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Land tax should be based directly with rental income.
How many caravan / camping grounds have to go out of business because of this tax?If you do up the rented property are you doing the work yourself. What time frame are you going to not have any rent coming in and are you waiting for the tenant to leave or are you making them leave?
I usually only do up a property in between tenants as I am then not kicking out a tenant and an existing tenant might not like to pay more rent and is happy living in an un- renovated house.Remember the lesson you have experienced
being looking at who you can market to both in Tenants and in Selling a property.
The retirement property may be cash flow positive but only if you can get a tenant.
Don't let a mistake put you off
Keep at it and go into damage control and think long term.Even if you get a tenant you have to take note of how long it has taken to get one for the retirement property.
alanak80 wrote:help needed with terrible kitchenthe house is a 1920 californian bungalow..
also not sure what can be done with the space behind the gas oven (anyone know whats behind there?? and why the space does not go higher?/) i am thinking if it can be turned in large pantry cheaply but making the hole alot larger and replastering?? or any other ideas to utilise the space better?
http://i883.photobucket.com/albums/ac40/alanak80/DSC02028.jpg
I reckon the space in the wall was a storage place for chopped wood and there might be a chimney space above the oven as it was a 1920 building which would have had originally a wood stove and oven.
Have you tried to sell the retirement property?
It has a limited market to sell to but my father in law managed to sell his retirement unit so it can be done.
The problem with the retirement property is the transient nature of the tenants or property owners as they usually move into a nursing home after a few years or they pass on.
A real estate agent could sell it for you.
How hard would it be to get another tenant you could start advertising now for the end of april.
You might find the better performing property easier to re rent out.If I was you I would check out if you are able to get finance with a passive income.
Lenders can be difficult to deal with if you do not have income from a job.The idea of being passed in at auction is that now you are directly negotiating with the vendor without 20 other people bidding against you. Usually the reserve price has not been reached so you may have to increase the offer in price as a show of good faith it really depends on what is important to the vendor.
Haven't done this myself as I would go through VCAT in Victoria but this might be the steps to follow
Step 1
Letter of demand
Stating in the letter that you have been misled and deceived and that the building plans do not represent what the salesman promised under the sales rep's verbal contract with you , which breaks the law under section 10 of the Fair Trading Act 1987 due to misleading or deceptive conduct and section 12 relating to a misleading statement which was intended or apparently intended to promote the sale or supply of any goods, or the disposal of any interest in land. I am formally requesting my deposit of $1500 to be immediately refunded due to breach of contract.
http://www.austlii.edu.au/au/legis/wa/consol_act/fta1987117/Step 2.
I reckon this might be a helpful place to look into if you get no result.
lodge a complaint with the Building Disputes Tribunal.
http://www.builders.wa.gov.au/default.aspx?MenuID=72possible step 3.
small claims tribunal
http://www.artslaw.com.au/LegalInformation/DebtRecovery/DebtRecoveryWA.aspYou can't liase with a bank directly unless you can write 2 million dollars worth of loans a year. Usually you use an aggregator.
Need a Mortgage Broking Cert 4 and a sponsor aggregator for 2 years.
see
https://www.propertyinvesting.com/forums/getting-technical/finance/4331028http://www.metropm.com.au/
I listened to Leah Calnan at the property investor meeting in Melbourne
She is the managing director of Metro.Terryw wrote:CGT is a commonwealth tax – same in every state. There is no rate, but the CG is worked out and added to your other income. So if you have no income it could be low (depending on how big the gain is).No income first $6000 is tax free threshold if you are a resident tax payer
$6001 to $34,000 taxed at 15%
$34001 to $80,000 taxed at 30%
$80,001 to $180,000 taxed at 40%
$180,001 to whatever taxed at 45%
Plus 1.5 % taxed for medicare.
http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htmTerryw wrote:Max will be the top tax rate if you are already earning about $130,000 pa income. If you held the asset for 12 months it would get the 50% discount, so max 23% approx. plus medicare.Yes !
However if property is joint owned you have to split the capital gain between the two joint owners (haven't calculated this though)
$130,000 + 50,000 capital gain taxed at 41.5%
12 month discount $130,000 + (up tp 100,000 capital gain / 2) taxed at 41.5% which works out to 20.75% of orginal capital gain
gain is reduced by 50% then added to income
Gain of over $100,000 say 200,000 capital gain.
$130,000 + 50,000 capital gain taxed at 41.5%
12 month discount $130,000 + (100,000 capital gain / 2) taxed at 41.5% which works out to 20.75% of original capital gain
Plus
< 12 months ____ $over 50,000 capital gain taxed at 46.5%
>12 months
12 month discount $over (100,000 capital gain / 2) taxed at 46.5% which works out to 23.25% of original capital gain over $100,000You have to stagger the amount for the brackets.
on $130,000 wage
say 50% discount
say 200,000 gain
$100,000 /2 = $50,000 taxed at 41.5% = $20750
$100,000/2 = $50,000 taxed at 46.5% = $23250
Add together 44,000
44,000/ 200,000 = 22%you have to stagger the amount for the brackets.
on $130,000 wage
say 50% discount
say 400,000 gain
$100,000 /2 = $50,000 taxed at 41.5% = $20750
$300,000/2 = $150,000 taxed at 46.5% = $69750
Add together 90.500
90,500/ 400,000 =22.65%You must purchase shares that pay a dividend to be able to claim interest expenses as a tax deduction against income derived from the shares .
ASk if you can get a Line of Credit loan facility with the Lender rather than redraw but you may only get 80% LVR.
if you refinance to 90% then 74k of loan is for private use as I am assuming you mean the IP you are thinking of buying has somehow become the new PPOR. You can't claim interest on the whole 342k as 268k will be investment and 74k will be private use. This will be very messy to work out your tax for interest payments.
If you can get a 90% LOC then you can have a seperate line of credit loan on PPOR used for the sole purpose of investment.
It is the purpose of the loan that counts !will our property be classed as an investment property ? Are you referring to Capital gain tax exemption then read link below.
http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htm
look for six year main residence clause.Also the money that we will get for our rental each week will be 200 bucks per week short .
This depends on what the interest expense is rather than the repayment if P & I loan
Also insurance, Council Rates, Water Rates, Repairs, Property manager fees are valid expenses also.
So net rental income/ loss = rental income – interest costs – other valid expenses mentioned aboveDrill some holes in the next bin in the bottom to let water drain out of the bin.
Under $10000 loan – have a look at a new form of lending just reaching Australia known as p2p person to person lending.
Was in February API Magazine.
See http://www.igrin.com.au as an example.
Or do a search on P2P lendingAlso as soon as a Borrower looks like refinancing the original banks retention center will try to keep the business and should be more willing to be helpful.
When you ring an agent ask them the following
"Do you have any other properties for sale that are similar to this property I am inquiring about?"If you are referring to cert 4 in mortgage broking you might think about the fact that this industry will be more regulated and brokers will require cert 4 for mortgage broking in the future.
What about putting a transportable cabin in your back yard thus giving them a little bit of privacy and still having Grandparents close by.
When you rent out the PPOR you can still have it deemed for 7 years as your PPOR as long as you do not claim another property as your PPOR for capital gains tax exemption.
If you rent out your PPOR you have Council Rates, Interest on Loan if there is a loan , Insurance and Water Rates expenses to pay.
Why did they move in with you was it because they could not afford rent or to be closer to grand parent?
If you make a profit on renting the PPOR it will be taxed as income added to your other assessable income. If joint owned, half is added to each owners incomes.
