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I believe (and I am no authority) you may only claim GST back if you actually charge GST in the rent. It is your choice.
This certainly applies with a company structure I am not 100% sure with trust.
Reckon you cant have your cake and eat it too!!
I hope this is of some small assistance.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
The property was 300k house and land.
After dual occing it, you have your unit to sell at $360k? and house at $300K?Sounds almost reasonable. I think a lot depends on how they look together, the house and unit. Are they Torvill and Dean together – or Sir Les Patterson and Maria Sharapova ???!
I have found that often the value of a house and land is not compromised too much by taking some of the land away.
Probably also depends on the surroundings too. Lots of new stuff, or mixture?
Neighbours?
A lot less unknowns with your second plan -making them “known unknowns” to a certain extent.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
The property was 300k house and land.
After dual occing it, you have your unit to sell at $360k? and house at $300K?Sounds almost reasonable. I think a lot depends on how they look together, the house and unit. Are they Torvill and Dean together – or Sir Les Patterson and Maria Sharapova ???!
I have found that often the value of a house and land is not compromised too much by taking some of the land away.
Probably also depends on the surroundings too. Lots of new stuff, or mixture?
Neighbours?
A lot less unknowns with your second plan -making them “known unknowns” to a certain extent.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hello Stephen,
Yes I concur with Dazzling – if you can hang in there with your 5% I am certain you will succeed.
I did not get any direction with investing till I was about 35, and still have enough time to succeed yet.
You have time and persistence on your side.Hang in there.
I sold my blue chip t2 shares 3 years ago at 4.80.
Bought them at the float price. Have used the proceeds to help buy property and have done fine since.
Remember leverage will be your friend when you get into property – buying shares now with your cash will not help your cause much (no leverage)
and may harm your cause. Take the 5%.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hello BS,
I would go and see a good mortgage broker to determine your situation re finance.
But more importantly I would thoroughly research what you wish to buy, and for what purpose.e.g. you may want to buy a ppor before investing, or you may be better to get straight into an investment property.
There are a myriad of diverse factors involved in your decision.
First read all the old threads on this site.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
I agree DAZZ, surely the people reading this board can sort out the wheat from the chaff in their own minds. Advice is just that ADVICE, it is not compulsory to take the advice.
All should be free to give out advice here, so long as they are not obviously advertising.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Munjy, you bet she helps to fertilise the yard! And at home she sits on MY recliner rcker chair.
But she is a good watchdog (while I am home)Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Thanks Hellman,
Our dachshound could chase theives ok but only if they are in the backyard where she is confined.She is fast for only a v short distance though. Come to think of it, that will not work though. She is brave while I am here, but is v quiet and scared if I am away.
Perhaps she is not cut out to be a watchdog.
Our accomm is not dog friendly and I do not think it would be worth the trouble now to try to involve the dog in our promo material. I think i will just forget about the tax deduction idea.
Bur thanks for the informative info about the lady with the accomm near the showdog place.Very interesting, and the idea may come in handy in the future.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hello SUDS and all,
I think you are treading dangerous ground when you start to label people “stingy”, “idiots”, or “truly financially successful”.
I can see where you are coming from but I reckon there a just a coupla more factors involved with decisions on cars.
Your idea of “stingy” may be someone elses idea of “smart”. What do you mean “being cheap for the sake of it”??
Most people who are cheap or stingy or smart are doing it for a reason, perhaps to built wealth for the future.
I admire someone who can DELAY GRATIFICATION just a bit in order to succeed later.
Obviously a BALANCE needs to be acheived at some stage. I think most of us are grappling with this; NOT BEING CHEAP FOR THE SAKE OF IT.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Welcome moony,
I agree that knowing exactly what is meant by “wealthy” is a subjective task – different for each person.
I have never actually sat down and decided exactly what wealthy means for me. however I am willing to have a stab at it now, as it is an interesting topic.“Wealthy” – having a stream of income of over say $100k p.a. after tax for the family. This income can be acheived thru personal exertion, but I do not mean by having a 9 to 5 job. I mean by running your own show and working in it with some flexibility.
“Comfortable” – working within a budget – having a budget that covers everything necessary. Thereby not needing to worry about “unexpected” bills. Also means the occasional impulse purchase is covered. No Surprises.
Looking back at this I think I have offered a definition of an acceptable lifestyle not wealth. It is possible to be wealthy and half kill yourself doing it. That is not my idea of living.
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Appreciate your assistance GROSS,
You are good to help me.
Yes the deal is skinny. Sooo so skinny. I wouldn’t consider it except the land is next to land I own and something beneficial is to happen nearby.
I am looking at what to put on the land – i can put 2×2 b room units or a 3 and a 1 or a two and 2 single bedroom units.
I would keep it all after I do it. I have a company structure and can claim back the GST as I am using it all for production of income, and charge GST on the accomm I provide.
I have done this before but the land only cost 89k last time – before everything rose.
I am getting 14% nett on what I paid for land and buildings last time, but now I am looking at only 7% because of the increase in the value of the land and increased building costs.
A familiar tale of woe I am sure. I am sure time would heal the hurtful results of price rises.But why would I want to do something for a gain so far in the future.
Your calculations are all about financing and viability for the bank I suppose and do not take into account the above factors.
I am still thinking about the whole thing.I have been for some time actually.
I used to be indecisive but now I am not so sure.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Thanks Gross,
Appreciate your input.Cost of land 190k
Build Cost 180k
Value on completion 450k
Int rate 7 %
To Build 15 monthsThanks so much
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi GROSS,
Did you say walk like a JEDI?
I do not know much about Star Wars stuff, but that must be a good thing I am guessing.
I am more likely to walk like a penguin with a sore toe.
I like the idea of using “The Force” though.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi Gross (hope you don’t mind me using your first name!?! )
Very interesting thread and well worth thinking about. I had always wondered what sort of trouble people my get into with these loans.
Lucky for me I have NOT done any of this so I won’t have to phone my pencil man. I am too honest for my own good sometimes.But I am glad I am this time.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
interesting to note that over half of Oz households do not have a budget or cannot stick to one.
Surely this means a terrific risk of spending more you earn.
I am flabbergasted to see how a lot of people are so blase about this.
Why would anyone WANT TO RISK SPENDING MORE THAN THEY EARN?
This is just stupid and unsustainable (obviously)
A lot of investors are criticised for going into neg gearing schemes. These people are at least smarter than the aforementioned!
At least with negative gearing there is a chance of cap gain at some stage.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Are you suggesting some borrowers may be accidently overstating their income?
Maybe these borrowers are hoping to invest successfully and thereby make enough money to repay ATO when caught?
Perhaps an apology would be enough?!?
As a prominent oz cricketer once stated – I am sorry – sorry that I was found out.
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Save on phones with capping. I am with Telstra and have just gone onto $99 plan which covers me for up to $500 worth calls on my landline and one mobile phone.(per Month) Plus rental for landline. No forfeiture if spend is less than $99. Go to Telstra.com they should have details there. This is a fairly new product I think.
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
NON refundable deposits??!!
I laugh at the audacity of these people!
I say wave Bye Bye
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Spot on folks – I like your direct style advice Dazzling –
The only way to go faster and better is to start taking more risks i.e. put yourself in the position to make more $$$.
Looks like you need to sell an IP first perhaps.
It is a pity for all of us that we can’t make more money from a lower risk strategy.
I believe more exposure to risk means potentially more exposure to money in the bank.
Sounds pretty obvious I guess, but worth thinking about.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
I think you have got to expect 15 to 20 percent nett for any reno. I hasten to add I have only done 2 -(I usually do developments)
Perhapd someone else has a closer idea!??
Giddo
