The risk is usually because these developments are hocked up to the eyeballs, and mezzanine debt is borrowed based on the anticipated value of the completed project.

As for mortgages, it’s usually a second, or even a third, mortgage, but definitely ranking below the bank’s mortgage (how it works is that the developer borrows most of the money…[Read more]

Sure – I’d love to hear your views.

Will e-mail you tonight when I get home.

As long as you had any ownership interest in a residential property before, you automatically become ineligible.

But you could still inquire at the relevant State Revenue office to see if your particular circumstances are okay. There’s nothing wrong with making an application anyway, as long as you fully disclose these facts.

If you fail to…[Read more]

Hi guys,

Does anyone have any recommendations regarding country towns in WA?

Thanks
M

Hi Steve,

Congratulations! I’m in the process of trying to write a book myself (not so much on property investment, but on how to do your own settlement/conveyancing for residential IPs you buy), and am looking forward to the feeling when I finally finish it!

Anyway, I’m keen on a copy of your book too Steve. Always on the lookout for more…[Read more]

Hi guys,

I think that the experts have a reasonably good idea of what’s going to happen, but not when. It’s the same with the property boom in the 90’s. It’s the same with every stockmarket boom.

That said, I’m still looking to buy IPs. My view is that it’s not whether you buy in boom or bust, but whether or not you got the property for a fair…[Read more]

I suspect that if you are an Australian tax resident when you sell your UK property, you may indeed be up for some tax.

I’m not too sure about how it all works, unfortunately. Perhaps someone else on this forum would know.

At the end of the day, if you’re talking about a lot of money in potential CGT, you should probably consult a good…[Read more]

G’day Matrix,

I was impressed by his 2-hour seminar, so I signed up for one of his Fast Property weekend seminars a few years ago, and paid a $615 deposit to secure my spot. Back then he was operating out of a company called Asset Corporation Australia Pty Ltd, based in Victoria.

However, I couldn’t make it, due to impending work commitments,…[Read more]

Hi dhdtang,

respectfully, I don’t agree with you there. As I said in my earlier post, you can in fact have a postive cashflow IP which is ALSO negatively geared. That’s the beauty of depreciation.

Depreciation is a non-cash flow expense. It doesn’t take any money out of your pocket. Some people call it a “phantom” expense. But it’s quite…[Read more]

Hi Diana,

What do you mean by “overseas property sales”? Are you talking about your property in the UK, or are you talking about a property you might buy in Australia?

Cheers
M

Sorry TheEnjoLady, but the answer is indeed No.

If you transfer the PI into a trust, even though the company is the trustee and the PI remains in the company’s name, there’s a transfer of beneficial ownership, which is a CGT event of the worse sort – you’re up for CGT, but you didn’t even sell the PI and therefore have to pay for it out of your…[Read more]

Hi dosser,

Saskatoon is right – it’s probably cheaper but equally as effective to use a good tax accountant than a tax lawyer.

Tax lawyers are usually only used by high net worth individuals (net assets of over $1m) and bigger companies. While they will no doubt provide an excellent service, the question is whether their services are cost…[Read more]

Hi Ms Elvis,

There’s not much you can do – CGT is here to stay, and the ATO can see through, and has complete power to brush aside, artificial schemes to avoid it.

You’re right, your friend’s property must have been her PPOR. If not, I wouldn’t go around telling the whole world about it.

The only legitimate ways I know of to reduce your CGT…[Read more]

That real estate agent seems to be getting taxation advice from a different country (I think what he’s saying may apply in some US States).

Stu is right – he should stick to selling real estate before he gets his nose chopped off (professionally and financially, that is) for making misleading and deceptive statements for financial gain.

There’s…[Read more]

Hi Ms Elvis,

There are some helpful posts in the last few days on buying property jointly with someone other than your spouse or partner, particularly on the pitfalls of doing so. One of the most important things to do is to sit down with your friend and clarify exactly what each of you want to achieve, level of commitment, etc. I’ve tried to…[Read more]

Hi everyone,

I’m Melvin, just turned 31 and am a lawyer (no I don’t chase ambulances or litigate!).

Hey Minnie – I’m in Perth too. So you’re not the only sandgroper.

I found this forum by searching google, on one of my internet surfing expeditions to find property investment websites. I like forums, because they are populated by real people…[Read more]

Thanks MiniMogul. GVs in WA seem to be substantially lower than the actual sales price for properties. But I’ll keep that under my hat for when I look at the next property. []

Sure, negative gearing means you are actually making a loss. But as others have posted, there are benefits, and it does work for some people.

One thing that nobody seems to have talked about is how you can use negative gearing to “shift” your tax deductions into your own home. For example, if you get a tax refund from your negatively geared…[Read more]

Hey minimogul,

Thanks for your post – that was quite interesting.

I just had a question though – what did you mean by “GV”?

Cheers
M

I don’t intend to sound negative, but I think that there is a place for caution and risk management in any investment, especially when prices are running hot and everyone and his dog are getting into the market.

I remember the tech crash in the late 90’s (not least because I nearly lost my shirt in it) – and David is right in that respect -…[Read more]