Forum Replies Created
new houses have the benefit of being able to claim depreciation on the building costs of 2.5% each year till 100% of depreciation is reached. If you are using the property as an investment.
However this causes capital gains to increase as the building reaches zero and the cost base is decreased by the depreciation."I would go for a near new home" – You can still claim this depreciation
where as an older house may not be eligible to claim depreciation and will be harder to work out what the building costs where in the year it was built.Check with the broker or mums bank lender , if mum can provide a limited 40k as security towards your loan rather than mum taking out a loan.
I would not advise mum being guarantor for your whole loan as she could lose her whole house if you default on the loan.I would also advise your mum not to try for a low doc loan as her self certified income is cross checked with her tax return by the ATO and she would be called in for an Audit to explain why there is a major difference between the two figures.
You still have to write the essays / reports by the due dates. I never crammed I read the material and then did the assignments and then crammed in the final 2 weeks.
Plus you want to get good marks as lower marks affect your employment chances if you want to work in the field you are studying in.
As you increase your studies in year level your work load increases also !Dave.
With a young family at home and doing two subjects at university and working full time you are going to find it tough to find 30 minutes.
you will be mentored on how to do development projects and to get the most out of it you need to put the theory into practice.When your kids get to 3 to 4 years of age you will have even less spare time. Uni requires you to study outside the class room and do assignments. You will be flat out during the semester. A semester is not a long time but a lot is crammed into it.
I have two 4 year old children and spare time is not something I have. I did full time study with 4 subjects a semester before I had kids and it was hard going.
A house next door to me went for auction hoping to get 510,000 it was listed as 430,000 to 485,000 and it passed in and was negotiated to 410,000. Prices are coming down.
Can you set up a line of credit with the existing bank based on the increased equity.
Then you can use this line of credit loan for the deposit on the next investment loan which doesn't have to be with the same bank.
See if you can get a professional package with the existing bank. You pay one fee a year but benefits go with the package.If you want bank to bend over for you tell them you are considering a possible refinance of the existing loans with another bank.
The bank has a division that handles customer retention as a loss of your loan is a loss of income to the bank."If the above is true, can we say that the new property that we bought is for investment and claim tax benefit from loan interest, even though we don't rent it."
If the property that has the loan against it is not rented then the loan interest is not tax deductible.options – stay in original primary residence. Why do you want to not live in it?
-rent out third property. Claim interest costs -rent helps pay off the interest costs.
You have to think like an investor rather than as a home owner
The rent helps cover the interest costs sit down and go over the figures of what it will realy cost you by the formula
income = rent – insurance – interest – council rates – water rates – repair costs.Don't kill the bees check out this site
http://www.beekeepers.org.au/
If you are in melbourne these guys remove bee hives.
To ensure that feral honey bee colonies and swarms are not unnecessarily destroyed, The Beekeepers Club offers a Swarm Collection service, with each swarm collected being inspected and treated as appropriate before being relocated.I have two feral bee hives where I live and the bees do not cause me any grief
but if you disturb them without protective safety gear and a smoker device you will be in a world of pain as bees are vindictive if disturbed.or look up apiarist or bee keeping clubs to find someone to remove the hive.
Before taking your complaint to the COSL you must first of all try to resolve your complaint with the Member concerned.
Visit this web site first to understand the complaints process
http://www.creditombudsman.com.au/4518,01,1-0-Complaints+Process.php#N102FEContact the mortgage broker and ask them for contact details of their Complaints Contact Person
Then contact this person and ask them why their mortgage broker did not disclose the additional $16500 break costs to you when you took out the loan through them. Also mention that through their non disclosure of the additional fees that you have suffered financial damages through not knowing about this additional fee and from selling your property . Ask them to rectify this complaint.If you do not get adequate completion of your complaint then lodge a complaint at this web site.
http://www.creditombudsman.com.au/check if the broker is a member of COSL
by http://www.creditombudsman.com.au/4522,membersdb,1-0-SearchMembers.php
If you are buying another property you may be able to transfer the security of the loan to the new property and keep the existing loan and avoid the break costs. Worth inquiring about with perpetual or the complaints contact person.you might find page 10 and 11 of this page useful
http://www.cosl.com.au/asset/COSL%2520Guidelines_21%2520February%25202007%2520Final.pdfQuestion one : Not eligible see below
See http://www.sro.vic.gov.au/sro/SROWebSite.nsf/rebates_fhog.htm#3
from that web site
see http://www.firsthome.gov.au/ and pick state you live in.3. Are you eligible to receive the grant?
To be eligible to receive the grant, the following criteria must be satisfied:
- You and your spouse/partner must not have received a grant in any State or Territory of Australia.
- You and your spouse/partner must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in any State or Territory of Australia
- You and your spouse/partner must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.
What do you mean by spouse/partnerA person is a spouse of another if they are legally married to each other. A person is a partner of another if they are in a domestic relationship regardless of gender.
Question two.
Doesn't matter as defacto is also affected. Previous Tax returns you have submitted would tell ATO what your residental addresses are.
Have you considered if you are eligible for the first home buyers grant. As up until the 30th of June 2009 it is a large sum of money that could help you buy a PPOR.
You could live in it for 2 to 3 years or even 12 months and then rent it out or sell it.
If you pay a large sum off the PPOR loan principle you can borrow against the increased equity up to 80% for an investment property later down the track.
If your PPOR achieves a capital gain it is exempt from Capital Gains Tax while it is your main residence.
see
http://www.firsthome.gov.au/if you do not own a ppor then you will have to pay rent to live in somewhere or live at your mums house.
There is another post in general property that recommended http://www.homemoneymanager.com as you can electronically upload statements to it see https://www.propertyinvesting.com/forums/property-investing/general-property/24196
Is it in a direct flight path of the airport .
The low flying jumbo jets can be noisy when they are taking off and landing plus the wide body jumbos rattle windows and vibrate walls.
Haven't purchased their but stayed in someones apartment in Mascot for a couple of days.less than $200,000 the 11 second rule is designed to be a quick calculation to work out what purchase price will be a positive geared property. So less price than this means more positive geared. However the current property market doesn't have many positive geared properties.
I would work it out like this ! It in a long winded way .
Take the current interest rate say 7.5% as an example and a purchase price say $200,000
$200,000 * 7.5% /52 equals interest cost per week is $288 a week.
Add $40 a week for expenses
$328 per week so if rent is more than this it is going to be positively geared.
or reversing this method
Take rent- expenses per week *52 / (7.5%/100)
say for example rent is 340 a week
340 -40 for expenses * 52 = 15600
15600 / 7.5% = 15600 /(7.5/100) = 208,000 or less to be positively geared.What you need to be wary of is the current interest rate as it is coming down and this determines if positively geared.
I thought the general rule of thumb when looking at a purchase price and deciding on how much to rent it for was roughly to knock the 3 zeros off the end and that will give you a rough guide as to what rent to charge – ie purchase price $400,000 so rent is roughly $400/week.
You can't get more than market price for the rent.If you didn't use a property manager it may be a cause of your nightmare. Keep about $2000 in your bank account so that you have a bit of a buffer in case a tenant gets behind. Also get Landlords insurance and have a lease to cover for lost rent or malicious damage.
I had a tenant that was always behind in rent and it is frustrating but now I have a really good tenant that pays on time.draw back – property value of finished product drops and developer decides to pull out of the development.
maybe it is a retirement town.
As an example Warrnambool Victoria has low employment but is by the seaside and since 2000 has had people retiring to it.
The level of development has been amazing. a new home maker center and new housing estates being built.
in 2006 the population was around 28,500 mark and it is predicted to expand to 40,000 residents by 2030.All from retirees
Yesterday 150 people lost their jobs in Victoria from a manufacturing company that was a US company that decided to cut costs.
The problem comes down to momentum. High interest rates, high petrol, high taxes (stamp duty) slow down the economy.
Now that the interest rate is lower and petrol is lower the slow down is still happening because of what is known as the lag effect in economics.
The effect of the cuts in interest rates and petrol will take time to take effect in the economy.A lot of people have no savings and credit card debt and would last less than 4 weeks without income.
I've wondered myself if it would be cheeky to then transfer the credit card balance to another bank on one of those low 18 month intersest rates of 2.9% I have seen advertised.
You never know they might integrate the chimney into the development so it doesn't stand out too much. In Melbourne they built a shoping centre around a chimney used for making shot. It now is a feature inside Melbourne Central Shopping centre.
