Forum Replies Created
Hi all,
Surrey is correct investment properties, where a rent is received, are not classified as active assets and therefore you are not able to ‘roll over’ or defer any CG.
It is ‘possible’ that doupine has confused the 12 month = 50% CGT discount rule. Not sure – just trying to shed some more light on the subject.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.And I would have thought that after pumping up Mr Allen’s resources for so long that the purchase of anything new would have been a foregone conclusion.
Maybe the earlier stuff isn’t as good as Jack would have us believe.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Salocker,
I would also add ‘splitting off’ the investment loans and making them interest only is to your advantage from both a financial and accounting point of view.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.HI Det,
There are a couple of points that I would make here.
Firstly – you haven’t told us what it is you want to achieve and as such giving comments about now or later is a little flawed.
If haven’t already done so. you need to work out what it is you want to achieve, what you timeframe is, what your current cashflow is, are there any ‘seachanges’ on your horizon, how property will fill your financial needs/goals in the future, how risk adverse you are etc.
All of these will then help you determine whether or not the time is right.
Secondly – the Australian property market is not a single entity.
Different cities and localities have their own cycle, and properties within each of these can still be good investments – the challenge for you is to be able to do the research, know the local market so that you can spot the ‘right property’
Having said that if you want the gains of the last two years repeated you are too late.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Crest,
See below an extract from the Act
5. Application of Act
(1) Subject to this section and sections 6 and 7, this Act applies to any residential tenancy agreement entered into, renewed, extended, assigned or otherwise transferred after the commencement of this Act.
(2) This Act does not apply to any residential tenancy agreement —
(a) where the tenant is a party to an agreement for the sale and purchase of the premises;Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi all,
One isse that doesn’t seem to have been raised yet is that the Australian property market is not a single entity.
There are different states, different cities, different towns/shires and finally individual properties can and do perform differently to the broader market. They are not all at the same place at the same time as different state and local factors can come into play.
The key to working out where ‘your property cycle’ is to know it well. Clear criteria, thorough research, careful selection and prudent buying are invaluable factors that come into play.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Martin and Vanessa,
Finding a property that meets the ’11 sec’ rule is only one aspect to property investment.
The property and location also need to stack up in terms of long and short term viability and sustainability.
Consensus seems to be that properties meeting the 11 sec solution are harder to find as ‘off the list’ purchases. There needs to be greater focus on looking at potential properties from a slightly different perspective to see if ‘it’ can be made positive.
Whether or not a particular property or place is right for you will be dependent upon your own investment goals, strategies and long term plans. These matters are critical as they do, in many respects, determine where and what you should be buying.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Cloudancer,
To fix or not is a dilemma often contemplated by investors. If you need to peace of mind and security of knowing what your repayments will be for the next three years then by all means fix your loan.
Yes you will need to consider break costs if this applies however three years is a reasonably short time investment time frame.
Personally I wonder if you have missed the boat in terms of the optimal fixing window.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Russ,
Try this thread
https://www.propertyinvesting.com/forum/topic/16494.html
Also bear in mind the bank is required to ensure they secure ‘fair’ (however that is defined) market price for a property.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Salocker,
I am not an accountant nor am I familiar with the ‘ins and outs’ of trusts or SMSF but……..from my understanding you will/may run into issues on two accounts.
The ATO is very atuned to individuals who live in their ‘trust owned property’ – I understand this is more of an issue when the family home is bought by the trust and you remain there and rent it from the trust.
The second issue you will have is you cannot rent a residential property part owned by your SMSF.
As an aside I wonder why you are contemplating such a convoluted arrangement – moving in and out every six months, setting up a trust jointly with your parents and so on.
Life doesn’t have to be this complicated.
Seek professional advice and if the ‘expert’ concurs then by all means set up a trust etc. Ed Chan makes the statement that approximately 60% of people do not need a trust – or was it 40%. Either way approximately half the population is not in need of a trust.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Bonnie,
Well……….I’ll be buggered. You learn something new everyday – you are right as someone involved in the sale of said property you are outside the Act.
I suugest a call to the tenants advisory service of WA. See what they can tell you.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by JackHu:10 You can try to find out some ways to raise your rent.
Errrr – that was the essence of the question.
In addition to Terry’s comments I would add have you competed a 15.15 to assist with your pay period cashflow?
Is the property at maximum rent?
Can you throw in an airconditioner or similar to increase the weekly rent?And..finally negative gearing is not necessarily the devil you believe. It all depends on what your investment goals and strategies are – there are successful investor who use negative gearing as their core strategy.
Remember a well researched property shouldn’t be ‘negative’ for all of its life.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Go to the next page of the manual you are reading and using as reference for all the jumbled, unrelated, inaccurate answers you are giving.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by Rhett:just looking to make a couple of quick profits to get into a better position.
Is this achievable in today’s market?
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Originally posted by belindac:If you decide to hold the property for a longer period of time than refinance and pay down your principal.
There is no need to refinance – just make bigger repayments when your budget and goals suit.
But for the keys to the advantages of I/O loans read Terry’s comments. Jump onto a web based loans calculator and see what the difference in monthly repayments between I/O and P & I is – then you’ll see the advantages.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Give RMG a try.
They are based in Subiaco 93809533 http://www.rmgaccounting.com.au
Do a search for other recommendations.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Pad,
What does your agreement say about authorisation of repairs? This will direct your course of action.
As an aside be mindful of the nature of the repairs, the tenant and also your desire to maintain a property in tip top condition for your tenant. You also need to consider these ‘costs’ in the context of the bigger picture – certainly don’t allow them to become a precedent but………there are other issues to consider.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Kel,
Buy and hold is a strategy that has (and does) work well for people who research and purchase well. There is many an ‘expert’ who uses this approach very successfully and combines with a negative geared strategy – so don’t go slashing your wrists because you read something that questions your investments.
By all means analyse the comments and then fit the + and – into your goals and strategy. Investing is like many other aspects of life – you need to know where you are going or else you’ll never know when you get there.
My advice is that you should take some time out and work out what you have (mindset, assets, income levels and so on) at the same time you need to work out what it is you want to achieve and how property (which seems to be your chosen investment vehicle) will help you get where you want to be.
If cashflow is your ‘devil’ at the moment with respect to your existing property I suggest you ensure that you have take all available preliminary steps to maximise this aspect to property investment. Have you converted loans to I/O? Are you using a 15.15 (if suitable)? IS your rent at market rates? Can you increase rent returns for minimal costs? And so on.
Before undertaking some wishful thinking you may find it advantageous to maximise what you have.
Part of your consideration should include you LVR on this exsiting property. While you indicate the value of the mortgage and rental received there is no mention of the ‘value’ of the property. This is an important part to property investment and can be overlooked in some equations.
You also need to be aware that not all real estate markets are the same. While the ‘press’ of Australia is heavily focussed in Sydney and Melbourne they cannot speak accurately (if at all) about the wider market in other parts of Australia.
Don’t be mistaken in lumping all real estate markets into one entity – each place has it’s own market. The issue for you is getting to know the market you are working in.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Hi Maria,
We have purchased all of our properties sight unseen. Obviously there is a need to still do your checks and balances – this process just takes a slightly different tack when you are buying unseen.
Equally, of course, there are those who need to see every property they buy.
It does come down to a matter of personal choice and whether or the process you use passes your sleep at nigt test.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.Builders also require a series of drawdown payments. These vary in value and frequency but would be spelt out in your contract.
Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.
