Forum Replies Created
I agree with qwerty
DHA take around 15% + GST
One property sold in my area for $250K . Rent was $250.00 per week – 16.5% = $208.75per week.
Annual Yield 4.34%
Extra commission probably goes towards painting and carpeting.
Cheers
Beancounter
Sorry Guys
Typo error 155 should read 15%
I would be pushing my luck to get a premium of $155k
cheers
beancounter
Hi Shezian
I am in agreement with you.
From people with whom I have spoken with most agree that it is almost impossible to find a postive geared property. As a few forum contributors have noted they are out there if you look hard enough.
I am now focusing on commercial property. I have come across an opportunity. 2 retail properties in regional victoria. Gross Rent $270k + GST. Lease 10 years with 2 10 year options on each property . Rent fixed to CPI. Price $3,500,000 + GST. Bank is prepared to lend up to 70%. Only trouble is coming up with the deposit.
Anyway these deals are out there. I just have to find someone else who is of a like mind.
Cheers
Beancounter
HI fellow property tycoons
Interesting to see backgrounds of forum contributors.
Im curious why there are no real estate agents or rental property managers.
Cheers
Beancounter
Hi Dennis
If Wagga is anything like Albury, there is minimal vacant land close to the CBD. As a guide a 800 sq metre block with an older type house in Albury will set you back anywhere bw 180K & 250K
You wont get your positive cash flow when you build your townhouse.
Hope my comments assist.
Cheers
Beancounter
Hi Stanford
Congratulations on owning your own home and rental property.
Unfortunately I am not in the same position as you just yet but my 5 year goal will get me there.
I agree with the idea of commercial properties. I have been unable to find positive geared rental properties. Over the past few years I have been focusing on CommercialRetail Properties. Havent bought any just yet. I have big ideas but no cash.
The concept I have in mind is to find 3 other investors who can each access around $300K. Finance to be sought $2.8 million. Then go to market to purchase 4 properties up to $1,000,000 each.By purchasing 4 separate properties risk is spread.
Projected Rental Postion per property
Rental Income 10% $100,000
Interest 6.5% fixed 5 years 65,000
Insurance 5,000
Sundry 5,000Net Rental Income $25,000.
Lease would be 10 year with 2 10 * 10 options
Rent tied to CPITherefore we have a positive cash flow thogether with Capital growth tied to increases inrental income each year.
Some might say this may not be achievable.But I know of people outh there that have done these type of deals.
Good Luck
Beancounter
Good evening Magnum
I can relate to your concerns.The decision to take another crack at an investment after previously failed investments is not easy.
In my case a failed business with a shonky partner really dinted my confidence not to mention my hip pocket.
Next I tried the share market purchasing Blue Chip shares. Whilst dividends were great I lost money when I sold out due to decreas in values.
At this stage I had to sell my family home to pay off the bank loans.
After selling the family home I now rent. This has resulted now in missing out on the tax free capital growth. ( My old home jumped about $100K in 12 months)
The mind plays havoc with you. You lose alot of sleep worrying that 3 strikes and your out.What do I do if I fail again??
However with the support of my wife we have taken a final shot and bought an investment property 3 weeks ago. The property unfortunately is negative geared, meaning we have to cut our personal living costs to meet the shortfall.
On a brighter note, we have yet to settle the property. But already I have plans to subdivide. I have run the idea past the agent who pleasantly advised that both the properties would produce a capital growth of around 40%. This will go a small way to recouping past losses. But a big way in regaining my self confidence.
I have tired to remain positive throuught the past downs and am now just slowly digging my way out.
My advice to you is if you can take the risk and mentally you are prepared to win then have a go.
Good Luck
Harrymak
Congratulations you have an asset that most of us dream about. Will you adopt me??
Derynaka is absolutely 100% correct do not sell this property. If prices in your area increase at 5% per year you are getting a tax free gain of $45,000 per year. That equivalent to around $60,000 gross.
Property investment boils down to what your life goals are. In my situation I am aiming to work 3 days a week have have net rental income of $35K – $40K per annum. Any more income and the taxman takes 48.5%
My recommendation to you is to sit tight and watch your capital appreciation roll on.
Good evening fellow property tycoons
Rod is on the right track
My understanding of the example given is:
Capital Gain $50K cgt tax rate (48.5% * 50%)= $12,125
Recouped Depn $35K @ marinal rate of 48.5% = $16975
Total tax payable = 29,125.
My preferrence is not to claim depreciation at all. Whilst tax breaks will be gained over the years normally at say 31.5% when property is sold all recouped depn is taxed in that year which throws investor into a higher tax bracket.
If depn is claimed one way to minimise the tax payable on recouped depn is to obtain valuation by a registered valuer. Particular reference to the increase value of the land component rather than the actual building. After all only land goes up in value. Buildings have a tendency to decrease.
I would welcome any comments
Best Wishes
Beancounter
