Forum Replies Created
Hi Devo,
I wasn’t sure whether or not your LOC already has some investment debt in it so this response may be unnecessary – but just in case.
If you have some investment related debt on your LOC and then add some non-deductible debt to your LOC you create a mixed purpose LOC.
Any repayments made are, as far as the ATO is concerned, apportioned over the total debt and are not directed towards your non-deductible debt.
As DAAJ said this can be overcome by creating ‘split accounts’ as this provides you with facility to pay off one part of your total debt, thereby meeting the ATOs needs and regulations.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi all,
And just in case you missed the 20mil Euro here is a second chance to a share of US$10m – but do not tell anyone – read the confidentiallity clause in the last paragraph.
DR. BELLO OSAGE
CONTRACT AWARD CHAIRMAN
NIGERIAN NATIONAL PETROLEUM CORPORATION
LAGOS – NIGERIA
Tel:234-80-33724364Dear Sir,
REQUEST FOR URGENT CONFIDENTIAL BUSINESS RELATIONSHIP IN RESPECT OF THE TRANSFER OF US$10,000,000.00 (TEN MILLION UNITED STATES DOLLARS ONLY)
I, on behalf of my other colleagues from different Federal Government of Nigeria owned parastatals decided to solicit your assistance as regards the transfer of the above stated amount into your bank account. This fund arose from the over-invoicing of various contracts awarded in my parastatal to certain foreign contractors sometime ago.
We as holders of official positions in our various parastatals, were mandated by this new civilian government to scrutinize all payments made to certain foreign contractors by the past military government, and we discovered that some of the contracts they executed were grossly over-invoiced, either by omission or commission. Also, we discovered that the sum of $15,000,000.00 (Fifteen million American Dollars only) was lying in a suspense account, although the foreign contractors were fully paid their entitlements after executing the said contracts.
We all agreed that the over-invoiced amount be transferred (for our own use) into a bank account provided by a foreign partner, as the code of conduct of the Federal civil service does not allow us to operate foreign accounts.
However, we have succeeded in transferring some of these monies, precisely US$5M (five million American Dollars only) into a foreign account in GENEVA (SWITZERLAND) last week, but unfortunately the provider of the account has severed all forms of contacts with us as he has refused to adhere to our earlier mutual agreement insisting that the total amount be paid into his nominated bank account before disbursement will take effect. If for US$5.Million (Five million only) we are not compensated, how can one guarantee full compensation on remittance of the balance of US$10 million (Ten million American dollars only).
We are therefore seeking your assistance based on the balance amount of US$10 Million which can be speedily processed and fully remitted into your nominated bank account. On successful remittance of the fund into your account, you will be compensated with 25% of the amount for assistance and services and 5% set aside for expenses contingency while 70% is for me and my colleagues
This transaction is closely knitted and in view of our SENSITIVE POSITION we cannot afford a slip, I assure you that this transaction is 100% risk free. We will avail you with our identities as regards our respective offices when relationship is fully established and smooth operation commences.
I am at your disposition to entertain any question(s) from you in respect of this transaction, so, contact me immediately through my e-mail or the above telephone number for further information on the requirements and procedure.
Please, note that this DEAL needs utmost confidentiality.
Yours faithfully,
DR. BELLO OSAGE
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kylie,
Shares and property are both valid investment vehicles and it appears as if you are more comfortable with shares at the moment.
The issue you need to consider is why are you more comfortable with shares over property? If you can resolve these questions you may well be in a position to purchase an investment property.
Each investment has its advantages and disadvantages. For me property is my primary investment vehicle because the capacity to lever my $$ further is important to me. I am also of the opinion that I can exert more control over my property than I can with shares.
The major advantage with shares as I see it is that entry costs are generally lower than property.
Having said all of that I am currently setting my self up so I can leverage some of my available equity into the share market.
You gotta do what you gotta do. If shares are your thing then go for it.
Ultimately only you can address the ‘nerves’ issue and in answer to your question – your nerves are not unique. I find that a great many people all have the same issues, and these are more evident for their first property than for later properties.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by kcc:I have just bought a property in the small West coast town of Queenstown.
Let me know your thoughts?[baaa]Hi kcc,
Without seeming to be harsh it would appear as if you are having doubts about your purchase. The doubts needed to be resolved before you made the purchase and not after – this is an essential part of a comprehensive reaserch process used by investors.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mydral,
Easier way is to add around 5% to the purchase price and you’ll cover all purchase and borrowing costs.
Why worry about the small stuff?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Sweetie,
(geez – I don’t even talk to wife like that)
But the short answer is yep – you have got it.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Linda,
It would appear as if you are confusing two tax regimes.
CGT is a federally levied tax and is based (in loose terms) on the profit you make. Anything purchased before 17th July 1985 (? check this date) is capital gain tax exempt.
The NSW ‘tax’ is a stamp duty levied on the sale price of the property. As I understand it (I’m not from NSW) this will be levied on all properties apart from your own home.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi LifeX,
The stats in recent years indicate that variable rate investors have come out in front.
But (FWIW) (isn’t there always a but) we have largely been in a downward trending cycle since the late eighties so I wonder if we will be saying the same thing in 20 years time.
For me I have a mixture of fixed and variable loans and with different expiry dates.
Suits me [exhappy]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi WAF,
If you want the property I would be surprised if you are locked in as the building is ‘technically illegal.’
As such the vendor may be willing to renogiate and then you should include one of your ‘new’ conditions subject to shire providing the necessary building approval at vendors expense?
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Daaussie,
At 20 m2 you will find that few (if any) lenders will do the standard 80% lend on these as they consider the ‘risks’ too high for their money. You will need to realise that the amount of equity they use may negate any cashflow (or growth) benefits you seek or achieve.
These places generally are more suited to an investor who has equity to burn, wants a close to city investment and is chasing perceived cashflow.
You haven’t provided any figures so definitive answers are going to be difficult to give you.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Mrssimba,
I believe that there is no such thing as a ‘perfect property’ but there is property that meets your key (non-negotiable) needs.
As such you need to identify the questions you want answers to and when you get the answers you need – you then have a property that suits you.
At the end of the day proeprty is not a risk free investment strategy – the issue revolves around you finding a property where the risks are minimised for you.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi James,
For me – Interest only while I have non-deductible debt. I’ll reconsider my options when this is paid out.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Monopoly:Ummm….that is your repayments will stay the same if you have an Interest Only loan, but if you are contributing to the principal (along the way) – your repayments should lessen (again, assuming interest rates are steady).
Jo
[/quote]Hi Jo,
While the interest portion of the payment will decrease, and principle portion increases, the total monthly repayment will largely remain the same for the life of the loan (assuming same interest rates).
Ie pay $800/month at the start of the loan – still paying $800/month at the end of the loan.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marc,
I have briefly skimmed the thread and apologies if I missed the relevant bit – but is the fact your daughter doesn’t have a ‘house’ an issue for them or you?
It may be they are blissfully happy doing what they are doing anyway and don’t want your assistance.
On the other hand maybe they are being ‘stubborn’ and are regretting not taking up the earlier offer and now don’t know how to broach the subject with you.
Given you have already assisted the other sisters it is possible that they would understand if you now wanted to help the other sister.
Seems to me there are so many ‘what ifs’ and ‘how wills’ being thrown around that it is time to talk and clear the air and see what transpires.
If you never ask you’ll never know.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Gatsby,
It is certainly time to get a new accountant.
Provided the property was available for rent you are entitled to claim any costs incurred during that period. For example you own a property for the full financial year but could only find a tenant for 6 months despite it being available for rent.
Under these circumstances you could claim full years rates, taxes, interest, repairs, advertising, management fees etc.
The key point is deductibility is determined by the period the property was available to rent and not neessarily how long the tenant was there.
If, however, you were renovating and it was considered ‘untenantable’ (or you lived there) for three months you would reduce (very roughly and to highlight the point) most claims above by approximately 25%.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Fjficm,
Not an accountant so disclaimers apply.
The following items are claimable over five years or the life of the loan – whichever is shortest.
Loan establishment fees, search fees, loan stamp duty, mortgage insurance (if applicable) bank admin fees and mortgage registration fees.
Land stamp duty is offset against capital gans calculations.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Gatsby (and others),
You will need to provide me with your email address – PM me and I’ll send the contents pages (4of) through in PDF format.
I am not sure if it just me but I haven’t worked out how to make attachments to PMs or forum originated emails.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Ibuycashflow:Thanks Derek for your thoughtful input but alas no, I’m not working the Pub – I’d be drinking the profits.
Not a problem – I know that many people love working behind a bar – but for me all I can imagine is drunken version of myself (who makes little sense on a good day) on the other side of the bar.
Bar work is not for me.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Devil,
Give Deppro a call. They have an office in South Perth and can be contacted on 9368 8783.
Discuss your options with the Deppro and they will give you a definitive answer about the ‘value’ in getting a QS done on your properties.
I think you will be pleasantly surprised anyway. All ‘chattels’ have a value at purchase and as such these vallues will determine how much is depreciable and for how long.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Zimonya,
Trust Magic and Tax Battles are usually $99/each but can be bought for $168 as a ‘package’ via Dale’s website http://www.gatherumgoss.com
Either way it is money well spent and will prove to be an ‘investment’ over time.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
