Forum Replies Created
Well, out – super profits tax, in – mineral resource rent tax. A week is a long time in politics! Sure, the devil's still in the detail but there are already some mining projects being taken off hold. It seems that some sort of consensus has been reached but the Policy Transition Group has a lot to do. Don Arguse is a huge inclusion to the TPG for the mining lobby but he'll have his work cut out for him.
As well as the tax details there is still an oppposition ready to block legistlation and to rescind the tax if they win the upcoming election.
My gut feel though is that there is now enough stability in the mining tax that it will be business as usual and any potential negative impact on jobs, housing and confidence have been waylaid.
Andrew
itsandrew
Go as far as you can see and you will see further.
I dont understand what the regulations are regarding ceiling heights etc but what I do know is that councils can be worried about all sorts of things, even if it meets all the codes and regulations (I KNOW this from experience). Beware of council. Beware of emotional responses to the situation. I hope the measurements work out for you.
Andrew
itsandrew
Go as far as you can see and you will see further.
Funny how things move on. Seems like the ALP didnt think Kevin Rudd was doing a good job. What will Julia offer? – a chance to rethink some major policies, a new honey moon period for the government, and an early election (early september or last week of august?). I still think the Australian electorate is fundamentally conservative and is more likey to return the government to office than opt for change.
It looks like that the mining tax drama is close to a resolution http://www.heraldsun.com.au/news/pm-julia-gillard-and-miners-strike-super-profits-tax-deal/story-e6frf7jo-1225886822347. A big feather in Julia's cap. Not sure how WA and Qld voters will see it but I think the other states voters will be happy not to have a great big tax that 'everyone' pays for.
Andrew
itsandrew
Go as far as you can see and you will see further.
Are IO loans with offset accounts typically static with their payments or do some of them adjust each month to reflect the balance in the offset account.
Andrew
itsandrew
Go as far as you can see and you will see further.
Many thanks Paul,
So where does that leave people like me who want to look at vendor finance as part of a +ve cashflow portfoilio?
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Woodie,
I have a LOC for my PPOR. I'm disciplined with my spending so have had no problems from that angle but it can be a trap for others. Good thing is that you only pay interest on what you take out. But this can be achieved with an IO loan and an offset account.
I'm about to refinance my PPOR loan over to IO with offset. It keeps it seperate from other uses I may have for my money. eg. I will be opening up a LOC solely for investing purposes. Good thing about that is that all investments will come out of the one place and tax deductible interest will be very simple to work out. Deductibility is based on the purpose for which you use the money so it will be simple to work out. An LOC for PPOR which has investment money taken out gets messy.
Hope this helps.
Andrew
itsandrew
Go as far as you can see and you will see further.
Mr5o1,
Do you have a govt website you can recommend with more details on the scheme. I've only read a little bit about it and dont understand what qualifies you to be a part of the scheme.
Andrew
itsandrew
Go as far as you can see and you will see further.
What do you have to do to get your ACL? Is there a qualification to get first or do you just pay a registration/licence fee?
Andrew
itsandrew
Go as far as you can see and you will see further.
Thanks For that Matt.
I downloaded the demonstration version and tried to use that but most of the fields are blocked. It makes it hard to assess. Has anyone else used this software or something similar?
Andrew
itsandrew
Go as far as you can see and you will see further.
Quick update. Julia Gillard has already held out an olive branch to the mining industry. She has put mining advertising on hold so she seems to have a new attitude to the mining tax.
Andrew
itsandrew
Go as far as you can see and you will see further.
Well we officially have a new PM. I wonder whether Julia Gillard will shift from the hard line Kevin Rudd took with his Super Tax (or the backflip on the TES for that matter). I know Gillard made a lot of decision behind the scenes but I think she was pretty quiet on this one – at least in public.
A sidelight on Lateline last night was AWU National Secretary Paul Howes strongly holding the line on the super tax (who was one of the major non-parliamentary supporters of Gillard tht delivered Votes in the Caucus). I think it will be interesting to see what happens next beacause the super tax decimated labor support in Qld and WA. A lot more to play out and a holding pattern on mining town properties?
Andrew
itsandrew
Go as far as you can see and you will see further.
RnP wrote:It's all about figures. Make sure you have a good piece of software that lets you enter all the relevant data. Then just let the $$$ decide which investment is best for you. You should be taking all emotion out of your decisions and focusing solely on the profits. As I'm sure you know, the other thing to remember is that you can manufacture $$$ in your investment to ensure positive cashflow with things like renovations, subdivisions etc.RnP (or indeed anyone) – what is a "good piece of software" for this type of thing? I'm not aware of the options
Scratch – I also like the idea of diversifying in property but I hadn't thought of it like that.
Andrew
itsandrew
Go as far as you can see and you will see further.
Thanks Dan,
It doesn't really bother me which one we go for if the benefits or drawbacks are pretty much the same for each option. The only obvious thing for me is if we went for a house there may be develpment potential that's not available with units. However, develpopment's not our desired strategy at the moment.
I appreciate the point you make about yield and units. Very helpful.
Andrew
itsandrew
Go as far as you can see and you will see further.
Great work, hopefully the 21 days will work out in your favour. I did the same sort of development in Dandenong council with no objections but had a rejection by council. Thankfully we won at VCAT. Let us all know when its through
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Rob,
I have to say I find it extremely useful here and enjoy the openess of newbies to ask general or even basic questions. It gives me a context, a broad outline, and a fair warning on potential issues that would be 'sprung' on me at an accountants office. Anyway, I reckon you are making a great enquiry Rob.
As for point 2 there is a 6 year rule surrounding CGT and PPOR's. I dont really understand how it works but it sounds like under certain circumstances a former PPOR can be held as a rental for 6 years without getting CGT? Search the forums as I have read something about it. Maybe someone can rescue me by providing a proper explanation!
As for who should you talk to … you need to put together a team that will work with you towards your financial goals. I personally have a banker (a broker would do), a solictor, an accountant (which I am looking to change for a more specialised property accountant), a REA/property manager. I am meeting with a financial planner for a braoder perspective but I dont know if that will be useful yet. Hope that helps.
Anyway, good luck with your investing. Keep asking questions on the forums as there is a lot of experience that you can tap into. I've found it extremely helpful so far.
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Fair call duckster. You're right, being an election year we'll have to wait see. But the coalition also needs bush votes so they can't push against it too much I wouldn't have thought.
I think the coalition will at least keep parts of the blueprint then improve/extend it. For example I can't see them reversing the $25 million committment to 'transform' Skilled Stadium.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi,
I think people are rightly pointing out that Steve's book 0-130 property's in 3.5 years is an older book. I read this when it was released and it was great at the time (some people still recommend it as something to read). However, he recently published the 'update' book – From 0 to 260+ Properties in 7 Years. All the reports I have read say its right up to date for the current market and it's next in line on my 'to read' list.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Duckster,
I have a couple of questions on depreciation and CGT (please excuste the ignorance). I have read many time that claiming depreciation will shift the cost base of a property. Does that backdate to the time you have been claiming depreciation eg. up to 40 years. Or is there a time limit on how much the cost base shifts eg. 5 years? What about CGT?
I assume you would be in front claiming depreciation then getting charged extra CGT as it is calculated on 50% of the value?
Many thanks and I hope my questions make sense,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi SF, love the question.
I have two things I wish I coulds have advised myself. 1) take more calculated risks. 2) manage your spending better. I suppose that means it would be the advice I would also give someone else.
Andrew
itsandrew
Go as far as you can see and you will see further.
Just want to say thanks again guys! This is really good food for thought as I will be restructuring my loans in the next couple of months.
Andrew
itsandrew
Go as far as you can see and you will see further.
