Forum Replies Created
you may be up for land tax
Tasmania has a lower land value threshold for land tax …
morgage setup fee
morgage insurance
building inspection
pest inspection
legal fees
interest rates are on the rise would factor in possible 10% interest rate for safety .. and fix your interest ratecgu have been good to me with landlords insurance and I am sure that they will refer you to the right insurance company as they are extremely helpful to customers if they can’t help you..
check out http://www.cameronbird.com.au as a possible resource it is free to sign up. I have just signed up for their newsletter but haven’t received it yet. I cannot guarantee that the properties are market value and you might need an independent valuation before proceeding any further with a property purchase.
You may need to use a quantity surveyor to get an estimate of the property age and building cost to use for building writeoff depreciation
What guarantee do you have that the super rules are not changed in the future when the baby boomers have taken all their tax free lump sum payments out. Also Super is taxed at 15% on earnings accumulating in the fund. I have taken a break from property at the moment and have found the stock market in the last 3 weeks to be really challenging with its 10% correction.
The new freeway that is under construction will shake things up in 2008!!
DO NOT rent out the home that is 100% owned and try to claim the loan on the next property. The loan must be directly related to the rented out property.
If you are renting out the first property that is fully owned then you are earning income that the second property’s net rental loss can be negatively geared against. Also wage income can be reduced from a net rental loss.
However a Capital gain cannot be reduced by net rental loss only by capital losses in the same asset class.
Your friends question is a bit vague. I hope one of these scenarios is what the question was referring to.Car parks have an element of risk API FEB/March 2003 has an article on the risks involved. See http://www.apimagazine.com.au. You can order back issues. Getting the lease renewed after the current lease to the car park operator expires is a Risk. The government trying to tax car parks to discourage cars coming into the city. Extra charges like Sewerage charges may be involved. South Yarra victoria has some really cheap car parks also. I think it was on http://www.domain.com.au.
Another thing to consider with centrelink payments is that if the tenant owes money for Tax, Child maintenance or over payment of centrelink payments or two identities or a defacto discovery the money could be taken out of the centrelink payments. This may mean your centrelink payment doesn’t cover the rent.
No problem the Government and employers will just keep bringing in more skilled workers from overseas rather than providing any trade skill training for Australia’s youth. She’ll be right..!
Those youth that miss out will be looked after in the future as Centrelink likes to look after people that do not own any assets and have absolutely no income, with rental assistance they will be able to afford to rent properties in the future. I will get off my soap box now !Ask your parents for a loan for the required deposit rather than going guarantee. This limits your parents risk to only the deposit loan amount.
See if a part colaterial amount can be guaranteed instead of your parents risking their whole house.
The risk is a real and valid concern that your parents have and people do lose houses this way as seen on A Current Affair.
Also sandstone has some good ideas !If you do rent out the PPOR do not under any circumstance try to claim the interest on your new home against the rent from your old home.
This will not be allowed and is a common mistake that tax payers make.
The 6 year rule can be found on the ATO web site .
During the 6 years if you elect to have the first house remain as PPOR the new house will not be PPOR and is liable for CGT.
Definately get a valuation done and keep it filed away for your records.If you keep the tree you will be always wondering every time there is a storm as to whether the house will have a newly created skylight installed by a falling tree branch. It is costly to remove trees but the peace of mind is well worth it.
You could keep it as main residence and rent it out
check out
http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htm
drawback to this is other property is not main residence and liable for CGTIf you use the original house to borrow against you are putting this house up as a guarantee for the other house. If something goes wrong you lose both houses to the bank. By dividing you are seperating the risk across two houses.
I think some will sell the empty nest and move into a smaller dwelling
that is less hassle to look after. Some will go to the seaside some will go bush, some will buy a Winabago and tour but as they move into these areas the prices will increase prohibiting them and forcing them to move to a smaller place close to their grandchildren and Daughters or Sons and friends.
Some will go for a reverse morgage to pay for their retirement as they will come to realise that their super won’t be enough to live on meaning they won’t sell, the bank will sell when they cease to live in their house anymore from about 2026 onwards.Answer
Normal Conveyance Rates / stamp duty as of 2005/2006 financial year
$100,000 to $250,000 equals $2,200 plus $4 per $100 or part thereof above $100,000 (my calc this equals $6200 )Special Rates apply for first home buyer grant recipients though
You have to factor in legal costs (conveyance), new loan fee probably $700 (added to morgage), Title search fee and Morgage insurance (may be added to loan) and a deposit to seller in cash also.
Deposits usually 10% thats $20,000 before settlement.Note how much the land cost if pre 99 you might use indexation otherwise go for 50% discount. Cost of land added to cost base.
Note how much the houses cost to build, this is a cost base
Note how much the holding costs are eg RATES, Insurance, Borrowing Costs (spread over five years or less if life of loan less than 5 years), Legal Fees as they can be added to the cost base if you have not claimed a deduction on them against income producing assets.
Also costs incurred to do the sub-division may be able to be added to the cost base. (you need to check with your accountant)
Hold the property for more than 12 months or you won’t get the discount rate of 50% if an individual tax payer.
If joint owned the gain is split across two or more people thus reducing the impact.Here is a good one ! Do not earn any income for the financial year that you sell.
Another pearl: Don’t sell or dispose of asset – no cgt then !
Steve sells on this web site a buyers beware kit
This has information about writing offers in it
see
https://www.propertyinvesting.com/resources/1.html
