worth.
also would have to pay CGT on the gains

if i could sell for a decent price i probably would but market isnt too active atm
if i cant, could i sell to de facto partner or some other way of extracting the equity out to put against my new house without costing too much? (depending on financials)

as my setup wasn't correct when i started and have a fair bit of equity in the house. If rented i wouldn't receive max deductions and money would be tied up in the 'IP' that i could use to offset the new PPOR
only useful to buy future IP's

If i sold i could release that equity and use it for new PPOR and (increase other investment opportunities ?) but also may be losing out ie selling costs, lack of rent, less CG than im after)

hows the CGT ruling work if your trying to sell your previous PPOR while living in your new PPOR. and can you rent it out while trying to sell it and not have an issue in that regards?

Sell PPOR or convert to IP

Lock it in?

Hey all,

just had a word with my PM regarding air cons,

The tennants are still requesting an aircon, but we'd agree (PM & me) it'll be a $10 a week increase. and she said she could lock them in for 2 years.

is this a good plan or is it too good to be true?

Lock it in?

US LLC or Aust Pty Ltd ?

Hi guys ,

I am after a piece of advise , I am starting up couple of reference websites i.e. they are like blogs having reviews of products and links of products on Amazon.
Every click pays me a % and mainly US mkt will be targeted with this.

Now , I already have Australia Pty Ltd , I wanted to know if I shall register my sites on my existing Company name or shall a get a Delware or Nevada LLC ?( Or Do I need to have a US LLC to operate my sites)

What about benefits / negatives of both in my scenario ?

Appreciate that in adv.

Thanks !!

US LLC or Aust Pty Ltd ?

(Sydney) Is Bella Vista riding this wave?

Hi,

My observation is properties on community tile in Bella Vista (not Waters) close to future station are pricing up dramatically and sell well. Free standing houses away from the station or close to Seven Hill road seem not performing as impressive.

Any comments or different observation?

(Sydney) Is Bella Vista riding this wave?

New Apartment Block Across from Mine Planned

I see there is a new 10 unit apartment block going up across from where mine is located which is right on the top corner unit in the block so will be most effected. I'm worried it could also take the view away but from what the plans say it looks to be opposite on the other side so it should not effect that.

My block is brick built in late 70's I think but in good condition. It is the only one in the vicinity although there are other blocks in the area. It has 12 units, the new one looks to have 10.

Will this have a negative or positive effect on my property? I get good rent and the area is generally average for rent demand. my concern is the new one will look much more modern than my block and devalue it?

New Apartment Block Across from Mine Planned

This is a bit Rich

We went out for my mother's birthday last night and got hit with $15 for corkage per bottle:eek: 12 people, perhaps 6 bottles of wine?? $90 on corkage.

I think that is pretty rich, mum paid, nonetheless I think this price for corkage is way over the top.

I would perhaps think $2-$5 OK, but $15, give me a break.

MTR:)

This is a bit Rich

Finance for Developer

Hi,

I have been developing houses as a full-time occupation for the last 5yrs. I have been using low docs for that period as I had the consideration banks etc have an aversion to property development as a sole source of income. My income is generally one large amount each year - when a development sells.

Does anyone know of any lender who is partial to doing a full doc when BAS's & bank statements show these large single annual payments.

As well as financing the developments, I want to re-finance 3 rental properties as well as this hasn't been done for around 5yrs (to get out more equity for more developments).

Net profit before tax is around 15%. Also, I am not a builder, construction is outsourced. Location is Brisbane.

I'm after normal residential financing on the rental properties & possibly on the house devt's as well but not essential, to keep the interest rates down. Low docs I have are currently around 5.5%.

Thanks for any assistance.

Finance for Developer

Vendor asking for delayed settlement

Thought I would bounce past SS, for my sister's property purchase, the vendor has requested delayed settlement for 1 month so that it falls on 2 July 2015.

The property is currently an investment property for the vendor. My sister will be moving into it and is taking vacant possession.

Our solicitor is not aware of the vendor's reason for delayed settlement, however delayed settlement does work out better for my sister.

My concern is whether there is anything sinister about this and should we decline their request?

Initially i was thinking they wanted to settle in the new year for tax reasons, but im pretty sure tax is based on the date the contract is signed (though they may not be aware of this).

Anyway, what are your thoughts? Should we just accept their request or decline it?

Vendor asking for delayed settlement

What is a check valuation?

I've been disputing a valuation on one of properties and the broker back to me with this.

Quote:

"We have had Propell review their valuation & assess with additional comparable sales They have completed a thorough review however have confirmed that an increase in value is not supported We have therefore ordered a check valuation and will advise upon it's receipt - ensure customers aware of new inspection"

What does this mean? It sounds like they are saying, they are not moving from their valuation, but then what is this check valuation about?

(Unfortunately the broker's assistance does not know what it means either and the broker is not available).

What is a check valuation?

compensation from tenants for damage to floor boards

Gday all

When it comes to damages from tenants and an amount as compensation for repairs is required, where it's not a simple fix or replace. How do you or your property managers come up with a value?

Tenants are just vacating and have scratched the floor boards, which were sanded and stained only 2-3 years ago. The tenants are offering $75 and the property manager is asking me if I'm happy or have a figure that i see fit. Personally i want the property manager to tell me! Not me and them haggle for it

What are your thoughts when it comes to compensation

Attached Thumbnails

 

compensation from tenants for damage to floor boards

PPOR - Advice on Floorplan

Hi Everyone,

We've recently purchased a new PPOR. Were deciding on a floorplan for the house before we look at going to builders/renos. I've attached a copy of the 'original' floorplan plus the 'proposed' floorplan I've come up with.

Some notes:
-Plan to add a third bedroom
-Split the main bathroom into two to make an ensuite for the master bedroom (third bedroom). Ensuite 1.2 x 2.5m and main bathroom 2.2m x 2.5m.

Some questions I'd like to throw to you:
1. What are your thoughts with the bathroom sizes? Have I shared the sqm evenly enough for an ensuite and a main bathroom?
2. Should I just keep 2 bedrooms instead of three bedrooms and have a larger kitchen to dining/lounge area?
3. What are the general renovation costs to set aside (in percentage terms) to set aside for a bath, kitchen etc?

And lastly, is there any advice you can provide on improving the floorplan?

Thank you in advance

Attached Thumbnails

 

PPOR - Advice on Floorplan

Are you left or right handed

Ladies and Gentlemen, here goes my first poll and it's one one that will get you thinking, hence investor psychology thread.

I heard that lefties earn less and are a minority in society (only 12 % of the population are left handed).

If you're a left handed brickie your rear end will face the wrong way and it will be difficult to find a left handed trowel. You will also have trouble finding that elusive left handed screwdriver. You could search all day for it lol.

Being a southpaw could affect your ability to be a successful property investor. Or could it? Have your say.

Datto (orthodox)

Are you left or right handed

Insurance Claim - Recent Thunderstorm Damage

Wondering if anyone has received repair bills related to the recent wild weather in Sydney?

According to my PM, a corner of the roof collapsed at one of my western Sydney properties during last week's storm. Apparently, structure needs repair and tenant is seeking rent kickback from water damage. Tiles, ceiling and gyprock work amounts to a $2,000 bill.

Currently everything is covered by rent, and insurance claim is being handled by PM, but I will keep updating any progress. May finally get some 1st hand feedback on insurance!

P.S Mine is with EBM.

Insurance Claim - Recent Thunderstorm Damage

General thoughts on townhouses & villas ?

Hi there a bit new to the forum but I was hopping to get your general thoughts and perceptive on buying townhouses and villas?

General thoughts on townhouses & villas ?

Help me restructure my lending

Hi, I want to save some money on my biggest expense - interest.

Currently I have 4 loans

3 loan of $280k with Macquarie at 4.54%. The properties these are against are worth $420k, 380k and $370k.
1 loan of $280k with AMP at 4.52%. This property is worth $430k.
1 LOC loan with CBA against my PPOR of $260k @5.1%. This is fully deductible as the entire loan was for deposits on investment properties.

I am currently overpaying the LOC loan as I want to be rid of it. I am not currently planning on buying more investment properties as I am diversifying into shares (currently with some unrelated income I have from an overseas investment property).

I need to find the best way to reduce interest charges and be free of the LOC. The plan is then to use the money that I was previously using to overpay the LOC to purchase more shares.

The highest charges are on the LOC, but it is my in/out transactional account for all my investment properties.

Am I doing the best I can, or is there a more cost-effective way to finance?

Thanks for any advice.

JB

Help me restructure my lending

Toowoomba?

Hi all,

I have a client thinking about H&L in Toowoomba - is there anything significant she should be aware of? I'm not familiar with the region at all so would appreciate any insight.

She's after cashflow mainly.

Thanks!

Toowoomba?

Saturday morning outside Medellin

http://ift.tt/1HGDvI0

Paragliding in the mountains 20km from Medellin. I've never done paragliding before- it was fantastic.

Saturday morning outside Medellin

Deutsche Bank Pays $2.5 Billion To Settle LIBOR Manipulation case

Too big to fail (or Jail)

Quote:

Germany?s Deutsche Bank has been fined a record $2.5bn (?1.7bn) for rigging Libor, ordered to fire seven employees and accused of being obstructive towards regulators in their investigations into the global manipulation of the benchmark rate.

However, four of those employees were later re-instated by German courts

Quote:

"Surprisingly, despite the severity of these offenses, the government concluded that these crimes should be punished only through a financial penalty." ?Bartlett Naylor, Public Citizen

No Jail time for anyone

The penalty follows a seven year investigation into how some of the world's largest financial institutions secretly conspired to rig benchmark interest rates to their benefit.

The LIBOR (London Interbank Offered Rate) is an average of what banks charge for lending to each other.

More here on Forbes

Deutsche Bank Pays $2.5 Billion To Settle LIBOR Manipulation case

Building Costs - Perth

Hi All

Just reviewing building costs in Perth at the moment for villas, my last build which I consider high spec came in at around $1280 per sqm, does this sound about right?

I think building costs may actually drop in Perth over the next year as we know market has changed??

What are you all experiencing at the moment?
Anyone quoted any builds recently?

MTR:)

Building Costs - Perth

Can someone tell me if this is legal please?

Hi All,

Interested to know if an idea I have is legal or not.

Basically I'm building 2 identical townhouses as we speak. My idea was to build one for our family which will become our PPOR and the other I was going to sell.

Would it be legal if I moved my family in to one Townhouse for 3 months and make that our PPOR and then sell it after 3 months as our PPOR and then move in to the one next door which would then become our PPOR after the other Townhouse we originally moved in to has been sold and settled?

Any issues with the above?

Can someone tell me if this is legal please?

Splitting one bathroom into two

Hi Somersofters,
We are looking to purchase our first IP and have found one that we are looking to make an offer on. It needs a bit of a cosmetic reno but has some great potential. Our only other concern is it only has one bathroom and is located in a very family oriented area, and we are wondering whether its worth considering turning the current bathroom + toilet into two separate bathrooms (toilet in each).

Have attached a VERY rough sketch but essentially the bathroom and separate toilet are right next to each other. Thinking of knocking down the wall between the two and erecting a new one which divides the new space into two.

Obviously we would have to get council approval and confirmation we are not knocking over a structural wall. Assuming this is all good though...

- what kind of cost would we be looking at for this?
- is it pointless to have two bathrooms that are identical next to each other? From a reval perspective, it might be sufficient, but not sure if it would have any impact on potential tenants (given neither would be an ensuite)?
- we considered turning the one on the right into an ensuite but unfortunately it's next to the smallest of the bedrooms. All bedrooms are down the one hall, with the bathroom.
- approximate room of the current bathroom + toilet (combined) is 1.8m x 3.5m so new bathroom would be 1.8m x 1.75m - is this too small for a bathroom? I don't think we would have enough room for a bath either which I think would be quite important in a family area.
- although difficult to compare, 3x2 v 3x1 seem to be getting at least another $50k in purchase price.
- another hurdle is a window that takes up the length of the bathroom, how easy is it to erect a wall that effectively would cut the window in half?

In short, should we even be considering this as an option or is it simply not worth it? (or is the space way too small)

Attached Thumbnails

 

Splitting one bathroom into two

Chips

It's crazy the selection of chips available, too confusing, I recently had chilli chips, sea salt chips, you name it I have had it.

At the end of the day I always come back to the original Smiths salt and vinegar the best.

For the chip lovers, what is the favorite ...

MTR:)

Chips

Qld State Govt approves New Logan Planning Scheme. Start in May

http://ift.tt/1HC1nwq

Logan's Potential Set To Soar With New Planning Scheme

Published: 23 April 2015

Logan City Council
A major milestone has been reached in the development of the new Logan Planning Scheme after the State Government approved it for implementation.

The scheme is anticipated to commence in late May.

Planning and Development Committee Chairperson, Councillor Cherie Dalley (Division 8) said the new scheme would take the City of Logan into the future, as it replaced the city's three existing schemes that had been in place since boundary changes in 2008.

"The new Logan Planning Scheme 2015 will help Council to manage population growth, plan for a sustainable future for Logan and guide the way land is used and developed across the city," she said.

"It will reduce red tape and simplify the rules for property development and encourage economic and employment growth in Logan, with new development set to be assessed against the new scheme."

Cr Dalley said the community had been heavily involved with bringing the new planning scheme to fruition, following extensive community consultation in the first part of 2014.

Mayor Pam Parker said she was thrilled the State Government had given its tick of approval to the new planning scheme.

"It's a major achievement and will unlock Logan's potential as we prepare for more than 200,000 new residents over the next 20 years, and all of the requirements that go along with that, including housing and employment to ensure we grow in a sustainable way," she said.

"The new scheme is one of the final and most important things we as a Council needed to do after the city's boundaries expanded significantly and I'm grateful that it has now been signed off by the Minister for Infrastructure, Local Government and Planning, the Hon. Jackie Trad MP."

Council will provide more information about the start date for the Logan Planning Scheme 2015 in early May.

Qld State Govt approves New Logan Planning Scheme. Start in May

How often have you had to ask for an extension to the finance date? (non-cash buyers)

I have literally never been able to get financing on time, and have had to ask for an extension for every property I've purchased. Is it just me or...is this normal for non-cash buyers? I can usually get my side of things in order in record time (statements, payslips, rental appraisals etc), but then the valuation generally chews up a few days to order, perform and lodge with the bank, then the broker takes a few more days to pull the application together, then there's always a surprise or two where the bank asks for more info that neither of us anticipated and it takes days to turn around. The 2-3 weeks evaporates really quickly even when things are going somewhat smoothly.

So is it just me or are finance date extensions a very common thing? Every time I buy, my anxiety levels shoot through the roof. This is not good for my health!

How often have you had to ask for an extension to the finance date? (non-cash buyers)

WOW aren't you lucky

I don't know about anyone else here on Somersoft. But this statement annoys me the most.
Recently at a friends BBQ I was asked about a unit I own, I went on to discuss with this person how it was going and that it was doing really well and had excellent tenants. Then for the person sitting on the other side of me who wasn't involved in the conversation to say "Wow, aren't you lucky" and then left it at that.
This left my blood boiling as she has no idea the sacrifices that I made to buy that unit and how much effort I put into it renovating it (former PPOR).
Just wanted to vent this sorry, but I'm sure I'm not the only one who gets annoyed when people say this to them

WOW aren't you lucky

Grays online for reno bargains

Hi,

does anyone use the Graysonline website to look for bargains on your renovation project? I have just heard about it but it seems like a tricky website to get around and get on with.

Grays online for reno bargains

Finance for non habitable property

Currently we are looking to purchase a place for a PPoR that has been vacant for ~7 years and is about to come on the market, not listed yet so trying to get in an offer quick. Currently the bank would probably view this property as non habitable (even though possums seem to think it is fine). The purchase price, assuming our offer was accepted, would represent land value only.

What considerations do I need to think about?

For reference
Price ~$550k
LVR 85-90% ideally, or would we need to go to sub 80%?

Finance for non habitable property

Any good property search sites, Vic, apart from the 2 main ?

Hey people .
Any other worthwhile property search sites about apart from Domain and RE com ?
l'm mainly after anything covering central to sth western Vic stuff.
Love Domain , seems far better and uncluttered than RE and a 10x better search to l reckon.

l use to love the papers but my main has gone to a website and that's 20% blocked at the top with some stupid black index thing that could easily be 5% of the size so that you can actually see the damn pages and ads properly. Search seems effd to , can't be bothered with any of it's bs Must be some absolute deadsh@ts designing these things, morons . Trading post is unbearable to , such a shame that was sold and went to internet , was the best buy/sell paper in the country l reckon

l know there's dozens of sites but you waste all this time clicking clicking , finally get them set to see they only have like 30 properties or some crap.

Also any good owner selling sites?
Gumtrees good l reckon though it doesn't have that much once you've narrow it down unfortunately .

Any good property search sites, Vic, apart from the 2 main ?

Anyone experiencing delays with AMP at the moment?

Valuation was done Thurs morning and still hasn't been loaded into the system. Broker can't start till he has it. So annoying. How long does it take to enter a price into the system!!!!?

Anyone experiencing delays with AMP at the moment?

Reality shock - development approval granted

https://pdonline.brisbane.qld.gov.au...per&Key=454207

So, after running head first into the excitement of 'developing' and getting a reality check of just how difficult things can get, albeit we definitely didnt take the easy route! now left with the difficult decision of what to do now and accepting the fact that I know very little and could really do with your help.

We bought in June 2013. House in DCP, agent said couldn't get demo, no use to developer etc and it had a lot of retention issues that we renegotiated purchase price on.

I did some checking on the city plan (after purchase, had no previous experience with this) and acceptable solutions seemed to say we could. Spoke to some town planners. We lodged to demo in aug 2013 and got knocked back. Planner said not to lodge demo and dev at same time, good advice! We got lawyers involved and after 10 long months and lots of costs, got approval for demo
Selling agent came back and offered us 1.2 when we hear we got the demo but so keen to build we said no.
Lodged for 13 2 beds.
We have had many, many bumps in the road and we were sure it was not going to get across the line, several times...

Cannot look like 3 story and must have character, fit with streetscape etc this was in meetings before we even lodged so complete redraw!
More natural light
Bin collection not feasible
More deep planting/ would have halved the size had council landscaper got that one
Make it look like 3 story???!!!!

We were watching the market going up and up very unsure if this would get across the line and didn't want to miss out any longer so bought 2 properties using herston rd as security.
We are now a mill short on build costs with what we can borrow (est roughly 3m for total build and costs) but very unsure of what it would take to get someone interested in JV (my project manager suggested this) and if we want to stay invested in it, such a great location for units, we think!
If we sell, not sure what it is worth as have had 3 agents say anywhere 1.2 to 1.5, how to put a price on it?
How difficult would it be to sell by 'trading' for some units and is this feasible?
(This was our pension plan originally, to hold all)
Land banking ? Until hubby gets another job! (YEP, he wants a break for a while)
What other scenarios can we look at?

We only got approval yesterday (almost 2 years later and so much has happened to affect our plans) and my mind is just racing with what to do so am throwing a lot of mixed thoughts around and would love some grounding!!

Reality shock - development approval granted

Worst Manager of Prosperity

A friend emailed this article, I think a very good read.

http://ift.tt/1GgZQ9w

I do agree with some of the comments, more money could have been pumped into infrastructure Australia wide, manufacturing got shot due to high Au$ ...

I know we do some things right, but we could have done way better, now we don't have the mining boom, its not going to be a tough call.

MTR:)

Worst Manager of Prosperity

Painting Window Frames

Recently moved into a new PPOR and would like to change the colour scheme.

The window frames are coloured - powder coated?

Has anyone has success with DIY painting or using professionals? Cost?

Recently stayed in a unit on the Gold Coast, and paint was peeling off the frames everwhere, so I imagine prep is the key.

Any advice appreciated.

Painting Window Frames

Lest We Forget.

Noel Watson - Mothers Daughters Wives

http://ift.tt/1OQ3XxK

Lest We Forget.

Property Manager Terminates Themselves After Being Questioned???

Hi Guys,

I am in a situation where a property manager has elected to terminate their management agreement with me on two properties they've been looking after for me over the past 12 months. This comes after many problems that I had discovered came to the surface and I put a little pressure on them to rectify and resolve for new tenants that have recently moved in.

It seems the agent is refusing to carry out their duties on what is very simple tasks and now that I'm putting them under the spot light with their employer, the acting agent has decided to send me a termination letter and now refusing to manage my properties at all.

I've had the tenants calling me directly (sourcing my number from their neighbours) and suggesting that the agents will not and have not responded to any of their requests and partially talking towards them in a demeaning manner leaving the tenant rather irrate. There may or may not be any major problems and all I've asked is that the property managers help resolve the tenants issue, which may or may not be from the previous tenants.

Can a managing agent just up and leave their responsibilities when the going gets a little tough? They've had a VERY easy run without too many problems until this point.

I'm a little gob smacked here, since I ourchaee four properties through them in the past 12 months and now have them not wanting to deal with me because I have had to give them a nudge and question a few of their decisions with the previous tenants whom were their personal friends who left the property damaged and with errors on leases that have cost me a few thousand dollars. They also continue to avoids providing me with any documentation whatsoever to justify any of their actons or the maintenence costs on the property including Police reports where the house was maliciously damaged and I was not notified hoping this wouldn't be noticed. I live 5hrs away so it makes things hard to manage myself hence I pay $30 per week for the property manager's to do their jobs and hopefully do them well.

Oh... I can go on and on...

Is what they're doing fair or am I sounding like a whinging *****? I'm feeling a little screwed over at the moment.

Property Manager Terminates Themselves After Being Questioned???

Ideas for best rental return West Ryde Unit

Hi,
I have a 2 Br apartment in West Ryde. It's on the train line, 1 minute walk from station.
I was thinking about how to get the best rental return for this property. I was thinking perhaps leasing out the car space separately to the apartment could be a way to go. Apartment would rent for maybe $440 per week, car space $45, or maybe more. (It's just 1 minute to the trains and buses etc). Previously I was getting $460 for both together. (Rented out via an agency)

To rent out the car space long term, would listing it on Gumtree be the way to go or are there better places to advertise? It would be available from the 16th May. I would probably rent out the apartment via agency (note that the apartment is conveniently located to my home, my work and it's on the way from the city too should I work there but maybe the hassle of self managing isn't worth it?)

Ps. I suspect giving access to the car park may also necessitate giving that car space renter a key for the common areas which include swimming pool. Not sure if that would be completely great in the eyes of other people living at the complex should they decide to start using that facility. I guess only a fairly small proportion of tenants use the pool anyway...

I was also thinking as an option I could lease out the apartment to students Feburary or March to November and airbnbing it between Dec to Feb, with a better yield possibly, though that could be more hassle than it's worth, having to remember i'm responsible for furnishing the apartment and electricity bills and wifi.
It's somewhat close to a TAFE campus (still at least 15 min walk though) but I think uni students (Macquarie or Sydney Uni, or maybe Parramatta via bus) are possibly the students who are more in need of accommodation March to November and there's more demand from this group of people during semester.

Ideas and thoughts?

Ta

Ideas for best rental return West Ryde Unit

Suburb Performance Reports-Investar

Some will find theses links useful others will not



http://ift.tt/1bAZe6X

Suburb Performance Reports-Investar

Sunny Coast - Areas recommendation for living?

Hi guys,

We are thinking of moving to the sunny coast and we are starting to look at different areas. We spent a couple days up there and really liked the vibe, but it's not quite enough to know which areas are best and which to avoid.
We want to stay clear of the bogans and are looking for areas that are safe, with good amenities, schools, family friendly, preferably near the water (dreaming of a canal place).

What would probably be most useful is areas to stay clear from, and we can sorta work up from there.

I hope some locals can chip in!

Cheers

Sunny Coast - Areas recommendation for living?

how long to wait before I can re-fi again with St George

Hi everyone

St George refinanced a loan of mine from nab in feb. I only asked for a small increase in loan amount to buy a new ip which settled a couple of weeks ago.

There is more equity in the original property which I wish to access. Can I ask for a re fi now or do I have to wait for a certain period to pass?

Thank you in advance!

how long to wait before I can re-fi again with St George

Where to eat around Maroochydore?

We are celebrating DH 60th at the coast soon with 14 others.
Any recommendations for a nice place for dinner?

Where to eat around Maroochydore?

Is 48k reasonable price for a 29sqm brick garage?

Wonder what's the going price for a pitched tiled brick garage 8mL x 3.6mW x 2.4mH?

Out of 2 quotes, cheapest I got given is 48k single brick/pier, 53k double brick. Price including approval submission. It includes a small bathroom. Is the price reasonable?

Since double brick is only about 10% more than single brick/pier, is it better to go with this option?

Is 48k reasonable price for a 29sqm brick garage?

Landbanking a development site

I've been fortunate enough to have one of my Western Sydney houses I bought in 2009 rezoned for 6 storey high rise. I'm interested to see if anyone has examples of high rise zoned sites that they've held for a few years after the change in zoning. Has it outperformed regular low density houses?

The reason I ask is I'm considering selling as I may be able to get 2-3 neighbouring properties involved in selling and therefore achieve a premium price. If I sold, I'm considering these options:

- buy 2-3 in a market that has more steam left than Sydney
- put granny flats on my two Logan properties when they are allowed
- look for future rezoning opportunities

I have investigated the revaluation option and the valuation came in around $200-250k below what I may be able to get by selling. I'd be up for about $120k in CGT if I sold.

Landbanking a development site

Public Trustee - Brisbane Auction

Just wondering if anyone has bought or looked into buying through the public trustee - brisbane at auction?

Just wondering how picky they are on reserves?

Seems as if the market isnt hot in parts of Brisbane (especially on properties that are unconditional sale and requiring work)

Did go recently see an auction (mortgagee) where there were only 2 parties interested and the property got passed in 30k below reserve (according to what the agent said on the day. Property was advertised later for 50k above the price (probably only sold for 20-30k over what it got passed in but im sure there would have been hassle and it would have been a conditional sale at that price)

Public Trustee - Brisbane Auction

Reno for profit on PPOR

Hi all,

I recently bought a property in WA and would like to add value to create equity. Nothing unusual there. A house down the street from me recently sold for about $135k more and it was on a smaller block but far nicer in its finish. It had a pool and a lovely outdoor area, more modern finishes and better presentation throughout.

I know there is a good amount of areas I can improve in my place although it is already a nice place but my vision in this area is not a strong point for me. I know the usual, paint neutral colours when selling etc and maximise your market but I am not selling, I am looking to increase value so could I get any ideas you are happy to share. I am wide open and ready to accept constructive criticism since I have done no work to the place at all yet and none of the d?cor is my own, so I am fully off the hook here.

I'm told that kerb appeal is a big area to add value and I know that this is a weak area for the house. It needs a good tidy up and some landscaping as at the moment it is very blah and forgettable and almost a turn of for some reason although I can't out my finger on exactly why.

I have not got a budget in mind yet I am simply looking to see where I can get the most bang for my buck.

I cannot easily add photos to this.

Attached Thumbnails

   

Reno for profit on PPOR

Failure to meet settlement

Hi guys,

I am in a bit of a pickle at the moment, hoping for some advise. Below are the details.

I have finance approval from ING to purchase an investment property, I know ING not my first choice. They took a very long time to approve finance and now they have limited time to make settlement.

Basically the seller is frustrated because I requested a number of finance extensions and he is not willing to extend settlement because he had committed the money else where.

So I am now doing my best to put pressure on the bank to meet settlement however they are not coming to the party, I have contacted the bank myself and my broker has put huge pressure on them to escalate. What else can I do? Can I get a solicitor involved or are their hands tied as well?

Bank is telling me they are drawing up paper work etc. to deliver to their solicitors which is going to take them multiple days.

Thanks

Failure to meet settlement

Preparing house for new tenant concrete house

Hi there

I am finally getting possession of my new IP in reservoir tomorrow.

It is an older style concrete commision style house so am eager to complete so cleaning to get it up to scratch

I would like any advice from people who have pressure cleaned or used sugar soap to clean concrete houses. Is this safe for concrete houses? Any other advice for concrete houses?

Also wanting some general advice on preparing a property for rental. The carpet is a bit old and I am wanting to get advice on if I should bother fixing this as it will be rented out.

Thank you in advance

Preparing house for new tenant concrete house

Exemption from LMI, and exiting joint ownership

I'm considering purchasing an investment property (90% loan) in conjunction with my brother who is a Doctor therefore qualifies for exemption of mortgage insurance with anz, under there lending criteria. An additional advantage is that this would improve my borrowing power.
Problem according to my mortgage broker is that this would effectively reduce my subsequent borrowing capacity as I would be assessed as liable for 100% of the debt but only 50,% of the rental income, regardless of ownership split.

To escape this, I'd like to transition to full ownership down the track.
I'm told by my broker that this is complex and he is not sure of what the overall tax implications are - ie returns and capital gains tax.

The objective is to have my brother on title in order to avoid mortgage insurance and harness his borrowing capacity, without invoking complicated and costly consequences down the track.
Any advise on best way to proceed would be greatly appreciated!

Exemption from LMI, and exiting joint ownership

Exiting joint mortgage - tax implications

I'm considering purchasing an investment property (90% loan) in conjunction with my brother who is a Doctor therefore qualifies for exemption of mortgage insurance with anz, under there lending criteria. An additional advantage is that this would improve my borrowing power.
Problem according to my mortgage broker is that this would effectively reduce my subse end borrowing capacity as I would be assessed as liable for 100% of the debt but only 50,% of the rental income, regardless of ownership split.

To escape this, I'd like to transition to full ownership down the track.
I'm told by my broker that this is complex and he is not sure of what the overall tax implications are - ie returns and capital gains tax.

The objective is to have my brother on title in order to avoid mortgage insurance and harness his borrowing capacity, without invoking complicated and costly consequences down the track.
Any advise on best way to proceed would be greatly appreciated!

Exiting joint mortgage - tax implications

Newbie - basic accounting/tax info

Hi all,

I have been reading for a while now, and I'm looking at purchasing my first IP. I've decided to start out fairly small.

I've been running through my figures and they look like the below. What I'm confused about is the negative/positive gearing side. The property should earn approx $16,640 per year (F), the interest repayments will be ballpark $13205 (G), there will be a difference of $3434 (H). I take it this means G will be tax deductible whilst I'll need to pay tax on H. Then there's the deductions aside from the interest (I). If (I) exceeds (H) I take it the difference is then tax deductible?

(insert confused face here)

Thank you for the assistance :)

Quote:

A Property amount: $350,000 B Stamp duty: $17,000 C Other: $3,000 $370,000 D Deposit: $110,000 E Loan amount: $260,000 70% LVR F Expected gross income: $16,640.00 G Expected interest repayments (4.60% @ 25yr) $13,205.40 H Difference between gross income & interest $3,434.60 I Tax deductible claims TBA

Newbie - basic accounting/tax info

Belfast , N Ireland

Just had a friend come back from Belfast in Northern Ireland, he is going to buy investment units there and rent them out and get a real estate agent in Belfast to manage them.

Now the fighting is over prices are skyrocketing and Belfast is cheap and good returns.
I'm thinking of going over there in the next few months, anyone have any experience with Northern Ireland?
I rang the real estate agents up there and they returned my calls and seemed very friendly.

Belfast , N Ireland

Which Area to avoid in Armidale NSW

Hi All,
I am planning to get the next IP in Armidale with a potential to devlope later and looking for land area >800SQM. I am new to the area and lives in Sydney. Last week Went for a drive and feel and happy with the outcome.

1. Which areas to avoid (housing commission) etc. Is there a way to find a map or something that outlines this?

Thanks in advance..
:confused:

Which Area to avoid in Armidale NSW

Buy my IP through SMSF

Hi. Does anyone know of a way to legally buy an IP I have already purchased using SMSF?

Buy my IP through SMSF

Potential negative gearing changes

Will be interesting what the ALP proposes in relation to negative gearing changes.

For property investors that know what they are doing, it will probably be great because it will give them interesting opportunities.

I can't decide if getting rid of negative gearing will be good or bad for the country overrall. It will probably be a negative overrall but I can see some very postive results in the short term from the changes for certain people.

Will be interesting if it creates a building boom? Probably not because developments will get hold up by local governments, but if local governments play its part I can see a building boom. This could create inflation in the economy (which could be a good thing compared to the alternative of deflation).

Interesting times ahead.

Potential negative gearing changes