Forum Replies Created
I’m in the exact same position “on the ladder”. Do you realize there is no 50% concession on the CGT when the property is owned by a Company? Hence check your CGT position for the sale of this property. My accountant told me that my Company can lend the money to me at an arms length agreement. Hence I will have to pay the Company fair interest on the loan for the life of the loan. He said the loan can be 25years or so. But I must pay my company interest every year. The Company will end up paying 30% tax each year on the interest income. Or, as my accountant says, just keep the property and borrow against it every 5yrs or so and that’s what I have done. This place goes up $100K every year that I have owned it so I just keep it. My lesson —–don’t buy in a Company name!
My mate purchased in Tassie 20 yrs ago because the return was sooo good. He sold out last year for the same price he bought in. I warned him!
As I understand it you need receipts if you are only audited by the ATO which could be never. Get receipts from the people who you buy from on Gumtree. Just a simple one on a sheet of paper. Does not have to be tax invoice if your not claiming GST. Also, most small businesses that turn over less than $70K don’t charge GST anyways.
Wow, I thought the industry got cleaned up from these kind of spruikers. Can’t believe people can be sooooooo gullible to believe this stuff.
“He was recommended to us via our superannuation guy, (who has looked after us for years), who is affiliated with the same larger company”
This is the red light Scott —- run, run!
We just moved back from the GC after 9 years. When we first moved to GC we rented then ended up purchasing a house and a few investment properties (homes). I had no idea where to buy until we lived there, hence why we rented first. It’s a whole new world up there and a dog eat dog mentality. I’m warning you, be careful. All the dodgy people start there careers in the GC. All my purchasers since 2008 are worth exactly the same now, no increase at all, while all my investments in Sydney have doubled in that time. However the rents in Qld have increased finally and my IP are positive geared now (after 5 years of negative). Don’t buy anything at Auction. Especially the ones that are set-up in a room and they sell a whole heap of them over a few hours. I won’t name the agency that specializes in this. Most of these are fake and I caught many of them out and they started to ban me from going to them. Absolute snakes in the grass. Renting is very cheap. You can rent multi million dollar homes for a $1000pw.
All I can add is Property investing is a long term investment of 20YRS +. The best locations, you pay big but get a small return, but in turn will give you the very best capital growth. Buy in the country and you will pay a lot less and get a good return but next to no capital growth. The big 3 rules for me are : Location, Location, Location will give you the best investment.
My friends just moved to NYC and they are buying property with a rate of 2% fixed for 30yrs.
I purcased a property in San Francisco Ca in 2001. I had to pay cash as no bank in USA or Oz would give some. However, after getting a good credit history (Which is what you need to work on immdiately when you arrive in US), I managed to borrow 80%LVR from a USA bank. When I purchased in 2001 the AUD was 49c, so I have not been able to sell the property due to the exchange rate. However, if the exchange rate goes down to 50c, then I will sell. The purchase price was US$280K, value now is US$600K. It rents for US$3,500 p/mth and I get a US holiday out of it every year. The big thing to look out for is Property Taxes. We have stamp duty to pay in Oz, but in US it’s Property Taxes payable every damn year. Mine is $4,000 p/year. I would prefer to pay Stamp Duty in Oz then pay Property Taxes. So far I have paid $56K in Property Tax compared to $10K SD in oz. The other thing payable is Monthly Home Owner Dues (if purchasing a condo) are US$480 p/mth, so they are higher than in Oz – usually. If you are purchasing to live in yourself, like I did then the tax side of things are more simple. Hope this helps a little. Remember you are not just chasing the property markets, but the exchange rate also!!!!!!!!!
Oh, get quotes, many of them. I had one installed the other day and quotes ranged from $2,800 – $5,200 for the same sized Daikin. Had to go up 3 floors with the pipes. I went with the cheaper quote. He is now busy doing everyone else in the building. I used the website serviceseeker. Good Luck
Make sure you ask for extra rent. I always get split systems. The last one I bought was $700 from Bunnings and still no problems after 8 yrs. I have Fujitsu at home and Daikin in a beachfront property, all the same if you ask me.
I use Landlords Choice with great results. They have all the paperwork etc that you need. $199
Ebm is a flat fee $345pa, but this is for strata properties only. I think from memory $500 excess was for claim of wilful damage by tenants.
my insurance paid for everything when a tenant did damage. Landlords insurance was with EBM insurance. Had all new carpets, new curtains, new built-in furniture that was broken (a fold down bed worth $5000). They even paid the rent while all the work was done. Keeping in mind though they wanted to replace the carpet in one bedroom only, however I said no way he whole apartment needed carpet to match. Claim was $20K, insurance paid me $19.5K – $500 excess.
The insurance company then goes after the tenant, not me. Make sure you have the original tenancy application, this is what they wanted as it has all there details (drivers licence etc).
Hope you have insurance??????
Coogee126,
Check out this guy “Chris Gray”, Just Google him. Watch his video at the CPA convention. He invests in Coogee & Bondi. I love his attitude towards finance & the Banks. He will turn your head around with a different way of thinking. He has turned me into an investor madman (in a good way). I have some other very creative ways of getting the banks to approve your loans, but I cannot write on the forum, but PM me and I’ll explain.And then the problem escalates when the tenants start talking to each other.
Another point to make, I always make sure my leases expire in the months of Feb/March of the year. These are the PEAK months for renters moving and I manage to get the best rents.
I have one property that is Managed (the only one). I got a call from her last year to advise that the tenants will not pay the increase ($20pw) and they are moving on. All good so she advertised right away. About 2 weesk before the move-out day she advised me that she had already received 3 applications sight unseen and was going crazy with inquiries. I advised to put the rent up $40pw. She was stunned by my comment and refused. I sacked her and got another agent, we achieved an increase of $50pw.
RENTS ARE UP UP UP
Love reading all this stuff guys.
I have a $1mil LOW DOC loan with RAMS which also is a line-of-credit. After 3 years the loan was transferred to a full doc loan automatically (well sort of – I had to make a phone call the remind them) and rate was dropped to 4.70% var last week.
What really pisses me off is a bank like St.George, I fixed my $800K low doc loan last year at 4.94% for 1 year, the fix rate ended Nov 2014 and I got a letter advising that my rate will now revert to there standard variable 6.12%. After a very loud rant over the phone, they reduced this to 5.44% and as usual I had to fill out a whole lot of forms for this to happen while I was paying 6.12% as the paperwork took over 10 days to complete. RAMS did everything over the phone instantly.
Hi,
I have been investing in r/e for 30 years and my 3 lessons was :
1) When is a good time to buy r/e = NOW!
2) Where should I buy = LOCATION, LOCATION, LOCATION (prime water front, harbour front with million $ views, Beach front)
3) Should I sell = NEVER.I have done this with all my properties and retired at 40 on a $400K income.
I NEVER looked into the fundamentals that a lot of people talk about when buying. However I learned there are sharks out there like the one who recommended buying in Moranbah QLD a few years back. Bloody idiots!
Sorry I’m so blunt, but its that simple and has worked for 30 years and I learned this from my Uncle who had been an investor for 40 years himself.
Just in interest about this, do you rec an income from o/s source?
The reason I ask is that I was told that if you do not bring the income into Australia, then u don’t pay taxes in Australia. True or not?
Just food for thought – My friend got a large inheritance and paid off her PPOR. However, now separated she is going to lose this $$$ upon the sale of the home (50/50 split). I would make sure you have an agreement with your husband first before paying off PPOR. Also, lawyer told her it would’ve been better for my friend to buy a property in her own name using the inheritance. She would’ve ended up holding 100% of the property.
Thanks Terryw
Just to clarify as I like to read things in simple terminology, I don’t get what you mean by ‘may not be an issue as company tax is 30% and CGT a max of 24% so just a 6% difference’.I’m trying to get my head around the meaning of the statement.
Simple terminology is – If I have a profit of $1,000,000, GCT would be $300,000. Are you stating that CGT has a max of 24% meaning tax of $240,000. If so you just saved me $60K.
