Forum Replies Created
Try places like http://www.realestate.com.au, or http://www.jaffasoft.com, or http://www.rol.osr.wa.gov.au/taxcal/ (well that last one is for WA but it might have lkinks to yuor state).
Hope these help for starters.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Movingforward,
I haven’t done the DD in QLD but I am doing the same in WA atm. Mining Towns have great rental returns but the CG is far less impressive (varies from Town to Town). Main issues to look out for is a transient population! Do a lot of research on vacancy rates and market rental rates! Make a plan for when rents are good so that you can afford to ride out the bad times. Look into Towns that are developing or soon to develop as the rental reutrn usually goes silly for a couple of years as contractors are scrambeling to find places to rent. This’ll allow you to store up extra repayments (I believe the best place is an off-set account) for times when rentsd go back to normal or even (due to increased competition) below average. Do your research though!!!!!Best wishes
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi avranjes,
yes it is rather disapointing to see the other states REI sites isn’t it! I found the same thing when I initially started.
Biggest site used by most (as I have seen it printed every-where is : realestate.com.au
Try that.Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonTerry,
have you done one of these? or participated in such a transaction?I am looking for some examples or Do’s and Don’ts as I have not done this kind of thing before so I’m new to it!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Simon,
What are the requirements for a LOWDOC or NODOC Loan? What are the expected interests and conditions?Thinking of my situation (as you are aware), would short term finance using one of these be easiest to get started?
Or do you need more info?!
Cheers
C@34
Opened up a can of worns here, didn’t we!?
Cheers
C@34
Ahaaa!
Cheers Terry. What if we took it a couple steps further (I have been discussing this with Alwayscurious):
Whooops, he beat me too it!What if instead of you renting it, a company that you owned rents it, and you live in it for free – kind of like a fringe benefit!? If leagal it would negate some of the cons mentioned above!
Terry your thoughts?
Cheers
C@34
OK Now I am Confused Terry,
Coastymike indicated :
Anyway it works as follows:1. You go to the bank and borrow say $500K
2. You then use the $500K to purchase special income units in the HDT.
3. The HDT uses the funds to purchase a property.So I took that to mean: I take up a mortgage (pay the deposit, blabla), then buy the whole amount into a HDT, and the money is then used by the HDT to buy the IP. Therefore the HDTs’ (or its trustees) name will be on the Property Title! Right so far?
The HDT earns $20K in income from renting the property and expenses of say another $10K (note that INTEREST is not included because the interest is for purchasing the units by YOU.) SO you will have a net effect of $10K income.Here I understood: the costs of maintenance, advertising, blabla is deducted from the income (Rent) and any left over $$ is paid to me as, for want of a better word, dividends. The interest accrued for the loan (which I used to buy into the HDT) is then a Tax deduction for me. Right so far?
When you then tell me:
When the trust buys a property, the name on the title is the trustee’s name. If you are the trustee, it is your name. If a company is trustee, it is the company. Its the same whether a hybrid or discretionary trust etc.With a Hybrid, you then apply to the bank for a loan, but you ask for the loan to be in the unit holder’s name. This may be or may not be the trustee – it depends how you have structure it.
If you, the unit holder, are the trustee, then no problems as everything is in the same name. ie the loan, and the title deed.
This then leads me to believe that the HDT buys the IP and gets the loan! I had understood from Coastymikes’ post that I put up the money to buy shares in the HDT who ownes the IP (on the Title and all) and I can claim the whole interest against my personal and share income!Am I at all close or is my denseness stagering?
It looks like it is the optimal structure where you can protect your investments, claim the interest on the investments without actually owning anything and therefore protecting the assets from littigation. Help me understand please! As it isn’t quite clear to me as yet.
If I am correct in the above, what would protect my shares inthe HDT when some-body wants to come after me in the courts?Cheers
C@34
Heheh, that reminds me of:
Company Policy DevelopmentIt starts with a cage containing five monkeys.
Inside the cage, hang a banana on a string and place a set of stairs under it. Before long, a monkey will go to the stairs and start to climb towards the banana. As soon as he touches the stairs, spray all of the other monkeys with cold water. After a while, another monkey makes an attempt with the same result- all the other monkeys are sprayed with cold water.
Pretty soon, when another monkey tries to climb the stairs, the other monkeys will try to prevent it.
Now, put away the cold water. Remove one monkey from the cage and replace it with a new one. The new monkey sees the banana and wants to climb the stairs. To his surprise and horror, all of the other monkeys attack him.
After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted.Next, remove another of the original five monkeys and replace it with a new one. The newcomer goes to the stairs and is attacked. The previous newcomer takes part in the punishment with enthusiasm!
Likewise, replace a third original monkey with a new one, then a fourth, then the fifth. Every time the newest monkey takes to the stairs, he is attacked.Most of the monkeys that are beating him have no idea why they were not permitted to climb the stairs or why they are participating in the beating of the newest monkey.
After replacing all the original monkeys, none of the remaining monkeys have ever been sprayed with cold water. Nevertheless, no monkey ever again approaches the stairs to try for the banana. Why not? Because as far as they know that’s the way it’s always been done around here.And that, my friends, is how a company policy begins.
Cheers
C@34
Here’s another-one:
Q: ” How do engineers solve Constipation?”
A: ” They work it out with a pencil!”Cheers
C@34
hI ALL,
Maybe you don’t quite understand how the hybrid trust structure works but that’s ok because neither do most accountants. Anyway it works as follows:1. You go to the bank and borrow say $500K
2. You then use the $500K to purchase special income units in the HDT.
3. The HDT uses the funds to purchase a property.At the end of the year lets say the following happens :
The HDT earns $20K in income from renting the property and expenses of say another $10K (note that INTEREST is not included because the interest is for purchasing the units by YOU.) SO you will have a net effect of $10K income.
This then gets distributed to you as the, lets assume, sole unit holder and so you have income of $10K. Then the $30K interest you are paying on the bank loan gets deducted from your $10K trust distribution to give you a net deduction of $20K. Remember you are claiming the interest deduction for purchasing income producing units. The hybrid trust is not claiming an interest deduction.
Rito, if I plan to do this (or actually do it), the ownership of the IP would be in the HDT?! The mortgage would be in my name?! As in I take out the mortgage on the new Ip in my name to buy the shares in the HDT, and put the ownership of the title at the REAs office in the name of the HDT?! Correct???????[blink]
This is what I am looking for! This is the nuts and bolts that’ll get me going![cap]
Looking forward to your answers!
Cheers
C@34
MoJoJo,
I concurr!
Big word for this early in the morning – nearly pulled a braincell……
Cheers
C@34
LOL!
Love the one about earnings per second – must try that one![lmao]
Cheers
C@34
CHeers Marisa,
One mentioned was a new residential development at Pretty Pool which will create about 180 new home sites in Sth Hedland. You probably already know about this oneYes, but I also believe it has been shelved until further notice because to build each house will cost a minimum of $330K and, now that Boodarie Iron is being mothballed there will be heaps of BHP houses becomming available. Roumor has it that handover will be in Dec 05, so God willing, we’ll be off making bricks! Who knows…….
Cheers
C@34
Sabina,
do you only play versin 101 or also 202?
I have plaid 101, and haven’t been blown away by it. I do, however, like it and am eager to play 202. WHat is your opinion/experience with 202?Unfortunately for me I’m in Norht WA so I wont make it for your games night. All the best.
P.S.: is there any-one that has these games for sale, second hand? If so, quanta costsa?
Cheers
C@34
Is the Reno-thing that you desperately want to do? WHy not invest the $100K into 2 or 3 IPs that pay for themselves without the reno?
Do you work or want to work? Why does Hubby wnat to stop working? What are your plans, other than what you have written above?Cheers
C@34
I haven’t had any experience in this field, except that my colleagues on higher wages are using personl Leasing (novated leases) to purchase privately owned cars. There is no requirement for them to keep any logs, all services/fuel/ tyres are paid for – they did have to nominatre the K’s that they expected to accumulate during their time with the vehicle. Over (less problematic) or under and you get penalty rates! The whole set-up was done as a tax deduction and they ended up paying less tax.
Sorry that I couldn’t help you more, if at all.
Cheers
C@34
Hi Marissa,
Was Hedland mentioned anywhere or was it not inclued?!If it wasn’t, that wouldn’t surprise me as there is a funny kind of”rivalry” going on between Hedland and Karratha. Hedland is mostly depicted as the ugly sister of Karratha. One example that comes to mind immediately is when a cyclone crosses onto land between the two Towns (and unless it is remarkably closer to Hedland) only Karratha will make it onto the news. Don’t know why, but it does.
Sorry Marissa, got side tracked, was Hedland mentioned? I haven’t been able to get any growth figures for here at all.
Cheers
C@34
Or down South!?
Bunbury is/has gone off; Geraldton is doing well atm. WA is the last affordable fronteer in Oz, come and have a look, others are.Cheers
C@34
Rito,
I have taken some interest in Hedland because it is generally always CF+! The median prices are between $200K to $260K, depending on construction! The population growth is constantly up and down depending on expansions and constructions of local mine sites, but with those come a general growing poppulation trend. The average rent yield is $280 per week with possible capital gain in the long term. Prices here have a ‘true value’ and a market value (like the rest of the country) but the difference here is more exagerated at times, and as long as you buy close to those values (say within $15 to 20K) you wont regret it. Prices do go up and down (a little) but are generally trending upwards.The pilbara is gaining popularity because of its consistent CF+ rental returns (as well as the horrendous wages available up here). The fishing is great so there is the tourist market available here, which I believe, hasn’t been fully tapped into as yet!
There, got the ball rolling. Bring it on……[wink2]
Cheers
C@34
