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This graph shows price changes for the whole of Perth for the period 1974 – 2004.
I did also have a broadsheet that details price changes for all Perth suburbs for the last 10, 20 and 30 years. Not sure where it is at the moment but will let the forum know if I locate it. In essence fluctuations over the thirty years largely mirrored the graph (link above)
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Have a look at
https://www.propertyinvesting.com/forum/topic/22554.html
Also recommend a search of the forum – such topics come up from time to time.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Richard in a duplicated post – I have transferred Richard’s comments here so there is continuity of conversation – Derek
Hi Matt
Firstly you and your partners won’t be directors of a Trust maybe of a Pty Ltd Company and that maybe the Trustee of the Trust.
For an 80% lodoc many lenders require you to hold an ABN for a period of 2 years other as little as one 1 day. The longer the period of time the greater the lending options available.
Several lenders accept lodoc applications from clients who are PAYG. It is horses for courses.
I assume your partner is on a month to month rolling contract which depending on how long she has been doing that should not be a problem. If you can organise the finance on a full doc basis i would try and do so and keep the lodoc loans for when serviceability gets a little tight.
Talk to a good mortgage broker who can give you a few options.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
richard@yourstatefinance.com
Ph: 07-3720 1888Hi IG,
Reading your post it appears to suggest that you intend allocating all the rental income to your husband and then at time of sale you intend keeping the gain yourself. Is this correct?
Under normal circumstance rental income, taxable gains and deductions are apportioned in accordance with ownership ratios.
From a purely taxation perspective cf+ rental income and gains should be allocated to the lower income earner in order to reduce tax. In saying that there are finance, asset protection, and long term plan considerations that also come into to play when making these decisions.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113The issue is whether or not the assets is classified as a passive or active asset.
An active asset (as I understand it) is relevant if there is no rental income earned. Under these circumstances an asset is not eligible for CGT reduction and profits made are classified as income without discount.
A passive asset (rental property earning income) is eligible for CGT discount.
But as I said previously no accounting quals.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Mly,
Not a cashflow investor so take what I say with a grain of salt.
As far as I know the 11 sec rule still exists (someone will come along and prove me wrong) the key message is that properties meeting this rule can be rarely bought ‘off the shelf’ without either some extensive searching or the capacity to spot an underperforming property that can have rent raised to the required level with some creative thinking and application.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Ian.
Normally any interest incurred in building a house and land package and then renting it is deductible.
The key issue is the purpose of the borrowings and NOT the fact that it isn’t yet earning income. This aspect of tax law has been recognised by the ATO and the legal process available to tax payers and is commonly referred to as ‘The Steele Case’ – I suggest you visit the ATO website and do a search.
When you do rent the property and later sell it any taxable gains are taxed at the relevant taxatioon rate.
I will preface my following comments with the ‘I am not an accountant disclaimer’ so please get a second opinion. While on this I would get this opinion now rather than later as you may find that there are some steps you can take between now and sale time which minimise your tax liability.
Given you are not renting this property but will onsell I suspect that the gain will be classified as income and the full gain added to your taxable income. Whereas if you held onto the property for 12 months from time of completion and put a tenant in it you would be eligible for a 50% CGT discount.
I also understand that the build and sell approach you are contemplating may have some GST implications.
As stated I have no qualifications and a discussion with a good accountant is recommended.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113There are quite a few knowledgeable brokers who frequent this forum – you would be hard pressed to better them.
I would suggest you read anumber of posts in the finance forum to get a ‘feel’ for the various brokers.
In order to get a more meaningful recommendation you may want to identify an area/state. Some people do prefer to work with someone close by whereas other people are contend to work with the most knowledgeable person.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi As,
The critical issue is that the rent struck reflects the market rate. As such I would suggest you get one or two rental apprisals done for you and use the results to determine the ‘rental rate’.
You can self manage – there is no issue there provided you do receipts and declare all income.
There is expectation amongst ATO Law that requires transactions of this nature to be reflective of the wider market and to be at ‘arms length’ – similarly any payment in advance agreements should be recorded in the ‘lease agreement’ you draw up.
There is no problem if your work period extends – given this is your PPOR you will have a 6 year window in which you can rent this property with no impact on your CGT liability in the future.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Ian,
Are you building to sell or building to rent?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by redwing:Interestingly whilst Perth achieved approx 24% CG in the last 12Months I believe may regional areas in WA still led the way and some members here who bought well must be enjoying newfound gains (hmmm.. where is that Geraldton, Collie or Kattaning thread??[wink2])
HI Redwing,
You missed the ‘star performer’ – Goomalling up 80%+ in last 12 months.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Dale,
I do not believe the great majority of people subscribe to the what ‘Dale said is wrong’ camp in any way shape or form.
Your depth of knowledge is recognised by many and if you search here you will also see that there have been a great many posts recommending Dale GG as an accountant of the higest regard, irrespective of where the question originator lives.
As you indicated in your more recent comments – not all accountants read tax law the same way. I might add the same statement can be extended to many a profession.
In closing congrats – and sleep peacefully those that recognise a ‘good accountant’ when they ‘see’ one recognise your expertise.
Cheers
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Letitha,
No worries – from reading your comments I do wonder if you got a little ‘attached’ to this possible purchase and have forgotten the ‘oh well onto the next opportunity thought.’
And I wouldn’t strike this agent from your list – he/she has worked with you on this deal and they know that you are serious.
Just be careful not to burn all of your bridges with anyone in the property industry – after all you never know who will punch your next ticket.
I am sure that your involvement in negotiations has highlighted a key point in negotiations – focus on the issue and not the person.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by letiha:I do a lot of negotiations as part of my job, or I get to watch experts do it every day, there is no way you would open with you best offer, especially if you have no way of knowing if there was another bidder.
And would you have believed the agent if they said……….there is someone else submitting an offer ……………………………which they do not have to disclose to you?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113HI Letitha,
Not sure why the agent is ‘copping’ this one.
You put in your offer.
The agent presented it as he/she is required to do.
The owners accepted another offer.
Sometimes you do have to open with your ‘real’ offer and an not just an opening gambit and sometimes your offer is not accepted for any number of reasons.
Don’t blame the agent he/she was doing their job as they are required to do.
At the end of the day there will be other properties, some you’ll get, some you won’t and others you’ll choose to ignore. Don’t get hung up on this ‘lost opportunity’ use it as a learning step and move on and focus on the next opportunity.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Wullah,
The graphical representations I have seen indicate that the Perth and Sydney markets had a surge in growth in in 88/89 period. Brisbane had a ‘jump’ but did not spike as much as Perth and Sydney – which coincidentally dropped in the early nineties.
Now whether or not this pattern can be attributed partially or totally to the share market plunge of 87′ is debatable. I am sure it played a part but not the whole part.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Redwing,
We are seeing many a member enjoy successes and as you mention we are punching out of our depth a little but……..word of mouth does that for you.
And Dazzling – the beer is in real glass, our real coffee is in real cups and with real biscuits.
We do have a lot of fun too.
Got a cocktail and piano function coming up shortly.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Daryl,
Please refrain from double posts – this disjoints the conversations and makes ongoing comment and counter comment difficult.
Anyone who wants to make comment regarding this question can do so at
https://www.propertyinvesting.com/forum/topic/23915.html
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi TJ,
At a recent conference John Edwards (Residex) said his research indicated that Hobart would not be a good investment place for some time to come into the future.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Daryl,
Not a guru – nor am I a cashflow investor so some of my comments may not be in accordance with your goals.
To me any town of less than 30000 people is not a suitable place to invest. I would also suggest that 30000 is too small but that is another debate.
The reason I say this is that the long term fundamentals of a place need to be secure so that your investment money is secure. Quite frankly I see little value in placing any of my money into a high risk small town which has limited sustainability. In general terms once a small town always a small (and usually dieing) town given Australia’s overwhelming desire to centralise our populations and services.
For me – give me a city and let time do its bit.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113
