Forum Replies Created
There are a LOT more important things to know than the name of the person who owns the property.
Agree that knowing how much it was purchased for, when and how long it's been on the market can be useful but not limiting to purchase.
I'm hoping you're not one of those (likely) investors that do years of research and don't buy anything.
I'd concentrate on finding a property you would buy Then do your DD on that.
Taproot- what is it you actually want to know and why?
What state is it in. I have access to NSW, Queensland and SA.
I can give you sales figures etc but I won't give out peoples names.
PM me if you want the info.
Awesome example of the power of photography.
Nigel I totally agree. But in my defence I did know the area very well and I knew if I didn't buy it on the spot it would be gone as it was being sold by an agent that had no idea. One in the same complex sold for $20K more the next week and was not in as good condition. It was a great buy and has great equity as well as being CF neutral.
So even though I bought quickly DD was done.
haha. That is so true. I bought a villa in my lunch hour once. Looked at it, went to the office, signed the paperwork. It DID have a 5 day cooling off period.
I spent weeks agonising over buying a car.
Yes but when one rents commercial properties don't the tenants pay all outgoings (rates etc)?
Please explain?
Websites about positively geared property?
Plenty out there?
You don't need to change anything with regard to paperwork, or pay any fees (unless you pay land tax).
You just rent it out. This will show on your tax return. If you sell within 6 yrs it is CGT free. Or you can move back in then out again and get another 6 years.
This is only possible if you lived in the property first. If you rented it thenmade it your PPOR then made it an IP again you cannot use the 6 year rule.
You can work out if it's tax effective by adding the incosts and outcosts.
Where do the $204 deductions come from?
You need to list all the outgoings for the house then add depreciation etc. The rent you will be paying is not factored into it.
Just take that into account later. Not in your tax benefits.
You mentioned CGT and paying interest only as opposed to P&I. This has nothing to do with CGT. How much you owe on a house is irrelivant to CGT>
How did you calculate cash flow neutral? Did you take into account that rates etc are tax deductible? Will you get a depreciation report? that gives more cash in your pocket.
If it is more convenient for your work and costs you nothing (or better still puts money in your pocket) why not? My daughter did this. She had a 2 bedroom and had difficulty paying the mortgage so she rented it out and rented a 1 bedroom herself. She was $150 a week better off after tax deductions.
The capital return doesn't effect whether you live in it or not. look at the other things. How easy is it to get a tenant? How easy is it for you to get a rental in the area you want?
Congrats on your purchase.
Have you started painting? If not just a hint.
If the walls have nicotine stains paint with zinzer first otherwise the tar will just seep through the paint.
When doing any renos you want to at least get double your money back in increase equity. Just a general guide to help avoid over capitalising. Look at how the reno will increase rent also, seeing that you will rent it before you sell it.
No use spending a fortune on a lovely garden that will need to be redone after tenants.
That's why I got you to do mine Terry.
The problem is "you don't know what you don't know". Lots of people "think" they know it all.
The trick is knowing where to draw the line.
Terry has a good point. With important things such as structure, tax etc you need to know your limit and hire a professional. I know some people with multiple properties that do their own tax. To me that's crazy because laws are changing all the time. Same as the legal profession.
Same with tradies. I'm a DIY renovator but I know our limit. Sometimes it's even more cost effective to hire a tradie.
You need to have sufficient insurance for replacement. Don't forget if your house burns down you have to pay to have it demolished and taken away. Then the rebuild. Most insurance covers accom while rebuilding too.
You'll probably find the cost to insure for $50,000 less is very minimal anyway. And if the insurance company feels you've under insured by 25% they'll pay you 25% less than the claim amount. Why risk it?
These days you don't need to live near your accountant.
But getting one that knows what they are doing with investment properties is paramount. Can be the difference of thousands of dollars.
You need to do your own research on an "as-if-complete" valuation. Most people don't have vision. Also how do they know the quality of your work, your fittings etc. I doubt that you will get a valuer to commit t a post reno valuation. Many people have difficulty getting a valuer to value a place just after a reno. They sometimes find it difficult to believe a property can go up by 10's of thousands in a few months.
That's part of your DD. Knowing what the in costs are, the reno costs, the holding costs, the out costs and estimated sale price. If you don't know all these things before you buy you should be buying.
haha! VERY funny.
We moved a few weeks ago. Thank goodness we had the massive garage sale and clean up.
We had to have another council cleanup before we left AND hubby was still taking stuff to the tip the day of settlement.
Now as I unpack boxes I still find I have too much stuff. So I have 2 big boxes and as I unpack I put stuff I don't really need in them. Off to Vinnies.
As Jac says- don't get too stuck on a particular type of dwelling as you may miss an opportunity by wearing blinkers.
I have a VERY small 1 bedroom unit that has had amazing capital growth and a good yield.
Read some books, ask more questions.
Why are you targetting those areas? Look for CG drivers- infrastructure, population growth etc etc.
What is your long term goal? What do you wish to achieve by buying property?
You are not taxed at 50%. The profit gets added to your income and that is the rate you are taxed at.
If you HOLD for MORE than 12 months you are taxed on 50% of the profit. (not taxed 50%)
We bought a house with a nicely painted grey bedroom. Problem is they had a water bed in the room which they painted around. Nice deep purple in that corner. Matched the paint at Bunnings and fixed.
As Freckle said- you missed it so you can't claim.
the inspection is to check that it's in the same condition as when you bought it, not to find the faults.
Was the door fine when you inspected it? Can you prove it?
OK Just read. Settled. What to do now. Move on. These are very small things. I've leaned to not sweat the small stuff otherwise property investing is not for you. Spend a few hours cleaning and enjoy your new home.
