Forum Replies Created
Hi Rugbyfan,
You said “No idea here, but assume $1000 for a basic arsenic treatment.”
I was under the impression that arsenic dust can no longer be used in WA – wondering if this is the same in other states.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Starscream,
One of the critical issues is the banks willingness, or otherwise, to lend on something that small. As Rugbyfan indicated you will need to contribute proportionally more than normal for a deposit.
Often rents are indexed to the pension and as such you may well expect regular rental increases.
Make sure you check out the costs involved as some retirement villages include a ‘full service’ and as a condequence you may find your costs are somewhat higher than expected. Aslo check out the management rights and relationship between you and the complex managers – there may be some hidden nasties.Also consider that retirement homes are a new field and as such capital growth and resales maybe an issue.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Breakingout,
A number of newer and larger unit complexes in Queensland do have significant recreational features. While these do have an attractiveness to tenants the downside is the higher body corporate levies imposed to maintain the grounds and facilities. Above $2000/annum would not be unusual based on the description given.
If you are contemplating purchasing a unit in an established complex it would be advisable to have a look at past body corporate minutes and financials to ensure your unit is up to date and that the complex is financially sound. An older complex should also have a healthy sinking fund.
I cannot fathom why there would be restrictions on tenants – ultimately you are the owner and you need to ensuring your property has a tenant as often as possible. Do the restrictions help or hinder this process?
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Nathan,
Well so far it seems as if you have considered all angles and done your research. Well done and hope that the investment is a success.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi MArk,
Ultimately it is the basic economic law of supply and demand, and your individual circumstances and beliefs, that determines which property is best.
Most people would argue (and stats tend to agree) that house appreciate more than units because of the increased proportion of the buying costs in land value – subject to location issues.
Land tax is a state tax levied on the land value and varies significantly from state to state and as such a visit to your state revenue department would be advisable. As it stands at the moment your own home is free from land tax.
Units are generally managed by a body corporate (or similar) and as such there are some advantages to being part of a collection of owners. You can run into management issues when there is a conflict between owner occupiers and landlords in the same complex. The conflict generally arises as the respective needs are slightly different.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Nathan,
OK you’ve got a pest inpsection report that isn’t too complimentary by the sounds of it – have you also got a building report with cost estimations to see how much it will cost to complete any essential and not so essential repairs?
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Originally posted by Celivia:It is true, that if one looses his/her job, or just wants to retire, then they’ll loose all the benefits from depreciation.
Hi Celivia,
Any depreciation claims are offset against your taxable income and while you do not have a ‘job’ you still have your rental income to declare – as such you can still enjoy the benefits (albeit probably reduced) of depreciation claims.Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Nathan,
As you are now in a ‘business’ it is essential you have good book keeping habits in place so that you can legally minimise your tax.
Initially you will need to have a good grasp on a list of deductible items so these can be entered into your records as the items are paid out. I also keep a separate list of possible deductions when I am not sure (this list is very short nowadays).
You may also find it useful to search the ATO website to check your rough calculations.
As zeffix has indicated a QS may still be a worthwhile investment. While you don’t have any capital depreciation claims left (apart from any completed renovations) there are sure to be claims plant and equipment claims available to you.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Yack,
Of paramount importance are the little tykes spoken language skills. Are they able to have an age appropriate conversation? Is their speech intelligible? Do they enjoy talking to people? Are they able to listen for age appropriate periods of time? Do they demonstrate a capacity to stay on task for age appropriate periods of time? Do they relate well to other kids? Are their gross and fine motor skills age appropriate? Are they inquisitive? Hearing and visual acuity? Can they retell simple stories? Does world war three erupt whenever they are around? Can they follow a couple of instructions?
Above all the very best thing you can do is talk, listen, read and play with them – the TV is a cheap but lousy babysitting service.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Originally posted by kay henry:1 hour to go- tick tick… just thought I’d put this at the top so all you “active topics” junkies can get to see it [whistle]
kay henry
Nah – you’re just getting your post count up [snitch]
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi A in A,
Strongly recommend you see a good broker. You may well be amazed at their magical powers.
Someone I know got told ‘no’ by two separate banks and yet when workign through a broker was able to borrow sufficient funds for two more properties.
PS the possibility of losing a customer made no difference to the two banks involved.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Inna,
Not an accountant so I stand to be corrected.
As I understand it – if you move into your property this will then become your PPOR and as such you will be eligible to have part CGT exemption status for this property provided you do not have another PPOR hidden somewhere.
A quote from the ATO website
“Not main residence until you move in
Therese bought a house and rented it out immediately. Later she stopped renting it out and moved in.
Therese cannot choose to treat the house as her main residence during the period she was absent under the continuing main residence rule because the house was not her main residence before she rented it out. She will only be entitled to a part exemption if she sells the dwelling.”
Under these circumstances I believe you will be liable for CGT apportioned on period of ownership basis. Ie half PPOR half IP then CGT will be calculated on half the gain and then 50% rules etc will come into being.
But as I said at the outset – I am not an accountant.
PS – I do get around a little [biggrin]
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Bear,
Attended a two day course last year and found the two long days to be well worth losing a weekend and spending the $280.
Steve is a definite growth focussed investor (would be a good debate with Steve McK) and has a number of strategies to maximise every $ you have so you can retire before time. Steve uses property as his core strategy and then combines this with shares and cash for maximum effect.
I used their services for a limited financial plan that confirmed what I picked up on the weekend and have since invested some money with his share fund – up until attendance at the course I had considered shares to be too risky for this little black duck.
I haven’t used their property location service as this side of things is taken care of but will continue to use their share fund as a supplementary investment device.
If you have any other questions then do not hesitate to ask away.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Inna,
Recommend you read chapter 6 of the attached link.
http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Originally posted by Chan$:It would be nice if school subject does have ‘basic investment’ for all students. Then students be able to learn the basic things instead of have to wait ’til finished uni to aquire this knowledge themself if they choose too.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]I haven’t quoted Chan$ here to necessarily highlight his comments but rather to say ‘don’t leave everything to schools’ and that schools have also been teaching messages about ‘no smoking, healthy living, no drinking, etc’ with little impact for large numbers of students.
The education process (to be successful long term) has to be a joint effort. Some learning at school and reinforcement at home.
I can assure people we (teaching fraternity collectively) can often pinpoint the ‘problem child’ at 4 year old kindy with a high probability of success.
A broadbrushed statement but – I would also contend that a number of teachers have little understanding of money management and basic investment principles – a regular salary, secure employment and often with a healthy superannuation system make for some lazy habits – and by default are not necessarily equipped to ‘teach investing’
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi all,
Ultimately to landlord insure or not is an individual decision.
However under no circumstances should you be without some form of public liability insurance. A recent case in WA saw a boy slip in the shower, fall through the non standard glass, seriously cutting himself and died on the way to hospital.
Someone had repaired the shower recess and didn’t use legal thickness glass.
By the way – landlords insurance is something I always take out. Who knows what sort of friends your tenant has.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Georgio,
I have attached a link to a discussion about The Investors Club for you to read.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=6350
I would also add a post I made in response to a question about another organisation that may also help you in your deliberations.
Ultimately the decision has to be yours and all I can suggest is that you ‘interrogate’ TIC and crew until you find out the answers to all your questions.
I suggest you spend some time thinking through the ‘issues’ you have, write them down, ask the contact, go away, think again and then ask again. Continue this process until you accept or reject the answers.
Ask for referrals beyond their support members and see what the other referrals have to say. See if you can also be referred to dissatisfied customers and see why they aren’t satisfied. The fault may lie at their feet and not TIC – or vice versa.
At the end of the day you need to be satisfied with your research findings.
Bear in mind I am a Support Member with IC and am more than happy to answer any questions you may have.
Derek
derekjones1@bigpond.comRead my comments? Think I can help you? PM or email welcome.
Hi Slumlord,
GEHA (Government Employees Housing Authority) is the WA organisation responsible for housing government employees in country areas of WA – except for those localities listedin the first post.
GEHA used to construct their own houses using cheaper levels of fitout and often with smallish floor dimensions.
Over the years nurses, teachers and police (largest tenant pools) found they had more and more difficulty attracting and retaining these employees in some country areas. A major issue being the standard of housing.
GEHA (DHW) now lease and sub lease suitable houses from private landlords and usually offer up to five year leases at above market rates.
Having been a GEHA tenant for many years (18) the move is considered very positive from an employee perspective.
Not sure of the financial arrangements between GEHA/DHW and landlord but we did often get a slightly cheaper rent that was topped up by the government.
Derek
Read my comments? Think I can help you? PM or email welcome.
Hi George,
Ultimately the decision has to be yours and all I can suggest is that you ‘interrogate’ Jamie and crew until you find out the answers to all your questions.
I suggest you spend some time thinking through the ‘issues’ you have, write them down, ask the consultant, go away, think again and then ask again. Conintue this process until you accept or reject what they are proposing.
Ask for referrals beyond their ‘consultants’ and see what they have to say. See if you can also be referred to dissatisfied customers and see why they aren’t satisfied. The fault may lie at their feet and not 21st Century – or vice versa.
At the end of the day you need to be satisfied with your research findings.
Derek
Not associated with 21st Century – apart from having viewed the video.
Read my comments? Think I can help you? PM or email welcome.
Originally posted by misty:Hi Derek
I thought maybe cheapest to get contractors for hard stuff and maybe do painting and whatever else ourselves.
Given this is your intent I suggest you meet with a project home builder and get some quotes for both the ‘full work’ and the others with a discount for the ‘bits being done by you’.
As I understand it some project builders have a line in the sand that they will not cross and don’t/rarely allow any structural work by the owner as it may compromise their building indemnity insurance cover.
Derek
