It’s sometimes also about aggressive (but always courteous) negotiation. If you can’t get the property for a price that would give you the yield you need, then be prepared to walk away.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

It seems to me that the question of whether to use a property manager is very emotive, and depends on your own personal experiences.

Being in the service industry, and charging clients for my time, I appreciate the amount of running around that property managers do. To me, it’s a bargain. Imagine having to hire a personal assistant to run your…[Read more]

Hey y’all! I’m back after many months!

I’ve got a few thoughts that I thought I’d share.

Unfortunately, there are lots of different potential structures you could use. And the best structure is…. (you’ll hate me for this) … it really depends on your particular situation.

A unit trust is great because it makes things neat – it’s easy to…[Read more]

Hi guys,

I’m a bit slow on the uptake when it comes to tax. But if you own the IPs in your personal name, and use the companies to collect rent, aren’t you still earning the rent in your personal name? Isn’t it a clear case of tax avoidance, which the anti-avoidance provisions of the tax legislation will catch?

Cheers
E

DIY Residential Property…[Read more]

Probably defamatory and a breach of the Privacy Act if you add the boyfriend’s name to the database and he wasn’t a tenant under the lease agreement (ie he doesn’t legally owe you any money).

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Discretionary trusts are a great tool for asset protection. But it only works in one direction – if you go under financially, your creditors can’t touch the trust assets. However, if the trust itself is in financial strife, it’s not so easy to cut it loose and wash your hands.

If you’re using a corporate trustee, the directors of the trustee…[Read more]

Hi guys,

Read section 12 of the First Home Owner Grant Act (WA).

If you owned any residential property before 1 July 2000, you’re automatically ineligible for the grant – s12(1).

If you never owned any residential property before 1 July 2000, but buy a residential property after this date, owning this property in itself will not disqualify you…[Read more]

Been using Money for years. It does the job, and
I think it’s much more affordable than Quicken (I paid around $50).

Setting up stuff is a bit fiddly, but you get the hang of it after a while.

The calculations (eg mortgage amortisation) are not perfect, so probably not so good for keeping track of your wraps. Also, it’s not able to properly…[Read more]

Interesting idea.

Unfortunately, it doesn’t work in WA. There are anti-avoidance provisions in the Stamp Act. It’s quite illegal here.

Will be safer getting an option to buy the property, and selling it to someone else.

Cheers
E

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Hi kbh,

if you buy an investment property, you won’t be able to get the FHOG for that property. However, if you never live in that investment property, you should be eligible for the grant when you buy the next property to live in (assuming that you satisfy all the eligibility criteria).

that is, merely buying an investment property, as long as…[Read more]

Pisces, believe it or not, the eligibility criteria for “first home ownership” under stamp duty laws and under the First Home Owner Grant Act may be different.

I have read the heading of the thread. “FHOG” is an acronym for First Home Owner’s Grant, isn’t it?

Stamp duty and the FHOG are quite different things.

DIY Residential Property…[Read more]

As a first project, keep it simple I say.

Use a company, and sign a shareholders’ agreement setting out how things need to be run, how to exit your investment, and what happens if there’s a deadlock or a default.

But none of us on the forum are qualified financial advisers (otherwise there would have been a disclosure/disclaimer blurb after the…[Read more]

South Australia and Western Australia don’t seem to have changed the laws to introduce the 6 month minimum residency period. But I expect that they will follow suit with the other States shortly.

When you apply for the FHOG, you have to make a written statement that you intent to reside in the property as your PPOR within 12 months.

The States…[Read more]

Hi spi, welcome to the forum.

Are you actually asking a question, or just introducing yourself?

Anyway, all the best.

Cheers
E

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

Hi smartmoney, when you say “FHOG”, I presume you don’t actually mean the first home owner’s grant? That’s a completely different thing from stamp duty (sorry to anyone who gets annoyed at me pointing out the obvious).

On stamp duty, you’ll need to find out what the transitional provisions are. It’s likely to be either the date the contract was…[Read more]

Hey SIS – good on you! And thanks for sharing your inspirational life story.

Sometimes, getting set back in life actually gives you the opportunity to build your financial foundations, because then you won’t be distracted by trying to climb to corporate ladder or getting along in your mundane job.

All the best, and don’t forget the One Minute…[Read more]

Hi guys,

Like many things in life, if it’s good, nobody notices, and if it’s bad, everyone has a whack at you.

How you establish a “good” credit history is the same. For example, by having a credit card for 5 years, without any defaults recorded on your credit report, gives you a “good” credit history. It shows the bank that you’ve been using…[Read more]

I used to have a 15k limit on my card (if I remember correctly), but halved that because it was looking really bad on my investment property loan applications. That was a long time ago, but I don’t miss the higher limit at all.

I’m quite happy with a lower limit – keeps me away from impulse spending.

E

DIY Residential Property Settlements in…[Read more]

Hey SIS,

What’s the minimum income level you need before you qualify for the CBA plat? That’s usually a good indicator of whether it’s a marketing thing or whether it’s a “true” plat. If it’s a marketing thing, the service levels, and maybe even the benefits, will probably drop off in a few years time, when lots of people switch from gold to…[Read more]

In WA, there’s a conessional rate of stamp duty rebate for home buyers (not just your first home). If you’re a first home buyer, you may also be eligible for a $500 rebate (not to be confused with the Federal Government’s $7,000 first home owner’s grant).

There’s also a concessional rate of stamp duty on mortgages for home buyers.

Given that…[Read more]