Good to know. Thanks Terry.

Elkam

Hello Snowflake

I thought I’d rephrase this for you as from your last post I wasn’t sure that you really understood about repairs v improvements.

They are BOTH deductable. You can claim both of them.
The difference is how they get to be deducted.

Repairs are deducted in the one year while improvemnts are depreciated … or put another way ……[Read more]

Hello Pen

I believe there is a general formula based on the income of the property. Maybe you should ask your accountant if he familiar in this area.

Sorry that’s the best I can do.
Good luck

Elka

Since this was land bought (and sold) pre 20 Sept. 1985 it was important for Westerfield to have this profit designated as a capital gain and not income. As a capital gain it would not be liable for tax on the profit. But those good old days are over. [glum]

In fact, if you’ve owned a property for more then 12 months you want the propfit at…[Read more]

Thank you all for your replies. I guess I will have to try and persuade my brother in law to approach his brother.

Elka

Hello Cameron

Thank you for taking the time to answer.

Do you think the bank would accept a guarantee from me instead? I am not sure that my brother in law would want to ask his brother for a guarantee or that he would get one if he asks.

Under what conditions might they accept my guarantee?

Be well
Elka

Hello Fengz

You might like to read the thread at the link below. It’s all about your question.

https://www.propertyinvesting.com/forum/topic/22508.html

Hope this helps
Elka

I’m facinated by your post Froggie. [eh]

Do you mean if the women in question was younger and a dish it would be OK … or have I misunderstood your post?

Personally I think she should have punched him or slapped him as it’s unacceptible behavour and patronising to boot … but sued him???

Hope the poor idiot was insured. Imagine having your…[Read more]

Hello

Thank you Terry and Cata for the great lesson in Hybrid DT’s. You have made it very clear for me. [grad]

Elka

Thanks for the answer MaiA and good luck finding more of these.

Cheers
Elka

What a fun contest.

To pinch a little from everyone, how about

Smart Property Solutions or

Smart Real Estate Solutions

with the slogan

If you have a problem with your property then we are your solution.

I also like Sparkys Xpert so I’m stealing it to create

Xpert Property Solutions or

Xpert Real Estate Solutions

You could use the same…[Read more]

Hello Hardyard28

It’s possible that I have totally misunderstood your question in which case I’m sorry, but it seems to me that you are confusing income and capital gains.

Cash Flow positive or CF negative (also refered to as positive or negative gearing) refers to whether the income from your property ( rent ) is more or less than all your…[Read more]

Hello Derek

I saw that this is not your example of leveraging but don’t you think it’s a little incorrect /incomplete?

Ignoring the obvious that you don’t get to keep all your rent as you need to pay all expenses first. (PM fees, repairs, rates, water, land tax, insurance etc. ) you still need to point out that the shortfall between your rental…[Read more]

Hello All

Very interesting thread.

Terry, your explination of Hybrid DT’s and their use and structure is the easiest to understand that I have ever read. Thank you.

This leads me to my questions.

If the IP being held in the DT is CF+ from day 1, is there any other reason to create a hybrid DT rather than an ordinary DT?

Is it possible to…[Read more]

Hello MaiA

Congratulations. Sounds like a very satisfying deal for you.

Can I ask you. Did you market the property via an estate agent?. I am just curious how you managed to sell it in 2 weeks whereas the original owner had had no luck selling it. Where did he have it advertised?

Cheers
Elka

Hi Milly

If your renting room by room (i.e. it’s not a group of 4 friends renting together) then don’t forget to factor in the gas, electricity, water and 1 x week cleaning of common areas into the price. If you pay these it will save a lot of trouble amoung the tenants. You will of cause have to keep track of usage to make sure it stays…[Read more]

Hello Graham3

There was athread on this topic just recently. Here is the link.

https://www.propertyinvesting.com/forum/topic/23233.html

Cheers Elka

Hello ptn

Thank you for the information.

Yes, I was also fast coming to the conclusion that forming several DTs and just paying the surcharge was still the cheapest solution.

Although asdf has already given some figures for this, I will still be asking my accountant about the cost of setting up and then maintaining each DT as soon as he gets…[Read more]

That’s true of income tax and CGT Cata but they make you pay land tax even if your losing money. [grrr]

Dazzling has the only real answer. Make your tenants pay it, which is what happens with commercial property.

Cheers
Elka

Sorry ptn, forgot to add the following.

“My brother inlaw reckons that the SRO finds CBD apartments too complicated to calculate Land Tax implication.”

I don’t believe that your brother in law is correct though it would be nice if he was. [hair2]

I think it is 1 of 3 possibilities.

1. The land value of this property is less than the tax free…[Read more]