First time ever in Australia - Tax deductions PRE settlement

[Tony Vippond]

I would like to personally inform you all about what is truly one of Australia’s most unique and attractive property investment opportunities. How does this sound?

• Luxury Townhouses 8km from the Melbourne CBD
• Beside parkland and lakes
• In a high growth suburb – 17% increase in median house prices, and 42% increase in median unit prices over the last 12 months.
• Priced between $374,000 - $439,000
• 18 months settlement

Read on……what if you could:

• buy with as little as $1000, provided you have equity in a property
• have the developer pay all interest during construction.
• claim that interest paid during construction as a tax deduction – before the property is built!

There are only 34 of these townhouses available. With this exclusive financing arrangement in place, fully approved by Price Waterhouse Coopers, they are sure to go quickly. If you are serious in securing one of these properties, please contact our office as soon as possible on (03) 9815 3383. Ask for Julie (julie@wpb.com.au) or Monica (monica@wpb.com.au) to schedule an appointment with one of our consultants. First in best served.

Yours sincerely,

Tony Vippond

[Jamie]

Hi Tony,

Welcome to the forum.

Originally posted by Tony Vippond
I would like to personally inform you all about what is truly one of Australia’s most unique and attractive property investment opportunities. How does this sound?

• Luxury Townhouses 8km from the Melbourne CBD
• Beside parkland and lakes
• In a high growth suburb – 17% increase in median house prices, and 42% increase in median unit prices over the last 12 months.

Which suburb?

Read on……what if you could:

• buy with as little as $1000, provided you have equity in a property

Is this with a bank guarantee or deposit bond?



Yours sincerely,

Tony Vippond

Jamie :p

[NigelW]

Originally posted by Tony Vippond
• have the developer pay all interest during construction.
• claim that interest paid during construction as a tax deduction – before the property is built!

With this exclusive financing arrangement in place, fully approved by Price Waterhouse Coopers, they are sure to go quickly.

Tony Vippond

Hi Tony

"Fully approved by Price Waterhouse Coopers"...I'm not so sure they'd endorse your wording :p

So, has PWC given an accounting opinion in favour of the proposed purchasers upon which the purchasers can rely if the ATO changes its mind...(ie they can sue Poopers for negligent advice)

or

is it just an opinion in favour of the developer? Is the opinion subject to a list of qualifications, assumptions and exceptions as long as your arm? :rolleyes:

Is there a private binding ruling in place?

I'm no accountant (thank goodness ;) ) but it seems strange to me that you can claim a deduction before you actually incur it...but I will stand to be corrected.

Cheers
N

[DaveP]

Yes.....

Could you expand on the system....
To what extent is the claims made and how much of a deduction is made per annum..?

[Lotana]

Tony,

Welcome to the forum. On my opinion your first post is a direct advertising rather than a proposition of a deal. My understanding is that this forum is not a free advertising outlet. A deal proposed through the Caveat Emptor section shall provide information and more information.

- Why don't you tell us the location (suburb) so that everyone can check the statements regarding historical growth (and to lookup median prices on the way)?

- What is the nature of the financial arrangement? If it is your know how please state it openly.

- PWC does not approve or disapprove projects - what do you actually mean by their "approval"?

- What is your role (wpb's role) in th eproject? Are you selling it exclusively?

There are only 34 of these townhouses available.

- Why "only"? To me 34 townhouses in one development sounds like a lot!

With this exclusive financing arrangement

- What is so "exclusive" about the arrangement if you offer it to thousands people you don't know (this forum has over 1000 registered members)?

I have more questions, but I'll wait for your answers to the first set - may not need to ask any more.

Regards,

Lotana

[geoffw]

Additional Q's.

.There's absolutely no mention of returns.(though I might have been sceptical of figures quoted)

.A tax advantage short term MUST be at the developers' expense- like a rental guarantee, probably reflected in the price, and quite possibly not of good long term advantage to the buyer.

[Mark Laszczuk]

Tony,
As the partner (I believe) in WPB with the illustrious Dave Tomek, I was kinda surprised by your obvious and blatant advertising on the forum. I would've been pretty sure you would know the protocol of this sort of thing from Dave. So what's the deal? Why are you attempting to advertise free of charge? I would've thought that you'd know that posts like yours would get shot down or shut down pretty quickly, cause you're a pretty intelligent guy. So, again, what's the deal?

Mark
'no hat, some cattle'

[Mike]

Why "only"? To me 34 townhouses in one development sounds like a lot! - Lotana I'm with Lotana here. The way the market is right now I wouldn't consider looking at the deal seriously until Tony could present a convincing argument that there is no oversupply issue now or in the short term. Right now the vacancy rates suggest there may not be enough tenants to go around. What are sales like in other developments in the area? Are they going to auction, yet?

Mike

[XBenX]

and still we wait ....

[Jamie]

Hi Tony,

A few more questions:

Are these properties at genuine "wholesale" prices? ie Do you have evidence that the purchase price is less than sworn bank valuation?

Who is the developer?

What projects have they completed previously?

Who is providing the "exclusive financing arrangement"?

How many townhouses in the development?

What sort of yields are you proposing the properties will return?

Thanks,

Jamie

[XBenX]

Originally posted by XBenX
and still we wait ....

to clarify i mean i have some more questions ill see if you post again before typing them out...

[Sim]

Yup, I'm waiting for Tony to respond too.

[Lotana]

Tony's gone. Well done gang - No Junk Mail!

Cheers,

Lotana

[NigelW]

Originally posted by Lotana
Tony's gone. Well done gang - No Junk Mail!

Cheers,

Lotana

Let's give him the benefit of the doubt...perhaps he's talking to PWC :rolleyes:

[Les]

G'day all,

I was "blind" last night - changed work sites, and was not able to log on last night (6th Mar). Good to see that healthy scepticism is alive and well.

Regards,

[DaveP]

Yes...I move to delete....

Any seconders....?

[geoffw]

I would normally have seconded the delete- but as the company is the same as an old forumite (see http://www.somersoft.com/forums/showthread.php?postid=42957#post42957 ) I'd give a little more leniency for now. I've posted a request for info on that thread)

[saibaba]

I have phoned the Office to get some information about the town houses and no one knows about these town houses. :(

[digidave7]

Hi everyone,

I'm also glad that sceptiscism is still alive and well in here. So how have we all been? As long as the sceptiscism hasn't resulted in the all too common analysis paralysis...

Tony is is a board meeting right now. He is the original poster, so I'll let him reply to all your questions. Sorry for the delay - isn't a guy entitled to a long weekend away at the Grand Prix without being classed as a chicken @#!$ spammer?? :)

I'll allow most of your questions to be answered - not all. Wholesale Property Brokers has a system that is adhered to. This system has enabled us to become market leaders in our industry within a very short period of time. This opportunity has been made known to all our clients on the very same day as Tony's post.

Normally, we never even speak of specific properties/projects until we are absolutely sure of a prospective purchaser's borrowing capacity and financial circumstances. There's no point getting emotions involved unless the numbers indicate a deal is suited to a particular client and it's worth proceeding. This is the first time Tony (or I) have mentioned a specific project. It's too good an opportunity to NOT mention.

After Tony's reply to you (which will be soon as his meeting's over), please don't come down hard on us if we don't provide too much more information. It's the way we work, in the interests of saving time for you, ourselves, as well as our developer clients. Plus, we're running a busy business and spend up to a week away from our offices. I hope you understand, and don't miscontrue this as arrogance and evasiveness.

I hope you all have a great week.

Cheers

Dave
:-)

[digidave7]

Hello there. Tony is tied up, so I¡¦m replying on his behalf. He can¡¦t believe the commotion he¡¦s caused. We spent four days at the Grand Prix courtesy of 3AW due to our sponsorship of the event, as well as being one of their major advertisers.

We almost regret posting this opportunity now. Over 300 of our clients have been notified about this the same day. Indications are we expect to have these sold out within the next month, so maybe we shouldn¡¦t have bothered. Tony and I were just talking about my previous contribution to this forum a while back and thought, "why not?"¨ What's done is done, so here goes. Any questions I don¡¦t answer are for good reason ¡V we don¡¦t want to go into too much detail on this forum. We're happy to answer them one on one with you and your solicitor, but not over this forum. If that doesn¦t sit well with any of you, please read another post ¡V we cant please everyone.
In order of questions asked..


1. The suburb is in the inner west, 8km out. Those of you who are familiar with me and my views on the Melbourne market will know which areas we believe are relatively undervalued and are therefore targeting.
2. If you have equity in property, $1000 will secure a townhouse for you. This is not with a deposit bond. In fact, deposit bonds are not allowed as a deposit. If you don¡¦t have equity, you will need the full 10% in cash. No bonds or bank guarantees.
3. Regarding my comment re Price Waterhouse Coopers. Of course there is a list of qualifications. This isn¦t a loaf of bread we¦re selling. A quote from the in-writing confirmation we have from PWC on 20/2/03 includes, "In our opinion, potential purchasers who qualify as investors under Australian Taxation Law will be able to claim a tax deduction for the interest incurred during the construction period" This is provided certain documents are correctly executed (which we make available to a client's solicitor). And, they do recommend independent taxation advice.
4. Interest incurred during construction will be approximately $21,500. The amount you can claim back obviously depends on your taxable income. Eg, it¦s around $6500 if you pay 30 cents in the dollar.
5. The financial arrangement is structured between the developer, AMP, the purchaser and their solicitor and executed by contracts and a Deed of Undertaking. This Deed is made available to a purchaser's solicitor when they proceed. And yes, contracts can be signed subject to a satisfactory assessment of the document by your representative.
6. There is no rental guarantee (which is preferable) on these townhouses. The expected yields are 5-5.5%. There is no oversupply, as the population is growing and the most common property type is detached houses. Couples with children are the most common household type.
7. GeoffW, you are right ¡V this IS at the developer¡¦s expense. Is it built into the price? No. We have letters from Landmark White stating that prices in this project are approximately 7% below the market value. Are these sworn valuations? No. Those of you who deal with valuers every day will know that, unless a property is sold and a particulars of sale is made available, any valuer's assessment will be worded as a "Market Assessment" only. Their PI Insurance means this is how they now operate ¡V most of the major's in Melbourne anyway.

Guys, thats all for now. If you¡¦re interested, you'll have to go through the standard WPB process, by first contacting the office on the numbers on Tonys original post. If not, thanks for reading this anyway.

It¡s great to be back! Live your dreams...

Cheers

Dave


{Life¡¦s short..Play Hard}
:D

[XBenX]

that pretty much answers all my questions

as suggested I will play nice....

not related to this property but to the tax situation....

its scary that ppl rely on other ppls tax rulings (in most cases)

[digidave7]

Thanks to all of you who have contacted us on this. As mentioned to those interstate, the Deed of Undertaking will be sent to your solicitors directly.

Since the original post, we have signed contracts for 15 of the townhouses. We have just received written notice from the developer that there will be an $8,000 across the board price increase once 6 more contracts become unconditional.

If any of you are interested, please be quick. This deal rocks.

Cheers

Dave
:-)

[Les]

G'day Dave,

For those who are unfamiliar with this type of deall, would you be good enough to explain THIS:-

....there will be an $8,000 across the board price increase once 6 more contracts become unconditional.
To quote Julius Sumner Miller - "Why is this so?"
Thank you,
Regards,

[Jamie]

Originally posted by digidave7
If any of you are interested, please be quick. This deal rocks.
:-)

Sorry, is that a technical term?

:D :D

[digidave7]

Les,

Thanks for your question. How are you, by the way? Long time no see....

As with many projects of this magnitude, the developer needs a certain number of unconditional sales before the project funding is released by the lender. Typically, as in this case, the developer will sell the proerties for a lesser price to get to this point quicker. I have just received notice that the price increase has taken effect as from this morning. Upon our insistance, the rise is only $8,000...not too bad considering the original prices were valued by Landmark White as being 7% below market value.

Cheers

Dave
:-)

[Tibor]

Well said replies. For me too much sales garbage and very little real information. The infor should be sufficient that in 1 minute I should be able to calculate / verify that it is a complete waste of time to read on or something worth to take a closer look at it.

Cheers,

Tibor

[digidave7]

Tibor,

The project is sold out anyway. Pity you can't see past the 'sales garbage', which was basically answers to questions asked, to see what was one of the best property investments opportunities available in Melbourne.

If you think you can assess an investment in one minute, you really are a moron...

Dave
:-)

[Tony Vippond]

Healthy scepticism?? view the properties on mason st newport www.realestate.com.au with castran gilbert $100K+ and these properties are 6 months from completion because of builder delays, sit on your hands and go numb. the reason i didnt reply because it had sold immediately.

[Peter 14.7]

Hi All

I have just read this thread and, call me cynical, but I come to only one conclusion. Free Advertising for the Agency.

I mean why not put all the detail here?

They say they don’t have the time but they had to the time to post?

They know the forum and therefore also know we here don’t buy on promises, we want hard numbers!

Also why post to potentially 4000+ viewers across Australia when:

1. They have no time to explain here but happy to field 4000 calls personally

2. The deal is SO great it sold out in a week. Why don’t they have 34 loyal investors on the books to offer first? If my agent had a GREAT deal and told me after telling 4000 strangers I would be p*ssed.

It all don’t add it. Someone more cynical could call it Bait and Switch advertising.

Peter 147

PS The flame at Tibor holds no pain.

Anyone with experience needs only a minute to identify a good deal.

If the agents have any property, not contaminated, not infested, great tenants in a good area in melb showing 15% return after costs tell me now and I do it in less than 1 minute. :rolleyes:

Happy to be called a Moron is that’s the deal. I will even change my name here to Moron:D

PPS How about some genuine posting and stop insulting our intelligence.

[WillG]

mmm ...

Selling OTP using a tax incentive carrot. Sounds like a solid investment to me ;-)

A tax ruling from the ATO would have been held in higher regard than some speculation from PWC.

[Bill.L]

Hi all,

I'm with Peter here.

It is almost 2 years since Tony's first post when he had 34 wonderful bargins for sale. He comes back today and they are STILL for sale.

Just because you ask for a higher price does NOT mean the value has increased.

Oh and thanks for your valuable input into the forum, 2 posts in 2 years both advertisements.

bye

[willair]

1. The suburb is in the inner west, 8km out. Those of you who are familiar with me and my views on the Melbourne market will know which areas we believe are relatively undervalued and are therefore targeting.
2. If you have equity in property, $1000 will secure a townhouse for you. This is not with a deposit bond. In fact, deposit bonds are not allowed as a deposit. If you don¡¦t have equity, you will need the full 10% in cash. No bonds or bank guarantees.
3. Regarding my comment re Price Waterhouse Coopers. Of course there is a list of qualifications. This isn¦t a loaf of bread we¦re selling. A quote from the in-writing confirmation we have from PWC on 20/2/03 includes, "In our opinion, potential purchasers who qualify as investors under Australian Taxation Law will be able to claim a tax deduction for the interest incurred during the construction period" This is provided certain documents are correctly executed (which we make available to a client's solicitor). And, they do recommend independent taxation advice.
4. Interest incurred during construction will be approximately $21,500. The amount you can claim back obviously depends on your taxable income. Eg, it¦s around $6500 if you pay 30 cents in the dollar.
5. The financial arrangement is structured between the developer, AMP, the purchaser and their solicitor and executed by contracts and a Deed of Undertaking. This Deed is made available to a purchaser's solicitor when they proceed. And yes, contracts can be signed subject to a satisfactory assessment of the document by your representative.
6. There is no rental guarantee (which is preferable) on these townhouses. The expected yields are 5-5.5%. There is no oversupply, as the population is growing and the most common property type is detached houses. Couples with children are the most common household type.



hi dave,
as a general rule,what other procedures are in place for determining the ture market value on these propertries..
willair..

[House_Keeper]

Any investment advertised on the basis of "tax benefits" is something to run away from.

The tax benefits are designed to attract inexperienced investors, and to mask the poor prospects of the investment. :(

There has been many cases where the advertised tax benefits have been disallowed by the ATO and the poor "investor" is left with an expensive learning experience. :eek:

It may be just my opinion, but I would encourage people to be extremely careful with "investments" of this type.

Cheers,

[Paul72]

These guys are conartists. Just trying to pitch their properties on a forum. Paul