Forum Replies Created
A new car releaaed in India for under 3000AUD there will be plenty of takers, 17,000 new cars a day on the rod in China.
150 a barrel not far away and the price to produce a barrel in the mid 20's.
Baack on the subject all the more reason to invest in an OIl company that has proven reserves say Woodside for example.
Just got back from QGC coal seam methane site this week and its all go plenty of development and many major announcements coming. AGL announces a new pipeline on behalf of QGC last week.
ATO dont like it because you can use it to get a loss making tax deduction during the income phase and when you sell the gain might go to the lowest path and they say that the purpose of an investment should be to make money and the link needs to be clear for taxation. Dale Gatherum Goss wrote a good paper on the m and said to think twice about getting into one.
Look on the ATO site under private rulings and read it for yourself its quite specific and it disallows interest dedutability. Phone them up and have a talk to them they are quite helpful.
ANZ and ST George have no problem with them from a lending point of view.
I bought one and ditched it as I didn't want to settle properties into a structure that may not allow full interest deductability either now or in the future. When I challenged my accountant that sold me it she said that there is the risk that the interest may not be fully deductible to me and their lawyers were working on a new deed that was three times the price and it would have its own ruling.
The ATO tell you that a ruling only applies to you and that you have to get one specific to yourself balnket rulings aint to be relied upon.
I ended up using a unit trust instead.
Plenty of people still using Hybrids and they dont see any problems with them
Alistair, the standard new house packages do not have spa or front fence. The designers say they design the house based on the preferences of the mum.
Matt,
I was obtaining refinance through ANZ with a hybrid trust and the only adjustment I had to make was to change out my wife as director of the trustee company to myself. I as director of the trustee company would then guarantee the loan with the property as security. I did not proceed however as I found some personal rulings on the ATO website disallowing intertest deductions which in my case would have been prohibitive as one of the objectives of the refinance was to transfer non-dedctible debt to deductible debt.
The deal in question was a transfer of a previous PPR to IP so I opted for a unit trust which gave me full deductability. Whilst this does not give me the same level of asset protection as a discretionary trust a discretinoary trust would not allow me to offset the loss against my personal income which was a must have for me.
I'm building further North near water at Ningi things seem to be going well there to. Work colleauge is looking closely at Toorbul again near water and he beleives this is a good area. He is from Redcliffe so knows the northside pretty well.
Jambvw, good advice from Terry i go up there now and again and if you thought that there was upside in Japanese proeprty and wanted to invest in it then best you invets in a listed proeprty trust. Some of the young reps I meet up there that are buying firts home in rat race etc are paying much higher than you mentioned.
I work in engineering and construction and travel Asia quite often and up until recently I thought that the cycle "was different this time" the Us slow down wouldn't have much impact on asia and then oz. But just looked at some numbers and have changed my opionion and it doesn't stack up ie if US goes down then we will suffer as domestic asian demand is not big enough yet to replace Us demand. Us spend 9.5 trillion, China spends 1.5 trillion, India spends 600 billion a year not sure how much the rest spend including japan and sth America but if Us demand drops we will feel the impact. If Asia suffers Japan suffers.
So back to the post Japan probably not worth the risk to directly invest in property but property trust maybe and as Terry says nothing wrong with oz.
mercedes C class sedan sports pack on a -ve geared novated lease, excellent perfromance, excellent safety, osibidian black, tinted windows looks a million dollars but is actually equivalent to a german commodore but who cares.. wife has a people mover. I am only 3km to work I should ride a bike but who can be bothered having showwers and all that as although I live closest to work of all the staff I am last in and first out.
leaving Brisbane tomorrow for a driving holiday with family , 3 night Sydney, 2 nights Jindabyne, 2 nights(Christmas) Echuca, 7 nights Melbourne. just love this great country that we live in.
would you belive that it is actually more tax effective for me to get higher mileage ie burn more rubber and use more fuel hows that for ecological performance. and yes you can -ve gear the lease and also deduct expenses ie double deduction…
I know people that do it. Some professionals advise aginst it as it could be seen as tax avoidance there are afew ATO rulings aout this. If you were to do it make sure that the audit trail is as much removed as possible use a property manager have proper leases make sure the rent is market and even have someone you know sign the lease and you sub-lease off of them.
MCGJ, dont think anyone can tell you which way to go you could always buy the Residex report for Sydney and see what they reckon. if it was me and i was going to buy outside of SEQ then Adelaide might get my interest.
With respect to the news article its interesting that all the pundits are talking about Roxby Downs being a major driver for Adelaide. The expansion has not yet reached FID (Final Investment Desicion) so it is not a certain project. The project has some huge capital expenditure blow outs to deal with before it gets the green light so it is not a certainty that it will. I think it will go ahead but it is misleading for the pundits to talk as if it is a done deal.
Robyna, keep New Farm the outlook for new farm is very strong and will benefit further from infratstucture delivery listen to what trakka has to say and if you still want to go ahead with gold coast then max out all your investment loans and transfer any surplus funds against your house mortgage to ensure that the maximum amount of investment interest is deductible. The transcation cost for selling new farm and buying gold coast will set you back with no obvious benefit.
We had the same issue of trying to buy an ip that we could also utilise for holidays and it was blurring the ROI factor in the end we just bought pure IP's and we can still go on holiday whenever and wherever we want and we know that our IP's are performing as expected.
KingB, not sure if its an option for you but you can borrow the lot with cross securitisation.
Unless its a dog I would hold in nth brisbane transaction costs might make it impractical to sell and buy closer in.
Whatever way you look at it investing in oil and gas companies and associates has to be seriously considered.
Sade, good point on Peak Water, its about the water stupid. Investing in companies that are in the water treatement, pumping, filtration, pipeline and associated facilities also has to be serioulsy considered. Met up with someone in Water Corp Perth last week and she says that WA is about to find out that although they think its all about iron ore and oil and gas the real pinch point is going to be getting water to new developments and then also getting the sewer away from them. She also said a very opportnistic individual has just signed off on direct flight between Kalgoorlie and Melbourne wished that I had thought about something as obvious as that all that new laour flying in direct.
Went for dinner the other night with a chap from Santos in Adelaide and he says that the cooper basin oil reserves are dropping and the growth for them is coal seam methane gas in western queensland. A new LNG plant in Gladstone is being touted (at least to talk Santos share price up as they will be bought shortly now that the SA ownership restrictions have been removed) fed by coal seam methane gas. from western qld A major water pipeline is also on the table from Fitzroy river to Gladstone. So all this water and gas and new mineral processing plants in Galdstone maybe that is a good place to invest in even buy an IP there maybe. Not forgeting if all the coal seam methnage gas is about to go big in Western QLD and new rail line for coal going ahead then maybe Toowomba the most affordable city and major centre for these devlopments might be a good place to invest. He also said that the water situation in Adelaide isn't getting any better and being an oil and gas man he has started to think about water, the wine is good though.
Desal plant in Sydney sideways (dam is up) Desal plant in Gippsland on the table, anothere desal plant in Perth, one nearly finished in Tugun, water grid in Brisbane 100% over budget(this is good if you are the one getting the 100% over budget) and world wide shortage of desal plant technology and all water infrastucture equipment and materails another opportunity. Tyco are naming there price and telling you when you will get it and we are talking years.
So we have iron ore up in price and another hike coming, coal tipped to rise, oil up, water scarce, gold and copper strong, uranium down( but demand about to go through the roof) zinc and all down, LNG price rising. Lots of opportunity everywhere and no money left to invest..
Peak Everything…..
Tysonboss1 wrote:Caltex Australia actually made history earlier this year when they had to ship oil all the way from west Africa to sydney because there was no avaiable supply anywhere closer, and to refine it they had to make modifications to the refinery because it was much heavier oil than the light sweet crude we have used in the past.
Or could this be an example of innovation and adaption by a leading edge company with its eye on the global ball ?
not to mention the fact that to produce 1 barrel of oil they use the amount of natural gas equal to 6 barrels of oil, it is not a cheap or easy way to get oil.[/quote]
This is good more demand for our gas reserves
Don't know what impact high oil prices will have on house prices but Australia will do well in the energy game as there is an abundance of coal and gas reserves that we can compress and sell as LNG.
If the price keeps going up then rentboy is right you should invest in it.
I also work in the oil and gas industry and its awash with money and opportunity. Last year worked with Exxon Mobil and they certainly have long term plans so don't expect anything to stop flowing in the short term.
There is a flip side to peak oil which is that it is a ploy to create scarcity and drive prices up, OPEC don't produce more because that's what keeps prices high.
rentboy which company do you work for ?
Nice one chefman thats a good lady you have there probably about 5.5 houses worth.
I got rid of some dog investments and have aquired two props this year and am real happy with that. Company I worked for listed on ASX share price doubled under my nose in 6 months but i didn't do much about it.
Got mega bonus and pay rise at work and have been promoted to executive level which makes my serviceability real strong.
Got 4 weeks leave starting Friday first time for a long time going on a driving holiday down south with family and hopefully a bit of spice to.
All the best for 08.
Yes you can get houses that cheap but I wouldn't recomend it. I bought at the low price level ( not the flip price) and still lost out when I sold. There are to many crims in the game up there. If its true I feel for that lady in the story it is very sad to think what she is going through.
If you want to buy US I would suggest Florida they have just had a crash.
My PPR has unintterupted city views and is the highest house on the high side of the street, bank valuation gave me an increase of 25% in 6 months(and they know what I paid for it), so if you can afford to buy views then go for it. The water bit is a double bonus, There are proeprties on the northern side of Brisbane that have full water views under 500k. The risk to manage is that the view doesn't get built out.
