Forum Replies Created
Hello Cazza
Really sorry to hear that.
I think if you want some real advise from some of the very savvy people on the forum you will have to give them more details especially about the locations (generally i.e Syd/rural/regional country town) and value of each property, the loans and your income. Are they residential or commercial properties? Are they rented out?
If you do not want to do this on the open forum do you have a broker, financial advisor or good accountant you can talk with?
This is not a problem you can solve without expert advise or out of dispair.
I wish you much luck.
ElkaHello Richard
Thank you for that clarification. I didn’t realise that.
Elka
Hello Mat
I think that if the insurance company can show that you were negligent (i.e ignored a problem that lead to the injury) they won’t pay the full amount out either.
As Terry said. It may be worth while your giving your solicitor a call.
Cheers
ElkaHello
The rates notice could be just being sent to another address.
By all means try leaving a note in the letter box but it seems unlikely that they are emptying it otherwise the next door neighbours would have noticed.
You could try asking at the post office or at the council for an address. I don’t expect that you will get it but maybe if you bring a pre stamped letter (and a bottle of wine? [wink] ) you may be able to persuade some nice person at the council to address and post it to the same place that they are sending the rates notices.
No infringment of privacy that way I think.
Let us know if it worked please.
Good luck [smiling]
ElkaHello igrapleu
Since 1 January 2006 the land tax exempt threashold is $200K in Vict.
The situation with trusts is that any IP bought after 31 Dec. 05 and held in a trust attracts a surcharge of 0.375%
Some time ago I was struggling with the same problem and basically asked the same questions. Below is a link to the thread
https://www.propertyinvesting.com/forum/topic/23233.html
Hope this helps [smiling]
Elka
Hello investron
You CG is just added onto your other income in the year that it is earned. Naturally having no other income for that year will mean you will pay less tax on this CG.
The 1st $6K would be tax free.
$6k to $21K would be taxed at 15%
$21K to $75K would be taxed at 30%
over $75K would hit the 40% bracket. [glum2]Don’t forget that if it’s your PPOR and has never been used to produce income than it’s CGT exempt.
If it’s an IP and you have had it for more than 12 months and it’s not held in a company, then you are entitled to 50% discount on your CG.
I think it would be a good idea to consult a good accountant before you do anything else.
Hope this helps [smiling]
ElkaHello John
Would you share the name of the lender and or loan … or do we have to do our own legwork. ?
It would be interesting to see the ifs and buts of this loan as it does sound like a great option. As I posted, the ANZ has a 1 year fixed with offset loan but a 3 year with offset would be my prefered option.
Thanks [smiling]
ElkaGreat link Derek.
Not only on the topic of fixed interest but on loan structuring and much more. Thank you.
Now I’m more paralized then ever. [glum2]
Actually ANZ has an interesting product, I think. A 1 year fixed loan with offset account. I checked and the interest is calculated daily so you are getting the full advantage of the offset account. The interest charged is the same as for a 3 year fixed loan.
Any thoughts.?
Elka
Hello Jules1
I guess all the financial gurus on the forum are taking the weekend off.
Till they return take a look at the article entitled Trading Place – to sell or not to sell. Nearly at the end it talks about structuring a loan to use first as your PPOR and then as an IP.
http://prosolution.com.au/free_articles/articles.php
B.T.W. Is a MISA account the same as an offset account?
Not sure if this will help. [smiling]
ElkaHello Lisa
Nice profit. Congratulations. [thumbsupanim]
You will be up for CGT no matter which loan you choose to repay. I believe all costs of stratering will be added to your cost base, apportioned per unit.
A good accountant should be able to help you to minimize CGT.
Yes, paying off non tax deductable debt is a better idea then paying off deductible debt but you might consider “paying it off” by putting it into an offset account attached to the loan rather than paying down the loan itself.
It’s the same effect but if you ever decide to move your PPOR and use the current one as an IP you will be able to take the funds out of the offset account and then the whole balance of the loan becomes deductible debt.
I’m by no means an expert in this area. In fact just the opposite. I gleaned this useful piece of information from a site that Derek gave me a link to. [smiling]
Hope this helps
ElkaInteresting comment Cata
Now that I’d like to check. [hmmm]Anyone know where to find interest rates by year?
Elka
Hello Derek
That is the way I have decided to go. A bit each way.
Hopefully I will have it in place before the next (August??) rates rise.
Thanks for the “push” [smiling]
ElkaHello Geoffrey
Pending an answer from the forums resident trust guru here is a link to a thread where Terryw gives a clear and simple explination of Hybrid trusts.
https://www.propertyinvesting.com/forum/topic/23422.html?SearchTerms=hybrid,discretionary,trust
As trusts can not distribute losses, the HDT is a way to solve that problem.
Hope this helps [smiling]
Elka
Thank you Bluegum. I will definitely look into it.
Cheers [smiling]
ElkaHello Cia
Do you have plans for the money that you will get paid for the house. I mean are you planning to use it for more investing?. If so, why can’t you just keep the house in your name and get a mortgage on it which you use for investing.
This will then be tax deductible and you can buy your next IP in a trust. All that wasted money on stamp duty seems such a pity. [glum]
Of cause if you are planning to use the money to buy yourself another PPOR, then that doesn’t work.
Just a thought [smiling]
Elka
Oooops I forgot to list the most important expense and this is not on the statements.
Interest on mortgage… per property.
That’s one total on the bottom of your bank loan statement in July.
I’m totally jelous of people who know how to use a spread sheet and don’t need a good calculator. I have been meaning to try to learn but……. [glum]
If anyone has created a template for keeping track of income and expenses for an IP which they would be willing to share please let me know and I will send you my email address.
It must be easier to fill in then create so I might actually get myself into the 21st centuary if I had a starting point.
Thanks [smiling]
Elka
Hello Sophie
Congratulations on having so much work for your accountant. [smiling]
If you want to make sure that this doesn’t happen again, then why don’t you get the property manager to send you the statements instead of to the accountant. I think you would save yourself a lot of money if you prepared the easy stuff for him.
For each property all you need to do is provide him with total income and totals for each catagory (agents fees etc., repairs,rates,water, insurances etc. etc.) You get the idea. It’s all on the statements.
That way you get to chase the missing statements and you also save yourself billable hours for something that you can easily do yourself with a good calculator. He will fill in all the difficult stuff for you such as depreciation and his fee.
It’s not as big a job as it seems. I know as I do it. [smiling]
B.T.W Are you having any luck getting your tenants out early from the property you want to live in ?
Cheers
ElkaThank you both.
Both your posts reflect my own feelings which is why I have not been able to make a decision. The contrdiction of these two interests (no pun intended [smiling]) has been paralizing me.
Thanks again
ElkaHello Romina
Would you consider doing it all over again? I mean selling your home and buying another in need of renovations?.
I don’t know the costs of selling in Qld (stamp duty?). Maybe you could try selling it privately to save the agents commission as you don’t need to sell it in a hurry and can wait for the price you want.
It would be really hard with a baby in the house and you would have to carefully calculate how much profit you would make and if it would be worth the hardships.
Just another thought. [smiling]
Elka
Hello Lyndon
Unless you have a fixed loan then I don’t think it should be a problem to change to IO. You will be up for the switching fee I think.
I had a quick look on the CB site to see if I could find out for you what their switching fee was but couldn’t find it. They are not really advertising their fees so to see …. or maybe I just looked badly.
Anyway I checked the ANZ site and their switching fee is $350 so I assume the Commonwealth will be somewhere in that area too.
To find out if it’s a good idea to rent out your PPOR and go into rental accommodation, you need to sit down and crunch the numbers.
How much rent will you need to pay for the place you want to rent.
What will you get as rental for your PPOR and then work out all the stuff that will become deductable e.g. interest, depreciation (if it’s a fairly new place this could be quite a nice deduction) insurance, council rates etc. etc.
I assume that your house will be quite negetively geared leading to tax saving.Cruching the numbers will show you pretty quickly if you will win or lose.
No expert, just trying to help. [smiling]
Elka
