Hi Beast,

Good advice above. Make sure you know what you want to achieve from your investing before you go off and buy “any old” property.

Re; the tax variation, you will need to lodge a PAYG Withholding variation (available off the ATO’s website – http://www.ato.gov.au).

You fill this out itemising your income and property (and other) deductions and…[Read more]

You’ll need to do a fair bit of analysis before you know whether or not this makes a worthwhile development site. You say the land is worth $600K or less. How many units might you be able to get on this site? (Check the zoning to see what the council allows) At first glance, probably around 3.

Then you need to do a feasibility on the…[Read more]

Yep, your calculations are right.

In relation to the loan, it depends on how your bank does it – or how you want them to do it. In some cases you can just increase the current loan (which means you’d be best to have your account divided into sub-accounts.

Alternatively, the bank might just set up one new account for the whole lot and simply…[Read more]

Great advice on this topic. I’m also a fan of not selling – unless the -c.flow is causing too much pain.

Perth is apparently still growing and a great market according to many.

I have an absolutely awesome accountant. Knows all about property, is an investor and developer himself and a structuring expert. Located near Parramatta. Send me an…[Read more]

Don’t know if I agree with clones. As he/she points out quite rightly initially this will save tax but is only a short term view.

While you might be the larger income earner now (and thus gain the bigger benefit) what happens if you stop working (get sick – heaven forbid, get made redundant or retire).

All of a sudden your wife is the larger…[Read more]

Good advice Giddo! Can I add another thought?

Remember that it’s not only cashflow that’s important – capital growth can provide you with benefits too. Either live off it, use it to fund more properties or realise it by selling.

However, the trade off is usually (not always) cashflow. If you buy only properties that meet the 11 rule, then you…[Read more]

I agree. Could be a developer wanting to buy up a chunk (say properties next door) or who knows that zonings will be changed.

Megan

http://www.propertyhub.net

I think the issue with network marketing (or any other kind of business for that matter) is that people join thinking that it will be a “magic pill” – the opportunity to make lots of money for only a little work.

In reality and in my experience in business, people who makes successes of business are those who feel passionately about what they do…[Read more]

Eleven

The most astute accountant I’ve ever come across is Ed Chan from Chan & Naylor. He is as sharp as a tack, an investor himself, a property developer, specialist in structuring and what he doesn’t know about property you could write on the head of a pin!

Ed’s in Sydney (Dundas) and will probably refer you to his in-house guy, Dave Austin -…[Read more]

nm,

You need to think about it in a bigger way than this. You say that husband and wife’s income is the same now, but will it always be? What if one of you wants to retire? Or needs to stop working because of illness (hopefully not) or other reasons? Or is made redundant?

The last thing you want is to find you have put all or half of the tax…[Read more]

Paula

I basically agree with CATA but don’t think that some of your basic questions have been answered. Firstly, if this is residential property there is no GST to claim back, regardless of which structure you use.

Secondly, I can’t believe you have to wait until October for an appointment. Find another adviser!! I can give you the name of a…[Read more]

I’m a supporter of HOLD HOLD HOLD. It doesn’t make any sense to me to sell a property and then buy back into the market. For a start you deplete your asset base by at least the cost of the selling agent’s commission and legals.

I support your idea of using the equity to increase your holdings.

Positive cashflow properties are easier to find in…[Read more]

Agree with Dazzling except on point 1. If you and your parents are happy with the status quo and everyone feels content with the situation – they I don’t see why you should move our just to make a statement that you’re all grown up!

In this day and age when it’s getting harder than ever to get into a home, I’m more than happy to help my son with…[Read more]

Seek advice from someone who specialises in this area. Most accountants will tell you they know how to set up trusts (and they do) but most don’t really know the intricacies and could cost you more than they save you. The biggest issue most accountants forget when advising on Trusts is land tax – which is self assessment.

You also can’t get…[Read more]

Hal

Not sure that Nigel’s comment is correct. It’s my understanding that any transfer (except under administration of an estate or family law orders) incurs stamp duty, regardless of whether it’s a close relative or not.

Even transferring between husband and wife incurs stamp duty (which is why you need to get your structures right from the…[Read more]

Ben

What you’re talking about is property “trading” and is very much like share trading. Trading relies on you being able to “pick” the market and I agree with Danny, it’s very speculative.

As well, each time you sell, you deplete your asset base by the cost of the sale. E.g. Assuming all you own at present is your house. You have $250,000…[Read more]

Hi Voigtstr

The method you mention is the traditional way i.e. save for your deposit, get a house, save for the next etc, but you are limited by the speed at which you can save. There are other alternatives such as using equity in the home you own to fund the next one e.g. if you have a home worth $200,000 with a $100,000 loan you can use the…[Read more]

Hi TFO

Kudos to you for the great attitude! Yes, it is hard getting starting young with little capital however people before you have done it.

Firstly, there are some opportunities in country areas that you can get into for small $$$$$. They still exist but aren’t that easy to find.

What about looking for deals for others? A number of people…[Read more]

POSH is very good and very reasonably priced. It handles lots of properties – but not sure about GST. It should.

Regards

Megan

http://www.propertyhub.net

You have to pay Stamp Duty on any transfer of land. I’m not sure what you mean by “transferred in name” but I assume you mean with no physical money changing hands.

Unfortunately, as this is a transfer from one party to another, stamp duty is payable on the value of the property i.e. fair market value not what you say it’s worth!!

This also…[Read more]