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elves
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April 29, 2004 - 11:48 am
Im happy with a neg cash flow property at present
i mean just negative
but i have the growth on my side with it, so it works in another way for me. Tax planning in the pipeline.
I do rent two properties to family – I dont have a problem, and I do have leases. They know point blank, that i will be callous when it comes to business, there are no friends in business and they are tenants like the others.
I think you need to know the family members well enough, I wouldnt rent to an ex though. Oh what a nightmare.
elves
” a blind man may see what a sighted man may not”
elves
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April 27, 2004 - 12:55 pm
Bedsitters are not the best investment for most, BUT if you have something like this near a uni campus, it might be ok, depends really doesnt it?
” a blind man may see what a sighted man may not”
elves
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April 27, 2004 - 12:50 pm
and dont you feel good after when you look at the finished product
” a blind man may see what a sighted man may not”
elves
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@elves
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April 27, 2004 - 12:48 pm
This relates to everything, not just RE
Not technical, or are they?
1) don’t believe everything you read
2) but read the fine print
3) if in doubt – don’t
4) but don’t cry over spilt milk!(or he who hesitates is lost)
5) do what you want for you, not for others
6) if you have a partner, make sure you are both on the same playing field, helps to play the game!
7)trust me, I’m a sales man, rings true in the property domain as it does for the local car yard.
in hindsight we have 100% vision, (quote) but we dont have a crystal ball for the future. Nothing is guaranteed.
9)if you are scared of going out on a limb, dont, (like Kay says, sleep at night) is the best tonic. you have to feel you can get your feet wet first…but even the small steps are a way forward.
10)owning property, doesn’t make you a better person than the next.
11) only be prepared to lose what you can afford to, rather like a pokie gambler, take in what you dont mind losing, and leave the rest safe
Elves
” a blind man may see what a sighted man may not”
elves
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@elves
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April 24, 2004 - 12:51 pm
Hi Sis, life throws us some tough deals at times
I can say I have been focused and then ooops derailed! Got back on track (pardon the pun!)
Personally, when it comes to family, my goals are insignificant. Time will come again and I beleive in fate, that is, if its meant to be….
We can rationalise all we want though.
I think there are dreamers, and that is all they will ever be, the gunners etc.
I just get on and do my own thing…except where my family is concerned, cause money just cant replace them
Cheers
Elves
” a blind man may see what a sighted man may not”
elves
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@elves
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April 24, 2004 - 12:36 pm
I have given this answer a number of times myself. so not going to repeat it LOL
you know ‘you’ dont have to own a property to know what you are talking about. Maybe ‘you’ studied accountancy and have all the answers- I wish
owning property in others words gives you no more credance than the guy on the street you might think is a bench dweller.
” a blind man may see what a sighted man may not”
elves
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April 24, 2004 - 12:29 pm
Terry- wouldnt be home loans would it?
Chan_ does that mean you buy and sell shares using other peoples money?- sitting in front of a computer all day buying and selling, shares/options
DO you mean cash? or are you saying over a period of time because:
If you have a rental property and it gives you a positive return and you combine that with capital growth, this figure gross, or net can be achieved even with CGT.
If you want you can use international shares, warrants and options as a bit more of a hedge….but hey the higher the returns the higher the risk.
I know from shares invested and sold over a 12 month period with a margin loan facility (yep interest) using shares as equity to have a margin loan of 50k. I can say if you know what you are doing…it isnt hard to earn this kind of money.
Im just sorry I cant sit in front of a computer trading shares too Chan.
As for Mezzanie, not for me.
Mowing lawns, with equipment under 5k?
” a blind man may see what a sighted man may not”
elves
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April 24, 2004 - 12:12 pm
Shar
Everyones circumstances are different and you would need to discuss this with an accountant, with your long term plans too.
My own accountant, asked me why i wanted a trust? I asked about asset protection and other things. He said protect from who? Protect from what?
He said not to bother, for ME, the cost of setting up, and operating and then deciding on it and what I did with it….well for ME forget it.
However there can be advantages, depending on trust structure and who is involved. Eg unit trusts, hybrid trusts, discretionary….
Maybe most use a company and trust structure on here, but I dont. I know others who also dont…so check it out and ask your account as much as you can, pros cons, why etc? and COSTS.
maybe mine just didnt want the complications, but he did mention some tax aspects, but anyway thats enough!
Elves
” a blind man may see what a sighted man may not”
elves
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April 24, 2004 - 11:48 am
The ATO do run audits
They do target certain sectors of the community.
They are cracking down on certain measures involving “tax minimisation”
Tax avoidance, tax minimisation, tax min schemes – one is illegal, one is immoral, one is likely to be shut down. The tax office is very much against dodgy schemes that offer lucrative tax offsets. ANd the perosn who pays? YOU. Not your tax agent, not the dodgy scheme, tax is your repsonsibility. Now having said that, there are many legit claims that are allowable.
If you are an investor, and you own property, are you not in business? Business of making money? Running or operating a small business?
YOu may be told that you keep records for 5 years.
You may have once been told it was 7 years.
You may also have been told, that they can audit you for 10 years, records or not! So I have been told.
Elves
” a blind man may see what a sighted man may not”
elves
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April 22, 2004 - 1:31 pm
what chan? no lullabys?
Oh I recall years fo standing and rocking, driving for hours in a car, zombie mode for the rest of the day….
a time I er sadly miss…..lol
” a blind man may see what a sighted man may not”
elves
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@elves
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Post Count: 507
April 22, 2004 - 1:28 pm
RIP? got death insurance? lol might cover it
” a blind man may see what a sighted man may not”
elves
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@elves
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April 22, 2004 - 1:18 pm
watch for those that are consider capital improvements as a property owner.
Separation of assets: eg house built onto vacant land result is combined asset.
It is separated. If bought before 85 and improved, the improvements are CGT. After 19/9/85 an indexed cost exceeding 50k and on disposal of the asset the indexed cost exceeds 5% of considered value. Eg construction of buildings, extensions
The land acquired after 19/9/85 adjacent to land bought before
Improvements to land deemed to be separate assets under the ACT
Elves
” a blind man may see what a sighted man may not”
elves
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@elves
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April 22, 2004 - 1:15 pm
very crappy
” a blind man may see what a sighted man may not”
elves
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April 22, 2004 - 12:15 pm
CGT -capital gains tax
risk profiles: not Acron…but found at Proquest:www.risk-profiling.com
” a blind man may see what a sighted man may not”
elves
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@elves
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April 22, 2004 - 12:00 pm
Old but not new
As a kid we used to find the refund bottles at 5cents a pop!
I used to do errands to earn a penny or two, consider an icepop/water-ice was 2 penny, Iw as doing well!
Mum used to make treacle toffee and stuff for bonfire night (yes I am from UK) We used to sell it.
As kids we made a guy for a bonfire and raised funds.
Mum and I used to wash windscreens at motels and put local servos leaflet under window (the days when it was service at a service station) with 1 cents a gallon discount. You bet it brought in the business.
As a teen I used to help my dad collect scrap metal, eg coper and brass, and go trade it in… same with al cans.
Mowing lawns is a pretty lucrative business, but not my cup of tea.
I found delivering newspapers keeps you fit takes a lot of time and doenst earn you much, but its something.
As for other business ideas..still thinking
” a blind man may see what a sighted man may not”
elves
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@elves
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April 22, 2004 - 11:45 am
Acey: I learned a logn time ago that cat flu is serious and if you are a breeder, scary!
Chan, I have no therories really, but it makes you think- environmental? developmental, genetics..oh thats another topic!
This week I learnt, I am too old for exams, the brain cells are dying!
Friends: true friends are like diamonds,
precious and rare
bad friends, like autumn leaves are found everywhere….I dont know the author.
Elves
” a blind man may see what a sighted man may not”
elves
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@elves
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Post Count: 507
April 22, 2004 - 11:37 am
My notes:
Can cgt be deferred?
yes in certain circumstances it is called a roll over.
Business reorganisation where beneficial ownership is maintained
The xfer of assets between spouses in family court order
Involuntary disposals such as compulsory acquisition , theft or destruction’
Death
From 10 dec 99 certain investments in companies and trusts exchanged eg takeover, for shares or units may be treated as a roll over.
” a blind man may see what a sighted man may not”
elves
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@elves
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April 22, 2004 - 11:30 am
I too am not qualified but here goes and I posted this on another topic earlier this evening,
Capital gains tax can be deferred in some instances. Business, death, theft or loss/destruction etc see accoutant
Gains is applicaable in year of gain and tax income year.
Capital gains offset with Capital losses.
elves
” a blind man may see what a sighted man may not”
elves
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April 22, 2004 - 8:00 am
Ok I agree with so much that has been said on all counts.
Firstly, if the land was bought after 1985, yes CGT (or acquired)
if the land has no loan or mortgage and it belongs to you, yes you have an asset, that asset is not income producing, and therfore has no tax benefits, but it may have CGT liabilities upon disposal. It is a liability in this sense, as it costs money from your pocket without giving you a return.
HOWEVER, you obvioulsy have had some gain or growth (in order to owe CGT) So while it produces no income it has prduced it via growth. And is a hedge against inflation.
My thoughts are: scenario 1: maybe get a loan on your own equity, or land component, build something on it and rent it out
scenario 2: as abouve but sell, you often get more with a building on it ready to go, but you will apy more in CGT.
scneario 3: sell it and pay the govt your hard eant growth money, and use the cash you have back to reinvest.
personally, I dont like handing over CGT to the gov. i was also told never to sell. I did because my property was not subject to CGT and it had little hope of any real gain in the future, and I didnt want to hold it any longer.
Only you can really decide what is the best deal for you according to your personal situation and according to your tax situation.
elves
” a blind man may see what a sighted man may not”
elves
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@elves
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Post Count: 507
April 22, 2004 - 7:44 am
it isnt necessarily about doing anyone out of business or being negative, or whatever,
If you ask the members here, you can take it and run with the advice or disregard it, that is your choice. We all have opinions.
Many investors on here, may not have been burtn, but may have seen others burtn by mobs, or compnaies or the odd individual that takes people for a ride, and dumps em, if you do your due diligence on the company an directors concerned and maybe do your own reseasch (everyone has a price and nothing is free) you coould well find your own stuff.
If you have no time and you like these people then you can deal with them. Call my cyncical, but there is always a catch
” a blind man may see what a sighted man may not”