Forum Replies Created
Hi Hawko,
Based on your description you will be eligible for the 6 year CGT exemption clause.
As the stamp duty issue is a new, state based tax I would recommend a phone call to the Office of State Revenue (or equivalent in NSW) is you best option.
In the meantime try this link
http://www.smh.com.au/media/2004/04/09/1081326934602.html
I understand the new tax comes into force on July 1 (?????) and if you sell before then you will be exempt anyway.
Derek
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Hi Doji,
Give Patrick Thatcher (Subiaco) a call 9380 9533.
As with all matters financial, property and accounting you will need to conduct your own checks to see if he meets your needs.
Derek
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Hi Kbeeh,
Assuming you are eligible for the FHOG and have the financial capacity to buy a property in your prefered area then I would suggest you buy a home, qualify for and get the FHOG, do some cosmetic upgrades/improvements (depending upon budget limitations) and when you have met the FHOG criteria move out and convert this property into an IP. Do your own checks on eligibility and qualifiying matters first.
If you buy well, with the elapse of time and the modifications made you may well have realised sufficent gain to enable you to launch into other IPs.
Alternatively you may well choose to retain the first property as a home and reinvest using the gain in equity as your ‘deposit’ for subsequent IPs.
The advantage of buying the first property as your home is that you can use the government gift to help you along the way and it is CGT free. The disadvanatge is that loan interest and costs are not deductible – it is a balancing issue that will be determined by your circumstances.
Either way (retain the first property as a PPOR or IP) you have made significant inroads into your future.
Go to it!
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Powter,
Hmmmmmm – an investment plan. Buy lots of property and then retire.
In all seriousness a plan is something that gets you from ‘A’ to ‘B’ and until you know what ‘B’ is you won’t have direction. And until you clearly understand your current situation ‘A’ you will not know where to start.
At this stage the forum knows nothing of your ‘A’ nor your ‘B’ and needs more detail before it can provide you with any real comment.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi all,
A couple of others.
Deregulation of the banking industry has also played its part – alternative lending criteria, different lending policies, widespread acceptance of equity loans, a changing mindest towards debt and establishment of mortgage broking as a service industry (its all Simon’s fault).
Shifting population demographics and the realisation (16 years after event) that compulsory super won’t cut the mustard for most people.
As for timing the next boom (if this one has truly ended) – provided you can meet your repayments and have no financial issues – this has less relevance as property tends to be more fogiving in the long term.
Derek
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Hi Shirley,
Hmmmmmm – definiately one for the experts. My advice (for what it is worth) ask the Queensland Office of State Revenue as ther is nothing worse than a government that has been ripped off.
Check out http://www.osr.qld.gov.au/gas/fhog/
and if that fails get on the phone and record the details, including the name of the person you spoke too.derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Just Starting,
I would recommend you use a Queensland Solicitor for a Queensland purchase – this will ensure they are more likely to be familiar with any subtle and/or significant state legisaltive differences that may exist when it comes to property purchases.
Most people tend to develop a work pattern that reflects the areas they regularly work in – throwing a curve ball may let something slip through the net, which could be very costly in the long run.
I am sure there are a number of people here who will be able to recommend people/firms they have dealt with in the past who have measured up to the task.
I am not a finance broker but as I understand the classification of your property as being ‘rural’ or ‘urban’ will be determined by local bylaws – in some cases the size of the block can also trigger a change of classification from one to the other. Overall the key determiner is the relavant zoning.
Be aware also that while the bank may be prepared lend to 95% or 80% depending upon classification, the loan mortgage insurer may see the rsk differently and can/may say no.
Hope this helps.
derek
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Hi Redilia,
Land tax is a state based tax and as such the threshold levels and collection rates vary from state to state. I suggest you log onto your state’s Office of State Revenue (or equivalent) and see what you can find out.
Land taxes are levied on the land value of the particular investment property and as such the value of the land component and your state legislations will determine the size of your bill.
Units and apartments etc include a proportioned shared ownership of the whole block of land that the complex/building is located on. Your share is highlighted in the contract of sale documents you received leading up to and during settlement.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Tim,
I am not Steve but I suspect that Q, NZ and Vic just became more attractive places to invest especially given they are reasonably close to NSW.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Kay,
“You’re a “real estate officer”. Wouldn’t the people who work in your field have many and varied ideas about real estate? Neg gearing as a monopoly idea of RE is about ten years old now. Most real estate people I know are pretty up with all kinds of strategies these days.”
As recently as three years ago the Vice President of the Victorian Real Estate Institute (or similar) highlighted the fact that, at the time anyway, only 20% or REA in Vic owned an IP.
Derek
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Hi NAthan,
Without commenting on the specifics of the property I would suggest you edit you post to remove the reference to the town as you may create a bidding war for the property.
Derek
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Hi all,
A little longer term but we are moving to a single colour throughout our properties so that there is reduced wastage and no drama with colour matching. We have also taken down the details for mixing the colour in case it no longer appears on future charts.
Gloss white on all doors and skirting etc too.
Will do the same with carpets, tiles etc as the time comes around. PLus we keep samples of tiles etc so that patches can be done as new.
We also request the REA do not send us an annual rental statement at ~$20 a pop – there goes some money out the door.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Steve,
Good luck with it all – trust you can keep on smiling.
I guess this means you have really made it – on a crusaders hit list and now on media watch.
There is nothing left for you to achieve in life[biggrin] other than to help people successfully invest in property.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Originally posted by AmandaDasha:
Again maybe you could spread the debt between the two if you do not have enough equity in one.Hi Amanda,
If I read this correcty you are suggesting snorky shift some debt from being deductible to non-deductible or vice versa.
If this is correct ( I am not an accountant or financial wiz) but I would say this is not a good idea as it will create a book keeping (and tax) nightmare.
Waiting for a second opinion [confused2]
Derek
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Hi Snorky,
Like Geo I would typically recommend not selling but……under the circumstances you have outlined it may be the best course of action provided you analyse what went wrong this time and take steps to avoid a repeat occurence.
Before taking the final step have you considered making your IP loan an interest only loan, have you made surplus repayments that allow a holiday period, can you renegotiate the loan and reduce repayments, are there areas in your household budget that could be reasonably curtailed, how long before the circumstance can/will get better – can you live ‘tough’ for this length of time, is the toll on the family only being felt by you and has your company accountant looked at your situation and given you a second opinion?
What ever course of action you take it is essential that you partner/s be involved so you have a greater chance of successfully addressing the matter at hand.
All the best with it.
derek
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Hi Chan$,
No friend of NJ – picked that little gem from Kay’s posted link in another thread – no science involved.
And the essence of the story was a little predictable really – the ABC did a similar story approximately 12 months ago.
In my mind the horse has already bolted for too many people anyway.
Derek
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Hi Jarrn,
From distant memory the 3% figure was promoted as the rate at which there is equilibrium in the rental market. Anything above this made for a tenants advantage, anything under this made for a landlords advantage.
Generally speaking rental vacancies can be seasonal and they do vary according to a whole range of circumstances present at the time.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Megs,
In addition to the steps Simon has mentioned it also pays to have a cash buffer available to cover these possibilities.
The buffer can be held in any number of ways. Three quickies that come to mind and which I use are surplus line of credit funds, redraw funds and/or straight out cash.
Other tips worth considering are; fit airconditioning, free rent periods, you pay letting fee, garage door, security screens, alarm system or gardening service included etc.
Another strategy I use is to ensure leases are managed so they expire in peak periods and slightly staggered from each other to reduce the likelihood only property is vacant at any one time.
When investing in property is essential that you have considered the various possibilities so that you are prepared should the worst case scenario eventuate.
Buying right can only be achieved with good research. Your ability to research effectively will be enhanced or hindered by your clarity of mind. In other words you need to know what you are looking for – rather then being told its a good investment – you need to know it is a good investment that suits you particular circumstances.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Yack,
Am currently looking, looking, looking so that when I see something that fits the bill we will be buying.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email me.
Hi Mysta,
As a growth focussed investor I prefer to invest in areas with a degree of ‘growth certainty’ and while Sydney would fit this criteria (7.93% 20 year average growth) if the rent returns and entry levels were more investor friendly. That is why I suggested you may want to look interstate where rent returns and median prices are less.
Cashflow is only one part of the equation – Sydney is a proven long term growth performer and this aspect needs to be added to your ‘profit’ equation.
For 20 years statistics of all cpaital cities check out http://www.navra.com.au/articles_display.aspx
Derek
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