Forum Replies Created
Hi TK,
The key issue in WA is that you need a credit providers licence.
The best place of contact is The Department of Consumer Affairs. They will be able to provide you with the information you require.
I might add I am not a wrapper so please take my comments with a ‘grain of salt’.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi WD,
You can also have a look at the following thread as it contains a number of ‘book reviews’. While the books do not always directly relate to property they do relate to self improvement – in the broadest sense of the phrase.
Ooops – forgot the link. Here it is.
https://www.propertyinvesting.com/forum/topic/6845.html
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Adam,
We are not privy to such information. As moderators we cannot access any other sections of this site (other then edit and deleting other people’s posts) than Joe Public.
As such I cannot provide any information about the link.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Tracey,
I believe you have really answered your own question.
Probable limited capital growth, minimal cashflow, probably low financing LVRs and occupancy rates firmly tied to performance of the health retreat.
Without knowing the location details or the trading name of the health resort I suspect that your investment is too heavily aligned with a business operation.
For me keep things simple and remain with more standard proeprty investments.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi,
Joint tenancy automatically apportions ownership on a 50/50 basis which is fine when incomes are similar.
Tenants in common purchasing arrangements allow the parties to apportion ownership in accordance with income levels. This is particularly relevant when the property is negatively geared.
There are some legal issues with tenants in common as should one of the parties die then their share can be willed to their spouse and not necessarily to the partner.
There are trust arrangements that may also be (more) suited to your needs.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Giddo,
The employee benefits because all payments for ‘packageable’ items are made before tax.
For example assume your superannuation costs you $3000/annum and is normally paid from after tax income and it is a packageable item.
On a salary of $50k/annum your tax is normally $10860 leaving a net salary of $39140. From this you make super payments of $3000 which results in a ‘take home’ pay of $36140.
Now assume you choose to package the $3000 payment. This payment is made from your gross salary and therefore reduces your taxable salary to $47000. On $47K you pay tax of $9960 which means you now end up with a ‘take home’ pay of $37040.
I am aware of packing benefits including some of the bigger ticket expenses such as home mortgages, novated leased cars, medical insurance, superannuation and also some of the lesser lights such as mobile phones and laptop computers. Some items may incur a fringe benefit tax.
The employer gains in that they do not necessarily have to increase the gross salary to an employee – the effect of packaging can result in a net salary increase to an employee, but not a gross increase, thus keeping one of the more significant costs employers face ‘down’
Obviously salary packaging is more advantageous for higher income earners and the range of packageable items varies from employer to employer. a recent article in the Australian argued that packaging has become somewhat less effective with the changing tax scales.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Adam,
Yes – you can claim interest incurred in a house and land approach to property investment. Any interest incurred on the land and also during the construction phase is deductible provided the intent is to build an income earning asset – which you are doing.
There is a test case at the ATO which recognises the validity of such deductions and it is commonly referred to as the Steele case. If your accountant is not prepared to include these interest deductions then get them to search for the Steele Case ruling or find another accountant.
By the way the couple in question have since gone back to their accountant who has reviewed his/her earlier stance. I got in touch with the couple via API and informed them of the Steele case ruling.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Gross,
If you have XP it is possible to use ‘remote access’ so that another individual can see what is on your desk top. Great for showing individuals across the glove some ‘live’ figures.
I use remote access and MSN to show cashflow analysis and living off equity scenarios with real figures as they relate to the other party.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958The ATO website has a link to the rental property guide that details pretty well all issues associated with rental property. It is a useful starting point.
http://www.ato.gov.au/individuals/content.asp?doc=/content/57273.htm
As an aside retain all invoices and if in doubt keep them filed to one side and run the expense past your accountant.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Jindou,
Set yourself up with a line of credit/equity loan and use these funds for deposit andpurchasing costs.
Typically the deposit is 20% of purchasing cost and you need to allow around 5%-6% for purchase costs.
You can also use smaller deposits than 20% depending upon the type, location and nature of the property. This strategy will see you incur lenders mortgage insurance but this does preserve your available equity and allows for greater leveraging.
Not that I am a big user of CCOR however I would imagine in the example given of a $300K property that a total loan of $315K would suffice for calaculaion purposes.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by natwayne28707:Problem was tenant would never let people come thru house so made it difficult for owner to sell.
Do you want this tenant? Is vacant possession an option?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Nat,
I was speaking to an agent during the week who claimed that someone they know bought and resold a block of land within three weeks and make $60K.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Carl,
I must admit the FHOG opportunity passed me by many years ago but as I understand it there is no rule which prevents you from buying another IP after the first one.
Sure there is a 12 month period in which you need to establish the property as your PPOR and you must live in it for a 6 month period. But that, as I understand it, doesn’t prevent you using the grant to buy a home and then buying another property before 12 months has expired.
As I said FHOG is not something I am fully familiar with but…….
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Carl.Alexander:waiting til June so it will be one year after my settlement and i can buy more property[angry2].
Why? – Is there a reason for the 12 month rule?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Yack,
Guru Watch is now merged into Heads Up – there was some reorganisation of the community about 6 weeks ago.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Don’t take the holiday.
It seems to me that a little delayed gratificatioon may be in order here. Why lose an asset that will grow in value over time because you are taking a holiday.
Based on information provided it would seem the priorities are wrong.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958I use Patrick Thatcher of RMG Accounting. Patrick is based in Subiaco
Tel 9380 9533
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Celivia,
The search function is located under the forums button at the top left hand side of the screen.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Ko,
Most investors who aim to have multiple properties use an Interest Only approach as it minimises outgoings for each property and enables them, in most cases, to assemble a portfolio of properties.
I suggest you jump onto one of those loan calculator websites and see what little impact you have in the early years of your loan – despite making the additional repayments.
http://www.realestate.com.au/cgi-bin/rsearch?a=loan&t=res
For example on a $200K loan taken out at 7% over 25 years monthly loan repayments are $1413/month. The same loan on an interest only basis is only $1166/month.
You will be surprised what you can do with the additional $300/month.
I would also add to Simon’s comment and say that in real terms one investment property is not going to do much for your long term future unless it is an exceptionally good property.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958You will be able to treat the property as an investment property and claim all allowable deductions.
You will also be able to identify this property as your home for a further 6 years provided you do not buy another home in the meantime.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
