Forum Replies Created
Hi Psychic,
This topic comes up from time to time and I suggest that you use the search facility. It is located under the forums button at the top left of the screen.
As a little taster see this thread – it is fairly recent (there are many others). https://www.propertyinvesting.com/forum/topic/21537.html
I would also be wary of buying anything during or immediately after a holiday. Investment decisions need a lot of research and careful thought.
If you like the Gold Coast for holidays then buy an investment on sound decision making processes and go there for a holiday.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by jjaaus:True story : my first broker suggested I use the first home owners grant to “get me over the line” even though he knew I was buying as an investment, he suggested I place the utilities in my name and not lodge the bond with the QLD RTA, as far as anyone was concerned I resided in the property….and….as he got even more excited he explained I would also save on stamp duty being a owner occupy purchase..!!
A polite thanks for no thanks was in order.
And full credit to you too Jeff, congratulations. Some others would have taken the ‘incentive’ offered and possibly found themselves on the wrong side a little later.
I don’t mind people using the ‘system’ providing they play by the rules – I have no time for people who do not play by the rules.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Hong,
When I looked at shares V property for myself the attractive things was the leveraging capacity of property. Went to property initially and have diversified into shares using available equity.
However rather than trade warrants (too risky for this little black duck) I put some hard earned into the Navra Fund which suits me perfectly.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by fernfurn:You dont have to pay your tax until the next April. In other words put your tax return off to the last possible moment
Fern
And put the funds into a ‘do not touch account’ linked to any non-deductible debt you have. Make the payment at the last minute and you get a little bit both ways.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Please limit postings to a single entry so that conversations follow a train of thought and dialogue. I have deleted the other post.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi PK,
Some Collie stats –
193 sales in 2005 (out of town investors pumping the market?) – median $143K,
50.5% growth in 2005 (see previous bracketed comments),
10 year average 3.2%/annum.Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Ceasar,
You are able to amend the previous four (from hazy Xmas/New Year foggy memory) tax returns.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi MC,
As you can see there are some options available to you.
At the end of the day the best course of action will be determined by your long term plans. If these haven’t been planned (even broadly at this stage) then you may end up misdirecting some of your available funds and efforts.
If this property could become a rental at some stage in the future then consider pumping as much as you can into an offset account so that you can use these funds elsewhere later.
Sure there are some people who live on bread and water for as long as they have a mortgage – their need to pay it off governs every waking minute and consumes all the spare cash and enormous sacrifices are made.
Sometimes a more conservative repayment approach is warranted and when equity and funds are available additional investments purchased – this approach actually increases an individuals net worth.
Ultimately you need to have some direction in your investment (property?) plans so that the decisions become self evident along the way.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Wade,
Recommend you visit the ATO website and do a search for rental properties – the document is downloadable.
This will provided you with all the information you require.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Rye,
From an equity position you are well placed to borrow the additional funds. However a standard lend is also determined by your serviceability (ability to fund the loans) and without this information I cannot be of more use. An asset loan may be an option.
Given the situation I suggest a good broker is your best bet.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Bumbles,
Note I am not a tax specialist so I may well be talking out of my hat but I suggest your folks maybe getting incorrect advice. I recommend you have a look at http://www.chrisbatten.com.au/ and look at the section titled ‘Poisoned Property’.
As an aside if your parents are seeking to set up a structure that entitles them to receive the government allowance (pension?) then they may be better off taking a more proactive stance and seeking more investments that will add to their quality of life without the need for the pension.
Certainly from an asset point of view they seem well placed. It is possible that they could consider having a chat to people who can create income from their existing situation.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi CM,
The real question is what are your long term plans. The answer to this will really determine what the best course of action is for you.
For example – have you considered moving out of your home and renting, thereby turningyour existing PPOR into an investment property. Provided you do not buy another PPOR this particular property will retain CGT free status for 6 years.
All costs then become deductible and you will not incur any break costs if you were to sell this property.
Depending upon which bank you are with you could consider the possibility of converting this loan to I/O (some I/O on PPOR others don’t) irrespective of what your long term plans are. This action would free up some additional cashflow and may assist with the purchase of other investments.
The block of land has provided you with increased equity and depending upon how much security was used to purchase the house you would have some equity that is suitable to assist with other purchases.
Ultimately the right action will come back to what you are trying to achieve.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958The search function is now located under the ‘forums’ button which appears across the top of the page and immediately under the banner.
Roll your cursor over the word forum and it will appear as the last item on the drop down menu.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Wantok:We’re a little concerned that maybe our local ITP style accountant
Hi Jack,
As a property investor it is important that your tax affairs be squeakly clean, while at the same time having your deductions legally maximised. For this reason a specialised accountant, often with their own IPs is your best bet.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi MC,
Thanks for the figures – I’ll post them here so others can have a crack at some alternatives too.
Loan amount = $184K & value = $214K
I used one of those web based calculators and an interest rate of 6.8%. On aloan of this size would require fortnightly repayments of ~$1670 in order for the loan to paid out in that time frame. Given you are ‘only’ earning $2200/clear per month this means that something a little more creative is required.
Either that or the timeline you have set yourself is not feasible.
In a nutshell the only way to pay a loan out quickly is to make additional repayments. This leaves you with the option of a second job or a new timeline as I see it, but then I am a middle aged conservative type of person.
I am sure the more creative amongst us will come up with something useful.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Ooops – the things I say in jest. Sorry Simon.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi MC,
Congratulations on the purchase – to be of assistance we may need the outstanding loan amount and possibly the purchase price to be of assistance.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Did you solicitor ring just before settlement was scheduled and ask if it is right to settle? If so this in essence is them making sure that you are satisfied that the conditions have been met to your satisfaction.
Having said that what’s done is done – now you need to move on and get the REA who is managing the property to start the eviction process so that you can undertake the planned work. Sure this will delay your plans but at the end of the day you will still achieve what you want – albeit with some headaches along the way this time.
Remember maintain the goal and big picture focus and when you look back in 10 years time – this should seem fairly insignificant in the grand scheme of things.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi all,
For me it is a combination of the time of the year and also the creation of the results forum that has seen traffic drop off here.
It will be back as people get back into their daily grind.[bigeyes]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Dazzling:Simon,
Mate….I know you don’t like being pushy….but…..aren’t you the gun hand when it comes to Mortgage broking over there and indeed based in Newcastle ??
Kriscot, I think the right person you are looking for is right under your nose mate, and has already replied to you. Check him out, you could do far worse.
Well said Dazzling – and if Simon stuffs up we can all hear about it here [biggrin]
In all seriousness – Simon is an investor and knows what investors want and is in the immediate area. Worth a chat at least.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
