Forum Replies Created
Hi Superman,
You are extremely fortunate to have access to someone with that depth of experience investing in the property market.
What strategies has your friend suggested for insulating yourself against a downturn.
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Good LuckHi,
We have obtained insurance through the national bank nz and after getting many quotes their price was competitive. They offer replacement value on the building as well as landlords fixtures and fittings. Probably a very good idea to get seperate landlords insurance.
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Good Luck.Hi Jo,
Has absolutely nothing to do with your mailing address. This history of this particular tax law was to make concession for public servants and others who were posted interstate and overseas for work. ie although they did not live in their old house there was no capital gains tax liability when it was sold. The reason being that you should not be punished for moving away for work etc.
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As your sister will tell you the tax act (looking at a copy now) is 4 brick sized volumes. Almost every assest can incur a CGT liability unless it is exempt. Things like collectable art, wine and cars also incur the liability. ( Would have to be a very diligent taxpayer to declare realized capital value increases in some of these items.
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However, most CGT event relate to contracts and the assignment of property rights such as real estate.
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Don’t take it the wrong way just trying to explain what I was getting at before. The items that are exempt probably won’t increase in capital value anyway.
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RegardsDon and Liz
Hi,
That’s right. Don’t really need to do anything. If you dispose of an asset it will create what’s called a capital gains tax event.
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However, there are heaps of exemptions such as useds cars (unless its a business) household goods etc etc. As it is exempt then you don’t pay the tax.
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So, in the same way when you dispose of your canberra property, you will answer questions, eg was this property your principal place of residence. In this case yes. Therefore, you qualify for the exemption. IMO only. Obviously, seek professional advice before you proceed and or jump onto the ATO website.
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Best of luck.Hi Guys,
Probably not. You can nominate one property. Where you will get caught is if you had been buying and selling other homes that you lived in and not paid tax on those transactions.
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The word claim just means which home you nominate as your PROR.
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Good LuckHi Johnny,
Just wanted to weigh in with a few ideas back on the topic of the market. It is vitally important that you are aware of macro forces like interest rates and the effects of fiscal policy on the property market. You also need to be aware of confidence in the assest class and what the other people around you have done and are doing right now. It is probably more important that listening to what people say they might do or advocate to others.
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Everyone in this forum is located in a different parts of the country/planet. It is partly for that reason that they all have different views on the property market (and rightly so).
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The idea is that there a many many different markets. Of course there are general trends but different things are going on in different places.
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The cost of debt is different all over the world. Entry and exit costs are different. Yiedls vary from one town to the next.
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If you think that you have some “dogs” in your portfolio then now is as good at time as any to get rid off them.
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If you are holding gems hang on to them unless you really need to sell.
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Strategies:1) Sit down with the family (by the way making them happy is the most important job in the world) and do a plan and set some goals. If you are serious it is not an easy process
2) if you are worried then debt reduction can never be a bad thing. Obviously your cash flow will increase and the “peace of mind” effect may be worth its weight in gold. (There always a little fat in the budget somewhere)
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3) Get out the paint brush and start adding some value to your properties. Source some second hand materials (good quality). You want your property manager to think of your properties first when a well dressed tenant with good references walks through the door. Good tenants won’t live in dumps.There are millions of things you can do.
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Good luck.Hi Robot,
As the others have mentioned that region is a beautiful part of the world. Currently, there are alot of planned investments in relation to offshore gas and oil. The region is already seeing the positive effects of this during the early stages.
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Have you spent alot of time around the region?
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Good LuckHi Danga,
Some very good advice once again from the other forum members.
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There are plenty of cash positive properties around but as the others have said they may not be in the same shape and form as you are looking for.
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Because of this each individual investors needs to be very certain what their risk tolerence is and what amount of work they are willing to put into each investment before the returns are positive.
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Long term goal planning is probably the most important thing ( hope this is not off the track). The reason I say that is because you really need to know where is property fits into your long term plan. What are the potentials and weaknesses of each? What is your exit strategy? Are there any opportunities to add value?
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Try being realistic about how much time and cash you have for each project. Get plenty of quotes for repairs before you start.
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Good LuckHi Terry,
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Goog point about the per unit costs of small portfolios and the associated economies of scale.
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Re double tax. Finding the right structure is probably the most imortant issue. If you can find true cash positive investments and leave the surplus in the structure some of this problem will be overcome. Eg a trust would pay a certain rate on undistributed income, however, that would not cause a personal income tax liabilty to you in Aus until you distribute income.
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Hi Andy,
Understanding the different range of finance options available to you will be a very valuable tool as your portfolio grows.
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Some of the mortgage brokers out there might be able to help you with this. I wont mention the bank (institution) but there are fixed IO loans with a redraw facility. The rates are very competitive as well.
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The only reason I mention this is that you could have the best of both worlds. If you were in the situation were you did not have a PPOR and just the one ip you could make extra repayments when you have the available cash. Or just make the minimum when you were running short or making a new investment.
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Good Luck.Hi,
Depends if it was like that when you exchanged or if the condition of the property has changed. ie are you getting something now that is different than what you contracted to purchase.
Maybe it is something that the vendor could make an insurance claim on and fix it before settlement. eg. maybe it blew down in a storm or some thug pushed it over. Just a thought.
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Good luck.Hi,
Kiwi Has some really good points about using building reports et al as a tool during the intial and final negotiation process. In softer markets you may find that vendors will be willing to repair defects that the building reports show up or make a concession on the price. (Actually, I should not generalise. You may find that sort of vendor in any market.)
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However, you might find that during your investing career you may have to sometimes pay upfront for due dilligence reports and still not secure the deal. Probably a small price to pay in the long run.
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My original point was that in NSW vendors are in no way bound unless there has been an exchange of contracts. However, as kiwi says you could exchange “subject to” building and finance etc.
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Best of Luck.
