thecrest wrote:
Hi John.
That’s a very clever strategy.
It converts personal living expenses the tenant can’t claim on tax,
into expenses the landlord can claim.

Can someone familiar with Australian Tax Laws tell us if
there are any FBT implications in supplying “free” utilities to a tenant ?

What else can the landlord supply for the same…[Read more]

I think its inevitable that a substantial number of projects will be scaled back with some being cancelled/postponed until the fundamentals correct themselves.

We have seen softening commodity prices, with blowouts in capital expenditure from when projects were first planned.

People talk about a lot of the projects as certainties, when most…[Read more]

Given the level of risk, I don’t believe investment groups have any place in mining towns.

Too add to this I also believe by the time investment groups get around to focusing on these kind of hot spots its already too late. The first round of investors are usually just selling into the new pent up demand. They just create the demand that allows…[Read more]

I think when you add up the time and travel costs of multiple family members, living further out can be a false economy anyway (especially as they are always increasing), your also generally further away from services too. I think with the high uptake of foreigners and younger generations, many are used to/have resolved to living in higher…[Read more]

fWord wrote:

simple wrote:
Let's see if trend continue: http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6416.0Main+Features1Dec%202011?OpenDocument

-6.1% for Melbourne from Dec 2010 – Dec 2011. That's not so bad. I lost more money in shares!

Depends really.

There is a lot leverage in property.

So if you looked at say $100,000 invested in…[Read more]

It's not really just a question of cost, but the stigma which will now be attached to the building. This will likely mean future buyers being turned off. It could also affect future valuation's which could affect future purchases getting finance to buy your property.If there was a purchase for $650K last October, why are you offering $670K now?…[Read more]

Insurance and depreciation.

http://www.ato.gov.au/corporate/content.aspx?doc=/content/86191.htm6 Year rule maybe?So if you lived in the property to start with yourself, you can then declare it a ppor which makes it Capital Gains tax exempt for upto 6 years from moving out, while still allowing you to claim all the normal deductions for a rental property for the period in whi…[Read more]

mickm007 wrote:
. On paper their plan looks great they own the propery and at 200-220k per unit to build and sell at 500k plus per unit how can this go wrong!! lol!!!

Can't help you with the finance questions, but this is the wrong way of looking at it. Regardless of whether they own the land or not the land value must be added to the build…[Read more]

Terryw wrote:
Kong, this is an offset linked to an IP. So any reduction in the interest payable on the IP loan would lead to more income. This means the negative gearing effect will be less, or the positive income more. This in turn equals more tax.However, it still may work out better to put into the offset account.

His calculation for…[Read more]

For an IP the answer will always be your offset account because of the fact that your loan has a higher interest rate.

For PPOR definitely the offset account for obvious reasons.

Michael_Cao wrote:
Thanks for that information guys!I can either:1) use the 30k on my personal loan paying 14% and buy real estate in the US that offers 18% return and risk 30k only.Or,2)

Don’t do that. No way would you invest with a loan of 14%.

Paying down your personal loan would be the best advice, it’s effectively a return of 14% risk free.

$384,000 + ~$13,000 Stamp Duty + $44,000 Reno + ~$50,000 Interest + ~$15,000 Sales costs + $Rates + $Insurance + $your time= $506,000+How much rent did you get over the period? Does seem to be a close shave.

engelo10 wrote:
Hi all,I have just lent some money to a business that buys property in the US. Its a 5 year contract with an interest rate of 10% per annum. After 5 years there is a possibility to extend or get a balloon payment of the funds lent. If repayments are late by 60 days I can repossess the properties. What are your thoughts on this…[Read more]

Mosqui wrote:
Can I claim the stamp duty back when I sell the IP? Or the Stamp Duty gets lost?

Yes, It's added to the cost base along with all other acquisition costs for determing capital gain when you sell the property.e.g. You bought the property for $500K, Stamp Duty was $20K, Other Capital Costs were $10K, you got $600K for selling after s…[Read more]

keiko wrote:
Lets say you bought a house for $200,000 and after stamp duty and reno costs it owes you $220,000 and then you sell it after a couple of years for say $300,000 and make a $80,000 profit on that property less 50% = $40,000 taxable CGTNow lets say you made a loss on the books in the previous year for say $100,000, would the…[Read more]

engelo10 wrote:
Hi guys,I would like to get an idea from other investors as to what strategies they've used to achieve a passive income of a minimum $100k p.a. So far, my strategy has been purchasing below market value, renovating, refinancing, pulling out equity and repeating the same process. Similar to what Nathan Birch has done. I appreciate…[Read more]

Tax has already been paid on the gift, by the person giving the gift. They paid income tax on the income they have gifted to you.

Agree with Luke.Don't try and circumvent the policies in place to straddle him with even more debt. That is why he is in the situation in the first place.

A lot of people on this site are strictly "Property Investors", this is counter intuitive to good Financial Planning advice. Therefor it is no wonder that many would not seek the services of a Financial Planner (even a good one) as it doesn't gel with their mantra. A financial planner should be looking at and giving weight to all investment…[Read more]