Hi Pen,

As always with holidaylocation investments – grab a large paper bag, fill it with air, put the bag up to your mouth and hold it there while taking 10 deep breaths.

When you have completed this – and you are still considering the property as an investment. Do lots and lots of research.

A property in a holiday location does not always make a good investment and all decisions need to be made well after the seduction has taken place.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Redwing,

The taxable gain is included on your EOY tax returns and taxed according to the relevant scales. As such it is wise to sell in a no or low income year if possible.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Duchess,

I think you need to re-think your approach as it seems, to me, that you are endeavouring to do something which is outside the FHOG guidelines.

Sure you may well get away with it – but the organisations involved do random checks to ensure the agreement is upheld.

Here are some of the questions and answers from FHOG Qld FAQs http://www.osr.qld.gov.au/gas/fhog/faq_residency.htm

When do I have to take up occupancy?

For applicant(s) purchasing an existing home, occupation of the home must commence within 12 months of taking possession of the home ie. on settlement or completion of construction. For applicant(s) having a home built, occupation of the home must commence within 12 months of the home passing final Council inspection.

[+]How long must I reside in the property to establish it is, or will be my principal place of residence?

* If you have entered into an eligible transaction prior to 1 January 2004, there is no minimum period that you are required to live in the property to maintain your grant eligibility, however, the onus is on the applicant(s) to prove that they have lived in the property as their principal place of residence, if requested by the Office of State Revenue.
* If you have entered into an eligible transaction on or after 1 January 2004, you must occupy the home as your principal place of residence within one year of completion of the eligible transaction and remain in continuous occupation for a period of at least six months.

[+]Is it possible to rent the home out before I move in?

You may rent out the property before you move in, provided that you occupy the home as your principal place of residence within the specified 12 months.

Once I move into the home, is it possible to rent out one or more rooms in the home?

All applicants are required to occupy the home as their principal place of residence within 12 months of settlement or completion of construction. If your personal living arrangements do not impinge on your ability to make the home your principal place of residence, the Commissioner would be satisfied that the residency requirement has been complied with.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Batts,

I am confused – what about Telstra Message Bank, Mobile message services or similar.

Or have I missed the point?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi rpmagro,

I have the article. Drop me an email with the subject tenants in common and I’ll send it via return email.

You can also get back copies of API through http://www.businessmall.com.au

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Jenny,

Just to clarify for those out there who are reading this thread I am not a broker just in case people got confused.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi redwing,

Reminds me of a similar and true story.

I have a couple of mates who have enjoyed playing very elaborate jokes on each other, often involving very complex arrangements for nearly 20 years.

A recent Christmas saw the two families spend time with each other in the Bussleton area at a rather large caravan park. Time passed and a good time was had by all.

A few days after one of the parties had left to return home the other noticed a strange smell developing in the family car.

Being a family with some children they figured that a dirty nappy had been accidently left behind and despite a thorough search of the inside of the car nothing sinister was located and the smell was diagnosed as a mystery and figured the smell must have been coming from somewhere else.

Still the smell lingered so the ‘problem’ was diagnosed as being car related so the car was fully unpacked, seats removed, the insides thoroughly cleaned out and still nothing was found. The smell remained.

A day or so later – the smell still hanging around – a swarm of blowflies was noticed hanging around under the car. Upon investigation a bundle of fish heads and guts was found tied up, inside a plastic bag sitting on the chassis.

Now the ‘victim’ here was a little peeved and later that evening fronted some campers in a neighbouring site (who they had befriended) and asked if they, or their teenage sons, were responsible. Obviously the answer was no.

Still the mystery remained ‘who was responsible?’ – the caravan park managers were asked if they were able to shed any light on the matter, as were other campers in the immediate vicinity and so on.

Nonetheless the end of the holiday arrived and the ‘victim’ left to return for home. None the wiser as to the identity of the party who had placed the present on the car chassis.

Time passed and the mates met at a work conference and chetted about life in general and eventually discussion turned to the recent holiday.

The ‘victim’ proceeded to explain how some low life had wired fish offal to his chassis, creating a monumental stink which made the car decidedly unpleasant to use, and how despite his best efforts he wasn’t able to ascertain who did this dastardly deed.

Towards the end of this retell, and after great difficulty, the ‘joker’ finally broke down in laughter and explained that he had in fact planted the fish prior to his departure. The fish offal had been frozen so that its presence was would not be noted until the ‘joker’ was well out of the picture.

The initial ‘reversed’ joke is another story that relates to real estate in Dampier in the late 80’s, that involved a primed REA, a company director, a town full of workers who thought they were onto a financial windfall, a school staff who thought they had hit the RE jackpot and a couple of mates.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

I suggest you do a search on Kambalda (and Kalgoorlie for that matter – there has been some discussion about these areas in the past.

For me – I am more of the invest in capital cities ilk and if were throwing my hard earned into the WA goldfields it would be Kalgoorlie and Kalgoorlie alone.

Having said that there many areas of Kalgoorlie I wouldn’t put my money into either.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

In short yes you can claim all costs as per most other business/investment costs. The flip side is that you must also declare all income.

These requirements are the same irrespective of whether or not the property is positively or negatively geared.

In one case you have more income than exenses and the other has more expenses than income.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Whatson,

In addition to Simon’s comments it may be worthwhile considering attaching a 100% offset account linked to your home debt.

This will also help pay down the loan a little quicker than it would if a ‘savings’ account wasn’t linked.

For a left field idea (and depending upon your goals beyond this property) how much of a reduction would you achieve if you converted your home loan to I/O? It may be beneficial to use the surplus payments to hold other investments.

Obviously this would need to be consistent with your goals and financial plans. Just a varied thought.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958