Forum Replies Created
- jenni_nextplace.com.au wrote:I see prices dropping still, but the number of sales has picked up.
Where would that be? Not Sydney! Things are moving along very nicely here thanks.
Roberto in NSW that is the process.
Depending on the situation as to whether I give a written or a verbal offer. If I do put the offer in writing it has an expiry date and time.
I would think though that if you didn't already have a copy of the contract then your offer was not serious.
Signing contracts with each offer is not worth my while I am looking all the time and do not want contracts everywhere with my offer and signature on it. What if they hold it for a week and I've bought something else in the meantime? It just causes arguments.
Agents are SUPPOSED to submit all offers. The only reason they wouldn't was if they had an ulterior motive (friend wants to buy it etc). But most are honest.
Will you earn more this financial year or next? You want to sell (assuming you'll make a profit) in the year where you earn the least (or where you have the most deductions).
Bunjie "G'day all, i am very new to this all and was wondering what people opinions were on positive cash flow rentals."
Depends what type of cash flow rentals you mean.
Do you mean in mining towns?
Student accom?
managed apartments?
All very different.
Nope. I've used http://www.depreciator.com.au for all of mine. Very professional and priced competitively..
I bought a couple through a buyers agent.
I didn't have the time (or knowledge) to research, or the confidence decide on a property.
So decided to use a buyers agent. It was nerve wrecking but not as much as going it alone. He talked about the values of each property I was shown, wh a certain area was worthwhile etc.
You place a lot of trust in a buyers agent so you need to feel comfortable with them. There are good and bad buyers agents, same as any field.
Once I got my confidence I purchased by myself but I still bought a few more from the buyers agent (when they had deals I couldn't refuse).
All properties I was shown weren't wonderful. I was choosy.
I got some great deals and am very happy with all my purchases through the agent (and all but one I purchased myself).
People use buyers agents for different reasons. To start it was that I didn't have the confidence. I also wanted under market prices which the BA achieved for me.
So the amount under market value more than paid for the BA fee.
You can't legally deduct the amount you borrowed for the IP once you move into it. .
The money you borrow for the investment property will be tax deductable while it is rented out. When you live in it it is not tax deductable.
As you have no loan on your PPOR you have nothing to deduct on that either. You need to look at the prupoase of the loan and what you spent the money on, that tells you whether it's deductable or not.
You could borrow against your PPOR then claim that when you move out but it's not legal (people do do it though).
That is why people advocate to NO pay down your PPOR if there is a chance you will rent it out. Best to put excess money into an offset account then just withdraw it when you need it.
Basically you can do what you like- rent it, stay in it, rent a room. BUT what is illegal is doing one thing and saying you are doing another to claim tax breaks.
You can be a tenant in your own place (but you are not called a tenant). It may be deemed as your PPOR.
You can only claim one property as your PPOR. So you can't claim tax on it if you are not renting it out at market rent because you are staying there.
Great quote Emil.
If the criticism is constructive ask for their guidance. Ask "so how do you suggest I make money in real estate?" You'll soon see if they are full of hot air.
Those that just blatantly criticise with no real basis, just ignore them. That's what I did and now when I tell those criticizers I'm retiring soon they say nothing.
It's the same everywhere unfortunately.
Reno is the buz word now with all the reno shows on TV. The Block makes it look so easy that everyone thinks they can do it.
I've seen some disastrous buy/reno/sells in Sydney. Some have obviously made no money (I deduce this by looking at their buy price and what they did as a reno then sell price). Because lots of people are inexperienced they tend to under estimate reno costs and time therefore inflate their maxumum buy price. That makes it difficult for those that have calculated ALL costs effectively.
What research have you done to decide on your area? This will tell you whether it's a good area for buy/reno/sell.
Hang in there. Don't make the mistake of buying something because you are sick of waiting. Work the numbers and stick to them.
If it's a simple transaction a conveyancer can be fine. But if something goes wrong you need to get a lawyer involved.
In your case I would get a lawyer to ensure it was done correctly.
Yes you pay rates for each unit. When someone builds a whole block they want to keep tyhey usually don't strata title them. When they sell they do because they are worth much more. So the person selling them is gaining. Are you considering buying a whole block? If so buy one that's not strata titled. Then YOU make the money when selling.
If you drop the rent it sounds like the tenant will leave at the end of the lease anyway.
But I don't like empty IP's. Given that I don't know the area I'll leave it at that.
Good luck.
So you bought a property that had vacant possession on the contract and you neglected to do a pre settlement inspection the day before settlement and you are blaming the agent? Didn't your solicitor ask you if you had done the pre settlement inspection? You would have seen there was someone living there then and would have been able to do something about it. .
Who owned it previously?They must have given permission for it to be rented. Can't understand why they would when they would risk settlement not going ahead. Or did they know you wouldn't be doing the inspection?? Weird. I think there is more to your story. You went to all owners as they were purchased at the same time?? Through a buyers group????
or is it a new unit that the agents sold and managed?
So now you want to save money by not doing repairs? Depends what they are as to whether you are obligated to do them.
Why would you drop the rent in the middle of a lease (don't know if that's even possible anyway). It's a contract.
Do you often throw away $2000???
So if rents went berserk and jumped up $100 a week in the middle of a contract do you think you'd have any chance of upping it? Of course not.
this is business.
Tell them you'll gladly drop it at the end of their contract (lease). They can then sign another one at the lower amount.
You'll also have to add rates etc. And your $12,000 pa increase in equity is also taxed at the end (it's not clear profit). So you'll need to gain more than that to break even.
all outgoings are tax deductable.
Trust- what type? There are advantages and disadvantages to the different ones. You need to research the difference and decide.
Some have no tax free threshold for stamp duty. CGT is different. etc etc.
If you intend buying a lot a quickly it's great. If you are a procrastinator you are paying a monthly fee and not utilizing it.
Which are you?
If you are hesitant to buy and are not sure you are ready you may be better off using another buyers agent where you pay a deposit and pay in full upon purchase.
So are you asking to increase the loan? Or is some paid down?
If it's investment related (as the furniture would be) you can claim interest on the purchase. You can also depreciate the furniture.
Can't give a figure but do know you'll at least get your money back in the first year.
Email Scott at http://www.depreciator.com.au with details and he'll give you a rough estimate.
