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In Australia if you have a Gapital Gains Event it must be applied to your income in that year it happened.
ChrisAll post are IMHO.
Pay off your home loan as that is not tax deductable.
Leaves 400K. Buy 1 IP outright in high growth area for say 300K. Then with 240K (80% LVR) in Equity and the 100K cash buy 2-3 more IPs.
This will give you an excellent start with 3-4 IPs and possible of +ve cashflow on the IPs if you do it correctly.
ChrisAll post are IMHO.
Standard lease agreements is what you want. You will need to send the bond into the tenants tribunal to make it all legal. Check the forms out at the newsagent.
ChrisAll post are IMHO.
Email sent. Got a CBA Lender in Sydney got me 5.99% for 1 year will see if I can get 5 years with this information.
ChrisAll post are IMHO.
If you go to the UBD web site and click on the CD-ROM option you get information about it.
I have one and it’s very good. Bought it from Dymocks.
Most book or office stores should be able to get them.
ChrisAll post are IMHO.
Check the lease agreement if the lease is between the tenant and the previous owner then you can get things done about it as it’s not legaly binding anymore.
Check it with the Tennant board or a solicator.
ChrisAll post are IMHO.
I would get onto as soon as possible.
Did you see the one of the news a while ago where the council would not cut the tree down and in a storm it feel thru someones house and killed the owner while in bed? He had contacted the council 3 times and was at a council meeting and they still had not made a decision about it.
It was and unfortuanate problem with council not getting their finger out to get work done.
ChrisAll post are IMHO.
Originally posted by markpatric:4 months later the agent then told me the home was worth $125,000 tops, (a top agent in Qld) I sold it next day for $145,000, another matter of months worth $200,000. My advise take no-ones word on anything, use your own judgement.[8D]
I think you should get as much advice as possible and then make an evaluated decision. Your own judgement may be wrong as well.
ChrisAll post are IMHO.
If you ring the ATO and request one they will mail it out to you.
Drop into any ATO office and they should have them.
ChrisAll post are IMHO.
1st off it would be the best to get your expenses paid off before getting into property investment.
A great book to read about this is “Money Secrets of the Rich” by John Burley.
This goes into a lot about how to pay off debt quickly so that you can then invest.
ChrisAll post are IMHO.
One comment is if you put more money into the deal you can have the property be even more positivly geared.
Instead of buy lots of properties only buy 2-3.
If you try to buy in Sydney the $350k will be a good deposit and you may only buy 1.As Dolf De Roos says buy with the following and all will be well.
1.Ageing population
2.Buy near the water
3.population growth.I think anywhere up or down the east coast.
ChrisAll post are IMHO.
Yes and no.
The legal fees can be deducted over 5 years or the term of the loan.
Stamp Duty is not tax deductable. And you can only get to take it off the profit before tax.
ChrisAll post are IMHO.
Where do you want to live? What are the prices of houses in that area?
To get the most of equity and investing the best way I beleive would be to use your $100K on the house your going to live in as the loan for that is not tax deductable and then borrow back against the equity of your home to invest.
For example.
Buy a PPOR for 150K + costs say $10k. Total $160K less $100k for deposit and costs. Loan $60k and house value $150K.
This gives you equity of $90K. Most banks will let you loan up to 80% of a place without morgagte insurance so 80% of $150k is $120K.$120k less loan $60k = $60k to borrow to invest. This $60k you can use as a deposit on another house at $150k + $10k costs total $160k. loan $100k on house 2 and loan $60k on house 1 are tax deductable.
loans for $60k and $100k total $160k tax deducatable.
loan $60k not tax deductable.So you now have property worth $300k
Total loans of $220k.You would need to check the income of the second property against the loan of $160k and extras to make sure it’s OK.
Using the 11 second rule the place would need $300pw rent to be a excellent place.
ChrisAll post are IMHO.
The banks are usually on the conservative side. I had my place done by a bank and I beleive in was under by 20%-30%.
ChrisAll post are IMHO.
The only way to get the FHOG is to make the property your PPOR (Principal Place Of Residence). There is no CGT on you PPOR.
Check out this from ATO about CGT and “your home”
http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&page=11
ChrisAll post are IMHO.
As improvements are Capital costs I would as it is money spent on the property.
ChrisAll post are IMHO.
https://www.propertyinvesting.com/freestuff
This is the free stuff on the website.
ChrisAll post are IMHO.
Yes it was Henry Kaye on TT.
It’s all about his scheme to turn some ordinary Australians in to property millionaires with
NO money down
NO equity
NO debt and a
Price Protection GUARANTEEThe ACCC have started legal proceedings against him. Refer http://203.6.251.7/accc.internet/digest/view_media.cfm?RecordID=1129
ChrisAll post are IMHO.
As yet there is no electronic version. If you check out http://www.richdad.com they are making a playable computer game so that you can play with others.
ChrisAll post are IMHO.
Markets always move in cycles and it is hard to pick when and where it will rise and fall.
I would speak to you accountant/financial adviser about this before doing anything.
ChrisAll post are IMHO.
