Hi Kel,

PPOR = Principal Place of Residence which is ATO speak for your home.

In broad terms your PPOR (home) will remain CGT free for a period of up to six years provided you do not buy another home in the meantime. By attending to a couple of details you are able to lock in your gains on this property such that any gains made while the…[Read more]

HI Dave,

As the property was built (commenced) after 16th Sept 1987 you will be able to claim 2.5% of the CONSTRUCTION COSTS/annum for 40 years from this date. So based on the information provided you have approximately 23 years of capital costs to be claimed.

In addition the property may also have undergone significant renovations and upgrades.…[Read more]

If in fact it is land tax your account is referring to then you will need to compare tax savings with trust establishment and compliance costs.

While tax savings and/or redirection can be achieved through trusts the bigger issue revolves around asset protection.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype -…[Read more]

Hi Steve,

I can only suggest you try the HIA (or similar) in Brisbane.

Another alternative may be one of the Quantity SUrveying Firms who operate in Brisbane.

The difficulty you may have is that buildings do have different specification levels and construction materials so any figure you do get will be very…[Read more]

While your home is CGT tax free if you do sell it is also possible to retain this as your only PPOR for a period of up to 6 years without incurring CGT.

I believe that you do need to establish where you are going in the long term – the tenor of the questions indicates to me that there are lots of short term objectives in mind but I do not get a…[Read more]

Hi Kel,

Is your accountant talking stamp duty or land tax?

Stamp duty is levied on the purchasing entity at time of purchase and I cannot see how having a new trust would reduce the SD bill. Land tax, on the other hand, is determined by the value of the landholdings and could be reduced or offset with different ownership…[Read more]

Hi TK,

The key issue in WA is that you need a credit providers licence.

The best place of contact is The Department of Consumer Affairs. They will be able to provide you with the information you require.

I might add I am not a wrapper so please take my comments with a ‘grain of…[Read more]

Hi WD,

You can also have a look at the following thread as it contains a number of ‘book reviews’. While the books do not always directly relate to property they do relate to self improvement – in the broadest sense of the phrase.

Ooops – forgot the link. Here it…[Read more]

HI Adam,

We are not privy to such information. As moderators we cannot access any other sections of this site (other then edit and deleting other people’s posts) than Joe Public.

As such I cannot provide any information about the link.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Tracey,

I believe you have really answered your own question.

Probable limited capital growth, minimal cashflow, probably low financing LVRs and occupancy rates firmly tied to performance of the health retreat.

Without knowing the location details or the trading name of the health resort I suspect that your investment is too heavily aligned…[Read more]

Hi,

Joint tenancy automatically apportions ownership on a 50/50 basis which is fine when incomes are similar.

Tenants in common purchasing arrangements allow the parties to apportion ownership in accordance with income levels. This is particularly relevant when the property is negatively geared.

There are some legal issues with tenants in…[Read more]

Hi Giddo,

The employee benefits because all payments for ‘packageable’ items are made before tax.

For example assume your superannuation costs you $3000/annum and is normally paid from after tax income and it is a packageable item.

On a salary of $50k/annum your tax is normally $10860 leaving a net salary of $39140. From this you make super…[Read more]

Hi Adam,

Yes – you can claim interest incurred in a house and land approach to property investment. Any interest incurred on the land and also during the construction phase is deductible provided the intent is to build an income earning asset – which you are doing.

There is a test case at the ATO which recognises the validity of such deductions…[Read more]

Hi Gross,

If you have XP it is possible to use ‘remote access’ so that another individual can see what is on your desk top. Great for showing individuals across the glove some ‘live’ figures.

I use remote access and MSN to show cashflow analysis and living off equity scenarios with real figures as they relate to the other…[Read more]

The ATO website has a link to the rental property guide that details pretty well all issues associated with rental property. It is a useful starting point.

http://www.ato.gov.au/individuals/content.asp?doc=/content/57273.htm

As an aside retain all invoices and if in doubt keep them filed to one side and run the expense past your…[Read more]

Hi Jindou,

Set yourself up with a line of credit/equity loan and use these funds for deposit andpurchasing costs.

Typically the deposit is 20% of purchasing cost and you need to allow around 5%-6% for purchase costs.

You can also use smaller deposits than 20% depending upon the type, location and nature of the property. This strategy will see…[Read more]

Originally posted by natwayne28707:
Problem was tenant would never let people come thru house so made it difficult for owner to sell.

Do you want this tenant? Is vacant possession an option?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Nat,

I was speaking to an agent during the week who claimed that someone they know bought and resold a block of land within three weeks and make $60K.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

HI Carl,

I must admit the FHOG opportunity passed me by many years ago but as I understand it there is no rule which prevents you from buying another IP after the first one.

Sure there is a 12 month period in which you need to establish the property as your PPOR and you must live in it for a 6 month period. But that, as I understand it, doesn’t…[Read more]

Originally posted by Carl.Alexander:
waiting til June so it will be one year after my settlement and i can buy more property[angry2].

Why? – Is there a reason for the 12 month rule?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958