Forum Replies Created
Hello Jean,
Bert of FS Professional Partners will be of help to you. He specialises in property investments, and is located on the coner of scarborough beach road and charles street.
He can be contacted on 9443 3233
Hope this helps.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Mickey,
You will need to get some more information to make a choice.
You will need to consider all property costs. This includes shire rates, water rates, land tax, strata fees, insurance, maintenance, loan costs, vacancy rates etc.
Trade these expenses off against your rental income, as well as the adjustment to your tax return.
Once you know the answers, you will be able to make a more informed decision.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auGus,
You are correct. A descent property manager will never leave your property vacant too long. They will know the market, and have the ability to source tenants rather quickly.
Considering 28 days notice is required, I feel that is ample time to source new tenants.
Andrews comments are correct. Any more than four weeks, then you may want to reconsider your investment strategy, or property manager!!
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Fullout,
There is no simple guide. Basically when your income exceeds your expenses, then the property is termed positive. $20 or more per week would be an indication of a good property.
The things you will need to factor in are :
Costs
loan costs
property expenses (propety managers, land tax etc)Income
Rental per weekDepreciation
The amount depreciable on the building (2.5%)
The amount depreciable on the fixtures and fittings.These are all tools that can be used in your tax return to make your property profitable.
Of course your taxable income is important, as deductions have more of an effect on a higher income.
What many investors forget, is that you are able to vary your tax during the year. This is mainly for negatively geared properties.
There is software out there that helps you dtermine the profitablity of a property. One was mentioned on this forum known as http://www.ez-rent.com
I haven’t had a chance to test it out yet, but considering its free, you may want to give it a go.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHi Novice,
I would say he is in the ballpark. The Fixtures and fittings will be calculated at cost ona new home, and only include the effective life that the fitting can be claimed for. This is more than likely why its free.
The building will take more calculations, and hence the costs.
Depending on the size of a property, a quantity surveryor will charge in the range of $300 – $600 for a comprehensive depreciation schedule.
You may want to ask the builder who will be doing the schedule, as not all are accepted by the ATO. Once you know who it is you may want to ask them for a seperate quote.
Another alternative is to have the depreciation schedule included as part of the offer. This may be a little too late in your situation.
In any event, the schedule is a valuable tool to creating a profitable property.
Hope this helps.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Michael,
Reading back on the last post, it wasnt exactly clear.
I was referring to the trust distributions as income, rather than capital losses.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auTrue Blue
You certainly are right. A discretionary trust is the best way to plan.
Just 2 small note,
1) – Im quite sure that losses can not be distributed from trusts.
2) – Its best to distribute any profits, or risk being taxed heavily.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHello Everyone,
The difference is not easy to explain, however…
The basic difference between a company and a trust for tax purposes, is that a company is taxed at a rate of 30%. The company then distributes the proceesds to their shareholders, and if tax is taken out, it is known as an imputation credit.That is, the distribution will be added to your income, and the tax already paid (imputation credit) will be credited to you.A trust distributes to its beneficiaries. The distribution is also added to their assessable income.
The advantage of a discretionary trust is that you can choose which beneficary recieves the distribution, and to what amount. This can aid in minimising tax, as the income can go to the beneficiaries with the least assessable income.
Hope this helps
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHotham settlements in Inglewood are excellent. Very fast and professional.
They can be contacted on 08 9371 5990, or [email protected]
