hi
according to ed chan…trust guru

“We never purchase a property in a company because when you come to sell the property you miss out on the 50% exemption for capital gains tax and also if the property was negatively geared the losses would also be trapped inside a Company”

just another opinion

Hi terry

interesting how you make the tenants pay all outgoings
because according to the residential act, that would be illegal

have you found a loop hole?

RESIDENTIAL TENANCIES ACT 1987 – SECT 19
Landlord to pay council and water rates, land tax etc
19 Landlord to pay council and water rates, land tax etc

(1) It is a term of every residential tenancy agreement that the landlord shall pay all rates, taxes or charges payable under any Act in connection with the residential premises (other than charges for electricity, gas, excess water and any other prescribed charges).

ozi…..
i don’t really care where the market goes either….

but i do care where my money goes…..

and what fool would put money into an investment thats going no where today..
i’ll keep it simple
buy a median house in melb 12 months ago 370k
sell today 360k (thats what it worth) rent 1 year 300/wk
total profit/loss ..LOSS $61k
buy bhp shares (i read the newspaper it say resources going up) same price
sell today , make $140k PROFIT

i’m no einstein…but blind freddy would tell me properties going nowhere FAST

so the gurus might all have there own opinions where it s all going….

but at the end of the day its your money

you know grossrealisation

there’s just to many experts

try this one……

BIS Shrapnel chief economist Dr Frank Gelber believes the economy will now pick up pace
“Business investment will take over as a driver of growth.”

However BIS forecasts a downturn in 2008.

“We’re looking at CPI inflation rising to 4.5 percent. That’s more than the Reserve Bank will wear, and it will start raising interest rates again. Next year, in the 2006 calendar year, we expect rates to rise by 1.5 to 2 percent.

“Housing interest rates will go to 9 percent. Bill rates go to almost 8 percent. That takes the head off the upswing, off the regional boom.

“In other words, we think that in a strong economy, demand inflationary pressure will cause rises in interest rates. That will put a ceiling on the upswing. If we don’t see the interest rate rises – the Treasury line – there will be a more sustained recovery, a more sustained boom and a bigger bust at the end of it.”

make of that what you want……

but commercial property’s are looking good…..go dazzling

and shares in companies…….

sounds good, millionintraining

i assume your using your PPOR for your company to use a small office in…right

well don’t forget the other end…
what other end?

once you start claiming a tax deduction….all those 101010101010101010010101001 (digital data)(tax deductions) entres the ATO database.

so when you sell your PPOR…guess what….
up come all the 101010101010101010010101001
and there we have it
CGT on a % of you’ve PPOR…

taxes….helps pay for the PMs new 737, flying around the country

Ho ozi
all sounds good to me….
just a quick question…
when this next boom happening
because according to……
Bernard Salt is a trendspotter for KPMG
“There’ll be another weak boom in 2018-2020 and then the property market will hit the wall as the baby-boomers start dying off in droves in the 2020s.”

do you know something we do?

if that gurus right, i reckon 15 years is a long time to sit don’t you, ?

well
i had the complete opposite Jason
My tenant have been in the office now for 12 years
they spent 150K when they moved in, do the building up…and it looks like business is good and they probably be there another 12 years…..
and cashflow….i paid 360K for office….they pay $80k/yr plus all outgoings…and keep the building looking clean….
what more do i need?
maybe another one like that………

ah thats better

good reason to be careful grant7

“If you have a low documentation loan, be aware the Australian Tax Office is watching closely. The ATO has launched a data matching program that will match the income declared by taxpayers to the ATO, against information provided to financial institutions. The following financial institutions form part of the initial program: PMI Mortgage Insurance Ltd; St George Bank Ltd; GE Mortgage Insurance Company Propriety Ltd; Australia and New Zealand Banking Group Ltd; Westpac Banking Corporation; and Suncorp-Metway Ltd.”

Hi Grant

“the ato might not necessarily see my point of view”

Not only won’t they see you point, but they have now confirmed it in LAW, after the Hart Case that went all the way to the High Court.

a bit of reading material re these loans
http://www.ato.gov.au/corporate/content.asp?doc=/content/mr2004034.htm

if you mix Non deductible and deductible amounts together…you’ll keep your accountant very busy $$$$$$$$$$$
and a ATO tax auditor busy….
i know…i had a sales tax auditor sit there for 3 weeks going thru every invoice, and finally concluded that i owned them $40

easiest way for accountant/ato is to take out 2 loans…
1. personal…non tax deductible
2. investment…deductible

or alternatively, start a company, borrowing the money in it, pay yourself a salary.
Just remember, the company will then also have to pay FBT, PAYE tax, Super Contrib etc, etc….LOTS MORE PAPER WORK

totally agree with you cata

my cleaner works 1/2 hr a day 5 days a week makes $13k a year
thats $100/hr cleaning……. ridiculous

the sooner these IR laws come in the better

i reckon…$1.50/hr is heaps…thats double what they get in China….