Forum Replies Created
Hi Boshen.
Firstly, there is never the perfect time to start investing into property but, you must start sometime. What and where you invest is going to be contingent on many factors: your ability to borrow and service a mortgage on an IP; how much you can borrow will pretty much dictate what you can invest into (i.e. unit, house, etc.); how much you are earning and your ability to get tax relief through depreciation and variation; and so the list goes on.
Once you have established how much you can afford to borrow then you must do your 'due diligence' with respect to future capital growth, demand by tenants to rent the property, investing into an area that has the necessary public infrastructure such as shops, public transport, schools, etc and so on.
I am sorry, but I have no quick answers to your questions other than to keep learning, listen and take advice from experts, read Robert Kiyosaki's 'Rich Dad, Poor Dad' and keep sponging as much info and education as you can so when you buy that first IP (and the first one is ALWAYS the hardest) you will do so knowing you have managed as much of the potential risks that you can and can invest with confidence.
I hope this has been of benefit to you.
Kind regards,Hi Jade Q.
With all respect, you appear to lack a significant amount of knowledge in relation to your present and future circumstances. Yes, like Jamie above,myself and other professionals on this forum, you are only going to get this knowledge piece meal as well as it could be inaccurate due to keeping certain areas of your financials private. The best suggestion I can make to help you is to make personal contact with either one of the professionals who provide freely to this forum or, seek someone local who can assist – otherwise, your learning curve through forums and blogs may take a while.
I truly hope this has been of benefit to you.
Kind regards,If you need a rental guarantee to buy an IP then don't bloody do it! Even Defense Housing Australia (DHA) will give you a rental guarantee BUT you have to pay around an annual 17% Management Fee! You see, if YOU MUST have a rental guarantee then YOU WILL pay for that guarantee somewhere.
I repeat, if you are new to property investing and are either offered a rental guarantee OR feel you must have one then I humbly suggest you consider investing in Pine Plantations, Aloe Vera Farms, Worm Farms or Lotto Tickets – NO-ONE GETS A FREE RIDE FOLKS!
G'day IVRage.
Yeah, RP Data and APM lock you in to long term contracts which can become quite costly. Even if you just want the odd report they are still both expensive. As an alternative, why not have a look at our new property investor search engine which combines RP-Data, realeastate.com. Lands Title Offices in every state, Tax Depreciation Schedules up to 10 years, and so on…. In fact, our new search engine for property investors has 35 different search parameters as opposed to 7 – 8, which is the most any of the others currently provide. Have a look at the Investing tab on our website and check out the free video and make up your own mind. Best of all – it's free to have a look and if you decide to test it out, there are NO long term contracts. You simply renew each month you need the product. I promise you it's worth not only a look but there is absolutely NOTHING even close to it available for the Aussie Property Investor on the market today.
Sorry, Drew's email address was incomplete Plastiques.
Drew is an Aussie who helps Aussies with USA I.P. and all the legalities involved. He should be very helpful to you and mention me and that'll make sure he does
Hi Fiona.
Land ownership, site value and land use as at midnight 30 June each year is used to determine the land tax for the forthcoming financial year. Land tax revenue assists in the provision of public services such as education, health and public safety.
RevenueSA is responsible for the collection of land tax under the Land Tax Act 1936, the Taxation Administration Act 1996 and associated Regulations.
Based upon a land value of $500,000, ther Land Tax payable for that year ending 30 June is $1000.
For more info, simply go to Revenue SA website at this link:
http://www.revenuesa.sa.gov.au/landtax/index.html
I hope this has been helpful to you.
Kind regards,Hi Plastiques.If you are going to purchase property (or even trade) in the US of A you absolutely MUST have a Limited Liability Company LLC set up. With the absolute certainty that most Americans will sue you for just about anything, you must have a LLC set up for the USA. Give a friend of mine Drew an email on drew@investuspropertygroup if you need a more detailed answer.
I hope this has been of help to you.
Kind regards,G'day Dougie from QLD.
Send me an email to my address below and i'll see if I can help you answer this but will need a little more info from you that perhaps shouldn't be posted here.
Kind regards,
G'day Scott.
Look up Blue Wealth Property Group and see what you think.
G'day Kendall.
I don't know of the company personally but it smells of one of your typical east coast wealth creation companies that sells people their own developments which usually have huge amounts of 'padding' in them. I can tell you from personal knowledge that, for an example, a Brisbane and Melbourne based company called Premium Finance Services makes a minimum of $40,000 per sale. So, you have to ask yourself, even though they glitz it all up and show you that your actual out-of-pocket costs may only be $63 per week, how much less expensive would it be for you if you simply looked for and purchased your own property in the same area.
My experience is, these companies do NOT do all this work for you without YOU having to pay for it somewhere amongst those figures. However, do your due diligence and always remember the legal professions motto, "caveat emptor" – "buyer beware".
I hope this has been of benefit to you.
Kind regards,Great post Ocean Architectural and terrific advice for the inexperienced. It's nice to get the perspective from the builders point of view (including potential wroughts) and your continued input will certainly be appreciated by the forum.
Kind regards,G'day Elemental.
EVERYTHING is negotiable. If the builder wants your business then tell him that he needs to 'sharpen his pencil' or you will simply go to another builder who will! Ever payed the full price on a new or secondhand car? There is always padding build into the price that allows a builder to drop his price without eating too much into his profits. Oh the joys of a free market system!!!!I hope this has been of benefit to you.
Kind regards,Have a nice day, Myra
What worries me with renting out a property is 1) I dont know enough about CGT 2) how much of my investment property income will be taxable
Hi Bullet.
CGT is fairly simple. You aren't up for CGT until you sell and then, in that financial year, the profit you realise when you have sold your IP is taken by the ATO at 50% and then you pay tax at your marginal rate of tax for that financial year. In other words, you sell and make $100,000 profit. The ATO requires a CGT on 50% of this profit which is $50,000. You now must pay the applicable marginal rate of tax for that financial year on the $50,000 only. So, as an example, if you are on a marginal rate of 30c in the dollar then you are required to pay 30% of the $50,000 which equals $15,000 in CGT. Now, you may be despairing at this point but you are forgetting one of property investing fundamental joys – whilst you have an IP EVERY $ you spend in relation to the IP is deductible against your income tax. So, you can claim depreciation of the house and its fixtures & fittings, you can vary your income tax throughout the year (S15.15), and you can use your tenants rent money and your tax dollars to subsidise most or all of your out-of-pocket expenses.
Your tax burden should not be a reason to deter you from investing in property – it's the tax relief that should encourage you to invest into as much property as you can realistically afford!
I hope this has been of benefit to you.
Kind regards,
Most of us have never been taught how to invest, let alone save. Younger generations are living differently to their parents: they're marrying later, spending more on 'lifestyle' and fearlessly taking on credit card debt. As a result, many people have significant earning power but few assets. Inevitably a time comes when you need to manage your finances better. To be financially independent you need to build an asset base that generates passive residual income, but first, you need to get your debts, finances and home loan in to order
Most Australians know the answers to their financial goals; it's just the crucial step of how to go about achieving them that provides the biggest hurdle. The subject of "how to build wealth" is generally not taught in our schools, by the government or the banks, yet the wealthy possess these skills in abundance. What little knowledge we have obtained is more centred on how to budget and save money, rather than how to invest and make money – which is how most of the wealthy get rich. In other words, we everyday Australians work harder to create wealth. We must have our money work harder and ourselves working smarter.
I cut and paste this off our website and I believe it goes some way to answering your question about saving money.
I hope this was of benefit to you.
Have a look at Jan Somers PIA Software – the whole east coast so-called 'wealthy creation companies' use it to calculate all the costs associated with the purchase on an IP.
My questions:
1) If we move into my parents, does our current property qualify as an IP immediately after we move out (ie – so we can claim the interest as a tax deduction from the start of April?).
YES! As soon as this property is no longer your PPOR and is available for rent it becomes tax deductible as an IP.
I hope this has been of benefit to you.
If they are both Strata Titled and you own both Title's then of course you can have the 2 properties connected by a common gate, corridor, or anything else you'd like. You own them so you can do whatever the local Council Regs allow you to do. The only time you may have issues is with tenants as they may not like their rented property to be connected in some capacity to their neighbour's.
I hope this has been of benefit to you.G'day Igino.
There is NO GST on residential property. If you have any GST concerns may I suggest you visit the ATO site where you should have most of your questions answered.
I hope this has been of benefit to you.
Kind regards,G'day Property Mistro!
Normally, if you are sub-letting out part of YOUR home, then your tenant is classed as a boarder and not a tenant unless, you require a fixed term tenancy of no less than 12 months. You are fully entitled to collect from a boarder a bond and have them pay so many weeks in advance. It is usually best to draft at least a basic tenancy document outlining what the boarder can and cannot do.
I hope this has been of benefit to you.
Kind regards,
