Forum Replies Created
New poster-, first post with a problem.
Another new poster (first post) had a WONDERFUL solution with a recommendation for a company they use.
How lucky!!!!.
haha. We all posted at the same time.
Agents commission is usually 2% + GST. There are some cheaper ones but from my experience you get what you pay for with them.. The 2.2% is of the price it sells for. Most (but not all) also charge advertising costs- $900 to thousands.
You say your partner inherited a house but has to share the money with siblings. That doesn't make sense. Did she/he inherit it or did all the siblings inherit it?
Just take all the costs out of the money you receive from the sale, then divide.
If you are renovating the whole place I'd go new kitchen.
We usually do new kitchens. Only one place we didn't. We did carpet and paint. The kitchen was OK so we painted the doors and replaced the handles then put vinyl floor planks. Came up well but we don't expect it to last 5 years. Then we'll replace it.
Only listen to those that have what you want.
I'm doing this also this year. I took some to work and lots of staff filled one.
I had fun shopping too. A variety store was closing down near me and had 70% off everything so I bought Tshirts, pencil cases etc. Bargain. I ended up filling 4 boxes. Things were so cheap I couldn't help myself.
I love it.
Kiva is a great charity too if you are looking for one. You "lend" entrepreneurs money then they pay it back and you lend it again. It's great because you keep lending it over and over and in doing so help people gain independence.
Why are you limiting your group to North Shore people?
There is a group that meets at Chatswood every second month usually. I go to that but I don't live on the North Shore.
whathouse wrote:I would go with Richard's strategy. I only have a very small property portfolio but have no debts on any of the properties.Why???
With some "good" debt you could have a very large portfolio.
A large portfolio will grow faster than a small portfolio. I'm not against paying down debt but when you are starting out you need to leverage in order to grow.
shangrila00 wrote:I guess I had to be more precise with my question. I wasn't simply referring to CF+ IPs for the sake of $20 in your pocket, but properties with growth potential too, in metro areas, or regional centres that have something going for them.Expenses and uncertainties are a given, though.
What do you mean by – at what point do you take the risk then?
If it's positive and has growth potential. What's the risk?
matthewhorne wrote:When you guys are talking about getting tax back after all expenses every year to bring you into the positive in your bank account, doesn't this mean it's positive gearing and not positive cash flow?
Regards,
Matt Horne.
Yes that is correct. Positive gearing is taking tax advantages into account.
Positive cashflow is when incomings (rent) exceed outgoings (interest, rates, fees etc). Some people count interest only on how much they borrowed ie 80%.
I calculate on ALL costs. ie 100% + stamp duty costs, solicitor fees etc) because that money had to come from somewhere..
Once you choose a suburb I would visit a few schools to find a fit for your child. I moved my child half way through primary as the school I chose wasn't right for him. Best decision I ever made.
Send me a PM if you want to ask about particular schools. I know a few in Sydney).
In that case, why does the ATO website bother saying everything from agent fees to repairs and interest on borrowings can be claimed on tax? The only thing we have claimed here is the lost portion of these expenses.
Sorry for the confusion. I didn't calculate the rent. You do claim those other things too. You add them to your expenses.
So rent- ALL expenses gives you and amount + or – That is what is added to you wage to calculate tax.
Yes you may be + on paper after you add in depreciation.
It's a lot to get your head around. Keep reading. You'll get there. Lots of people are looking for + CF. It depends on your strategy. Some people prefer -CF as they get the tax benefits and beieve that those properties have highher capital growth.
I like +CF and CG. I'm greedy. LOL
So I work out the following:
Rental income – expenses: 275*52-4500-11,960 = $-2,160 ????? Where did you get $2,160???
My property would be neg geared.
Tax Refunded (at 37c bracket): (4500+11,960)*0.37 = $6,090 You are adding income to costs here???
Cashflow = -2160+6090 = $3,930 No!!!
How you work it out.
In- Rent $4500 – (costs- interest, insurance, rates, maintenance, strata fees etc) say $15,000. So you are negatively geared $10,500 @ 37% = $3885 (tax back). So it will cost you $6615 a year to hold. If you have depreciation you add this to the $10,500. So if you have $3000 depreciation (for example) you will only be out of pocket $5505pa.
If your rent is more than all your costs you are positively geared and you'll pay tax on that.
Not sure but if you go to the school of your dreams they'll have one. They will also let you know if they take out of area. But this changes according to their numbers.
In Sydney? What school if I may ask? Some schools people line up and buy houses so their kids can get in there and they are no better than other schools. Just because they have an OC class people assume they are better but their numbers are only better "because" they pull the kids for the OC class. Also being at that school has no relevance on whether your kid gets into THAT class. AND the class is only as good as it's teacher.
Is it obvious that I'm a teacher? We have extension classes (although not officially OC) at my school. We have MANY requests from people out of area.
$300K is not the bottom of the Sydney market. You can still buy houses for low $200K in Mt Druitt.
I'd look at Blacktown, Lalor Park area. Properties are in high demand but you may get something in your price range that needs a reno. Blacktown LGA has high population growth forecasted and expected good CG.
You could also look in St Mary's, Mt Druitt for a bit cheaper.
When you say "hold for a while" do you mean rent then sell after ??? 2 years? 5yrs? What then? Why is your goal to sell?
If you want positive cash flow Mt Druitt will be better. Buy $220K, rent $340.
Thanks Shannon,
johny- don't see value out of what? How have you achieved a successful property portfolio?
Welcome. Just ask and someone will reply.
Read magazines and books to gain knowledge.
You are correct, you can't use the 6yr rule if you are claiming the current property as your PPOR. Has that had any CG? If not leave the first one as your PPOR.
Yes basically $500K – $465K = $35K is your capital gain. But you deduct buy costs, sell costs etc, then multiply by 50%?
So by the time you take out stamp duty ($18K if in NSW) and other costs, then halve it you won't have a high CG. I think you apportion the buying costs to the time it was an IP.
But then you add that to your income. So you can reduce the amount you pay in other ways too. EG Take some time off without pay, salary sacrifice some of your income to super in the year you sell etc.
shannon f wrote:Hi,We did Results Mentoring ( previously run by Steve McKnight ). We think it was and still is the best course by far for mentoring/learning about all property investment & trading strategies in Australia and NZ. .
Every one else that has done it would agree, i would think.
Hope that helps…
Can you elaborate please? What did you particularly get value from?
What things were standouts?
How has it helped you achieve your goals in property investing?
thanks
Why would you look at a company with so many bad reviews? Or are you a rival company trying to discredit them?
Both being your first post and all.
