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On the cheap – Vista Print – online service they have free business cards too.
http://www.vistaprint.com.au/vp/ns/default.aspx?GP=10%2f10%2f2009+6%3a44%3a29+AM1. Get the current PPOR revalued by bank and see if they will lend you $18,000 based on a $260,000 valuation at 80% LVR equity Loan.
or
2. Set up an offset account on current PPOR and get all your wages put into it. Save as much as possible until you need to buy new PPOR. This reduces the interest charged on the 190k loan while having the cash on call to use as deposit. .or
3. manage to get vendor to lend you the deposit – known as Vendor Finance.imar may have the sort of landlords insurance you may need.
They usually insure businesses
http://www.tradeinsurance.com.au/business/index.htmI agree with you hbbehrendorff.
Give them an inch they take a mile.It will be like the drug testing of drivers.
I was assured by the Justice Department Vic that the introduction of drug testing was only for Truck drivers due to the high drug taking.
Now it seems to have silently migrated to all all drivers.So to catch 1 drugged driver , 43 other drivers are subjected to drug testing for no probable cause.
Guilty until proven innocent !I wish they would filter email messages .
If an email doesn't have a valid return email address it should be trashed at the mail server.Childcare is a tricky business as there are regulations that have to be followed. (and can change at a moments notice)
Like for example –
Child Safe glass windows. Are the windows safety glass or are they covered with a 3m safety film to prevent children injury or death.
Is the kitchen area gated to prevent children getting into the area.
Are the fences and gates outside child proof?
Is the Hot water set at 50 degrees celcius?Check with the local council on who is responsible (Landlord or business owner) for keeping the child care establishment up to required regulations.
If they do not know I am sure they will refer you to the right government department that handles these regulations.You might also need to have public liability insurance to cover you in case the business owner doesn't have enough insurance if sued.
These lower economic areas are where tenants are plentiful.
When rents go up due to low vacancy rates renters find it harder to find affordable rent.
In the lower priced areas the rents are lower and your investment property appeals to a large demographic of renters.
The more expensive areas cater to a smaller demographic who can afford higher rents.
The other point is getting your foot into the market and building up equity.jetweapon wrote:i live with parents and i have just bought my first property (1bedroom apartment) off the plan with settlement due dec 2010. i wish to live in for 6 months to get my fhog and then immediately buy a PPOR.i intend to put all of my money on the apartment at time of settlement.
when i buy my PPOR 6 month after settlement of apartment, i intend to take out a seperate loan. i then would like to transfer all my money onto the PPOR loan and have 100% loan owing on the IP.1. Will i run into any problems with ATO?
2. how would anyone else tackle my scenario differently?
3. I want to reduce the tax i pay asap, if i buy another property with settlement before that of my first property described above and rent out, will i still get the fhog on my 1bedroom apartment descibed above?advise/opinions appreciated
1. It is rather messy tax wise – you would be better setting up an offset account and put spare cash in it against the PPOR and thus reduce the interest charged on the loan.
Then when you need the cash for a deposit on the PPOR you can set up a new offset against it and put spare cash in it or use cash as deposit.
2 see point 1.
3. go to http://www.firsthome.gov.au/ and select the state you live in. And click on more information.
This will take you to the state revenue office of your state.
Email them and ask if you can purchase an IP and rent it out and if it will effect your elligiblity for FHOG
It really depends on which state you live in.
Queensland is different to say NSW and Vic.
See http://www.osr.qld.gov.au/first-home-owner-grant/eligibility-fhog/index.shtml
For how you may be able to in QLD but other states are different.
You want to reduce your tax –
What tax marginal rate are you on ?
$80,000 – 180,000 is 40%
So you have to lose 100% so you can get back 40% from the tax deduction.
You may be able to claim depreciation as well.
Also factor in interest rates rising in to see if you can afford to lose money.Last time I claimed this sort of thing the property manager filled out the paper work and submitted it for me.
Mine sends me the lease agreement each time so I do not know why they are quoting Privacy Act concerns .
You probably should be asking for a copy of the lease agreement you would normally be sent rather than the the tenancy application.
Ask the insurance company if a copy of the lease agreement would suffice and then ask for this instead from the property manager.I understand your question to be along the following
– that the house and you are in Australia but the loan is from overseas to get the interest rate at a lower rate.If this is what you were thinking of doing I have a better idea for you to investigate.
There is a financial instrument known as an interest rate swap.Rather than changing the principal of the loan the interest rates are swapped. It is usually done for companies.
See for more info
http://www.stgeorge.com.au/corporate-business/foreign-exchange/interest-rate-swap.asp
http://www.westpac.com.au/manage/pdf.nsf/869CF0FD605BA511CA25706200232934/$File/FSR_IntRateSwapPDS.pdf?OpenElement
http://www.suncorp.com.au/suncorp/Business/international_treasury/interest_rate_risk.aspx
http://www.banksa.com.au/business/institutional-financial-markets/risk-management/swap-option.aspI attended the last auction as a spectator and my advice as I saw this tried on a buyer.
Do not Bid against yourself
When no one else is bidding and it hasn't reached the reserve price the auctioneer asks you as the highest bidder to increase you bid to get it over the reserve price and on the market.
If you say yes you are bidding against yourself.
If it is passed in and you are the highest bidder you can negotiate with the seller without 30 people bidding against you!vsdabhi wrote:Hi,Can anybody advise me whether I can move in IP and do renovation?
and doing renovationWhat is stopping you from moving in and doing renovation?
I think what you might be asking is what is the tax deductible stance.
It most likely will be classified as an improvement as you purchased the IP in the current state it is in and you are improving the place beyond the state you purchased it in.
If you paint the whole house this is an improvement. "It is a grey are of tax law"
If you replace the whole item in its entire amount like floor coverings it is an improvement.
If it is an improvement you can depreciate it and should get a quantity surveyor to work out a depreciation schedule.
You may wish to ask your accountant if the renovations are an improvement and depreciable rather than one off expense claims.I am reading a book about the depression ahead that is due in 2010 due to demographics.
http://www.hsdent.com/tgca_pr.pdf
It is a USA book but when USA sneezes we feel the effect here.I recommend you look at the consumer affairs web site
Particularly this pdf document.
http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/endingtenancy.pdf
Page three may be useful for your situation.I live with a certain business ethic that rent has to increase each year at the lease renewal so that my tenant doesn't get a sudden shock when a huge rental increase is required to catch up with the number of years that the rent didn't go up.
Education is the best approach. A book doesn't cost much compared with a course or making a mistake.
There are books on developing property
There are books on negative gearing
There are books on positive gearing
see
http://www.businessmall.com.au/property-investing/property-investing-generalIt is usually advised by people that investing with friends and family can lead to problems if a fall out happens.
You need to have a co-owners agreement via a solicitor to protect you and spell out what happens in future possible scenarios.
Like what happens if your friend decides to pull out , Does friend get capital gain if you sell at a later date or just their money back ?
Buy the property either Tenants in Common on the title
or
In a Trust arrangement – get advice from solicitor about what type of trust or ownership structure is best for you.Check out this article
http://www.netlawman.com.au/info/coownership-joint-tenants-australia.php
http://www.ezinearticles.com/?Tenants-in-Common-Vs-Joint-Tenants—Which-Way-is-Better-For-Your-Circumstances?&id=2150664http://www.lawcentral.com.au/LearnAboutLaw/CategoryDetail.asp?ID=60&pageID=582
akirk wrote:Hi,I've just settled on a property in country vic as an investment. I bought it from owner occupiers so it's not been on the rental market before.
There are quite a few things that need to be replaced in order to rent it. For example, the oven and rangehood are broken, almost all of the blinds are broken and the walls need to be patched and painted.
Am I able to claim anything for the money I am about to spend on new appliances, new blinds, painting and carpet cleaning if it's done prior to a tenant moving in? I would really appreciate any advice.
Thanks,
Amanda.Amanda – As you purchased the property in the current condition it is in, any work done on it is regarded as an improvement.
This doesn't mean you can't claim on the costs it just means you have to depreciate the costs over the life of the items.
and claim a little bit each year rather than trying to write off immediately as a repair.It would be worth employing a quantity surveyor to work out the depreciation schedule for you.
To cover yourself you can advertise the house is available to rent with a real estate agent and then it is on the rental market and can be claimable while you fix it up.
You may need to consider your asset structure.
Using a trust setup – discuss with accountant or solicitor.
do a google search on don't sign anything
it is a book that tells you all about this sort of dealing.Check out if there are any restrictions on the land.
I know of some sea side land in Victoria that had an environmental covenant on it
so no bull dozers, two blocks were required to be owned side by side to build.
Low level houses.What got me laughing was that Centrelink are advertising jobs for Financial officers at the moment to advise people how they can save for their retirement when the Government policies for Welfare cripples anyone who tries to invest in property by deeming a loss as income.
The response to my question by Centrelink about how I can be deemed to earn income when I had no income but had a property making a loss was that I get a tax deduction on the loss.
When I said to them how do you get a tax deduction when you pay no tax they then said my partner claims her half.
But after I hung up and sold my negatively geared property I also realised that my partner only gets back 30% from a tax deduction on 50% of the loss which means 15% of the loss. Yet Centrelink deems 50% of the loss for my partner as income.To really rub salt into the wound, when you sell the property and make a capital gain this is deemed income by Centrelink and your Centrelink payments for that financial year are required to be paid back. Yet a capital loss can't be claimed against other income!
Just realise that when dealing with Centrelink fairness, correct international accounting standards and common sense
are thrown out the window.
