Forum Replies Created
I agree with enduser; it is possible to buy property in the US but you need to be aware of the State laws. Unlike Oz the laws vary greatly from state to state.
Slum Lord has exactly the right approach for any purchase – you need to have your feet on the ground. If you want to purchase property in the US then do your research and then go there.
If your interested in purchasing property overseas the best case would be to investigate areas where you have close contacts or family. I know of people with property in areas such as Crete, Italy, Chile, UK, France. In most cases they have extend family there so it makes management a lot easier.
Also don’t forget that CGT and income tax still apply to overseas assets. Best idea is to get an accountant who really knows this stuff (not a backyard accountant).
If you are investing under a company or trust structure you would also fall under FIF legislation; which basically means that each year you would pay tax on your unrealised gains (not a great situation to be in).
ING direct is fairly good. Internet only account, no bank fees or charges, interest is 4.75%, no set term, money at call.
Being an internet only account you could set up a regular weekly deposit from you normal bank account.
ingdirect.com.au
I thought the point they were trying to get across was were a family were looking to purchase a new property they would purchase the new property in the name of the child with the parents having power of attorney over the childs affairs. As this would be the first home purchase for the child then they are entitled to the FHOG.
Now for my two cents worth about the FHOG. The FHOG is a disgrace. Any government funded scheme that artificially changes the housing market is bound to cause trouble. The FHOG has contributed to a number of issues:
– artificially increasing housing prices
– creating new suburbs with no infrastructure as first home buyers seem to desire brand new homes
– created a glut of rental properties where vacancy rates in some areas are getting close to 10%.
– pushing poeple into buying houses who can’t really afford them.Some builders even advertise that all you need is the FHOG and they can get you into a brand new house. Now if interest rates do rise (as they inevitably will) those people will be forced to sell.
The same thing happened back in 1987 when Keating removed negative gearing. Investors pulled out of the market and rents skyrocketed.
In order to protect yourself from the tax man it is always prudent to obtain a QS report. The ATO have been extremely unhappy with some investors estimation of the depreciable value and in most cases now want to see a QS report. Add to this the fact that in most cases a QS can maximise the depreciated items and it’s money well spent.
If you have a look at:
this has some good examples of depreciation schedules. Most of these properties are negatively geared some not appropriate fior this discussion.
