Investment property

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Has anyone ever tried investing in a display home with leaseback?

I'd be interested in knowing hoe hard it is to get them to pay the outgoings, as well as return the property in new condition (flooring being the major issue).

Also, with Perth's prices plummeting would that indicate that a display home would be open for longer (ie: greater chance of an extended lease with the builder)? Or is there too many other factors that will affect the lease length?
 
Angus Young said:
Location. location, location people...

Can't go wrong if u get that right.
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I am a town planning consultant, and the number of calls we get from people who have not done due diligence to find out zoning of the land and purchase to only find out the zoning restricts the site to 2 dwellings, has heritage overlays or a restricive covenant etc.... mind boggling.

I'm happy to look at the planning policy for anyone here to provide some advice of number of dwellings, strengths/weaknesses of sites etc.
 
Van_Power said:
I am a town planning consultant, and the number of calls we get from people who have not done due diligence to find out zoning of the land and purchase to only find out the zoning restricts the site to 2 dwellings, has heritage overlays or a restricive covenant etc.... mind boggling.

I'm happy to look at the planning policy for anyone here to provide some advice of number of dwellings, strengths/weaknesses of sites etc.
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it might be worth posting a link on how to do this so people can see what you're talking about and have a look if they're interested.
 

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The Edukator said:
it might be worth posting a link on how to do this so people can see what you're talking about and have a look if they're interested.
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Each site is subject to the planning scheme withing your council. Each site is subject to zones that promote or restrict development, and some areas are subject to overlays which also limit development potential. This can include heights, number of dwellings you can built on a lot, a minimum subdivision area, minimum front setbacks, build materials etc. Then in 'local policy' each council indicate precincts, development guidelines etc - a third layer to consider

Google your planning scheme, and then try to decipher that. That's what I do as a job as a consultant to provide advice on development potential and the design.

Don't get architects to do your planning application. They are architects, not planners. They should only do a design based on planning policy. It's like going to a dentist to talk about your sore foot.

Planning applications ran by architects generally run longer, and are more costlier. Speak to those in the right field.

Each state has different planning g provisions.. I am discussing Victoria only.
 
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Architects
 
PoppedCorn said:
Anyone done the buy the display home thing and get them to rent it back??
http://sadisplayhomesforsale.com.au/

We are getting our place valued on Monday to see what equity we have
Briefly spoke to our lender and they will only loan up to 80% on a display rental, after that it's mortgage insurance...which is around 10 grand
20000 is fees and bollocks straight up

Couple of big new developments going in in a couple of areas we know of (in sa) they will obviously have display homes.
They pay more than a private tennant would which covers the mortgage and gives a small profit.
We would like to use this small profit and add it to our savings to do some work to our place we live in now, if we can get them to rent for 2 years it would, when added to our savings, finish what we would like to do to our own residence.

We would then prob sell on once the display home company wanted out as a private renter is prob not going to cover the mortgage.
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This is a terrible idea
 
Not sure if there is a more current thread than this but my partner and I are pre approved at the moment searching for our first investment..

Basically 2015 bought land and built .. moved in 2016.. had it valued its risen by 200k and we have over 300k in equity so putting that toward an investment

Looking in Ballarat .. researched it and the advice we are getting is pushing toward that area for the price we are looking at.. the government spending out that way is huge and the new train line hopefully results in big property gains.. anyone know much about Ballarat in terms of investing ?
 
Sippa said:
Not sure if there is a more current thread than this but my partner and I are pre approved at the moment searching for our first investment..

Basically 2015 bought land and built .. moved in 2016.. had it valued its risen by 200k and we have over 300k in equity so putting that toward an investment

Looking in Ballarat .. researched it and the advice we are getting is pushing toward that area for the price we are looking at.. the government spending out that way is huge and the new train line hopefully results in big property gains.. anyone know much about Ballarat in terms of investing ?
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Far better off looking for advice here - https://www.propertychat.com.au/community/

Spent 6 months on there seeing advice before buying my first property when I was 20/21. Also gained valuable advice buying over the other side of the country and also when I decided to buy in the US
 
The Edukator said:
land is scarce in melbourne and population is rising rapidly. not sure why you would want to go regional.

also i agree with poster above. property chat is invaluable.
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Guidance we are getting they are suggesting Geelong has been achieving really good growth and that’s about to move out to Ballarat .. unemployment rate is really low and the train line to the cbd will make it practical to live in Ballarat and work in Melbourne .. lots of reasons why it’s predicted for good growth
 
Sippa said:
Guidance we are getting they are suggesting Geelong has been achieving really good growth and that’s about to move out to Ballarat .. unemployment rate is really low and the train line to the cbd will make it practical to live in Ballarat and work in Melbourne .. lots of reasons why it’s predicted for good growth
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You want cg now. When is this train line going to be finished?

Sent from my SM-G960F using Tapatalk
 

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koko said:
Time = money. I think you know about that. Now I understand this because I work on the Internet. I make a lot of money here https://mr.bet/casino. I have a dream. This is a private house and a big family. I want to achieve this, because family and home is the most valuable thing a person has. Do you agree with me?
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It’s like you have known me all my life.

How does this work? Do I sign up myself or should I PM you my card details?
 
Big Cox 88 said:
Send it to the following:

Account name: Nige Ria
BSB: 123-456
Account: 696969696969

I guarantee 11% on your capital investment.
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don't forget it comes with a capital guarantee.........never to see it again
 
Posted elsewhere but no responses. Trying here

Billy ray said:
Any accountants out there?
Is interest on a loan (taken out for investment purposes) tax deductible IF the loan is from say a family member?

Eg if my parents lent me $50k (so i could build a granny flat to rent out), would a simple contract saying i owe them that money and it is lent at x% interest over x years be good enough to claim the interest ?
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Billy ray said:
Posted elsewhere but no responses. Trying here
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yes but must be arms length otherwise some serious implications for any related party transaction, depending on the circumstances, including "deemed dividends"

things to remember to do:
1) have the loan documented
2) have it witnessed by unrelated parties
3) keep the records demonstrating it is arms length......................a comparative rate

remember under Labor negative gearing goes out the window unless your rich, the beneficiary of daddy's trust or can transfer business income into investment income or have enough investment income to offset the deduction.
 
Billy ray said:
I wonder if the neg gearing changes assuming labor win will be grandfathered for all existing property...
This would be a new build so probably wouldn’t matter anyway
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grandfathered with the cut off being 30 June 2017

post that only new builds but the pain on new builds will be felt when selling. As it's actually worth more to the owner than the market, thus the property developer gets the win, the owner feels the CG pain and the rich get to cherry pick in the secondary market
 
Question peeps:

I have an investment property that's valued at $350,000~. I owe $180,000 on it

Currently renting a place as I moved states. The tenant's repayments are enough to cover the mortgage and I've worked out finances to be able to put an extra $1,000/fortnight into that mortgage.

Am I shooting myself in the foot when it comes to tax time? As my interest will be lower meaning I claim less at tax time. Wouldn't I be better off making the minimum payments and no extra payments? Am I better off putting the extra balance in my mortgage into my savings account then using that money to buy another property etc? My partner and I are 28, so I have time to expand etc

I'm thinking about buying another house, just not sure if it will be a "home" or investment property

Too me, it's like I'm paying 30-40% tax on my savings too (as it reduces my interest so my profit is greater)

Thanks
 
compact72 said:
Question peeps:

I have an investment property that's valued at $350,000~. I owe $180,000 on it

Currently renting a place as I moved states. The tenant's repayments are enough to cover the mortgage and I've worked out finances to be able to put an extra $1,000/fortnight into that mortgage.

Am I shooting myself in the foot when it comes to tax time? As my interest will be lower meaning I claim less at tax time. Wouldn't I be better off making the minimum payments and no extra payments? Am I better off putting the extra balance in my mortgage into my savings account then using that money to buy another property etc? My partner and I are 28, so I have time to expand etc

I'm thinking about buying another house, just not sure if it will be a "home" or investment property

Too me, it's like I'm paying 30-40% tax on my savings too (as it reduces my interest so my profit is greater)

Thanks
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You should refinance and set up a mortgage with an offset account if you don't have one already. Pay the minimum repayments to the loan and pile up the rest in the offset which reduces the interest burden without removing your tax benefits for renting out your home.
 
Big Cox 88 said:
You should refinance and set up a mortgage with an offset account if you don't have one already. Pay the minimum repayments to the loan and pile up the rest in the offset which reduces the interest burden without removing your tax benefits for renting out your home.
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How does it reduce the interest burden though?

If I have $10,000 in my offset. Won't the bank take $10,000 off the "mortgage" which will reduce the interest?

What's the difference between $10k in offset and $10 in the home loan (which I can also redraw at any time)
Thanks for your input!
 
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compact72 said:
How does it reduce the interest burden though?

If I have $10,000 in my offset. Won't the bank take $10,000 off the "mortgage" which will reduce the interest?

What's the difference between $10k in offset and $10 in the home loan (which I can also redraw at any time)
Thanks for your input!
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If you pay down your loan and then redraw from it, the Government will base all tax calculations on the paid down amount even if you use the redraw on repairs or to buy another property. This is essentially reducing your claiming power at tax time. The offset reduces interest paid without directly putting the money into the mortgage and allows you to have the most tax offset possible. Do some reading regarding offset accounts and getting the most out of your tax. A google search should give you the information you need, just make sure it's an Australian source.
 

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