Forum Replies Created
usa one: http://www.investorguides.com/clubs
http://www.nationalpropertyinvestors.com.auIf I recall I was looking into investment clubs as I wanted to start one. I dont think I will at this time, as too many people, dont have much time, and people alwasy change their minds or are not as keen
I own 3 Ip’s only.
cheers
elves
” a blind man may see what a sighted man may not”
commerical properties are higher risk
they might have better returns and the rule of thumb is , the higher the return the higher the risk factor.You might also find the cost of leasing or renting to be considerable. Then you add to this location, what the property can be used for, the limitations of that, and the market you might aim for. eg class A properties.office..industrial etc.
I had a friend bought a new unit, for around 300k, wasnt easy to finance, self employed using it for his own business. Commerical factory.
Time will tell if he gains anything re cap return
elves
” a blind man may see what a sighted man may not”
oh for the day I get to think of those kind of dollars!
imagine the land tax on that baby! ouch
” a blind man may see what a sighted man may not”
cant tell you, cause i really dont know enough on that side of things.
others might, cause i dont have a trust and what my accountant today said, well it wont do me any good, so….I dont know about expenses, I just assumed the trust took care of income and expenses, and if you had the trust set up according to structure, then you either distributed income or you left it there…so it has the chance of minimising your taxation, by not distributing (dont work this way with unti trust)
ok others feel free to help out, cause this is not my area of expertise.
elves
” a blind man may see what a sighted man may not”
I hate watching the agents at those things. They make me cringe too, how can people say yes when they gotta know with cameras in their face they are on tv.
I wonder if they get some monmey for that too>?
I hate the way the agents do a suck up job…sorry folks, but they do. YUKKKKK
and yeah maybe it was overpriced
Elves” a blind man may see what a sighted man may not”
timing isnt good for me, sorry cant go, im in qld in may
” a blind man may see what a sighted man may not”
Cel
My accountant told me to get a QS done, he said made his job easier and made all the right claims.
These usually do it by the methods above, and give schedules on both in a report.it can take years to depreciate an item, so it isnt all gone, but you can keep buying to keep it going if you want.
LOL
Elves
” a blind man may see what a sighted man may not”
Kay, and she writes mag articles and does radio shows.oH and your folks were busy. My parents stopped at 3, im mid kid. Always having to balance.
Depreciation: for business this is a bonus. You get to essentially write down a portion of the asset or equipment or fixture at a set or predetermined rate, usually you use one of two methods, diminishing value is one.
What these do, to save getting too technical, adn I stand corrected, is that they allow you to write off or down some value on paper, so that after a period of time, the item no longer has a value for taxation purposes.
for example, you buy a fax machine that cost $250. Your accountant would write this off on paper for an immediate claim, but if you bought a $2500 machine, your accountant would write the value down by one of two methods, and tax would determine the life of the item. Eg some items have 2 year life, some 6 years some might have 20 years. So over say six years the value reduces each year you own it, or proportionally. what you should be doing in theroy is putting that value toward the next replacement…but then when it runs out,you really go buy another to get the advantages.
You should have a depreciation schedule to maximise the taxation benefits for all fixtures, plant and equipemt etc. This gives you the on paper deduction and therefore can help reduce your taxable income
did I explain that right? lol
There can be a lot of money in them there depreciation schedules! thas why a lot of business buy the end of the financial year….
Elves
” a blind man may see what a sighted man may not”
fees vary depends on if you want to spend the money yes?
adn hey I would like some ideas I have exactly, well a bit more than that to spend, what to do what to do?
Im gonna post….” a blind man may see what a sighted man may not”
I have a varied portfolio, not just properties. This way it balances out.
But if you want all positive cash flows before or after tax dedcutions, then thats up to the individual.
my accountant didnt care if I spent the money and bought a property outright or got a loan to finance it, he said it doesnt really matter for me,.
cheers
” a blind man may see what a sighted man may not”
Rugby, no the hands are tied.
Public trustee is there for one reason and one reason only. Sell.
I went to one auction in QLD last year, in this instance the property was in a poor area. The bank would not have considered lending ratios as normal, because of the mix of tenants in the units. It was not a home.
You can get some good buys, the one I went to went over price.
Elves
” a blind man may see what a sighted man may not”
if you are buying at auction from a public trustee, they want their money. You cannot usually stall, they have time frames
They will have a list of terms and their contract at the site, advise you read the fine print. You can ask to be put ona mailing list I think too.
Elves
” a blind man may see what a sighted man may not”
yes and she has suppot and networks, that helps eh?
My brother has 7 kids.
Elves
” a blind man may see what a sighted man may not”
if you cross collateralise eventually you will run out of or reach a lending limit.
you might be ok with one or two, but if you keep them more as single entities you should have greater bargaining power, more flexibility to sell in the advent of something going wrong.
if everythig is tied up with everything else, it gets very messy. And ultimately expensive
Elves
” a blind man may see what a sighted man may not”
There is no right or wrong way.
you have to decide if a trust is for you anyway. AND WHY?I spoke with my accountant, he said dont bother. I only have me to worry about, no one else so trying to split incomes etc is not an option for me. Trying to protect my assets well why? from whom?
It isnt always necessary. If I had a partner that might be different, If I had a pile of kids maybe? But they also (ATO ) look at the who and why and how income is split etc and you know they can do lots of wonderful things to you too….
Just ask yourself why you need a trust?
Is there a benefit to this and why?
Are you ok with all the costs and and tax implications?Ask yourself the same if you retain the income in a company or if you use a unti trust to control a discretionary trust and maybe throw in the company along the way as controler….it isnt that simple.
If a discretion. trust then I am told there is no land tax threshold, so you pay from day dot land tax. At the moment I dont exceed any state land tax thresholds…
Seek legal and accountant advice as to your situation.
cheers elves
” a blind man may see what a sighted man may not”
LOL Brenda I have been known to put down $20.
And I am glad in one instance. The story of this is a little perturbing so be warned (those new people more so.)Story: buying proeprty interstate. Had someone look it over, decided ok lets leave deposit and get to due diligence. Person left a 50 depoosit, I remimbursed them. Real estate said ok, took money didnt give receipt. Made them stand there until I got receipt. Despite him putting it on contract. They new thought this would be ok. Contract faxed, signed, etc.
Due diligence, termites. Pulled out, right on deadline. Their solicitor was fighting me and mine over contract going unconditional. We refuted. Eventually they were threatened legally, and no leg to stand on. Backed off, then put it back on market. Solicitor expected my $50 refund. I didnt get it. I then went to the state for other reasons and called to Agent, guess what he went bust. He was part of the Real Estate Institue Association in that state. I had to send letter to trustee to get the $50 back….but I did.
Bottom line, although you pay small money make sure you get receipt no matter what. Make sure they are part of a group, can have more sway or comeback. Also, report any untoward behaviour, eg all moneies are to be deposited in trust accounts, and there are regulations about this. however, no point if they have nothing to get from them!
I thik I was lucky actually.
Elves
” a blind man may see what a sighted man may not”
maybe +CF that they prefer to keep it that way because it is high risk. I think most people on that level already do their own thing anyway.
Others simply want to learn and I learn something new everyday
” a blind man may see what a sighted man may not”
LOL Chan and Sis, well maybe thats why I put it that way…….[biggrin]
so now we have a new topic! go Chan
” a blind man may see what a sighted man may not”
Big Ben
what is determined risk to one, is no risk at all to another. the scale of risk however varies. Each investor should know their risk profile. You might be able to access this on one of the many sites around.
Investing in property is not low risk. Neither is jumping behind the wheel of your latest car, or walking across the street. If you were old and frail you might think twice about both….but you get my point.
try http://www.proquest.com.au. , now you might have to do a login process, I needed this for my studies so see how you go, if you want to try it.
Obviously international shares are rated higher than domestic and comercial property is higher than residential, cash adn bonds are safer so they are more low risk categories.
” CHAN me thinks you like to stir”
cheers
elves” a blind man may see what a sighted man may not”
wasnt that because he needed the money to build?
I know builders, and from what one told me, he can only borrow to a certain amount, in other words so many projects going before the bank says no. So if he sells something like off the plan, then the bank are ok, kinda like a down payment for him as well as the property buyer.
There are rules as to how much they can be working on and it might have something to do with their own equity or their own home!
ANyway thats what I was told so I stand corrected if this is not the case. But its like us …bank says too bad you are at your limit no more properties yet they hold you back!
Elves
” a blind man may see what a sighted man may not”
