Forum Replies Created
Hi Jaybee,
There is no capacity or allowance for people to post ‘ads’ of the nature you have discussed.
As it stands there are enough people out there placing (and trying to place) subtle (and sometime not so subtle) ads here.
Such posts will invariably be deleted as soon as they possibly can.
Cheers
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Why start with the agents?
For me you are better off speaking to the local council and finding out about infrastructure plans for the area, local business houses about employment opportunities in the area, find out what the ‘lifeline’ of the area is, speak to property managers about the good areas and bad areas from a tenanting perspective, speak to schools about enrolment numbers, and so on.
And then when you have all of this information at your finger tips start speaking to agents. The pre-research you have done will help you to distinguish which agents know about investment in the local area and those that think they do.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113A short but simple answer – if banks lend less as a percentage then it means they consider that particular type of property as a greater risk.
In effect this means that the banks consider your apartment as a greater risk than the unit in your example.
Note some lenders will stretch the 70% limit on apartments from time to time.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Lisa,
Based on what is currently happening in Perth I would expect that an offer will be put on the table within the 6 week time frame. But (there is always a but) this is dependent upon a market price being asked for initially.
I appreciate the difficulties your personal situation may cause with respect to the disposal of the property – an alternative may be for you and your partner to set a range within which an offer will be deemed acceptable rather than a time frame.
This may take some ‘time pressures’ from the selling process.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Terryw:ps. I make some terrible spelling and grammatical mistakes don’t I!
Those typos do not detract from the quality of your advice though Terry.[biggrin]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113HI QL,
Immediately above the first post in a thread is a ‘subscribe to this topic’ button.
Click on that and your subscription should be in place.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Net worth counts for me.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Paul,
Not a problem – apologies offered.
You would be surprised at how many people come onto this site and ask about a ‘new product’ under the guise of a question along the lines of the one you asked.
Couple that with the spam I received through the week for the same product all combined to make me very wary.
Cheers
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Alpal,
The key to avoiding or minising land tax is to understand the ‘rules’ as they relate to the state in which you invest.
Some states have a single threshold which does not differentiate between an individual/company/trust ownership whereas a number of state do have different hreshold and do differentiate tax rates between the different owning entities.
An ‘easy’ solution is to spread your investment portfolio around the various states in order to ‘stay below’ the various thresholds.
I would suggest you do a google ‘land tax’ search and get the various fact sheets and see what they say.
In saying all of that – an option may well be to accept that land tax is a part of ‘doing property business’ and include it in your costs. Don’t loose sight of the reason for investing.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Is this the same ‘Paul’ that spammed me during the week with this very same ‘offer’ in disguise?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Stuck,
I don’t for a minute know Dale – nor would I know him if I fell over him.
I am sure that Dale would be the first to admit that the book is not a ‘trust structuring manual’ as such. Rather it is a guide to the nature and advantages of trusts for someone who needs to get a healthy understanding of trusts in a generic sense.
Given that we are all different with very different situations and very different goals I would strongly argue that it is impossible to write a single book that covers all eventualities.
From my perspective the book demystified a great deal about trusts but that does not mean I can turn to chapter xy and see how I can set the trust up in a bullet proof manner. That is a conversation between me and my accountant.
Having said that I am very comfortable in talking trusts at a macro level with my accountant and feel comfortable in being able to ‘test’ his macro understandings.
In summary, is the book worth the money? Most certainly so.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Stan_Jones:Don`t worry – this man has forgotten his first post in this forum.
Stan – it was probably deleted along with the others advertising for investors for Bulgaria.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Stan_Jones:If you think that this is not rela I can give you some exact facts.
Hi Stan,
Give us the facts – not the trawling and advertising and public seeking of clients we are getting at the moment.
Kindly cease.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Stuck at 2,
I fixed half of my loans on Monday at 6.49 for three years – interest payable in advance.
I also managed to fix another loan at 6.06 almost three years ago – this is near the end of its fix period. And another which is half waythrough fixed at 6.85 – also for three years.
I have left my other loans at variable rate to provide me with flexibility.
But the point you make is valid if people are worried by increasing interest rates do not neglect the fixing option. In saying that there are some possible pitfalls that an individual should discuss with their broker.
As an aside I wonder how many rate rises we will have at this time – I ‘suspect’ a couple.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Harry,
Looks like you will be up for CGT – I copied and pasted the relevant section from the CGT Guide.
CHAPTER 7
Loss, destruction or compulsory acquisition of an asset.This chapter explains your capital gains tax (CGT) obligation if your CGT asset is lost, destroyed or compulsorily acquired.
Generally, there is no CGT obligation for assets acquired before 20 September 1985 (pre-CGT). If you choose to take rollover, you do not need to lodge a written election stating your choice – it will be clear from the way you prepare your tax return.
You cannot choose to defer a capital loss but you can use it to reduce any capital gain made in the current income year or a later year.
For rollover relief to apply, the replacement asset you receive cannot be a car, motor cycle or similar vehicle. Further, from 1 July 2001, for rollover relief to apply, the replacement asset you receive cannot become an item of your trading stock nor can it be a depreciating asset.
TIME OF THE CGT EVENT
You need to know the time of a CGT event to work out in which income year a capital gain or capital loss affects your income tax.If an asset is lost or destroyed and you receive compensation, the time of the CGT event is when you first receive the compensation.
If you do not receive any compensation, the time of the CGT event is when the loss is discovered or the destruction occurred.
If an Australian government agency compulsorily acquires your asset, the time of the CGT event is when you first received compensation from the agency, or the agency enters the asset (for example, land) or takes possession of it.
If an Australian government agency acquires your asset following negotiation (rather than compulsorily acquiring it) the time of the CGT event is the date the contract to acquire it is made, or the date of the change of ownership if there is no contract.
If a lease that had been granted to you by an Australian government agency expires and is not renewed, the time of the CGT event is when the lease expires.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Originally posted by Sanctuary:(1) I have around $x,000 cash in my account and would love to get into the market with my first PPOR ASAP. This is actually saved tax money that is not due until around May 2007. It makes me nervous spending it….but I hate waiting to buy! Advice please. I will wait a few more months if that is best. My income is good (finally) but I don’t want to put myself under a scary amount of pressure.
Notwithstanding the other comments you will also need to ensure that you do not over extend yourself in terms of your cash deposit.
Don’t forget the cash is only temporarily yours and there will come a time in the not too distant future when the ATO will want it.
If, at this time, you need all (or most) of the cash to maintain your LVR within normal lending guidelines you may find youself in a bit of a tight situation and needing to borrow through personal loan, credit card etc etc etc at higher interest rates.
(2) Also, I’m really keen to attend the Richmastery Property Academy, ideally late May….but I’m hesitant about spending this money (it will cost me around $4000 with flights, accom etc) before I’ve even bought my first property. Can anyone (impartial) advise if it really will help me with my first property purchase, so I am making the best decisions for me, thereby justifiying the cost of the course…or should I wait unitl I have bought my first place and then attend after that? [blue]
Not commenting on the merits (or otherwise) of this course – ultimately the success of a course/seminar/workshop etc is what you do with the information.
A free seminar could be just as valuable as a very expensive seminar if it results in positive and productive actions on your part.
I must admit that on a personal level I am not a fan of expensive courses – but that is just a personal opinion.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Tom,
See this thread – we have made it a ‘sticky’ so it retains one of the top spots in the ‘Heads Up’ forum.
https://www.propertyinvesting.com/forum/topic/6845.html
Please feel free to review and new books or even add your thoughts about previous reviews to this thread.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi LG,
You will list your gross income from this property as being $500 and then you will list expenses as being $50.
The net effect of this is that you taxable income increases by $450.
With tax, simply, you should declare all income and all allowable expenses. The difference income – expenses is added to/deducted from other income sources.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Andy,
I am certainly not qualified to make ‘expert comment’ so please take my comments as they are intended – some rambling thoughts.
Fixed rates are determined by and dependent upon a banks ability to ‘buy money’ in other markets at a suitable price. Most lenders raised their fixed rates about 10 days ago and as such fixing now is a little like closing the barn door after the horse has bolted for this round.
A 50/50 split is not a bad hedge bet – it gives you peace of mind over the fixed portion of your loans and allows you to swing with the variable rate for the other portion of the loan. For someone with uncertain or limited income or minimal discretionary spending or even a large mortgage then a 50/50 (or even a full fix) is a good option.
My experience with raising interest rates is that the upward movement tends to happen much much quicker than any downward movement. I would expect public announcements to start happening tomorrow or Friday at the latest with the movements in our accounts within a fortnight.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Da Man,
Stick to your guns – it soounds as if you have done your research. Step 2 is very solid – and submit your offer and include a ‘time clause’ on your offer. That is the offer expires in XX hours or at 4 pm on May 6th (whatever) – you may also want to include a final comment along the lines that this is an absolute deadline as I am looking at another property elsewhere.
This way you put pressure back onto the agent (and the vendor) who have to sell this property in order to get their windfall. On the other hand you have the capacity to ‘walk’ and buy something else.
You may also want to read this thread
https://www.propertyinvesting.com/forum/topic/23464.htmlI also suggest a search of the forum. The search button is located under the forums tag at the top of the page.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113
