Forum Replies Created
I still don’t believe it. My accountant confirms also. As terryw says the second person is basically gifting.i wish I could find the magazine artical. The only grey area they mentioned was getting something formally written up stating the agreement with your partner although they did say it would probably not be needed as the ato understands and agrees with this setup.
Still sounds strange to me. I have always been told the title holder gets all deductions. A partner on the loan is considered to have gifted the money in regards to tax. If this turned out to be wrong there would be many people I would like to have some harsh words with
Housegoodies. If you want the neg geared benefites. Purchase the house in your name only. But remember when you sell. The profits will be added to your wage only. Also if it turned positive it will also be added to your yearly income. Consider the long term as well as the short term. But most importantly . Take everything you read here with a grain of salt. Get advice from those licensed to give it before you sign on the dotted line.
housegoodies wrote:Hi Guys, I have a silly question. When the loan is in my name only but the house is in joint names, does that mean I have all the negative gearing benefit? My wife doesnt work due to a problem with her back. I just got a new job paying $36000 a year on top of my income of $45000. If I put the investment loan in my name only but the IP title in joint names, does that mean I can have all the negative gearing benefit on the loan? And if the house is in joint names does that mean I can have half of the depreications only because its in joint names?Sorry about the silly question, I am really new to this and I am getting totally opposite advise from different people.Many thanksBIt couldnt hurt but you will likely get someone that is not that switched on. Just keep chasing.As stated above there might be some issue to what i have said but it is not a show stopper.I remember some time back an artical in an Australian property mag mentioned who was on the loan migh have an affect. I wrote in and questioned this response as all i have spokent to said its who owns the property that is important. They printed my question and i cant remember their exact response but it was along the lines of getting something official typed up stating that the house was mine even though the wifes name was on the loan!!!!! I am still certain that if one persons owns the property, they can claim all the tax advantages( and CGT disadvantages).regardless of who is on the loan.
Most accountants I speak to are only concerned about the property owner. Not names on the loan. My understanding is the ato look at it this way also.
Other way around. Its who owns the property not who is on the loan. If you want all the neg geareing put the house in your name. The loan can be in yours or both names. It does not matter. Just remember if you sell. The capital gain will be worked out on your wage. not the wifes.
I have a few
Bought first IP because i would like to live there.
Listened to bank manager when he said crossing was cool.
Didnt jump on my PM hard when my property condition started to slide.
Didnt jump on my pm when rent started to slip.
Told my IP neigbours of my intentions to sub divide.
Underestimated how slow and useless the council could be.Still too young to have a full cycle under my belt. I was about 15 during the early 90,s. What i do remember from that time was entering the workforce as an apprentice carpenter. Lost my job due to work drying up. Even my boss had to sell his house. I remember my dad complaining about high rates although it never really sunk in to me what it meant. House values started registering when my old man sold his house early 2000. He complained how he bought it in the early 90,s and he had seen bugger all growth the whole time.His house boomed the next year but luckily he bought into the sunshine coast before the same happened.
What im getting at is many around me who have been around a few decades say it feels the same. That we might be heading into an early 90,s situation. Not a bad thing as long as you are ready for it. We all know what happed at the end of that flat spot.
Still too young to have a full cycle under my belt. I was about 15 during the early 90,s. What i do remember from that time was entering the workforce as an apprentice carpenter. Lost my job due to work drying up. Even my boss had to sell his house. I remember my dad complaining about high rates although it never really sunk in to me what it meant. House values started registering when my old man sold his house early 2000. He complained how he bought it in the early 90,s and he had seen bugger all growth the whole time.His house boomed the next year but luckily he bought into the sunshine coast before the same happened.
What im getting at is many around me who have been around a few decades say it feels the same. That we might be heading into an early 90,s situation. Not a bad thing as long as you are ready for it. We all know what happed at the end of that flat spot.
Still too young to have a full cycle under my belt. I was about 15 during the early 90,s. What i do remember from that time was entering the workforce as an apprentice carpenter. Lost my job due to work drying up. Even my boss had to sell his house. I remember my dad complaining about high rates although it never really sunk in to me what it meant. House values started registering when my old man sold his house early 2000. He complained how he bought it in the early 90,s and he had seen bugger all growth the whole time.His house boomed the next year but luckily he bought into the sunshine coast before the same happened.
What im getting at is many around me who have been around a few decades say it feels the same. That we might be heading into an early 90,s situation. Not a bad thing as long as you are ready for it. We all know what happed at the end of that flat spot.
For what it’s worth guys I too believe values are heading down. I expect flat growth for atleast 5 years. But to me this is not a reason to sell. Each individuals cashflow, risk and future plans are what they must base there choices on.
Although my ip portfolio is far from perfect. My lvr is close to 60% on current valuations and I’m only neg by about $75 pw give or take. Add to that a 20 year investing window and you see why in my situation. Holding is a managable risk. Sure if prices drop the mythical 40% then my gamble to hold was the wrong one. But in 20 years it will not matter.
So yeah each individual must make a choice on their own situation
People with a grip on how the real world operates knew the government would get involved in the event of a decline. They even said they would do it again if required. Why would anyone think they would not do the same this time. Sounds like some players are falling for the same trap. I predict posts in a couple of years saying how property would have collapsed in 2010 if this didn’t happen or the government didn’t do that. Assuming we have a decline in the first place that is. I feel the only difference this time around will be that any stimulas will target new properties more heavily and they will try to cap price growth. How succesful they are will be the question but.
I told the neigbours and they fought dirty when the DA went in. Be carefull what you tell them.
But if they do get nasty but the DA goes ahead anyway. Make sure you sit out the front of the property with a beer in hand when the building commences. The look on their faces is yours to enjoy .
My properties are in an area that has seen growth but it has been flat for the last few years. I have enough cash in a LOC to buy one more property
. I could have bought in another state that was still growing but didnt feel comfortable enough to do that yet.Buying a standard local property would mean no more until growth starts again.
Instead i bought a property that could be subdivided . Now after building i should be able to pull about $100,000 equity out straight away allowing me to buy again and again and again.
Cheers
DWolfe wrote:Hehehe, Get into him Devo.Have to say, the only reason to sell is if you can make more money somewhere else. So at this point in time do you think there is more money to be made in the stock market? Analysts are talking about a bear market for a long term trend. There are these delightful adds on tv tracking both property and shares through lit up blocks. The property market shows a steady long term growth and the share market shows a highly volatile trend upwards. The add also omits the last year (funny that) in which many many people lost alotta moola. Funny how most houses don't collapse the way some business' do.
Personally I think property is great. I have gone away from buy and hold as a personal strategy but that is only because now I can manufacture profits through development. Not every property investor is sitting on dud property that will not see growth long term. Most of those people are not even called investors.
D
Same D. Im looking outside the buy and hold. My current buy and hold has a dual income and i have DA in with council to build and sub.
My neg geared property is getting rezoned to allow higher density. Instant value add right there.Cheers
Not Fooled by Property Spruikers Hype wrote:Devo76 are you serious when faced with what you believe to be a stagnent property market for the next 5 years all you can do is sit in the market like a rabbit in the headlights waiting for the market to turn around. No wonder our property prices are as crazy as they are……FYI property is at a all time peak sell out now & buy back later you dont even have to put your money into shares the Bank would do 5 years fixed deposits are paying 5%+ = $107K in lost earnings on $500K (Median house price) deposited into a bank…You have to be winding me up….You sure your not over on somersoft under another name……
Anyway like i said. Property growth is very rarely even each year.It can be stagnant,loose ground or move at a trickle. Then when the time is right you get your big growth. One year nothing. Then 20% in 6 months 20% the next.Nothing new about this and many a wealthy investor would agree. You say sell then buy back. That aint cheap buddy. Then what if they dont go down or only drop a little.
You say buy back when they are lower. With blood in the streets are banks going to finance you ?. Will you have the balls to buy in then. Sorry i am quite happy to tread the proven path of buy and hold quality properties.
I have properties that have seen 40% in a year so a little bit of a stop is not unexpected. My recent properties have seen 15% and are pos geared. Why the hell would i sell.
I am happy for the value of my properties to track sideways for 5 or so years because i am confident that at the end of that period we will see another boom eventually. As for trying another asset class. Sure more money may be made elswhere but i feel comfortable doing what im doing now. Maybe after the next leg up i will try stock etc.
And as for costing you to hold. Well this is up to the individual as to what is acceptable .Rents will improve and this should help your bottom line year by year.Its well known that property values move in spurts. It not very often that it moves linear. So you may see a property that has had no growth over 7 years as a bit of a dud.
Many would just consider it to be 7/10 of the way towards a growth spurt.littleaussie wrote:devo76 wrote:One 10 cm scratch. That sounds like heaven to me. Have a read of my thread on the other forum. Polished floors scratched scuffed and stained painted walls scuffed scratched etc kitchen so dirty had to use oven cleaner on everything shower black BLACK approved for 4 people but had 11 in their. Smoke smell is crazy. Windows filthy all fully renovated when they moved in a year ago. Like I said a scratch sounds fine to meMine was similar, I wasn't going to go into a lot of detail but this will give an indication of why I was upset that RACV would not cover anything. ( Except the rent)
The house was renovated prior to the tenant moving in.
Gouges out of the boards, and the boards were scratched right through the house. The paint was stained yellow and there were dirty marks all over walls and sugar soap would not remove them. Poo all up the walls, cardboard covering shit and vomit which was dry on the floorboards. Smashed kitchen window. 3 skips of old stinky clothing and other garbage including syringes. 10 mattresses. Kitchen and bathroom green and black from the filth and mould. The children pulled down the fence and nailed the planks high up in a tree in the back yard. The curtains were ruined, but because they were not ripped my insurance did not cover them. There were no light globes in the sockets when I finally got posession back through a VCAT Possession order. The police had to attend to evict. It took over 3 months to get her out. The first notice was served in April and she was out in September.
The smell was so bad in the house that I dry reached every time I went inside. It took me 3 months to clean up her mess including replacing the fence and window and re- paint the whole house, and do the other repairs. ( A little bit each night after work)
The woman was a single mum with 5 children. On her application she had 2.
Where is your other thread? I'd like more info on how we protect ourselves from these people as I could not pass this off as "fair wear and tear"
Thanks.Holy crap you win. I guess i got out of it quite well.
One 10 cm scratch. That sounds like heaven to me. Have a read of my thread on the other forum.
Polished floors scratched scuffed and stained
painted walls scuffed scratched etc
kitchen so dirty had to use oven cleaner on everything
shower black BLACK
approved for 4 people but had 11 in their.
Smoke smell is crazy.
Windows filthyall fully renovated when they moved in a year ago.
Like I said a scratch sounds fine to meI feel things will track sideways for a few years minimum ,maybe 5 or at worst 10 years(followed by a big boom I would think)
some places may see moderate falls some will see moderate gains.
40%……doubt it. Yes some places may see that drop and the usual crowd will jump on it.
But I agree . Australia will not see 40% average falls.
