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Lucky you… I worked there for 2 years and really loved it. Joined a scuba diving club and spend every weekend I had free diving off the east coast of Malaysia…. magic. [upsidedown] [biggrin]
Back to business.
That’s were I was going when I consulted Touche Ross. It was a long time ago and things may have changed but with the structure they set up for me I hardly paid any tax in Singapore. Not being an Oz resident for that period Australia was not interested in any of my overseas income.
As I said. It’s worth consulting the experts.
Cata. Even if you are a non resident you still need to pay Oz CGT on property in Oz…. mores the pity. Not on shares though. [biggrin]. The down side is that you don’t get to accumulate any CG loses either which is more my track record with shares. [blush2]
Cheers
ElkaHello again
When I went overseas to work the first time I went to what was then called Touche Ross and has now become Deloitte Touche Tohmatsu.
I see you are from Victoria so if you are in Melbourne they have an office in the city at
180 Lonsdale St
Phone Number: +61 3 9208 7000
Fax Number: +61 3 9208 7001They are not cheap but I know that they saved me heaps of tax and were well worth the fee but again it’s very dependent on your situation. It may be worth giving them a call to see what their fee is for a consultaion.
There are other international accountants but I just can’t think of anyone else at the moment. Maybe you could search the web for more that have offices in Melbourne.
Good luck
ElkaHello Manic
When you say that tax deductions and depreciation goes that’s not stricktly speaking true.
The thing is that without any other income in Australia to offset this against, you will be making a loss each year. I am not an accountant but I believe that you can carry this loss for a number of years and offset it against your income when you get back?
I don’t know your circumstances.
The best advise that I can give you is go to a very savvy accountant who is also well versed with international tax issues and check out your options. They may also be able to save you heaps of tax in the country you will be working in overseas. It all depends on your situation and what you will be doing overseas.
You may need to think about things like… will you be keeping your Oz residency status while you are overseas. The fact that you think you are coming back in 3 years is no problem. Your allowed to change your mind. There are pros and cons for tax purposes of staying an OZ resident and again it depends on your situation.
Personally II would not sell my IP in your circumstances. Also I think that all the losses you mentioned are capital loses and can only be offset again capital gains. Again, I am no accountant, but seriously think you need to consult one.
Hope this helps [smiling]
ElkaHello Landlords [smiling]
I feel that the situation is different depending if it’s a rent review for existing tenants or setting the rent when the property is vacant. i.e for new tenants.
If it’s for new tenants, then ask for whatever the market will bear . You can always accept less but it’s impossible to negotiate for more than you advertised.
I confess to being cautious about rent increases for existing tenants. I never ask for 6 monthly increases as I know how I would feel if, as a tenant, I got a letter every 6 months asking for more money. [grrr]
Even an increase after 12 months is dependent on market conditions and how much I want to keep these tenants and I never get greedy.
I feel a $5 pw increase is not worth “upsetting” the tenants for and a $20 pw increase is pretty hefty so $10 or $15 is my usual increase in a reasonable market. I don’t ask for rent increases in a weak market.
I use a PM so I always calculate how much the leasing fee, advertising costs etc. and vacancy period will cost if I get greedy and how long it will take me to recouperate this before I actually see a profit from the rent increase if the tenant leaves.
Hope this helps
ElkaHello
Are we on the same forum? [blink]
Why is it that I don’t experience this. Once I am signed in I can post replies or new topics without any signing in on the message editor. In fact these fields don’t exist on the page unless I am not signed in to the forum.
Puzzling. [eh]
Elka
Wow. That’s pricey.
Thanks for the tip about where to borrow it. I will have to wait till I come for my next visit but I’m a fast reader.
Until then I will continue to consult the forum trust guru (that’s you Terry [grad] )
Don’t worry, I know to seek professional advise too. [wink2]
Cheers
ElkaHello Sophies
I can only tell you what I would do myself, so here goes.
They have between 4 -5 months left on the lease. I would get the agent to write them a letter advising them that the lease will not be renewed in Novemeber as the owner wants the property back.
Then offer to pay their moving costs (up to a reasonable figure) if they vacate the property within ……. Naturally you have to give them a chance to find a new place so set a realistic “by” date for them.
It worked with my nephew who was offered this deal by his landlord and took it.
I don’t know how easy it is to find a similar property to yours in a similar area so I don’t know how successful this will be. Things like do they have kids at school etc. may influence their willingness to move early.
Start by asking your agent if he has similar property to yours in the area. He may be able to offer them alternatives.
Good luck [smiling]
ElkaWow Stephen your pretty young to be worried about protecting your assets from a realtionship break up. [smiling]
I’ve seen posts on this forum that said that the family law courts “look through” any trusts when splitting assets.
Don’t know if your about to marry or start living together, but wouldn’t a good pre nuptual agreement or the equivelent for a de facto relationship, drawn up by a lawyer versed in family law, do the trick? You could both list the assets you came into the relationship with and agree to keep these out of any property settlement in the event of a break up.
I’m not a lawyer or an expert in this area. It’s just another thought.
Your a great saver. Not too many 17 year old have built up such a nest egg. Well done. [thumbsupanim]
Elka
Hello
This is a bit off topic for this thread, but can anyone explain why a council would demand a new fence as part of the planning permit if the current fence is in good condition? Seems somewhat nonsensical.
Did you try to argue this point with them Paligap ?
Just curious [eh]
ElkaHello
Firstly, sorry to hear of your problems hlewishlewis.
gmh454. Surely the fact that the brokers failed to organise the finance, not once but twice, after assuring their client that it was in hand shows intention to defraud or gross negligence at the very least. hlewishlewis had had no intention of using “creative financing”.
Are brokers members of some association that you could contact to enquire about possible options ?
I would still go to both the police and the ASIC. What have you got to lose? Maybe they have done this before and this will strengthen your claim that this was a deliberate set up.
Good luck
ElkaHello Michelle34
Do I understand you correctly that up till now you have both been paying 1/2 of all expenses including the morgage payments and that you both contributed equally to the deposit. Also that you have both been getting half the rental, if indead the property has ever been rented out.
If this is so, I am not sure what all the complication is about.
To make it easy to understand, pretend you are selling the house to a 3rd party.
To get a fair market price get a valuation or as Kiwi-Fulla suggested 2 valuations added together and divided by 2 to to get the average of the 2.
So now we have sale price. A
You then deduct the amount still owing on the mortgage plus any costs associated with discharging or altering the mortage. B
The mortgage will need to be changed anyway as I assume that it’s currently in both names.
You need to deduct all expenses associated with selling ( legal costs etc.)… C
I guess these will be real as the title will need to be changed to reflect your partners sole ownership
So A – B – C = money you both hold over from the sale of the house.
Half of this is yours.
You will also need to do a reconciliation of any bills that are in arrears and any bills that have been paid in advance. Gas, electricity, water, coucil rates, land tax.
Whether you made a profit or a loss is really irrelavent and also the fact that the buyer is your partner.
It’s the same steps as if you had sold to a 3rd party. The plus is that you will both be saving yourselves agents fees and advertising costs.
You may feel that you need to use a conveyencing agent anyway
.
I assum your partner realises that he will be up for the full cost of buying your share out like stamp duty and any setting up new mortgage costs.Hope this helps [smiling]
ElkaIs it readable for the layman or do you need some accounting / legal background. [grad]
Can I get the ISBN number from you please?
Thanks
ElkaExactly cbellesini. What’s more the lenders “share” of the capital gains (even if there isn’t one) is a guaranteed 10%+ per annum.
What also puzzles me is that the effective interest rate appears to start at 14% and then go up over the years even though the part of the interest that you are actually paying increases.
i.e yr 1 4%, yr2 5 % etc.
I would have understood this loan better if this had been decreasing.
Where is the flaw in my logic please. [confused2]
Elka
Thanks Tyron. I will pass this on. Good point E.
Cheers [smiling]
ElkaThanks Simon. I guess then the next thing I should ask him is what his time is worth. I assume it’s a time consuming job if your doing it for the first time.
After that I shall just drop the subject.
Thanks [smiling]
ElkaHello Steve
I love this site. So much useful information is being shared so generously.
Please don’t change the format of the forum too much. I like the soft colour schemes and the general form of the threads.
Thank you for providing this venue. [smiling]
Elka
Hello Paligap
Michael is 100% right. I wouldn’t even think about going to court over this.
Having said that :
I assume there are no existing fences which are falling down? If there are then I think that the neighbours need to foot half the bill of repair / replacement..
If there are’nt, why don’t you just drop into your neighbours to say a friendly hello and at the same mention that it would be nice if you both kept your privacy and that you would like to build a fence and what do they think. etc. etc. They may want their privacy and be willing to pay for half. I don’t imagine they have been to the council to examine your building permit. What have you got to lose?
This approach will work better if what your building is your own home… but still. You’ll never know if you don’t try.
Good luck
ElkaThanks Redwing. He has an accountant as well so I hope the guy knows what he is doing and will recommend a schedule.
Cheers
ElkaGood points.
Thanks Terry
ElkaThank you Gross.
And what is da
Want to learn [smiling]
Elka
