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Online Share Trading

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Property Investment

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Som2
Contributor
That is a great achievement. Did you buy your properties using a trust or company or personal capacity? (linking to db88's initial question).
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am_1
Frequent Contributor
Very sound advice from Prancing Horse.My advice to add is do not go into the buy to rent market only on borrowed money. Remember when interest rates went to 25%? Don't buy sectional title unless you are prepared to be an active trustee on the body corporate and remember there are monthly levies that escalate. Do your own vetting and letting. For this to be profitable only do short term or vacation rentals and many of your costs will be tax deductible. And never become emotionally attached to your property. It has taken me since 1991 and a lot of hands on hard work to build a profitable portfolio.
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Not applicable
Residential property has worked for me, as long as I was in debt for them. Now that they are paid off, I am not sure whether I would be better off selling them and investing in shares. But if I had not bought them, I would not have had the money to buy shares. Go for it.
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CHATTYCHAT
Super Contributor
A combination, also incorporating my wife in her personal capacity. The component in a Trust is a vehicle towards implementing my strategy on succession of family interests.
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Sectional title is a bandwagon without a pilot full of all types of potatoes. Big sizes, small, fresh, rotten, ....etc. The list goes on. People run to them for their so called "safety". Wait unitl one potato goes phoof. Levies sky rocket. Met ys, yaah! Vultures and flies sky dive into your pocket.
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Not applicable
My believe has always been, if someone wants to sell something, they are better off selling tomatoes not property.
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Alonzo7
Frequent Contributor
Som2 - Wife & I did it in our personal capacity. Cheers...
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Funnymoney
Frequent Contributor
I'm with Alonzo7 and Chattychat.. I want to aim more towards free standing property, buying on auction and hope to enter the small developments or commercial property one day.. I am 30 at the moment and have acquired 3 residential properties of my own and then another 2 which I own a 50% share in. I don't have an agent managing them as they are useless.. Hands on is always better.. I plan to continue growing this portfolio and hopefully get into bigger things.. Guess we'll see what happens in the long run..but good luck to whoever gives it a try..
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CHATTYCHAT
Super Contributor
No, not all of them. As with selection of property (location, etc) you also select the ST scheme where to invest. Properly managed the benefits of scale from a well managed scheme is in itself a reward. Ciao!
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Not applicable
In most cases Trustees are the ghosts during sell-buy process. One only knows about them when they send the first invoice. then they would come with non-stop special levies. How do you go about interrogating their systems? Often they do not want to give out their or the complex's financial statements. That is where the financial cancer is.
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Anyone using a trust for property investment?
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CHATTYCHAT
Super Contributor
Pardon me, you are generalising now and probably beacuse of your own misfortune. in terms of the ST Act and particular rules, owners of ST are absolutely entitled to much more than the mere sight of financial statements, which is on its own a requirement to be met annualy, to be presented to the AGM. owners are even entitled to attend trustees' meetings and to take part in the discussion. However, many ST owners avoid to participate and tend to blame trustees when things do not work out their way. It is generally accepted that trustees are the servants of owners and those willing to serve shall abide by the Body Corporate rules and not by their own (agenda). Owners of ST shall make a point of removing any trustee in terms of MR 13 when it is found that the trustee/s do not conform to the ST Act.
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CHATTYCHAT
Super Contributor
Yup, read my initial post above.
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Chatty. You may have misunderstood me. I am referring to the purchase phase procees. During this process, the Body Corporate/Trustees are invisible. Are you saying that you do due dilligence into their affairs before you purchase the property? All I am referring to, is buying and figuring out later.
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CHATTYCHAT
Super Contributor
Hi, Yes I misunderstood - sorry. BUT, I do a due diligence. I hate the estate agents for their lack in understanding that there is more to a ST than in the case of freehold. So I provide them at the outset with all I need and obtain permission to speak to the Managing Agent if any, and the Trustee chairman.
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Not applicable
How about a shack rentals?
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