hb,

Is the Federal MP you contacted an accountant?

If not, why on Earth does it matter what they think?

Jay

Originally posted by rickotton:
The house was worth 350k and we paid $276,800

Rick,

How did you arrive at the market value of the property? Cant an argument be made that the market value of a property is whatever price it sells at? In this instance, the market would not pay 350k for the house, so therefore it was not worth 350k – it was worth…[Read more]

Originally posted by Spanky:
Hi guys,
I own a 2br strata title unit in my name that I currently live in. I would ultimately like to rent it out and place it under a company name for obvious reasons.

What are the obvious reasons?

Most accountants and financial experts advise against holding property in a company for a number of reasons (loss of…[Read more]

Thanks for clearing that up KS.

When you said you were doing a “development”, I figured you meant you were developing multiple units and wondered if you had secured presales – I didnt realise you meant “development” to mean building a single house.

Thanks for the clarification.

Jay

Originally posted by KS:
I purchased a block of land in Rockingham 6 months ago. The development will be finished in 5 months and the total gain will be 100k in equity.

Hi KS,

How can you be certain of the profit the development will generate without either (a) a sale, or (b) a bank valuation of the finished product?

How many units/townhouses…[Read more]

Hi Maria,

Could you perhaps post the numbers youve used to arrive at the property being cashflow positive?

Im just having trouble seeing how a property returning around 5.6% would be cashflow positive with interest rates hovering just under/around 7%. Even taking into account depreciation, on top of interest payments youve also got insurance,…[Read more]

A quick search on Google would have given you everything you needed [snitch]

Robert Sim
John Kerr & Associates Real Estate Pty Ltd
Shop 2/1E Moore Street, MOE VIC 3825
Phone: 03 51277133 Fax: 03 51277144
MOB: 0409 194 084

Jay.

Terry is exactly right. Never, ever agree to purchase a property with the intention to flip it UNLESS you are in a financial position to settle it if you cant onsell.

Potential upsides are great, but you should always make sure you have the downsides covered too. Flipping without a backup plan is not investing – its speculating.

Jay.

Regarded by whom?

Are you doing it for the knowledge you acquire, or for the additional prestige the diploma might give you in a job application?

Whether completing it is worthwhile or not depends entirely on your reason for beginning it in the first place [grad]

Jay

Hi Kelly,

You need to download and fill out an Income Tax Withholding Variation. You can find it here:

http://www.ato.gov.au/corporate/content.asp?doc=/content/57470.htm

Jay.

Originally posted by jsandso:

I have just done a little research in regards to CGT and believe that the capital gain is not added to your gross income.

Therefore it is not lifting you up into the next tax bracket it is only taxed with your marginal tax bracket you are in. So if your salary is $50,000 you are in the 30% bracket, that means your…[Read more]

Originally posted by The Mortgage Adviser:
What I meant by my comment is that if you are a “student” (ie: no job and no property), you do not pay any tax so who cares if it is deductible or not? There is nothing to deduct it against. Maybe in a few years though!

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Hi…[Read more]

This is a HUGELY grey area.

The ATO will allow deductions to a seminar if you can prove (a) you are in the BUSINESS of property (will come back to this), and (b) there is a direct nexus between the content of the seminar and your property business (ie if the seminar was about wraps and you were not currently involved in a wrap, then you would not…[Read more]

Terry,

In VIC there is also the provision to pay stamp duty 3 months after settlement.

The Wizard, in which state is the property? Each state has fairly different legislation regarding OTP purchases and payment of stamp duty.

Jay.

Originally posted by Atma:
Hi all,
Looking for an accountant/solisitor/mentor ect
Please respond to this add.I live in Bathurst and
work in sydney.And am only interested in Positively geared property.[biggrin]

Hi Atma,

Why are you only interested in positively geared property?

Originally posted by The Mortgage Adviser:
Unfortunately, he is from Newcastle but we won’t hold that against him!!!

Robert Bou-Hamdan

Ahh.. such blasphemy…

You should travel up and come sailing one afternoon Rob – spend the afternoon on Lake Macquarie and you wont ever want to go back to that festering cesspit you call Sydney.

Simon even…[Read more]

Originally posted by The Mortgage Adviser:
I have been advised that I cannot claim anything on my land until I actually build the investment property. I have not pursued it since. If this is wrong, I will be very upset as I am owed a stack of deductible interest.

Rob,

I suggest you find yourself a new accountant, as this information you received…[Read more]

Hi Property Angel,

In your first post you said:

Originally posted by PropertyAngel:
Rennovation completed but have now found that valuer refuses to value.

Then, in your last post, you state:

Originally posted by PropertyAngel:
The renno isnt finished and settlement as been agreed to be 12months or longer if i wish, as I live in the house at…[Read more]

Nobleone,

Why does accessing equity have to involve refinancing? Why not establish a stand-alone LOC secured by each property with sufficient equity?

There are no loan termination charges because youre not terminating the loan – youre actually establishing a new facility to access your equity.

Not sure how an IFHL would help, seeing they are…[Read more]

Originally posted by ss2306:
Thanks everyone so much for your replys. My computer has been and still is out of action hence me not logging in for a while. Currently on my Mum’s puter. I think I have covered everything listed, ie stamp duty, finance, research, etc, etc. Hope I am on a winner!!! My first venture so lets see how I go.

Thanks…[Read more]