I went to a John Fitzgerald seminar recently and i must say I got my moneys worth. While his investment philosophy seem sound and logical, I was a bit surprised at some aspects of his approach to building wealth.
1. JF said stay away from high rise apartments. The worst performers are 1bd rm apts. I understand the land content % is very low (compared with houses), but does this mean they are to be ruled out all together? Anyone out there ONLY invest in city apartments and getting good CG/CF? what are to pros and cons?
2. JF said add around ~6% of purchase price for misc fees and charges. Is this overly conservative? I worked out the numbers for my PPOR and it's only 2%. Could it be because I didn't pay stamp duty as I'm in Qld?
3. JF said new homes can be depreciated over 40 yrs. So if i were to buy a 10 yo house, does this mean I can deduct the total cost of building the house (plus improvements) at the 10 year mark? Is it common for property owners to have a copy of the depreciation schedule? Or is it a job for the quantity surveyor everytime a new owner wants to claim deduction?
1. JF said stay away from high rise apartments. The worst performers are 1bd rm apts. I understand the land content % is very low (compared with houses), but does this mean they are to be ruled out all together? Anyone out there ONLY invest in city apartments and getting good CG/CF? what are to pros and cons?
2. JF said add around ~6% of purchase price for misc fees and charges. Is this overly conservative? I worked out the numbers for my PPOR and it's only 2%. Could it be because I didn't pay stamp duty as I'm in Qld?
3. JF said new homes can be depreciated over 40 yrs. So if i were to buy a 10 yo house, does this mean I can deduct the total cost of building the house (plus improvements) at the 10 year mark? Is it common for property owners to have a copy of the depreciation schedule? Or is it a job for the quantity surveyor everytime a new owner wants to claim deduction?