Forum Replies Created
Thank you for your answer Cata.
I assume you don’t own property in Victoria Cata because if you did you’d know about the new law. It’s savage. [grrr]
For a DT, you get a one time chance to nominate one of the beneficiaries as being responsible to pay the land tax for property held by the trust. This is then aggregated to any property this person holds privately (except PPOR). Any property bought after 31 Dec 2005 does not get this chance and pays the surcharge. Not nice at all. [glum2]
This is not so for fixed or unit trusts if the SRO has been notified of the unit holders. It then just “looks through” the trust .
Actually I think I will start a new topic about land tax minimisation. I assume it’s legal.
Cheers
ElkaHello Trust Gurus
Yes, I know that I need to seek professional advise but since some of you are more clued up than most professionals, I thought I’d go to the source. [biggrin]
I have a family DT and a company which is trustee (I’m a director of this company ). If I wanted to set up another DT to hold other IP’s would it be nescessary/safer to set up a second company to act as trustee to this new DT?
There is a new land tax law in Victoria which I believes says that any property bought after 31 Dec 2005 and “owned” by a DT is subject to a surcharge. My question is, doesn’t this make it less attractive to use a DT? Should I be looking at another sort of trust.
Thank you
ElkaHi Again
I would have liked to delete the post above but can’t work out how yet. Still very new.[confused2]
I just had a quick look at the Bureau of Stats data about the area and have decided it would not be worth looking into any further as the property would be next to impossible to sell if anything went wrong with the wrap.
I don’t want to be responsible for putting anyone on the wrong track. [worried]
However, if anyone thinks I’m wrong, please say so. I’m just at the begining of my learning journey.
Love the smilies [exhappy]
Hello Nedkelly
You might find this a help. I’d still advise you to check with an accountant before you do anything else.
http://www.ato.gov.au/individuals/content.asp?doc=/content/cgt_guide.htm&page=14
Hi All
I found this on the link below. It actually looks like a rather nice house which the owner seems to be selling out of necessity rather than desire. My first thought was whether the owner would be interested in a wrap.
I live overseas and can’t do the work right now but thought maybe someone on this site may be interested.
Seems like great practice for a small risk ?. Would love to know if anyone tries and how it works out.
Property Number: 18802
Property type: House
Price: $55,000Address: 5 Back Street
State: VIC Location: Merino Postcode: 3310
Up to 6 b/rooms Or 5 rooms and study/sewing room. Dining, lounge, separate shower and bath; walk in pantry.Some rooms painted. Near new front verandah, large yard and double carport. Needs work,but basic repairs. Next door to primary school, bus to secondary at front door. Quiet small town. 40min to Portland, 15 min to Casterton, 30 min to Hamilton. Plenty of work in the area (commute). Excellent escape for large family. INVESTMENT I need an investor now, as i need to live in the house. SO, buy it and I’ll rent it back off you. Sorry for any inconvenience for those who were interested in buying to live in, but my life circumstances have changed and this is the only option I have right now. Thanx
No. bedrooms: over 4 Construction type: weatherboardHello Kiwi
Thank you for taking the time to answer. I will look into the programs you mentioned.
I guess it was not so basic after all[rolleyesanim]
Hi Zoe
I had to chuckle when I saw your post. Except for the suburbs you named it could have been my niece posting. She is also in Melbourne and I am trying to help her buy her first appartment long distance.
I will say the same thing to you as I would say to her regarding some of your questions. Just my opinions.
1. Body corperate fees. Yes, these seem high to me. Ask the agent why. However, I don’t think you can do anything about them so take that into consideration.
2. The new inner city highrises don’t attract my niece either. They seem cold so if it’s to be your home, follow your instincts.
However, I don’t know what to think about their potential for capital growth. There are so many of them. If someone has definite ideas ,with reasons, I would also be interested to hear them.
3. My advise would be don’t spend your maximum. Given your requirements (2 BR, 1 BTHR, carspace) there is plenty around in the 300+K range. Save the rest for your 1st IP.
I’ve added the following to her list : security, balcony, sep. toilet if possible and check out the laundry facilities. Nothing worse than not having a place to put your washing machine and I’m not a fan of communal laundries.
5. Unless it’s a very old building, which given your suburbs it could be, I don’t bother with building inspectors.
I think the best way to get a feel for what to pay for a place is to do your homework. Inspect as many propertties as it takes till you get a feel for how much you are willing to pay for what you are seeing. Also check out prices of similar properties sold in the area.
6. If , at auction, the property has not reached its reserve price then the last bidder gets to go in and bargain with the owner. If they can’t come to a deal, then the agent is free to offer it to anyone again.
If you have a family member or friend familiar with auctions I suggest you take them with you. They can save you money.
Good luck.
Hello Allymac
If I understand you correctly you have signed a sales contract in “your name or nominee” so at settlement it’s possible for you to supply whichever name (s) you want without any problems re sales tax. Correct me someone if I am wrong please.
It seems to me that if you buy using 3 names then the profits are divided by 3 for income tax purposes which seems a good thing to me. However, this is my first post and as previously advised, asking an accountant is always the best option.
