Forum Replies Created
Catalyst is wrong about apportionment if you moved into the flat as soon as possible after settlement. If it was rented out after settlement and you moved in later Catalyst is correct. You will need a valuation. Instruct the valuer to value at the date the property became income producing
THis is a transmission application – I think there is only nominal duty on a transfer to the beneficiary
Were you the developer?
Other issues are:
a. for individual properties substantial renovations may have been done so that when comparing the purchase price over a period of time a rise may be partly explained by renovations that have taken place
b. generally if we look sat at the 1960's an average size house might have been eg 12 squares, 1 bathroom, single garage – now it might be 20 squares, ensuite, double garage, insulated, solar hot water
IT would look as if you would be able to increase the cost base of the land by rates, insurance, interest, etc that you have incurred since purchase assuming the alnd ahd not been used for income-producing activities
I would think iot is tax deductible as aprt of the cost of discharging the mortgage
As you act gratuitously as the trustee ie trustees of SMSFs don't charge for their time etc what is the connection between you driving km re SMSF properties AND Your taxable income
the best is you might be able to be reimbursed by the SMSF (subject to the rules), the SMSF would claim a deduction at 15c/$ and you would show the reimbursement as income and claim a deduction
I'd ask a property manager from another agency to do a driveby and give you a rental estimate.
I would think for around $200,000 you could get properties in better locations which would be easier to rent out..
I've been following the Dubbo market for several years, even if not as closely in the last couple and have been investing in it for 10 years. North Dubbo might have some good potential – very handy to the CBD. There are areas between the Newell Highway and MInore Road – near the Anglican School and the new shopping centre. Avian is a handy area. South Dubbo is always popular with the locals.
When you redraw on a loan you are making a new borrowing and the tax deductibility of that will depend on whether you have used the redraw for investment purposes. So if you eventually want to buy a PPOR and redraw that borrowing will not be tax deductible. You would hvae more flexibility with an offset account as withdrawals from the offset are not borrowing
Terry has a good point. you need to sort this out. $10,000 is not worth legal costs. Even if you are successful you will still be out of pocket.
The simplest thing that could cause a reduction in value would be a rationing of credit which would take people out of the market. The banks are still borrowing a lot from overseas. A lot of businesses have found the last couple of years very hard because banks stopped lending or increased their requirements.
A trust is not a separate legal person. The borrowing would be by the corporate trustee possibly ATF XYZ trust. The minutes of the trust should reflect that the debt is owed by the trust
Many people invest quite successfully in smaller towns but do your research first
One policy to cover the whole. You may need some contents as well eg curtains, blinds etc.
You need to talk to someone – an insurance broker or agent.
It strikes me that the issue is not so much the valuer, but irrational herd behaviour driving up prices.
I don't think the case study proved anything based on the information provided. The property may have been overvalued, undervalued or just right. It is certainly a false premise to argue the house prices of the comparable sales should be averaged as thus does not take into account the individual characteristics of the properties.
Instead of Big Brother mandating valuations, a purchaser can get their own valuation anyway if they want.
Other towns. My point was simply that whatever you do someone else will be negative and I understand what mentobe has achieved.
mentobe wrote:Hi there oneworld
Blocks of units yer lets talk about them.They are great cash cows if you buy them at the right price.blocks of units are exspensive here in wagga and i have noticed that the money that investors are wonting for them work out to be the same as if they were already strataed there for then its not worth the trouble to strata them.many people that buy units pay way to much money to start of with for them then they end up not being able to keep hold of them because of the money it costs them to hold these properties (and they do not value up like houses do) so they end up getting desperate and selling them for less then they paid for them.Thats when i buy them.I brought a block of units in kooringal, and all my so called friends back then told me i was crazy(they needed same TLC which to a lot of people means putting in more then effort.i knew deep down i was crazy not to buy them. They are by far my best investment and by being creative my family and i done work on the units lifted the rents and they are positive geared by $230 a week after all losses are taken outAnd they were revalued for more then $100000+.To all my lost friends for buying that property GOODLUCK u stay doing what you do best and i will FEEL THE FEAR THEN JUST DO IT .I am not sure why you are buying property and what your end result is but wagga is thriving this i know but maybe the properties you are buying are not the right ones for what you really are wonting to achieve.The builders are making meger dollars out of you suckers out there that are buying brand spanking new properties and your time to shine wont be for mmmmmmmmmmmmany years but for those that know better your time to shine will be sweet and sooner then later.We are all different in were we are going in life and to get to our distanation we must enjoy the journey yer i will admit its one huge rollercoster ride but o so much fun.there are more downs then ups but its the way that you look at those down moments and react to them that will give you the advanage over others and you will always come out shaking your head and saying WOW how in the hell did i pull that one off.It was not luck that helped you but the way you tackled the situation problem or what ever you wont to call it. I would be interested to know how much you paid for your units ,the rents that you recieve, if they are run down and get a little creative on how to turn them from negitve geared to at least neutrally geared if not positive geared.I do hope i was of some help to u.Congratulations mentobe. That's a really gutsy effort. It's hard to stay focused when there's so much negativity around. I bought a property in allegedly the worst street in a town. I wonder if any of the critics have even driven down the street. 95% of my tenants have been great – paid regularly, looked after the place, etc etc., young people doing apprenticeships, single mums needing decent affordable accommodation, pensioners seeking same. I have friends who criticised my decision and are now jealous of my result. They could have bought across the road or in the next town.
Anothrr instance is I bought a property – income of say $200 per week on a cost of $135K. 7 years later my income is around $800 per week. on that property. Friends, my wife say I'm crazy, why did I invest there, why do I keep it. I agree with them after all why should I have to have competition.
If the bank is financing your brother using the property as security then the bnak will not hnad over the funds without receiving the deed and transfer documents. This is normally done simultaneously and called settlement
