Hello Emil

Wrapping is not my area of expertise but it seems to me as if your making it unnecessarily complicated for yourself.

If the wrappee decides to get out early ( before the 12 months and/or 10% of the instalment contract price) this just means that he will get what he needs to pay you out from somewhere else (bank?). You just need to be aware that if you are using his FHOG as part of the deposit then you must be prepared to wait for this money until he meets the conditions.

Actually although I don't know Richard (Qlds007) except from the forum I think you could do much worse than use him as your MB. I believe that wrapping is his preferred investing vehicle and he has probably done more wraps than anyone else on the forum.

Hope this helps
Elka

Hello Joel

It seems to me that to get the best of both worlds and the most flexibility you would take out an IO only loan with a 100% offset account. You would then put the extra $300, or better still, everything you earn, into this account. All your household and other expenses could be paid out of this account but while the "expense money" is there, it saves you interest.  

That way you are saving yourself interest by "effectively" reducing the loan and at the same time keeping your funds free for further investing. You can always use these saved funds to make a lump sum repayment at the end of your IO only period if you should want to.

The other advantage is that if it's your PPOR that you are currently buying and you turn it into an investment property at any stage you can simply use these saved funds in the offset account to buy your new PPOR. All the interest being charge on your original loan would then be tax deductible.

I think ANZ has a loan for up to 30 years where you can pay IO only for up to 10 years with 100% offset. I don't know if that's the best one but either Simon or Terry certainly would.  

Hope this helps 
Elka

Hello Dom

This is totally off topic but would you mind saying what sort of commercial property you bought (retail/office/industrial) and whether it is in a major town or rural. That's a nice return.

Thanks
Elka

Hello Lady 24

I don't know the answer but would be very surprised if it was yes. Why don't you ring up the council and ask?
Please let us know when you find out.

Thanks
Elka

Hello Paul

I'm not actually sure what your question is. From your topic heading I assume (yes, yes I know     )  that your asking how much CGT you will be up for and is there any way to minimise it?

I don't quite know how you came up with your profit figures but CG is calculated on the sale price minus sales costs (agent fees, bank fees, sales tax if applicable, settling costs etc.,)      less

cost base which is made up of  original purchase price plus some buying costs (e.g. stamp duty) plus any capital works (renos) minus any depreciation claimed over the years. 

This is by no means a complete list but gives you the idea that your accountant will be better able to tell you your real CG for tax purposes. You may want to read up on the subject on the ATO site.

http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/026&mfp=001&mnu=5060#001_002_026

As far as minimising your tax is concerned there is nothing much you can do as far as distribution goes as, if you own it 50/50 with your partner, the profit will be distributed in the same way. You then add the profit from the sale to your other income and are just taxed normally on the whole amount. The only thing that may be possible is to reduce the other portion of your taxable income for that year. Again, talk to your accountant. 
 
You might also like to talk to your accountant about discretionary trusts before you buy any more IP's if he is versed in this area otherwise find someone who is.

I'm not sure I qualify as either educated or sensible but I hope this helps. 

Elka
    

I did. Thank you for sharing it .

Cheers 
Elka

Hello Art

You mentioned that they are offering a three year lease with a 3 year option.  That's their option … not yours ……  so doesn't that mean that you could be locked in for 6 years. ?

Is there any mention in the lease about rent after the first 3 years. Is it tied to fair market value.? If so I think that this probably means that you can't then ask for some rediculous amount to get them to refuse their option. Worth checking maybe.

Cheers
Elka 

Hello Lisabellan

Nice profit over 2 years. Congratulations. [smiling]

This is much too much money to make an uninformed decision about. I strongly suggest you go to a very good accountant who will be able to help you work out the best way to minimise your CGT.

Maybe your friend was talking about making a big deductible contribution to your super in the tax year that you sell in. I don’t know the super rules but think I read somewhere that after july 2007 you are able to make a 100% tax deductible contribute of up to $100K??? but I don’t know what the age or employment conditions are and I could be totally wrong. [blush2]

May I ask why your are selling all 4 units. Why don’t you just sell 1 or 2 if you really need to.

Cheers
Elka

Hello Paul13

Sorry for your loss.

I am no accountant but have been reading this section of the ATO site just out of interest.

My understanding is that you will not need to pay any CGT. Because the property was purchased pre 1985 it seems irrelevant whether it was your parents PPOR or not.

You should not need to pay any CGT if you either sell it before 2 years or live in it yourself as your PPOR until you do sell it.

If you change your mind and decide to keep it as an IP the value of the property at the time of your mothers death will become the cost base for any future CGT calculations.

Just my opinion. Your accountant/solicitor will be able to give you a definitive answer.

Hope this helps [smiling]
Elka

Hello e-town

To begin with I don’t know anything about investing in Canada, so be warned. [smiling]

Is a company a good structure in Canada for a buy and hold property investing strategy? I assume you have checked this out with a good property investing savvy accountant?

Wether you put down 5 or 25% deposit is dependent on what sort of properties you can get there. Will they be positive or negative cash flow at 5% deposit or in fact at 25% deposit.

If you only put down 5% are your borrowing costs a lot higher?

Personally if you are all new to property investing I would first spend lots of time on research and education and then start with just one property. This will give you the chance to learn “on the job”.

Good luck
Elka