Greensborough/Montmorency/Eltham

Hey guys,

I've been researching suburbs over the past few months around the Melbourne region and have been tracking a few places which have higher owner occupancy rates, not huge amounts of growth over the past few years, decent public transport, good vacancy rates and within the $500-$600k median house price range.

I come from WA so have minimal knowledge of the areas unfortunately. However, I have landed upon a few areas which have sparked my interest.

Greensborough, Montmorency and Eltham.

They have had a bit of growth (~5% growth in the past year), however they have the train lines, good owner occupany rates and within my price range.

What is the suburb like? A bit old? Lowish yields that could hurt my cash flow? Any negatives?

It also appears to have some large blocks, so later down the track (10 years or so), there could be possible opportunities to sub-divide possibly? I'm bit of a rookie but my strategy is to buy which won't hurt my cash flow too much (not fussed if I'm $300-$400 a month out of pocket for now), hold for 10 years (hopefully get some decent growth), and then subdivide when I've got the skills and expertise to go about it.

Thoughts?

Greensborough/Montmorency/Eltham

Architect recommendations - Parramatta NSW

I am planning to get approval for a knock down and rebuild a duplex within Parramatta council area.

The site should be straight forward however there is one minor variation regarding the frontage that I need to overcome.

I am looking for a good architect (rather than a draftsman), preferably someone that has dealt with Parramata local government area.

I have done a full survey and need to take action quickly so any recommendations would be great.

Also on an unrelated topic, how can I research some of the duplex designs to explore some styles in building design. Any recommendations on what styles are attractive that might also be future proof if I was to sell / rent the property?

Architect recommendations - Parramatta NSW

Backyard for Sale in Donvale

Just in case if anyone would be interested.

I was walking with my dog and noticed a sign for sale (Donvale, Leslie street).

Backyard for sale,

single level home
3/2/2
Plans approved
Phone number is in attached picture

Attached Thumbnails

 

Backyard for Sale in Donvale

Where is the Gold in the Coast? Opinions on the Gold Coast

Hello SSters,

I spent last weekend on the Gold Coast and had a peruse around real estate agents in the 'residential' areas (i.e. Runaway Bay, Hollywell, Hope Island) and noticed that prices where somewhat reasonable relative to rental price.

Some other points that have spurred my interest and place upward pressure on pricing
- Recently implemented tramway
- Commonwealth games in 2018
- Lower Aussie dollar - increasing tourist demand

As such I'm interested in peoples thoughts in some of the residential areas in Brisbane and which areas are going to be the star performers in the next 36 months.

(disclaimer - I am not interested in holiday/OTP in Gold Coast - as this market is too volatile for my liking)

Regards,
Q

Where is the Gold in the Coast? Opinions on the Gold Coast

struggling renting an IP out; qld

a few opinions would be apprecaited,
short version
property now been on the market for 7 weeks odd now, total of 3-4 parties inspected across 4 inspections, 3 applications taken, none proceeded

house: 3bdr highest, recently budget renoed, in redbank plains

ad is quite good, photos good,

the only bug ive had is being quoted $320-$340 per week (quoted half way through reno), its now dropped from this range down under $300, which sort of annoys me, because I was quoted unrenoed $300, when searching for managing agents.

a few weeks ago, got told at $270 it will walk out the door, after subsequent price drops its almost at this price and still no interest,

there arent many other agents that seem to specialise in this suburb, so I cant really try others for their opinion, plus the attitude of the agent I dont like (more a, take it or leave it type attitude when I try and negotiate anything except price drops)

the only option im thinking of is getting another gent on board and giving them an option to list or exclusive listing

struggling renting an IP out; qld

A/C installers Nowra

Am looking for a reptuable air conditioning contractor to replace an old split system. Any recomemndations welcome.

A/C installers Nowra

A few quick questions from a newbie

On a recommendation from a friend, my wife and I (both aged 27) went to a Knowledge Source event on the weekend (don't worry, we didn't buy the $5k course!).

If you don't know, Knowledge Source preaches buying CF+ properties and properties with good growth potential, instead of putting $ into negatively geared investments.

My parents recently retired quite young by buying good negatively geared properties, and we had planned to do the same. We were accordingly both skeptical about the seminar and didn't expect much.

Luckily, we didn't waste our Sunday, because the points made were valid and logical, and we both came out very interested in looking at CF+ property, such as regional unit blocks.

I had a few questions from the day and also since reading up on this website, and would love some input.

1. They told us yesterday to not have your PPOR with the same banks as investment properties. We have about 100k equity in our home, which we would like to use for a deposit instead of going into our cash savings. What is the process for doing this if we don't refinance through the same bank?

2. Pricefinder looks good, but the only product I could find was $180 a month. Is this just what it costs or is there a cheaper alternative? At this stage I think I could get enough value from the free information available if Pricefinder will cost $2k a year.

3. From experience, is it difficult finding renters in regional Victoria to fill a cheap unit? I saw some threads about people having to drop rents and wondered how that applied across the board.

4. When looking for CF+ property, is it as simple as being in the right spot at the right time to find something that works for you? I found a few properties online that look decent, but it seemed too easy, making me wonder what the catch is!

5. When buying insurance for a block on units on the one title, is the usual to get a separate policy for each?

A few quick questions from a newbie

Gold Coast SS Dinner Fri June 12th Helensvale Tavern

SS Dinner Fri June 12th Helensvale Tavern

--------------------------------------------------------------------------------

Here are the details for the next meet-up dinner.

It's at Helensvale which is a little closer to southside Brisbane and the venue is adjacent to the M.1 so hopefully it might suit some Brisbane folk to come along and still central enough for those on the Gold Coast.



Friday 12th June, 6.30 pm at the Helensvale Tavern:

8 Sir John Overall Drive
Helensvale QLD 4212


http://ift.tt/1PY2yv7


I will make a booking under Somersoft for 6.30 pm. All interested in attending please RSVP and let me know with number attending on this thread so I can confirm numbers with the venue.

It would be nice to see some new faces............and old ones :D

Thanks :)

Gold Coast SS Dinner Fri June 12th Helensvale Tavern

$1.6 million house in Caroline Springs

http://ift.tt/1PXOTUR

This house sold the other week for $1.6 million. Thoughts? :p

It's a nice looking house for sure but seems to be a bit of an over-capitalisation for the suburb. I wonder how much the seller made from the sale.

$1.6 million house in Caroline Springs

Tax deductability

If you're building a new house to rent out are the interest paid on a loan taken out for all the finishing touches such as fence, landscaping, tv antena, curtains, mailbox, aircon, etc fully deductable?

Tax deductability

To add a name to the contract or not?

I made an offer on a property over the weekend and the contract is now with my solicitor. My brother and I have agreed that we would go 50:50 on the property like we did about 5 years ago. The property is $650K.

However, from financing point of view, I need to know whether it is best to add my name to the contract (on the title) before signing the contract.

So here is the background:

Me, married with one child:
PPOR: value $800K with $500K loan in joint names with hubby
Combined income: $60-70K pa gross
Income through parents tax free status: $20-36K pa gross. We distribute our business income by way of franked dividends to my parents as they are both retired and do not have any other taxable income.
Cash, Shares & Managed Funds: $150K


Brother:single with no kids
IP: value $800K with $400K loan
Income: $150-160K pa gross
IP income: $30K pa gross
Cash, Shares & Managed Funds: 250-300K

Our Plan: We plan to purchase more properties together. However, we have agreed after a certain period (3-5 years) one of us would buy the other out as we did with our first purchase together about 6 years ago. We would like to purchase again together in about 2-3 years time when this property becomes cash-flow positive.

Legal Danger: We understand that our circumstances may change, and one of us may get into financial difficulty but we have our parents who have said that they will alter their wills to compensate anyone who may be taken advantage of.
If the property goes in my brother's name and he gets married we plan to lodge a second mortgage or caveat on the property to protect my/our contribution to the property.

So from a financial point of view, not legal, is it best to add my name to the contract or not?

To add a name to the contract or not?

Renting villa to your mum.

Hi all,

My brother owns a little 2 bedroom villa in St Marys. We are going to be moving our mum into it in the next few months as she needs to down size.

Currently it is rented through a real estate for $300 pw, when we move mum in she will pay him $250 directly.

Obviously being our mum we arent going to slug her with bond or anything like that.

What would be the best way of approaching this? The villas are under strata if that makes any difference.

Thanks again.

Renting villa to your mum.

Atfer a good account in Perth

Anyone one know a good account in Perth who is good with investments multiply properties and shares.

Thanks Matt

Atfer a good account in Perth

anyone unhappy with loans.com.au?

hi, I'm about to apply for a loan for an IP and probably going to go with loans.com.au ... is there anyone who isn't happy with loans.com.au?

anyone unhappy with loans.com.au?

Bath shower combo? A pain?

Hey all

I have plans to renovate my bathroom soon and I have a narrow bathroom. I have a shower bath and a 900 vanity in there, what's everyone's thoughts on a bath shower combo?

I personally not liking the idea epsicially for resale.

Love to hear everyone's thoughts.

Bath shower combo? A pain?

Auction And confused

Hi All,

I would like to get some advice from the experienced people here.
We have seen a property which has been listed for auction, we are interested to bid. However I have called, emailed the agent to send me a 'contract for sales ' document, I haven't got one .

When I spoke to the agent he asked me of our budget, not to show all my cards I just said its around $800, then he says the property is likely to go over a million and says are you still interested to get a copy of the contract. I said yes, then he says he will email it to me. It was last Thursday, still no sign of the contract copy.

This is very unusual I have seen agents encourage people to come to auction and send a copy of the contract when requested . I am really confused this agent seems to be un interested , he did say he currently has offer between 1mil and 1.1 mil asked me if I have loan approval.

Any ideas as what is going on here ?

Cheers

Auction And confused

Want to meet ivestors at Hurstville NSW

I am interested in meeting property investors at Hurstville over coffee,lunch or dinner. Wonder if there any members from this area.

Want to meet ivestors at Hurstville NSW

Accountant in the West

Hi Everyone, I am after an accountant in the Western Suburbs. Can anyone suggest one.

Accountant in the West

residential investment loans at call

Have seen a few posts mentioning loans that the bank can 'call in', mainly LOC's

Has anybody had this happen or has any examples? I know there would be different reasons from bank to bank. Just want to see if there are any trends/similarities in the reason. e.g. is it more to do with changes in an individuals situation or the economy or a bit of everything all at once?

I recently read a post which implied LOC's intended for business use would be more at risk of being called, so how 'safe' are LOC 's used for IP related expenses?

residential investment loans at call

Tamworth any potential

Been reading a bit about Tamworth of late. Appears to be going along quite nicely. Bit happening there in terms of infrastructure and just today the Mayor was putting his hand up for Immigration relocations. I saw a cheapie on the web with good rental yield.

West Tamworth looks good IMO :

Median price
$225,000

Quarterly growth
10.84%

12-month growth
12.50%

3-year growth
7.14%

5-year growth
18.42%

Average Annual Growth
3.23%

Weekly median advertised rent
$280 $245

Number of sales
103

Gross rental yield
6.47%

The place I saw was 250K renting for $320.... Am I missing something LOL

Tamworth any potential

possible JV agreement

Hello. I'm testing the waters regarding a possible JV. I have about 200k to invest with someone to do a JV. My plan is to renovate and sell. Whatever agreement I/we enter will be done via the proper legal channels to protect each party. Anyone interested please contact me

possible JV agreement

Changing lending climates - How will the brokers reinvent themselves?

Hi All,

There has been a lot of talk of lending rules changing etc and the impacts on borrowers. This will for sure impact the business for the brokers as well. However no body has raised how the brokers will need to differentiate themselves? Surely, there would be a need to think creatively and certainly brokers would need to work hard to differentiate themselves from the average. Especially those who are on Somersoft looking after savvy investors.

I'm sure it would push people to think outside the box rather than put loans through with the same ease as before. It would also mean, greater focus on what the clients want to achieve and not just your average run of the mill snacks.

Looking for the brokers to provide an input.

This should generate some healthy competition too! Just to add savvy investors like a 'can do' attitude.

Regards,
MsAli

Changing lending climates - How will the brokers reinvent themselves?

Sub division in Lake Maquarie Council

Hi all,

Im new to the developing game so forgive me if this is a basic question, but i have a property in dora creek (2264) which i was fortunate enough to inherit.

Its an old fibro house siting on the front or a 1200m2 block what are the steps to finding out if this particular block is able to be subdivided?

will the council give me a yes or no? or do i see an architect or surveyor?


Thanks in advance

Sub division in Lake Maquarie Council

what happens to house prices during a recession

Hi everyone

just wondering what peoples opinions are on what would happen to house prices IF Australia went into recession. And this combined with the new APRA regulations??

what happens to house prices during a recession

What paid resources do you use?

There's a lot of free stuff - Google maps, onthehouse, allhomes etc.

What are the paid resources worth subscribing to?

What paid resources do you use?

Cheap asses - at what equity position did you begin to relax?

A lot of us have penny pinched and lived humbly to get started. But at what level of equity did you begin to allow yourself to just live comfortably?

I'm not talking about epic splurging and running out and buying an expensive car or whatever. I'm talking about just not having to check the prices on the menus when ordering out and just getting what you wanted. About being able to take a holiday and not worrying about what impact it's going to have on the bottom line. About being able to grab something off the supermarket shelf without comparing the 9 other alternatives first.

And I'm not asking people who were never had to go through this to begin with (maybe you were from a rich family, I'm not judging, just that this isn't applicable to you). Or if you were never a penny pincher to begin with and found other ways to climb the ladder. Or...people who are still tight asses - we all know of people who are loaded and still can't shake that mentality.

So at what equity position did you allow yourself to begin living comfortably? For me I think it was at around the 300-400k mark. I know it's not much, but by the time I had a few under my belt and it wasn't so tight anymore, I found myself enjoying things a lot more. What about you?

Cheap asses - at what equity position did you begin to relax?

A question on director loans for pty ltd companies

Hi All,

If one has a pty ltd company for which they are sole director and sole shareholder, I understand you can provide a director loan but there is a government set interest rate based on commercial terms. I think its something like BBSW + 5% so something like 7% at the moment?

If one were to make a short term temporary director loan repaid in a short period, could that loan be provided and then repaid at 0% interest rate, eg a loan repaid in 5 months? Are there any restrictions in doing regular short term loans?

Thanks in advance for all help.

A question on director loans for pty ltd companies

high rental yield does it mean anything with banks?

another random question haha,

2 scenarios both 80% lends

1st unit 100k purchase 200 rent 80 wk body corp 10.4% yield

2nd house 100k purchase 145 rent 7.54% yield

when trying to purchase both properties banks will ask for a rental appraisal / want to know what the current rent is etc (in this scenario they both have tenants paying those rent figures)

is the 1st property easier to get into because it'll show higher rent compared to the second property?

building a portfolio would it be easier with the first property?

thoughts?

high rental yield does it mean anything with banks?

Is 24 hours notice enough to clean a rental place?

The tenant vacated yesterday. The new tenant moves in next Tuesday. It's self managed BTW.

Anyway, it's a mess. Because the new tenant moves in next Tuesday, I emailed the old tenant to say he has Monday at latest to clean it up or we will hire someone and deduct it from his Bond. I told him he has until the end of today (Sunday) to let us know if he wishes to make his own arrangements.

So...roughly half a day's notice. Then another 24 hours (tomorrow) to actually do it. Is this notice period too short?

Is 24 hours notice enough to clean a rental place?

Which design do you prefer?

Hey Guys,

My architect has come back with 2 different designs for the ground floor. l would appreciate some advice on the following:

Option 1. The laundry is in the garage, allowing for a bigger walk in wardrobe.

Option 2. The laundry is under the stairs and there is storage space is in the garage. Note that this design eats into the walk in wardrobe.

I have also attached the layout for upstairs which i am pretty happy with.

Any other recommendations are welcome!

Cheers,

Derrick

Attached Thumbnails

     

Which design do you prefer?

600k-700k in Melbourne

Where would you be looking in Melbourne if you had 600k-700k to spend on a PPOR? Would love something with best capital growth possibilities, i.e. land. Happy to renovate. Had been looking around West Footscray/Footscray but thinking may have even been priced out of around here.

600k-700k in Melbourne

Joint owner with mum need legal advice please asap!

Bought a house through foreclosure and auction 31 Oct 2014. Both mum and i are the owners. Joint. 50/50 right? I need help. My brother who is 19 pays board to mum every fortnight of 200. Is it my right as co owner to recoup what I am owed? I can't talk to her. She acts like a damn child and says I have no rights cos the mortgage gets direct debit from her account. I pay her weekly for my share. Always have. I have no bloody money anymore. It's like I'm paying for 4 people now instead of 2. I also have an 8 yr old daughter. I don't go in the lounge room even cos that'd mums friggen domain and i stay in my room all day. My brother said in front of mum he doesn't classify me as owner cos I'm nothing to him. Wtf??? Help me please I want to know my legal rights as joint owner. I'm over it. My meds have gone up and doc gives me 50 valium a month now... Obviously affected but does mum care? Pff. Please help me :( I was very well manipulated in this and I want my rights.

Joint owner with mum need legal advice please asap!

Has anyone attended the Cherie Barber - Renovating for profit course recently?

I believe she is supplying ;

1 x step by step guide for renovate to sell
1 x step by step guide for renovate to rent

I believe they are the internal and external design specs.

Does anyone have a copy of these i could copy? Happy to return the original and of course reimburse you for access? :)

Has anyone attended the Cherie Barber - Renovating for profit course recently?

Lets hype Yagoona !! But do your DD ....Self interest post

Declaration of interest - My In-laws live there and I want them to get as much as possible when they come to sell ...

There have been many threads asking where to buy in Sydney recently and the most common reply is , DON"T ....

There is a constant stream of posters reporting crazy prices in a whole range of suburbs . Some of this is driven by particular ethnic groups buying in certain areas .

Yagoona is a non descript middle income suburb in the south west , just north of Bankstown . It is on the train line , but from what I understand , it's n a side loop so the services aren't as frequent as most main lines .

Bankstown in a major suburban center and has at some stage was " the murder capital of Australia " though I think Auburn has been the suburb to be given that title.

It was developed post WW2 with the area consisting mainly of fibro houses , many owner Built . My father in law built the garage first and lived in that while he built the house . HE was a sparkie though later went in to management . His neighbors were often tradies and would help each other out as they built .

Most of the original owners and spent their lives living in there .They are in their mid late 80's or older so there will be further regeneration in the area over the next few years . Parts of it have been rezoned and my in laws are discussing with their neighbors about pooling together , getting a DA and selling . The prime mover is the next door neighbor who is the son of the original owner.

I've been there many times over the last thirty years and their specific area ( Worland St ) has always come across as a quiet nice area with no specific problems , though having said that there was a drug bust in a house over the road a few years ago . It's the sort of place that all the neighbors were talking about the police surveillance going on well before the police made their move , but no one told the people being watched .

Out side the potential for regeneration and potential development ,the reason I'd look there is that it doesn't appear to have move up as much as some of the other suburbs that I would have though would be comparable places .

There were posts about houses in Lidcombe selling well over 1 mill and at the time I checked out Yagoona prices , and they started in the 6's . I didn't do any serious analysis to compare the properties , development potential , and I am certainly aware that prices in some suburbs in Sydney are been driven by ethnic interest . I'm not sure if there are any similar factors involved in Yagoona .

As clearly stated I have a self interest in the area . I'm not saying it is a place to buy , but rather a place to do you own DD on .

Cliff

Lets hype Yagoona !! But do your DD ....Self interest post

PPR to IP - Recommended things to take care of to make tax time easier in future

**Apologies, meant to post this under the tax section***

Morning all,
We are in the process of moving out of our newly renovated PPR and renting a place in a new town for work. Our home will be rented out while we're away, and we may or may not ever move back into it depending on how long I'm away from work and whether or not we have kids before we return.

I have had a valuation done as I topped up the home loan to repay debt with a new split (largely money spent on renovating the premises), and have left the home loan splits on interest only. We'll be prioritising paying down the non-deductable split.

The property will be listed for rent this week but won't be vacant until 30 June, earliest possible move in date will be 1/7/2015. I didn't want to complicate this year's tax which is otherwise straightforward with rental property shenanigans.

Things I had on the cards for next year that aren't currently claimable that will be were:

• The interest on the loans used to purchase the properties - these have not bee contaminated.
• Body Corp/Sinking Fund/Water/Rates/Property Management Fees
• LMI relating to the original loans used to fund the purchase - not the LMI on the top-up that was for non-deductible purposes.
• Depreciation? When should we get a depreciation schedule done up? We spent about $35-40k renovating, replacing floors, wardrobes, kitchen, taps, painting, air con, kitchen appliances, ceiling fans etc...The building itself is a 35 year old unit but internally it's basically brand new.

Any traps for new players as to things we should be doing at this point?

PPR to IP - Recommended things to take care of to make tax time easier in future

Instant hot water system question.

How does a gas instant hot water system know when I turn on the hot water? What's the feedback loop from the tap to the water system? How does it know I want hot water, not cold water?

I've googled a bunch of 'how does a gas hot water system work' type questions but all results seem to give information on what they do, rather than how they do it. Any plumbers out there want to enlighten me?

Instant hot water system question.

Investment/entrepeneur psychology resources

Gday all

Ok. im a newb when it comes to the psychology side of business, investing, life. I used to think that the motivational speakers and posters were just spruikers and a bit of willywaggle. I never really appreciated the power behind it all!

A lot of posts and comments on SS are about the mindset and the goals rather than a properties colour scheme. My first step was realising with property its numbers game (a while a go) but moving forward and being successful its about the mental side.

What is the best way to jump in and start reading and learning more??

I have found a few pages on FB that come up daily and im getting hooked! watching videos most days and they are really resonating with me

After talking to a mate who i havent seen for quite a few years, we got talking about the mindset of investing - which probably shocked him more than me, he would have expected more cowboy stuff from me! but he is doing well in the uk recently starting up a food product and also part owner of a cafe, With plans to get into property. He put me onto the "4 hour work week" book as he thinks its suits what we are doing at the moment. He also reads loads of other books and websites.

What are some favourite resources people use here to build knowledge??

Couple of cool vids i have seen so far:
Mike Rowe: Curiosity Is Key to Success
http://ift.tt/1IkPbz0

15 Signs You're an Entrepreneur
http://ift.tt/1A1Wzei

I know Grant cardone is Ace's favourite and watched a bit of his stuff.

Investment/entrepeneur psychology resources

Property broker - what info is normal?

Hi,

I have recently approached a property broker and was a bit taken back by the information that was requested. Expected information was things like salary, net worth, goals etc but are things like license numbers and mothers maiden names considered "normal"...?

I don't want to offend the broker but at the same time im concerned about things like identity theft.

TIA.

Property broker - what info is normal?

Elders Real Estate

Just wondering if anybody on here operates an Elders Real Estate Franchise. Thanks Ben

Elders Real Estate

Anyone Have A Spare 100mil..

http://ift.tt/1AAcJiL


When you look inside a place like this,and the person who once lived there
is it worth the money..

https://www.youtube.com/watch?v=Zi_XLOBDo_Y

Anyone Have A Spare 100mil..

loan with redraw or offset account

having a loan which you can make extra repayments and redraw from or having an offset account. etc say u had an extra 40-100k where is it best to put it offset or back into the loan? ideally wanting to then take it out later to use for a deposit for next ip.

i know the major con for having it in the loan is that if the property price drops you can't take it back out.
but pro for putting it into the loan is it'll become tax deductible when used for next ip deposit?


i want to have like a pros and cons list

Cheers,

loan with redraw or offset account

Buying off the plan caveats for House and Land package in Sydney.

People,

I'm interested to buy house and land package offered by some of the real estate agent in Sydney in area like Schofields and Edmondson Park.

Since it is house and land package, what are the inherent risk or the possible risk given that the area growth is all confirmed by the local council and state govt. ?

For the apartment and unit, yes it is over stock issue.

Buying off the plan caveats for House and Land package in Sydney.

Brisbane Suburbs Similiar to Sydneys Mid North Shore Suburbs

If you were to buy a house in Brisbane and you were looking for the same sort of thing you find in Sydneys Mid North Shore Suburbs (say Lindfield Killara) which suburb/s do reckon you'd buy in? Any thoughts would be much appreciated. Thanks.

Brisbane Suburbs Similiar to Sydneys Mid North Shore Suburbs

Sunshine Coast - higher end

Does anyone have any thoughts or knowledge regarding IPs (houses) at the higher end (~$1mil) on the Sunshine Coast? Maybe that isn't high end for some, but I've only had experience with IPs at lower-mid range (~$200-400K) in Victoria. I have only just started looking at getting back on the IP horse after GFC altered my plans & was looking at locations in Qld, which could be IPs for now but possibly PPOR in 5-10yrs time (being overly optimistic). Initially started researching Whitsundays (Bowen/Cannonvale/Airlie Beach), given Abbot Point supposedly has the go-ahead, but this area has burned a lot of people over the last few years & it looks like tourism & other industries don't insulate the area from the mining volatility. Moved my interest down to Sunshine Coast & was looking at properties on the lower end of the scale, but unfortunately managed to click on my absolute dream PPOR by some complete fluke. Unfortunately this is ~$1mil & I have no idea whether there is much demand for rentals of properties of this value. The vacancy rate in the suburb is currently only ~2%. Any thoughts greatly appreciated.

Sunshine Coast - higher end

New oven in Adelaide

I have a tenanted property which has plans in council atm to be demolished and townhouses built in its place. Unfortunately the old upright stove in it is broken and cannot be fixed. So I need to replace it. I don't want to put a new on in as it will only be used for another year or two.
Does anyone know of where I can get a 60cm upright gas stove from in Adelaide?
Any help appreciated.

New oven in Adelaide

Recommendation for concrete driveway/pathway?

I am planning to re-do the driveway and build a new concrete path. Does anyone have anyone to recommend? Site is in Bankstown area. Thanks

Recommendation for concrete driveway/pathway?

Oven needed in Adelaide

I have a tenanted property which has plans in council atm to be demolished and townhouses built in its place. Unfortunately the old upright stove in it is broken and cannot be fixed. So I need to replace it. I don't want to put a new on in as it will only be used for another year or two.
Does anyone know of where I can get a 60cm upright gas stove from in Adelaide?
Any help appreciated.

Oven needed in Adelaide

Turning PPOR into IP rented out at non commercial rates

Situation:

Currently in my PPOR of 2.5 years, as I work away and also partly live overseas I was going to convert it to an IP (just going to use the parents address as my new place of residence)

Have had my bro and his g/f living with me all financial year, I have and will continue charging non commercial rates until they're H&L package is ready in8-10months.(then ill have it rented out via a pm once they're out and keep it as an IP)

Questions:

This is what I'm going off from the Ato as far as deductions 'Generally, a deduction can be claimed for rental property expenses up to the amount of rental income received from this type of non-commercial arrangement'

which I understand but will the bills/rates/utilities still be 100% deductible ?

Also, what is enough evidence to prove I moved? ill change all the addresses on driver licence, insurances, banks etc. but is there a benchmark/point system to aim for?

Do I have to get any contract written up? or will the rental payments be evidence enough it is in fact an IP?

Will I get a full deprec refund come tax time if I get a QS out before EOFY? or will it have to be apportioned for the 11 months when I lived there too and not for the last month (June) when I move out and it is an IP. (


Anything else I should be considering, are missing or have got wrong??

(FYI loan is I/0 and rents/mortgage interest will go in/out of my offset for now (I know it lowers deductibility) however it wont be for long, setting up a LOC facility when I buy IP#2 in the next month or two)

Turning PPOR into IP rented out at non commercial rates

Dealing with slimy agent

There's a slick South Brisbane REA I want to avoid. I bought a property from him a few years ago and the experience was horrible. Have since met someone who sold through him and she said he drove her to a nervous breakdown with "conditioning" tactics. Trouble is he's slick enough to get a lot of listings I am interested in.

Should I use a buyer's agent to not have to deal with him again? What would this cost? Any recommendations for Brisbane?

BTW I only just found these forums - great resource!

Dealing with slimy agent

Poor first home buyers Sydney

Damn investors with their equity!!!

Attached Thumbnails

 

Poor first home buyers Sydney

Does land size matter?

Hi guys,

Just wondering if 40 square metres of land will make a huge difference in price of a property. There are three townhouses lined up - two have a land area of 225 square metres and the middle one is 185 square metres. All three have common walls. I was wondering if all three townhouses will roughly be of same value.

Kind regards,
Jo

Does land size matter?

Selling off the plan to a related party

Hi guys,

We are currently doing a 3 unit development.

We set up a company for the sole purpose of the venture (family/discretionary trust as shareholder) with my wife and I directors.

Purchased a house, intended to build 4 and sell all...however Council intervention meant we got approval for 3.

We have sold 2 off the plan and building/construction is due to start in June 2015.

Now we wish to keep Unit 1 for ourselves to live in.

I thought we could just sell it from the company to my wife, ie sign a contract off the plan, to sell from the company to my wifes personal name the same as we did for the other 2 we sold off the plan to non related parties. Obtain a real estate agent appraisal letter for the value and use this value.

I thought that by doing this we get Unit 1 out of the company and it becomes our PPOR so exempt from tax when we sell 5-10 years down the track, and we also get the stamp duty savings that come with buying off the plan, basically we pay stamp duty on current land value rather than the full completed value at the end, a significant difference.

However, the advice I have received so far is that because it is a related party transfer (my wife is a director of the company and Unit 1 would be sold into her individual name) she can't get the stamp duty benefits that a normal off the plan buyer receives, ie they will calculate the stamp duty at the time of transfer by which time construction will have finished and the value would be considerabley higher.

Subdivision is to be completed after construction.

As you can see my thoughts are different to the advice received so far, can anyone offer any further clarification or experience on how it is treated (mainly the stamp duty treatment)?

Many thanks in advance.

Selling off the plan to a related party

Tomorrow (May 30th) Predicted Auction Clearance Rates

Greetings forumites!

Thought I'd jump the gun and start a thread on National (and/or city/state specific)Auction Clearance Rates for tomorrow.

I don't have a prediction myself, more keen to others' thoughts.

The biggest curiosity I have is.. With so much news in the last 7 days about APRA cooling, lender restrictions, and general macroeconomic doom and gloom news stories, will we see and downward reflection in auction clearance rates?

Thoughts welcome! :D

Tomorrow (May 30th) Predicted Auction Clearance Rates

Deception Bay 'Gordon Hay Realestate' BAD

Had Gordon Hay realestate managing one of my properties in Deception Bay, brand new carpet and freshly painted walls when the tenants moved in for a six month lease. When they moved out the carpet is stained with oil/grease (didnt come out with carpet cleaning) and the walls are covered with small indents from a sharp impliment (god knows what from maybe a kids toy as they had kids). The property manager said it was general wear, I dont agree. As they have still have the tenants on their books and I have changed agencys they dont want to know about it, no compensation from the bond for the damage. I had to personaly repair the walls prior to getting new tenants in. Any come back on the agent or do I have to move on?? DO NOT use GORDON HAY realestate in DECEPTION BAY - they are dead lazy, the dont return emails or phone calls and help when you have propblems.

Deception Bay 'Gordon Hay Realestate' BAD

Beach Shack Reno. Ep 4. Demolition & Asbestos

G'day Guys,

Here's the latest in my Beach Shack Renovation, Owner Builder Series. This Episode we look at Demolition and the Dreaded Asbestos...

Check it out and let me know what you think. Here's the link.


https://www.youtube.com/watch?v=iTEstW5nl_8

Cheers :)

Beach Shack Reno. Ep 4. Demolition & Asbestos

How to know tenants' clean and tity?

I will see a prospective tenants tomorrow before deciding if rent IP out to them. My questions is how to know tenant will stay and keep the IP clean and tidy by looking at them. For example, the ways of their dress, they have a clean car etc.

Can you share your experience?

How to know tenants' clean and tity?

Brisbane architecture for 3-4 townhouses development

We are looking for doing a development of 3-4 townhouses in Bulimba on 600 sqm LMR site.

1. Can anyone recommend a good arthitect whose services they have used in past and happy with them ?

2. what should be general architect fees( including town planning and other prodessionals as required) for DA, BAmeeting conditions and detailed design ? We have been quoted following by an architect firm for 4 townhouses. This includes all consultant fees and council fees except contribution charges.Does it sound ok ?

1. Development Application - 40k
2. Building application - 38k
3. Meeting conditions - 19k
4. Detailed design - 10k

Total 107k.

Rooky.

Brisbane architecture for 3-4 townhouses development

body corp

hi all bit of a dumb question but if a property is a villa etc stand alone in a complex body corp does not cover damage done to the outside of this property? just community structures (etc swimming pools..)?

if you have 2 townhouses joined together, share the same roof and external walls. would body corp cover that?

cheers

body corp

You know the market's heated when.......

Many people have said that you know the market is heated when the Cabbies are discussing buying property, or shop assistants, etc.

Well, during the day, I often don't go anywhere, as I've got the Business to run. The Postie comes to collect the mail, and the odd customer, but that's about all the face to face contact I have, unless I pop down to the shops.

Most of the Posties are nice guys, working a dead end job that they really don't like very much. They always say "Hi" and we might have a short chat while they process my parcels. They rotate the staff, so it's usually a different one most days.

Anyway, last week one of the Posties starts chatting away about property, and was a little surprised when he found out that I might know a little bit. I didn't say much, but I gave him a note with the forum address, and off he went.

Same deal today with a different Postie.

In case either of you have found your way to this forum, I'm not knocking you in any way, and I applaud that you've come here to educate yourself a bit before you buy something, but please, if you are contemplating buying in Sydney at this time, be careful. Very, very careful. There are lots of other places that make a lot more sense at this point in time.

You know the market's heated when.......

Pros and Cons of buying a Luxury unit

I'm looking at purchasing a high end unit in Scarborough (WA) for around a million dollars. I own my own business and currently renting.

Just looking at the pros and cons of such a purchase?

Would you spend this much on a PPOR?

Pros and Cons of buying a Luxury unit

Settled on 2nd IP in Logan!

Settled today on http://ift.tt/1BtcTDb bringing our grand small total of properties to 3.

Place needs a small amount of work but thought it was a great deal for $305k ($320k asking)and tenants in place renting for $380/pw.

Terry Waugh helped us through the extremely bumpy ride (due to CBA red tape policies) of financing through our LOC instead of using cash assets. Would highly recommend Terry who has been a great support and was chasing CBA for most days over the past week because LOC funds didn't appear till yesterday noon...:eek:

Also big shoutout to Beanie Girl who has been an amazing mentor during search and inspection process!

Now to move on to the 3rd IP...any suggestions people? ;)

-Justin

Settled on 2nd IP in Logan!

Brisbane bargain GET IT NOW

I'm out of cash otherwise I'd buy this. It's worth $550k MINIMUM. A 3/2/2 just went for $630k down the road recently (Mesquite St).

http://ift.tt/1RtdAWp

Owner is overseas and probably unaware of what's going on in the market. And the agent is not a local (I know all the agents that work in the area), so he's equally clueless.

This area is hot. If you want it, you need to be able to make an offer within an hour of this post going up. Good luck. The properties on Mesquite St and Driftwood St sold this quickly a few weeks ago so make no mistake, this will go fast.

This will be the easiest 100-150k you've ever made. If anyone here scores this, you owe me a drink:)

Brisbane bargain GET IT NOW

Has rockingham WA any potential

Hi guys, im looking to get my 1st property soon and it would be my PPOR for 6 months then convert to a IP .
Im looking at rockingham as that's where I want to live, but is it a good place investment wise?
For me I think anywhere near a nice beach is a good start, and rockingham also has the amazing marine park , penguins, seal lions and dolphins etc.
It has lots of naval base workers too on steady incomes, but perhaps also a lot of mine based workers.

There dose seem to be a lot of building going on just now, two big blocks of appartments near the foreshore and lots of smaller appartments blocks going up and 3,4,-8 house developments on the bigger blocks.
I can imagine this leading to over supply of 1-2 bedders so I was thinking more along the lines of an older 3-4 bedder house that I could renno when im living there and then perhaps develop latter down the line.

Anybody any thoughts on the area?

Has rockingham WA any potential

Property Coaches

Hi we are keen to further our investments to achieve our long term goals but are looking for further guidance as to the best way to do this.

Has anyone used a property coach they'd recommend?

Recently read an article by Todd Polke. Anyone had any experience using him as a mentor/coach

Appreciate your help and feedback.

Property Coaches

Howling dogs

I have 2 dogs, they are camp dogs.

They are loyal and trusting, I say car ride they go in the car , I drive off without them there fine. BUT then I walk away from them at home close the gate and go for a walk they howl.

Does anyone know why?

Howling dogs

Lining a shed - installing insulation batts

Hi guys,

I am going to be starting with me my shed to "teenagers retreat" conversion this weekend. I have decided to go with 7mm plywood attached to the existing frame as the internal lining.

The first step will be the selection of insulation batts and I?m likely to go with Earthwool. Depening on the thickness of the internal wall (I think 80-90mm), I am likely to go with a R ? 2.7 rating product.

The question I have is do I need add some sort of moisture barrier between the metal shed wall and the installation batts?

I live in South Australia, so humidity isn?t a big concern, but I am happy to put something up ?just in case?

Any thoughts?

Regards,
Robbie

Lining a shed - installing insulation batts

Allowing existing tenant to sublease.

Hi

I would really appreciate thoughts/ advice from the SS community regarding a moral dilemma.

I have leased a 3 bedroom 2.5 bathroom to a young couple in Labrador.

Yesterday the agent phoned to say that the tenants had requested permission to allow an additional tenant to move in. The agent ran a probity check on the additional tenant - job, income etc, and all is good.

However when I asked the agent how much we could add to the rent, thinking $20 - $30 pw, I was told that we can't alter the rent until the 12 month lease expires. My response was to say "no" to the additional tenant.

I now feel guilty by saying "no", and my wife says my decision will attract bad karma.

I would appreciate thoughts / advice from the SS community - should I relent and allow the additional tenant.

Tony

Allowing existing tenant to sublease.

Is it time for Laverton yet?

Have continuously started to hear from a variety of sources about Laverton as a good investment suburb. 18 km to CBD and easy access to freeway/Laverton Zone 1 train station. Can take as little as 15 minutes into CBD via freeway.

It is basically the next suburb west after Altona in terms of proximity to City and also still a fraction of the price (low 300, 350k median). Wouldn?t call it a coastal suburb but not very far from coast. Schools and shops also. It seems like the next suburbs over are all increasing in price already but access to city and freeway not as good.

Another interesting thing I?ve noticed is that old homes are now starting to be demolished and quite a few brand new developments have started popping up in the area and the council is pretty keen to rebuild so permits are easily approved. I know this usually takes time but Laverton is not a big area and it shouldn?t take that long for developers to go through the area. Blocks are big enough to subdivide and I often see 2 townhouses going up on a block ? 3 on bigger blocks or corners. Once the number of new properties outweigh the old ones the area will be very appealing to a lot of people.

These new properties are occupied by an upper socio economic employed class and are already selling for up to 400k with decent rental yield. My mortgage broker has recently purchased IPs here and keeps telling me to do the same. Interesting times ahead maybe especially since Laverton is not yet regarded as an up and coming suburb. Areas like Sunshine, Sunshine West, Albion, Brooklyn, Footscray, Maidstone were all really rough areas (they still are) but prices are high and soaring. What are people's thoughts - might be a matter of when not if but as the saying goes if you hear about it in the newspaper it?s already too late...

Is it time for Laverton yet?

Love my tenants

A few months ago one of my tenants lease was expiring and they not only contacted their PM for a new one year lease, but they also advised that they would be happy to pay an increase in rental of which was a great new rental.

What are the chances of another one doing the same?

Yesterday, another tenant whose lease expires in two months time has written to their PM and asked for new lease with a new rental above the market. Apparently he loves the area and the property and would like to secure himself.

Now to spread the word to the remaining few...

Love my tenants

Airbnb and Strata

Hi Somersofters,

I wrote a post recently on our recent experience with Airbnb- essentially we purchased our PPOR but couldn't get out of our lease without substantial costs, so opted to put our PPOR on Airbnb in order to avoid paying both mortgage and rent.

We have a strata meeting coming up in a couple of weeks and have just received the agenda, with one of the items being, "Discuss Airbnb and Subletting". We currently have one more month long booking before we finally move in.

The question is, if the discussion ends up resolving that Airbnb-ing/ Sub-letting is not allowed (as I am guessing it might be), if we were to continue Airbnbing, what can strata actually to do us?

To clarify: If it is decided that Airbnbing is NOT actually allowed, we WILL stop (we have really only done it out of "necessity")- this topic is merely out of interest as I am intrigued- what can the strata company/ committee actually do? Kick us out? Fine us? Add a special levy? Report us to the cops? (Not facetious questions- actually interested) :)

Airbnb and Strata

Rent price.

I was wondering if there is a site where you can find out how much rent a property has been rented out for.

Any help would be amazing

Nick

Rent price.

Ideas to boost rental yield on this property

Thought I'd reach out to the brains trust on this:

http://bit.ly/1QNWqCt

It's a small block - 405sqm, so a granny flat won't be possible.

What I'm thinking is I could remove the walls from downstairs (currently a thin veneer of asbestos), put up proper walls, a door and make a bedroom out of it.


It wouldn't be a legal bedroom (due to height) so I'd still have to advertise it out as a 2 bedder. Or I might be able to call it 3, I don't know.

I would then install a carport or sun sail for parking.

I imagine this might cost...20k? My dad is a builder so it'll be much cheaper. If I can boost rental income by say $30pw, it seems like it might be worth it.

What do you guys think?

Ideas to boost rental yield on this property

Race hate flyer distributed in Sydney's north shore and inner city

Being of asian descent I would have thought i would be offended by this... but im not :)

I do agree that FIRB need to do more, but this guy is just a crack up :)


http://ift.tt/1eAYbVO

Quote:

Residents of Sydney's lower north shore were stunned by a flyer which appeared in their letterboxes blaming Chinese property buyers for pushing up home prices, "ethnically cleansing" Australian families from their suburbs and creating a new "stolen generation". The brochure, titled "Stop the Chinese invasion", was accompanied by a notice to attend a protest rally at the Chinese consulate in Camperdown on Saturday. The material was distributed around Lane Cove on Monday and Tuesday with one resident comparing the wording to "Nazi propaganda". The mayor of Lane Cove, David Brooks-Horn, described the language in the pamphlets as unacceptable. ....

Race hate flyer distributed in Sydney's north shore and inner city

Fast and slow words

Was reading RK's "Retire Young, Retire Rich" (again) last night, and he is talking about the words we put in our heads as a factor in your progress to get rich (assuming you are trying to do this) -

Slow word - Save (money in a bank, etc)
Fast word - Depreciate (tax deductions on assets)

Slow word - appreciate (waiting for an investment to grow in value - Sydney right not withstanding)
Fast word - cashflow (allows more acquisition of assets with cashflow)

Slow word - doodad (keep you poorer)
Fast word - asset (increases your cashflow)

Interesting...I hadn't realised just how much my (and others here, no doubt) mindset has changed since first starting down this investing path...

How much has your mindset shifted since discovering investing, or have you always had the right words in your vocabulary?

Fast and slow words

Quantity Surveyor for Depreciation schedule ?

Hi All,

Do you know any good Quantity Surveyor in Melbourne [Mulgrave/Rowville/Ferntree Gully] area? I need this information as soon as possible. We three mates got property last year and need this information for our financial tax returns.

Kindly share your experience and who would offer best value for your money.

Kindest Regards,
newlooker

Quantity Surveyor for Depreciation schedule ?

Serviceability and trust lending

Hi guys,

Long time viewer of the forum and am hoping that there are some experts who might be able to help me out with my query. I have had many questions already answered just by browsing through countless threads so thank you to the SS community for the useful content.....

Hoping to get some insight into trust lending and how it may positively or negatively effect serviceability later down the track. I can briefly go through my personal scenario but this question can probably be applied in general terms as well. Any help/advice would be much appreciated....

Currently living at home with parents however have a partner who is also living at home with her partners. Have recently settled on an IP joint 50/50 TIC in our personal names that is positively geared after expenses but before depreciation. We are now looking at buying a development site which will include myself, my partner and her brother all on the loan application/title. Plan is to purchase site with 3 unit development potential and split accordingly once completed. My partner and I would like to hold onto our two properties if possible, not fussed what her brother does. We are planning to do this under a trust structure of sorts (yet to specify exactly how as it is only early stages).

Basically, four key questions I am hoping to clear up with regards to trusts and serviceability.

1. From what I understand, serviceability for the trust is based on the trust beneficiaries verifiable income (our employment income) plus potential new rental income?

2. Lets say our current IP is with Bank A and we apply for the development project loan under a trust structure with Bank B, I'm assuming my partner and I would need to disclose our personal liability with our IP debt at Bank A?

3. Lets say our current IP is with Bank A and we get our development project loan under a trust structure with Bank B, if I wanted to buy another IP with Bank C in both my name and my partners personal name, would the debt/income held under the trust with Bank B need to be disclosed on that loan application given that the trust would have an ABN and be considered business expense and therefore not on personal home loan application with Bank C?

4. Lets say our current IP is with Bank A and we get our development project loan under a trust structure with Bank B, if I wanted to buy another IP with Bank C in another trust structure between myself and my partner, would the debt/income held under the trust with Bank B need to be disclosed on that loan application given that the trust would only consider my partners personal income and my personal income as the serviceability for that new trust application with Bank C?

Other side notes, with the trust purchase we have adequate cash holdings to have lending at 80% which I'm assuming will avoid the need for any LMI or any guarantees held for the trust debt. I'm primarily after just confirming what the serviceability issues are first and then this will bring up more specific questions with regards to appropriate structures etc. Please note, the purpose of this question is to see how to maximise my serviceability using trust structures not so much in regards to asset protection or anything like that.

Hopefully these questions make sense, any help would be much appreciated!

Serviceability and trust lending

unit closer to city or house further away ?

Location: Melbourne East / Outer East
Budget: $500 to $550K
Will be investment for next 3 years and then make it our primary home.

What I am not sure is that if its worth
1. getting a house with some land in Bayswater/Croydon/Moorolbark area
2. a 3bed townhouse closer to city say near mitcham/nunawading/box hill.

decent school would be a requirement in next 3 years.
capital growth would be nice too :p although, I have not looked at the numbers ...am assuming that the % growth in locations such as mitcham should be more than what the house would be worth in outer eastern suburbs..unless ofcourse you subdivide etc

thoughts from folks in that area ?
thanks in advance

unit closer to city or house further away ?

Looking to invest in Melton Vic

Hi Guys,

Its my first post on the forum and looking for some expert advice in terms of my first investment property.

I am based in Sydney and looking to invest in Melton Vic, a few of my friends already have invested and reckons its a good area to invest in.

The question is whether to go for a home and land package like they did or should I go for a more older houses with bigger land area close to Melton city center.

Home and land package - $325 to $340K with rent of about $300 per week

Older house with bigger land area also comes to around $340-$350 K but rent is about $260-$270

With rent yield either option will not be cash positive in the short to medium term.

I am just guessing that if i go with bigger land area I would have option to subdivide and get better capital growth.

Seeking advice from seasoned pros here to help me buy my first investment property.

Looking to invest in Melton Vic

LMI waiver for construction loan - accountants

Does anyone know a lender that has an LMI waiver for a construction loan for accountants?

BOQ specialist have a LMI waiver for accountants, but not for a construction loan (not yet anyway, they say another 6 months).

LMI waiver for construction loan - accountants

Fifa controversy

This will not end well for Fifa.

Sepp blatter has to resign. Sponsors may walk. If the arrested officials are found guilty, Fifa will surely lose sponsors.

Fifa controversy

Anyone used Aussie?

Anyone used Aussie Home Loans? Or are they rubbish?

Anyone used Aussie?

Hard wired smoke detector

Hey does anyone know if hard wired smoke detectors are tax deductible?

Hard wired smoke detector

minimum amount you take in Equity.

Hi All.

Im just curious when your unlocking equity from a property of your own is there a limit amount that you wont bother taking the equity? and why?

For example, I have recently had my bayswater WA property valued.
Came back at $575,000.
Owe $504,000.
So.... 90% LVR would equal $517,500.
Possible equity release $ 13,500.

Is it worth it to even take? Or is possible to go 95% equity release?

The original Home loan was 95% lend on a 513k purchase price.

I have topped on this property once before.
Lender CBA.

Thoughts........

minimum amount you take in Equity.

First Home Buyers - Need Help

Hello Fellow SS,
Take my apologies if i bring the topics which already had discussed.
I'm a newbie here & Building my First home in West Sydney with 35 years Experienced Builders (not mentioning the name ). As I never build a house, I really don'r have any idea what to do and what not to do. When I/We sign the contract with builders they showed us what will happened(process) step by step (Sorry to mention this is Home & Land Package). My Land got registered it been three months & builders still on the process of pre-construction.
which I/we got an appointment for bricks & colour selection on 8th July 2015 & after that they will submit to council (maybe after 2 or 3 weeks).
Long story short-
*I want to know how you guys handle your first brand new building.
** What is your suggestion for people like me?
***tips & tricks.

Thanks in Advanced

First Home Buyers - Need Help

Solicitor recommendation

Can someone pls recommend a solicitor for a building dispute in Sydney.

Solicitor recommendation

another im going to retire by 30 article

groan, another one

http://www.whichinvestmentproperty.c...m_medium=email

I really admire her guts and confidence, I really do

but retiring by the end of 2015 with 1 IP is laughable

are these magazines egging her on!?!?!?!

I think goals should realistic, not a dream

another im going to retire by 30 article

Compound Returns

I was running some numbers today and just realised my wealth has had an average compound return of around 125% since 2008 from when I was a graduate. This includes rent, estimate capital growth, salary, shares etc, you name it.

Which got me thinking about a few things about accumulating wealth.
1. Starting early is important
2. You really need a return of 50%+ growth in your 20s and early 30s years to get ahead
3. Starting capital is important but not THAT important. If you had $100k, 125% compound returns over 8 years is around $6.5m If you had $50k, it's $3.5m. Going from $3.5m to $6.5m is not that hard, so whether you start with $50k or $100k is not that big a deal. I say this because a lot of people don't for example take the leap of faith because they feel they don't have enough money.

It also got me thinking. If you get to a point in life where you have a lot of equity and whatever you're doing (your job, business etc) is only having a minimal increase on your wealth, you may want to reconsider what to do in life if you still want to grow your wealth. Eg if you have $2m equity, do you really want to be working in a job making $50k pa? That's only 2.5% increase in your wealth. To get serious about wealth accumulating, you really should be growing your $2m by maybe $200k (10%) if not $400k (20%) per annum.

It's the art of compound returns.

Compound Returns

RBA to cut another 1%?

That's what many commentators are saying. We might have a recession soon, thanks to the Mining Bust, Capex Cliff, Budget Black Hole and Failed Rebalancing.

Today's Capex statistics is a disappointiing tale of recessionary proportions. The RBA will have no choice but to cut rates further.

http://ift.tt/1ckpF04

RBA to cut another 1%?

help needed regarding LMI refund

Hi somersofters

I have settled on a house recently 21 days ago and paid lmi having only 10% deposit with CBA

I have only found out and confirmes with ANZ that they offer 90% loans with no lmi. I am a health professiobal

Now the lmi paid is $15000 so a fair whack

Is there anyone who knows if I can get refundes this amount being its only 21 days or if I can leverage cba saying I will moe loans to help things. Any other advice?

Or is it a case of tough cookies?

Thanks

help needed regarding LMI refund

Lenders covering Refinance Fees?

Very quick question, do lenders ever pay any fees associated with discharging from another lender? This could include discharge, fixed rate.etc

Lenders covering Refinance Fees?

House with subdivision potential

Hi SS Gurus,
I want to ask your opinion about a house I am currently looking at. The house is in Ipswich on a 1500 square meters block, current house is in the back of the block. It is low density zone which allows 10-15 lots / hectare. Spoke to the council it can go down to 450m / lot, and this block can be 3 lots including the current house.
The house is renting for 290/week and in a fair condition. and asking price was 350K, and it has been on the market for long time, gave them another call today and price down to 290K.
500M from the house, the zone is medium density which allows 50 lots / hectare. Those blocks are splitted into 7-8 Villas / townhouses.
Is this considered as a good buy?, I am looking to buy and hold for 3-5 years, subdivide / build, or subdivide and sell vacant land. What?s your throughts. I am not sure how to calculate the return on this type of investment?.

I hope you can help me with your ideas.

Thanks
Ram

House with subdivision potential

PM Logan

Hi All,

Can someone please recommend a good PM in the Logan area.

PM Logan

Commercial Outgoings QLD

From what I have read on the Qld gov website a landlord must provide a retail tenant with a estimate of the outgoings for the "next accounting period "at least one month before the "start of the accounting period " .

I cant find the definition of the " accounting period" is that the next financial year or the anniversary of the date the lease started ?

Thanks

Commercial Outgoings QLD

Write off carpet

Hi,

I have had a bit of bad luck with a particular property and replaced the carpets due to malicious damage from tenant earlier in the financial year. Tenant did a runner and had replaced with what seemed like better tenants. The most recent tenants have since also done a runner after destroying the new carpet.

My question is can you claim the write off of the carpet replacement twice in a financial year? It has been an insurance job both times and we will defiantly be screening our tenants better.

Thanks for you help

Tom

Write off carpet

Keeping the car shiny

I've been using this Gyeon Q2M Wetcoat for the last few months and simply put, its amazing!

I normally wash my car using Meguiars Ultimate wash and wax, but after a few days, it would get dusty again and lose its shine (I park my car on the street).

I started using this Gyeon Wetcoat, its super easy to apply - you spray it on before drying the car, then using the pressure hose (I don't have one, so i just use the hose with the flat spray setting). Then dry the car.

The car stays shiny for 2-3 weeks and it feels really smooth, just like a freshly waxed car - Long enough until its next wash. Its meant to last 6 weeks, but thats probably assuming its garaged.

http://ift.tt/1Bq1OTp

Keeping the car shiny

Are there any tax reductions for FHBs or PPoRs?

Hello,

Filing tax returns is going to be around the corner soon. Are there any tax reductions for first home buyers ? Or any tax breaks for people who have purchased their PPOR ?

Cheers,

Are there any tax reductions for FHBs or PPoRs?

NSW Builders License Course

Hi there,

In order to become a licensed builder in NSW (residential, multi-res), what TAFE course would be the most applicable to do?

I'm not a trades person (i.e. office worker) however becoming a licensed builder would help me with our projects.

Thanks
Al

NSW Builders License Course

Recommendations for DIY sale of your IP

We may sell 2 IPs soon. We would welcome any Tips n tricks n 'private sale' listing contacts for re.com.au?? Eg there's one listed with a Prahran address you can go with.

Recommendations for DIY sale of your IP

Shares - what's the best hedge against the Australian RE market?

Someone made a good point in the equities thread that banks would not be a good place to invest if you wanted to balance things out since they are so intertwined with RE. Mining, even if it was still doing well, would be also be doubling down on the same thing basically, since it underpins so much of our current strength. So if a conservative, primarily RE investor were to invest in equities, what would be the industries to hone in on? What are the major events that would serve to undermine the RE market and what type of industries would do well if this were to happen?

Currently I have some Japanese ADR's in the U.S., so this is my hedge. The rising USD against the Yen pushes up the shares because it's an export driven company / economy, while the rising USD against the AUD pushes it up again when I decide to cash in. It's like a double whammy. In curious what other strategies are out there.

Shares - what's the best hedge against the Australian RE market?

Which do you think would be ideal?

Hi
Just a quick question.
With these new financial implements introduced to small businesses. Would you investors invest in commercial property if so, why? And if not, why?
Would you rule it out?
Or would you just stick to residential property?

Just looking to pick your brains.

Thanks

Which do you think would be ideal?

Changes to bank investor lending

Hi

I've heard that BankWest will no longer to >80 LVR investor loans and that CBA will offer normal discount if the investor loan application is with a home loan. Is this correct? What other changes are the banks making to investor loans? Is APRA driving all this?

Changes to bank investor lending

Ways to minimise tax bill this year

Hi folks,

This is the first time I've had to think about minimising my tax bill (yay?). I'd love some help pointing me in the right direction for good, legal, ways to reduce my tax.

Key points:
- CGT event this year made about $200k capital gain
- I'll get most of the 50% CGT reduction
- I have one IP that I will pre-pay interest for (approx $15k)

What are some other things I could do? I'm not interested in paying into my super. If I thought anyone would give me a margin loan I'd think about buying some managed funds and pre-paying interest on that too. But I doubt anyone will lend me any money for anything (unemployed, living overseas).

Also, a side question, if you pre-pay interest on an IP to reduce your tax bill, but then you sell the IP, does that create any tax issues?

Cheers, Luce :)

Ways to minimise tax bill this year

Court Hearing delayed until AUGUST.

I've got my first non paying tenants who have been sporadic in payments for over 6 months - we had court today where the registrar said we couldn't see a magistrate to get them evicted until August. I was under the impression that was what was happening today.

Quite clearly this is absurd - had anyone else faced such stupidity?

Court Hearing delayed until AUGUST.

Where to invest in Sydney

Hi guys I'm a first time investor & finding it hard to decide on which suburbs to invest in within Sydney. I would like to purchase 2 apartments (2 bedders) around the mid 5's. Capital growth is top priority but obviously a good rental yield is also important. 2 suburbs we are currently looking at are North Parramatta & Dulwich Hill. Would appreciate any advice as I have been searching for quite sometime however to scared to commit as I am afraid of making the wrong decision! TIA

Where to invest in Sydney

What to do with my DT and company trustee

G'day,

I have a Discresonary Trust with a company trustee that was used to own my small business.

I've since sold the business and wondering what's the best use of the DT and company?

Obviously I'll be seeking specific advise, but just after a few ideas/education before I'm on the clock with advisors ;)

Would it still be useful to own property or shares assets, or could there be issues down the track, if for example I was liable for any issue that arose to do with the old business?

Alternatively I'm looking to start a small Handyman business, very small scale for a little extra cash. Would it be useful for ownership of this, or a bit of over kill?

Cheers,
Ben

What to do with my DT and company trustee

Footscray - apartments

Interested in people's opinions around 2/3br apartments towards the centre of Footscray as an IP?

Something along the lines of;
http://ift.tt/1cZ50zo

http://ift.tt/1euQ1yb

http://ift.tt/1cZ50zq

Footscray - apartments

Gas HWS installation regs - WA

Hi,
We've just inspected our new build to find the gas storage hot water system to be in, what looks like, a really silly position. We asked for it to be moved but were told that it was there due to strict regulations regarding ventilation of the unit and position of the exhaust away from windows.

Can someone tell me where to find the regulations regarding this for WA?

Or is there a plumber who can tell me? Even better!! :D

FWIW the heater is located to the right of the pipes protruding from the wall in the photo attached. We want to put it on the left of the pipes, further from the window than is currently the case, but closer to the corner of the house.

Thanks in advance!

Attached Thumbnails

 

Gas HWS installation regs - WA

Wollongong Region: Dapto vs Warilla

Hello,

I'm targeting my next IP down in the Wollongong region

Rationale:
-Yields are much better than Sydney
-Entry price is lower
-Absolute growth has a little way to catch up to Sydney

My search has been narrowed down to Warilla or Dapto. I grew up in Albion Park but now live in Western Sydney, so am very familiar with both locations as still have family there. I am aware that there are high levels of Dept. Housing estates in both areas.


I'm looking for some opinions on both areas

Dapto
Pros: Access to train, access to freeway
Cons: Large supply coming online in West Dapto/Calderwood, Distance to beach, large dept. housing estates

Warilla:
Pros: Close to beach, close to Shellharbour Marina and Town centre
Cons: Distance to train line, Distance to Freeway, large dept. housing estates

I tend to think that a locale closer to the beach and the Shellharbour Marina Town centres may be better in the long term but interested in peoples thoughts.....

Regards,
Q

Wollongong Region: Dapto vs Warilla

How to value land price?

Been doing research in the market but just found it so hard to justify value to make up mind for subdividing or not. It seems as if land price is so random... Some tiny land 300sqm can sell for $900, $1000 per sqm, some larger block like 400sqm can sell for only $700 sqm.

I know there are factors such as hammer block, narrow frontage, which may affect the price tag but I am talking about those with the same features, ie 9, 10 m frontage, 300-400sqm in the same areas.

I called a couple agents and all they did was same as what I did, looking around the area and try to compare. It seems as if sellers can just make up their price tag and wait for buyers for land.... There's no standard... Is there?

How to value land price?

Would you ever buy an IP worth more than your PPOR?

I think there is definitely a psychological hurdle in this scenario. Well, for me there is anyway!

I'm new to investing property, having bought my first one recently and am entertaining the next purchase. I'm not considering Sydney for obvious reasons but one day, Sydney could be a possibility. However, with my PPOR's current value at 700K it is possible that I'd have to outlay more than it's worth to secure a well located IP property . This just doesn't feel right to me, even if the numbers added up.

I know each to their own and do what makes sense to you etc, etc - but I was wondering if others feel the same?

Would you ever buy an IP worth more than your PPOR?

Interest rates are down more than i remembered

Was just curious and had a look at an old bank statement on-line and was a bit surprised how high rates were before the GFC hit. Its not going back there any time soon but shows how far it has fallen in 6 years

Statement begins: 1 Jan 2008
Statement ends: 30 June 2009
Required Payments Interest Only
Interest rate 8.590% per annum

Interest rates are down more than i remembered

CGT exception

Hi

I am finally ready to moveout of my PPOR after living 7 yrs in it. i am planning to move back in about 5 years time.

I would like to know what i need to keep for records purposes? any experienced chap can suggest me?

I would definitely return to leverage CGT exception but just dont wanna leave any holes while i leave my place.

CGT exception

I'm calling it... 2015 is the peak

Haven?t been on SS for a long long time.... but always enjoyed the economics forum and debate.

I?m not a housing perm bear (bought first home in 2007 ? thinking I was buying at the top, for family reasons) but I have always been intrigued as to why house prices didn?t get hit that bad in late 2008 when the GFC hit... I thought at best it would hold its nominal value steady for a long time. The recent dramatic run up in (particularly east coast) prices has been the real surprise... and it has risen to such an extent that I'm happy to risk my nonexistent internet reputation and the potential to be cast as Steve Keen martyr on the following statement;

In 2025 real house prices (average across markets) will be lower than in 2015 and this year will be remembered in hindsight as the peak in Australian house prices for a very long time.

And I think the risk is that it could actually be longer than 2025. I'm not going to predict nominal price drops because I think the Govt will do everything it can to stop what could happen (including blowing inflation up in a big way). But my essential position remains that house prices in 2025 will be lower relative to everything else (incomes/food/rent etc etc) than it is today.

A few of the fundamentals;

1. Govt current account deficit will not be able to support broad based fiscal help (ie increase stimulus through lower taxes and increased spending)
2. State Govt balance sheets are in bad shape
3. Private balance sheets (read households) across the Australian economy are collectively stuffed. We would have fared much better if the peak was in 2008, but now there is no wriggle room.
4. The economic fundamentals for our economy are much worse than in 2008/09, unemployment and underemployment is entrenched and getting worse
5. No resource boom to support the economy
6. No room left for monetary policy to go

The trigger - jobs and income;

Forget interest rates (they won?t go up), bond rates and inflation. The most significant factor holding pricing at current levels is the entrenched belief that real estate prices cannot go down in this country, this drives pretty much every buyer in the market..... and I think this belief is about to be tested in a big way....and once this nexus is broken the fundamentals will take over.

I know these debates have probably been done to death, but I've never felt certain on this until now.... :eek:

I'm calling it... 2015 is the peak

Which Colors To Paint House?

Thinking of something like this: http://ift.tt/1F9QFXx

But with a medium/dark grey roof and gutters.

For this house, I did a patch test of a slightly darker grey than the one in the above pic. Pic attached.

So the light grey walls, white facia, white railings, white awnings, and the medium grey roof.

How do you reckon that would look?

Any other ideas?

Attached Thumbnails

   

Which Colors To Paint House?

Regional NSW & Granny Flats

Hello Everyone,

As the consensus across SSters, that Sydney is too hot at the moment. So subsquentely i'm interested in peoples thoughts on Regional NSW and the general rental market responses to granny flat accommodation.

Most would be aware that a 2br 60SQM granny flat in most part of Sydney would achieve a $350/week yield.

What would this be like outside of Sydney in markets like Goulburn, Bathurst, Wollongong, Newcastle?

Is there granny flat construction activity occurring in these markets? And are these easily rented at a decent rental return.

Thoughts....?

Q

Regional NSW & Granny Flats

Perth houses are currently as affordable as they were in 2003 and 1996

Perth house prices rose very strongly from 2002 to 2006. Over this period, nominal prices increased by 150%.

However, since 2006, nominal prices have only increased by 17%, which is a decline in real terms...

http://ift.tt/1GCugaM

While house prices fell in real terms from 2006 to 2014, incomes kept on rising, meaning Perth's house price to income ratio today is back at 2005 levels...

http://ift.tt/1GCugaQ

And when we consider true affordability, by taking mortgage rates into account, Perth prices are more affordable than they have been since 2003...

http://ift.tt/1GCugaQ

With affordability stronger than it has been for more than a decade, Perth today is quite similar to Sydney in 2011-2012.

In 2011-2012, many Sydney bears expected prices to crash.

What they didn't realise is that Sydney prices at the time were at their most affordable for over a decade.

Instead of crashing, Sydney prices have increased by 40% since 2012.

Could Perth experience a similar boom over the next few years?

Perth houses are currently as affordable as they were in 2003 and 1996

Not sure where to from here...

Hi Yall!! :D

My situation is: I bought a house in the western suburbs of Sydney and inturn I built a Gflat on the property. One year on things are going great guns. (knock on wood. lol wood) any who my Gflat now covers the cost of the mortgage and the house has been completely renovated and I am sitting on about 300k equity.

So do I buy something else or do I just pay of this house? Prices are just so crazy out the moment. Should I wait for interest rates to come up and prices to drop? Do I buy another similar property and try pull the same trick?

I don't know what to buy, where to buy or what to do...

Any advice would be great :)

Eeeeeeek :eek:

Not sure where to from here...

Villas, townhouses and units

Hi everyone

I have always been standoffish with buying villas, townhouses and units unless you own the complex and our strategy was originally going to be houses on decent land parcels only.

Recently though I have noticed a few threads of people using V,TH & U successfully in their portfolios. I have also found some online that show good numbers in the Brisbane area.

Can someone enlighten me on what to look out for buying and owning these IPs , I suppose some pros and cons?

Much Appreciated.

Nath

Villas, townhouses and units

Your views on Shadow Play at Southbank

Veterans,
What you think about this project, I need some feedback to make my mind to finalise the deal.

Thanks

Your views on Shadow Play at Southbank

All monies clause & Cross Collateral [Clarification needed]

NEED HELP TO CLARIFY 'ALL MONIES' CLAUSE

I have read that even if you have have a stand alone mortgage instead of cross collateralised loan, the bank can still foreclose your property as a result of the "all monies" clause. This normally impacts borrowers that have several mortgages with the same banker.

Eg Investment property and Owner Occupied property both are stand alone with the same bank. If defaults on Investment property, the bank can still foreclose your Owner Occupied property as a result of the "all monies" clause.

My questions are:

1. I am not sure whether this is sill applicable under the Uniform Consumer Credit Code (UCCC) regime. Please help to clarify this...because if this is true, the only way to avoid exposing your other property is to get loans from different banks.

2. Can anyone give an example of "all monies" clause? So that we can look out for it when reviewing the loan documents.

All monies clause & Cross Collateral [Clarification needed]

All monies clause & Cross Collateral [Clarification needed]

NEED HELP TO CLARIFY 'ALL MONIES' CLAUSE

I have read that even if you have have a stand alone mortgage instead of cross collateralised loan, the bank can still foreclose your property as a result of the "all monies" clause. This normally impacts borrowers that have several mortgages with the same banker.

Eg Investment property and Owner Occupied property both are stand alone with the same bank. If defaults on Investment property, the bank can still foreclose your Owner Occupied property as a result of the "all monies" clause.

My questions are:

1. I am not sure whether this is sill applicable under the Uniform Consumer Credit Code (UCCC) regime. Please help to clarify this...because if this is true, the only way to avoid exposing your other property is to get loans from different banks.

2. Can anyone give an example of "all monies" clause? So that we can look out for it when reviewing the loan documents.

All monies clause & Cross Collateral [Clarification needed]

NEWSTART ALLOWANCE IF YOU OWN IPs

Hi,
Is it possible to get Newstart Allowance if you own a few IPs.
This is for my daughter who has been teaching overseas, and is coming back in a few months. She owns 3 negatively geared IPs, one is PPOR, though she needs all 3 to be rented out to cover loans, and would live with parents short term.
Both the income and asset values (after costs/loans) satisfy Centrelink rules. Yet when I phoned them the lady seemed unsure that daughter could get Newstart at all.
She just wants it for a few months till she can get a teaching job.
The Centrelink lady at first said it was possible, but on hearing she had 3 IPs, she balked and said she would be expected to sell one to get income. I don't see what relevance the number of IPs is myself.
To sell an IP would of course take some time and she only needs a bit of short term help (and does not want to sell off her future nest eggs).
I have heard of other people getting Newstart who own IPs, and wonder if anyone can share their experiences or any other advice.
How hard was it. Did you have more than one IP?
There is a Centrelink Real Estate form that can be filled out etc, so I believe it IS possible. I have found that Centrelink staff vary on what they know, so after waiting for up to an hour to speak to them, it depends on who you get, and the one I got was not that knowledgeable.
Any advice you can give is very welcome.
Thanks
Seaview

NEWSTART ALLOWANCE IF YOU OWN IPs

Buying In Indonesia

Hi Everyone,

Im new herer, first thread. anyways...

I am wanting information on an australian citizen buying property in indonesia, specifically The Gili Islands, Lombok or Yogyakarta.

Regards,

Callum.

Buying In Indonesia

How do you find your next IP?

Hi Everyone,

We're in a position were we want to buy our first IP, and I was wondering how the seasoned investors go about finding/researching their next IP? I know a lot would depend on things like personal goals, income, cash flow and risk profile. That aside, what processes or resources (including human) do you use to find the right fit?

How do you find your next IP?

Plz recommend an agency/agent for Rooty Hill area

As per the title could ppl with recommend an agency or a particular agent in around Rooty Hill area plz?
The attached photos were sent to me by the handyman I sourced myself and this wasnt even mentioned on the exit report and when I queried the agent I am with now why they just let the previous tenant got away with it, they replied becoz 'its not malicious damage just the stove being too close to the cupboard'

Btw any good idea in terms of repairing it?

Attachment 14565
Attachment 14566
Attachment 14567
Attachment 14568

Attached Thumbnails

       

Plz recommend an agency/agent for Rooty Hill area

Melbourne East under the radar

Find it interesting so much talk about Syd booming market yet Melb is ballistic and seems to be overlooked.

East is hot hot hot

Investor on SS purchased in Bentleigh, 3 weeks ago and not yet settled $200k gain, he purchased well but there is little stock, too many buyers

Competition is fierce, not only East.

Croydon, Ringwood, Reservoir etc etc etc

Is anyone buying? Spring I think will continue further growth, perfect storm...FHB, investors and cashed up foreign investors

Melbourne East under the radar

Beginner's Advice

Hi everyone,
I'm interested in getting into the property market but would like some general tips on steps to take when starting out. I have saved 300K, am a newly graduated doctor earning 77K pa which is due to increase at the rate of ~12.5K p.a. for the next 5 years, then increase at a faster rate depending on the specialty I end up in (difficult to estimate but likely ~400K pre-tax p.a.).
Only debt currently is HECs at 68K. I live in my husband's townhouse which he is paying off currently, we plan to live there for a few years and then turn it into an IP and upsize when we decide to have children (? 5 years). I've never owned a property and am interested in purchasing one to start off with and then eventually enough IPs/other forms of investments to provide me with an income so that I'll be working for enjoyment rather than money.

Thanks!

Beginner's Advice

West Footscray - good streets/areas?

Hi all,

just trying to get the lay of the land so to speak of West Footscray.
For those familiar with the area, what are the best streets/pockets to keep an eye on? and conversely, which areas would you avoid?

looking more at the stand-alone houses, cal bungs etc.
it doesn't seem like the suburb to have big block sizes like old ormond/bentleigh etc?

aware that this suburb might have already taken off so to speak, but still interested in the area none-the-less

thanks!

West Footscray - good streets/areas?

Electricity and gas still not disconnected?

Tenant left for about a month now, but the electricity and gas are still connected?

Is this normal?

Electricity and gas still not disconnected?

Help Needed: Calculating expenses to maintain IP

Hi folks,

I have been an avid fan of this forum and has finally joined today. :)

I've read somewhere that there are some tools/spreadsheet template which can help calculate the actual costs to hold an IP.

I need help in locating this link in the forum. For some reason I could not find it. I tried using the Search button but it directs me to threads.

Thanks in advance!

:)

Help Needed: Calculating expenses to maintain IP

Acid Sulfate Soils Overlay

Hi Guys I'm just wondering is this a concern when buying in around the Logan area. It seem a lot of the area has this overlay.

So to all the Logan area investors did you buy with this acid sulfate overlay or you avoided like the plague lol:)

Thanks in advance:)

Max

Acid Sulfate Soils Overlay

getting equity out

is there any difference between loans.. IO / P&I when trying to get equity out? etc is it harder to get equity out with a IO loan compared to a P&I?

using 80% lends

Cheers

getting equity out

Tax reality in Australia

Knowledge is important, but the right attitude and application of the knowledge separates the successful from the wannabees. A nugget of wisdom came from Kerry Packer:

"That's why in 1991, across the lounge rooms of Australia, we rose as one and cheered when Kerry Packer served it up to the Senate Inquiry.

He said:
'I am not evading tax in any way, shape or form. Now of course I am minimizing my tax and if anybody in this country doesn't minimize their tax they want their heads read because as a government I can tell you you're not spending it that well that we should be donating extra.'

Packer spoke on all our behalf."

The extract is taken from Verne Gowdie's article The Federal Budget: Get What You Can While You Can

The article well worth a read for those approaching retiring from a financial perspective.

Tax reality in Australia