Forum Replies Created
I purchased a property in San Francisco in 2001 when the dollar was AUD$53cents. The property has grown 150%. I manage it myself. US properties have no stamp duties when you buy but have annual property taxes u need to pay which can be a burden. Problem with purchasing in US is you need to follow the Aussie dollar closely because if AUD goes up then you lose – only if you sell. I have been waiting patiently for the AUD to keep falling then I’m definitely selling. The taxes a foreigner has to pay upon selling is abhorrently expensive. They really take the mickey out of you, I suppose the same thing the Australian govt does to foreigners that buys in Australia. In the end, I probably wish I didn’t do it because of these US taxes that you need to pay when selling. My advice – buy Australian.
Land Tax = Rip-off tax.
If your planning to be a multiple property purchaser look out for the dreaded Land Tax in Qld – absolutely ruthless! I’m deciding to sell because of it.
The property as been a ip for less than 6 years exempting it from CGT
Just out of interest, how does an IP get exempt from CGT if it’s been an IP for less than 6 years? An IP property is never exempt from CGT unless it was your actual home.
Mate, you can sell for whatever price you want. I know NSW is known as the nanny state but this is ridiculous. There are no laws/requirements to sell at a certain price. Sometimes people sell for allot less than the purchase price. It’s called ‘a loss’.
When I purchased my 1st house back in 2008, I remember the agent telling me the last time it boomed on the GC, properties were going up $50K p/month and he found it difficult to price his listings. I asked him why it boomed and his reply “I don’t know”! There’s no reason why GC should not be booming right now. If you sold your home in Sydney now for say $2m (the average Eastern suburbs price), you could live like a king on the GC with this kind of money, but Sydney siders are not moving there like they did back in 2006-07. I’m holding out for another few years, but then I’m out of the GC and I’ll go back to prime waterfronts in Sydney and cop the negative CF for capital growth.
5% – 6%
I purchased 3 x houses in 2008, 2009 & 2010 on the Gold Coast (Ashmore). Yes great rental return but absolute crapppppppppp growth. 3 most important things in real estate investing;
1. Location,
2. Location,
3. Location.
The Gold Coast is none of these!My properties have grown less than 10% in 7-9 years.
I’m one of these buyers. I was a buyer of a unit in NSW that was previously sold off-the-plan and then on-sold to me with an amount of cash given to the seller, as you say ‘under the counter’. Just because someone is paying in cash it’s up to the seller to declare this cash and maybe they do. The seller I dealt with was a business man and he declared this cash as income into his business (prior to GST introduction). My motto is – what goes around comes around when thinking about reporting anything or anyone to the authorities.
I currently have 6 home loans that I live in with 6 different banks. I’m not lining the pockets of those friggin banks, they make enough money from me thank you!
Sell back to the developer and move on. You will always have water problems in the future being on the wrong/lower side of the street. If you try to sell it now, you probably have lost more $$.
Fixed rates – the banks always win! They know more than you before you are even told about it!
Who forgets to pay 2 years of levies – porky’s! Amnesia is not a good defence.
Same thing happened to me when I tried to refi, except my wife & I happened to break-up before I put the application in. She moved in with her mother. And guess what after the refi was completed we magically got back together – go figure!!!! Beat them to there own stupidity.
The funniest post ever. 2.12% return. I just have to laugh Greg – in a polite way.
My response:
Your dreamin,
Your 1st problem is Brisbane,
Your 2nd problem is Property Purchase price of $220K – your dreamin!
Your 3rd Problem is Property investing in Oz is a long term investment if you want to make $$$. Even if you make some profit the ATO will eat up most of your profit.
Your 4th problem is you have not allocated the funds of being totally ripped off by the Qld tradies.
Good luck with your figures!
My advice – Get a job as accountants.
LOL!!!!Hi Pollyanna,
You bring up some very important points to novice investors. I am a long term Property Investor (30yrs) and the advice given on IO loans is daunting at this time, however 20yrs ago it was a standard thing to do and without a thought.Something that is being pushed by so many lately is this Cash flow positive properties vs capital growth. People are buying in rural areas getting great cash-flow, but no growth. Even I am guilty of this as I purchased on the Gold Coast (huge mistake) 10yrs ago and there has been next to zero growth.
What’s really important to remember is : LOCATION, LOCATION, LOCATION. 3 basic rules of property investing that I learned right from the onset of investing (luckily for me I had a smart uncle who gave me this advice).
Also lucky for me I invested in Sydney’s prime east & inner west locations — beachfront, waterfront, views etc, etc. All these investments (for me) have gone up 150% in 10-15 years. However most were cash-flow negative.
I had exactly the same problem 2 years ago whereas my loans were coming up to the 10yrs IO lapse and the Bank will not look at another IO term. one of my loans literally tripled in repayments. So I turned the tide against the bank and beat them at there own system. If you PM me I will explain. It worked for me, but it’s complicated and not cosha for most people on this site, however not illegal, just imaginative!
Property- divorce = trouble. I have been through a divorce and a break-up (defacto relationships). It is an absolute nightmare when you own multiple properties. I had properties in my own name, Company, trusts including discretionary & Unit trusts and SMSF. It does not matter in the least who’s name they are in and/or who owns what. Literally whoever has the most assets in their name will lose. The Family Law Courts just slice through all the jibba jabba of these Trusts. I would always settle out of the courts because a judge and lawyer will costs u min $150K to settle it for you and trust me, whoever is the richer partner will lose the most. 50/50 is the easiest no matter who owns what! Also, keep in mind some properties will incur huge CGT when sold and a judge will not take this into account when distributing proceeds btw you both. Best to sell-up, both of you distribute the CGT and start again. Goodluck!
Too personal, keep relationship professional. Maybe send a Christmas card. No matter how good a landlord is, it always falls apart at the end if something goes wrong with the bond claim – ALWAYS!
That’s funny all my commercial leases have CPI too, but minimum 3%. Strange your lawyer did not stipulate this in the lease.
Terry W — Yes, the profits will be distributed to all owners for all the other repairs needed. So does the BC pay the tax, then distribute the funds to owners. Or does the BC distribute the funds to owners then each individual owner pay there own taxes?
Scott —– Yes we are going to seek specialist advice and from what we have been advised so far is that we should seek a special ruling from the ATO regarding the matter.
