Forum Replies Created
Hi Wayne,
This one?
https://www.propertyinvesting.com/forum/topic/10827.htmlDerek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi all,
Awwwwww shucks[embarassed]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Tikki,
As far as I know that was what the Real Estate Institute ‘wanted’ – don’t think it got up.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Redwing,
That one has been in the air for a while – there go a swag of tenants from the Wembley units.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Redwing,
I tend to agree with Ausprop – the uninformed investor, who didn’t do their maths as per my earlier comment and who only read the ‘headlines’ will wait till July 1 as will FHO.
As such it is highly likely there will be another ‘run’ in sales, partially offset by the stay home in winter issues which often sees winter activity slow down.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by MortgageHunter:Brokers became very active at selling them and passing the benefits onto anyone that qualified. This has caused a major paradigm shift within the industry and all references to profession and income levels have since been removed.
Thank the brokers for this one folks!!
Hi Simon,
Geez – you brokers are making a mess of the ‘banking world’ as we once knew it. [biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Elves,
Geeez – too many holidays like that and you’ll want to stay at work [exhappy].
Seems the property manager – forgot about the ‘management’ side of the arrangememt. I am sure you have pointed out their errors in their ways.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Scremin:[blink]
SHe told me about it and said for me to force the issue as their wording of “Professionals” didn’t include nurses or teachers. Funnily enough, it includes university lecturers but not normal teachers… Ho hum…[confused2]Hi Scremin,
The cynic in me thinks ‘use whatever reason you can to put customer outside the guidelines so they will go away’ because as Rob said – the key (only?) points are income levels and borrowings.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Want2brich,
Given you are already finding the place too big I would consider selling up and using the profits to pay out the mortgage and buy the house you have seen in the area.
I suggest such a course of action as your existing property (and the new one too)is capital gains tax free and you’ll end up with no non-deductible debt.
Based on the figures provided you’ll end up with ~$110K cash in bank (less stamp duty and buying and selling costs)
Thereafter I would create a line of credit/equity loan against your new house of approximately $260K and use this to leverage into other property, drawing deposits and purchasing costs from your equity loan.
This $260K could be added to your $110K to create $370K to do the same thing as outlined in the paragraph above.
Another option would be to keep some of the $110K in an offset or redraw account to reduce interest while at the same time being a position to access the funds with a minimum of fuss if the world goes pear shaped.
At the end of the day the best course of action will be dependent upon your risk tolerance, ongoing employment prospects, age, health, investment beliefs and strategies, income levels , years to retirement and also your capcity to service loans.
My thoughts only.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Scott,
Sincerely hope you get it up and running – I would expect that it will be a challenging exercise due to the ‘complexities’ associated with CGT.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi KP,
There is an article in this month’s Money magazine that discusses some of the issues associated with the changes in ruling/interpretations.
The changes revolve around the reclassification of some plant and equipment into part of the building and some other alterations to the effective life of some plant and equipment items.
As I understand it the changes will only effect depreciation reports complete after July 1st 2004 and will not be retrospective (Depreciator/Scott) will clarify this if/when he reads this thread.
Understand what you are saying about bricks being in short supply and sympathise with you on that one.
Unfortunately too many voters will only remember the recent reduction in stamp duty and will forget the previous two rises. I guess we’ll find out what the people think in early 2005.
And yep – was in Goldsworthy in 89-91 period of time.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by The Adviser:Qu.3) Is there a minimum time that I can change my mind, move in as my PPOR and claim the FHOG? this one, I’ll make a few phone calls with.
You have 364 days to decide to move in so you are eligible for the FHOG. As Derek said, you need to stay in it for 6 consecutive months.
Hi Rob,
Thanks for the acknowkedgement but Simon is the wiz on FHOG matters[biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Tikki,
If the property is vacant for a calendar year then clearly it wasn’t available for rent. I am sure the ‘suits’ from the ATO would clearly see that this wasn’t a typical rental property.
If however you were talking about the remainder of this financial year (3 weeks) you may have a case provided you had evidence of advertising, discussions with a PM and so on to show that you were actively seeking a tenant.
The ATO has apparently moved to a process of apportioning growth over the life of the property and determining CG in relation to the amount of time it was an IP.
But in all matter tax, seek the advice of an expert not some ‘joker’ on the ‘net’
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Quote:Originally posted by jjjkumar:Derek, Thanks for your response.
How can I find out whether to choose a particular suburb to invest or to live in ? Basic aim is to get good appreciation in 5 or 6 years time. Can you tell me if there is any web page or magazines that gives these details ?Quote:Hi Joe,Unfortunately not one of us has a crystal ball and can you definitively where the next growth areas are going to be.
However there are a number of organisations that have past growth statistics available usually for a fee.
Try bisshrapnel, matusik, quartile, valuer generals office in your home state, Australian Property Investor Magazine has some statistical information from time to time and then there are the property reports available on the left side of realestate.com website.
If you let us now which general areas you are looking at we may be able to make other suggestions.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nicole,
If you are chasing cashflow positive property as per Steve’s book definitions you’ll probably find that they are getting further and further away from you.
If you still want to pursue this line of investment you’ll probably find that an accountant in Melbourne (see Dale at http://www.gatherumgoss.com) and mortgage broker (some here on the board) for the accountancy and $ side of your investment journey. A Melbourne based solicitor/conveyancer will also suffice.
As for property managers and building/pest inspectors you’ll need to use someone in close/reasonable proximity to the property.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Dragonlady,
No – consult with your accountant before the sale happens. They are the expert and as such they will be able to provide you with a definitive answer and possibly, depdningupon circumstances, may even be able to make a couple of suggestions that may save you money.
Under no circumstaces should you make decisions based on what people (me included) say here without consulting suitably qualified experts who have a detailed understanding of your situation.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Dom,
According to my calculation the difference is ‘only’ $10K total (Mr and Mrs) over the three years based on some very rough estimations.
As I indicated in the long comment this saving would need to be balanced out against the potential savings in non-deductible debt interest if you were to sell all properties in one year. Definitely time to sit down with someone who knows what they are doing.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by chrisrenee:We have two property’s.
One which we lived in for 3.5 yrs but now has been rented out for 6 months (in my husbands name). We have another property which we have lived in since renting out our previous property (in joint names).
The second house will be CG free as it is your home.
The first property will have gains apportioned over the life of the property and based upon ratios as a home and as an investment property. Gains here will be levied against hubby as it is his property.
So if you sell the house you live in you wouldn’t pay CGT?
Correct
I guess the outcome I want is to make some profit out of one of our property’s to use to purchase another house for ourselves so we have smaller morgage. I still in future will continue to purchase IP’s.
Have you considered keeping both properties and using the equity available as security through a line of credit facility of deposits and purchasing costs of other property/ies?
There is no need to necessarily sell property to make money from them.
Hope that helps[biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by chrisrenee:Sorry you’ve lost me a bit. PPOR what does that mean???
PPOR is the ATO’s fancy description for your home.
I have purchased another property of which I am living in at the moment.
If you are living in this property it will be exempt from CGT as it qualifies as your PPOR.
Mine and my husbands combined income is 87,000 so what ever profit I make out of selling my IP would be added onto that ($157,000 – profit $70,500) then CGT is calculated when I lodge my tax return at the income tax level?
I am the lower income earner of only $28,000 so could the profits from the house be added onto my income to be taxed for CGT? The IP is in my husbands name but both names for the loan.
As this property is only in your husband’s name he will incur all CG.
I will sell the house once rented out for over 12 months.
What is the 6 year exemption from CGT?
If you lived in a PPOR and moved out and didn’t buy another property then you have six years after date of departure that the property remains free of CG. If however you bought another property the six year rule is null and void.
Sorry for all the questions!
Renee
Sorry Renee – I am still a little confused about the number and wnership of properties involved here.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Chris,
Generally speaking if this property was your only PPOR you do not pay any CGT.
A couple of complications arise if you are selling and move into another property (6 month dual PPOR applies) or you move out and do not buy another property (6 year exemption from CG rule applies).
If however you are liable for CG then the gain is proportionally levied against numbers of days as an IP and days as a PPOR.
Any gains are added to your gross taxable income and levied iin accordance with the appropriate income tax rates.
See also https://www.propertyinvesting.com/forum/topic/10925.html
which may be of assistance.Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
