Forum Replies Created
Hello,
WA is much the same. Land tax is still applicable.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello,
If you are looking for tax benefits then I think it would be a safe asumption, that you are referring to depreciation.
There are two types of depreciation. Depreciation on the internal fittings, and depreciation on the building.
When considering internal fittings, you need to look at the quality of the property. The higher the quality, the higher the depreciation allowance.
2.5% can be depreciated from the building itself. A large home usually has more benefits in this area.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Clownsta,
Enquire about low doc loans. There are also certain lenders that may be able to assist you. I believe some of their names have been mentioned previoulsy on the forum.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Ash,
Yes, certinly no FIRB is required.
However, when calculating figures for yor property, keep in mind that you will be taxed at non resident rates.
Also, look into financing the home from abroad. It usually requires a 20% deposit, but a good broker can assist more with this.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Shelly,
I hope I have understood correctly, but if you are just selling the first property,(which is your PPOR/primary place of residence), then no capital gains tax is payable. This is in existence as that property was not used to create income.
Hope that hit the nail on the head.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Alana
You will find TR 2000/18 useful. It has a list of the depreciating assets, and their effective lives.
Its a lengthy ruling (75 pages), but it should assist with your query.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auKavita,
In terms of CGT, it will just mean that you need to apportion the CGT payable based on the time the asset was used for income producing purposes, and the time it was used as your primary place of residence.
A basic example is, you have it for 10 years, you live in it for 1 year, then CGT is apportioned and payable on 90% of the gain. You will then need to factor in the 50% concessions.
In terms of GST, be sure that you are registered, if you want to claim the credits.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Vluu,
Deppro do a great job. Your on the right track by looking for a QS. They can save you hundreds.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Nicole,
As a general rule, never borrow to the point that a raise in interest rates, can severely affect your repayment ability. Always factor in a buffer zone.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello,
At the end of the day, if you can substantiate yor claims, then you really have nothing to worry about.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello David,
It all depends on where you see yourself in the future.
However, its best to have a solid foundation to build your investments upon. This is why I would suggest owning your own home is paramount.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Paul,
Options are generally granted through developers, whilst the property is being built. Ownership doesnt change until settlement.
The form simply entitles you to buy the property at the set price. It is essentially reserved for you, but is not a contract to buy.
As these are issued early on in the development propcess, you will find at times that the property can be purchased at a cheaper rate. By the time completion is close, the value can rise.
You will also find that you can on sell options if need be.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHi Mark,
Some banks have stopped lending on these all together, due to the associated risk.
Take a close look at the management contract also. When selling, some will stipulate that the new owner will need to undertake the same agreement with the managers.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Boothy,
There was a recent discussion on this that you may want to look up. My opinion is North without a doubt.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Matt,
Based on what I have read, you are not out to buy all three, you are just concerned that something may be wrong as they are all on the market.
If this is the case, focus on the one you want, and only the one you want.
The type of expenses you should consider are:
- strata/body corp fees
Shire rates
Water Rates
Land tax
Property management expenses (including costs of reoports, advertising, and miscellaneous expeneses)
Maintenance costs
Loan CostsOther factors to consider are vacancy rates, demand for the type of building, location and proximity to amenities in the area, as well as council plans(just in case they are planning to put a freeway in your backyard)
I may have missed a few points, however, this will give you a good idea of the properties profitabilty potential.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auGood Advice Stu
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auPerhaps you can have a win win situation by increasing the rent once the renovations are done.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auA discretionary trust will be a far better alternative.
Thsi will allow you to claim the same benefits as an indiviual with Capital Gains Tax. It will also allow you to minimise tax legally, and efficiently.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello,
You will find that the SRD is mainly concerned with your eligibility to have the grant, rather than policing your PPOR.
The act doesnt stipulate the amount of time that you must live in the home, it simply says that you must occupy it.
I would live in it for the first two months, and then rent it out thereafter. This will save you problems with tenancy issues.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auSounds great Smithers. Always happy to help.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.au
