Forum Replies Created
That can’t be right Coreyjay. No GST is applicable to the rent of a residential property. You can only charge GST if you are registered & own a commercial/industrial property.
The agent will charge you GST because they are running a business which is supplying a service being the property management. So, they will charge 8% of the $240/wk (which is $19.20) plus 10% GST on this service (which is $1.92).
You should then receive $218.88 per week. The only other thing to check is if they are also charging a “statement fee, mailing fee” etc. This may be where the rest on your money is going.
If you need any other help on reading the statement, scan it in & email me, I am happy to help you understand the components
Kim
Hi Coreyjay,
Give me some more info.. Do you mean the rent includes GST or do you mean your agent is charging you GST I am not sure where the GST fits in
Kim
Oh Tools, you should meet my husband – ha ha ha
He moved into our PPoR in Sept/Oct 1996 & promised that by the time I moved in in Nov 1996 he would have my additional kitchen cupboards & laundry cupboards installed. Now this should be easy given he is a cabinet maker.
Well last month I got my laundry cupboards because dear husband bought a dirt bike & I asked nicely “Well where are you going to store all the stuff for that, we are out of room in the house?” I had the cupboards that week.
But guess what, I am still waiting for the kitchen cupboards [rolleyes3]
Hi Simon,
Maybe your PM can help out. My PM in SA put us with Millennium Underwriting Agencies but I am not sure if they cover all states of Aust. It costs me $223 if that helps.
Kim
Okay, last one was too risky etc etc etc. Pick this one apart then….
I am shocked by all you knockers!!! The point I was making was that I simply type in Brisbane as a search & this was one of the first good ones I saw. It shows one bedroom & an 8% return. Hey, I am not looking to buy & guess what I didn’t do any due diligence on this property so I wouldn’t know what the body corp fees are. The point is, if there is one there is probably more. Start looking for the ones that suit your portfolio instead of putting crap on those that are out there trying!!!
I am not looking at either Sydney or Brisbane. The argument was that there was nothing there, I was trying to get you guys to open your mind to the possibility.
Happy hunting
Thought I might help out here Dazzling.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2004873562&n=
Kim
Sorry Danny I can’t answer that one. The properties I have under strata are commercial properties hence we do not need caretakers.
Totally agree Tools. However if this is the only commercial property, being that the rent is under $50,000pa he can choose whether to be registered or not & hence may not need to charge GST at all.
Hi DSmith,
Body corporate fees cover all common areas & common costs which would include the building insurance, maintenance of the grounds, fire regulations such as blankets & extinguishers etc etc etc. There is also the body corporate management fees to hold meetings, collect & pay the above bills, similar to what a real estate agent would do when managing the rent.
The other cost that may be included is a sinking fund. This is basically an amount which is set aside to pay for larger jobs when required at a later date. Okay, that doesn’t make much sense but it is for external painting, maybe relaying a driveway, maybe replacing garage doors, replaceing the air conditioning unit. You get the idea.
I have always just gone through the budget for the properties I have in a strata & make sure their estimates are fair. You can also request to see a copy of the receipts being paid. We have one person nominated as secretary & he receives all receipts in case we would like to check.
I hope this helps.
Kim
Hi Cinematt,
I would love to help you but need a bit of an understanding what is going on. Is the rent you are to receive $165/pw including GST? If that is the case, is it a commercial property because residential properties are not charged GST.
Let me know & I will try to help fill in the gaps.
Kim
Developing in the current market is definitely harder but not impossible. During the boom we would make ave $80,000 per property or even more where as now we may be looking at $15,000. I say maybe because I still have two on the market. During the boom I had one put on the market on Thurs & we took a deposit on Sat. These ones have been on the market since late Apr. There is the difference.
Hi TMA,
I understand your point & the debate got heated with the ATO. If I find more documentation, I will post the link.
Kim
Hi Zippys,
I had a friend who tried to get an IP loan while on workers comp & got knocked back. The lender said that unless you could get a letter from the insurance company stating how long & how much you were going to get it was no go. Their reasoning was that if insurance deemed you not to be injured etc, payments could stop ASAP.
Maybe one of the brokers on here may know another institution who will do it or maybe a LoDoc not sure myself.
Geez sorry if I offended you TMA.
The ATO advised that they are looking solely at the loan obtained from the financial institution. They did not mention accepting any agreement between the husband & wife.
Hi Steve,
One that is hot on my list at the moment is CGT. I know this is an age old problem but my specific issue is with the claiming of the capital write off (2.5%) & what impact this has on CGT. I was advised recently that even if you don’t claim the 2.5% write off that you are perceived to have claimed it when it comes to working out your capital gain on sale. I don’t think everybody understands this issue & gets the appropriate valuations when they are first purchasing the property. Any help would be appreciated as I am trying to muddle through this at the moment.
Kim
Steven, I can vouch for the loan deductability. I went to an ATO seminar yesterday where they advised if the loan is not in the name of the person who owns the property – NO DEDUCTION. I was actually surprised to hear some of their ideas on interest deductability. I will give an example, husband & wife buy $600,000 IP as 50/50 owners, husband only sources $600,000 loan to complete. ATO advise only $300,000 of loan is deduction as husband only has a $300,000 interest in property. I was like TMA & thought it could be lent onto wife & they are saying NO. Obviously I am doing some more research on this.
Kim
I’m with Dr X. Yes it may be harder to find a positive geared property but so is the extra $$$$ you are short each month with a negative geared property. What do you do when it is vacant for a period of time?
Ray,
Sorry if I confused you, sometimes I confuse myself – ha ha
What I was trying to say is, not all property deals are positively geared unless you put in a cash deposit & hence borrow less. If by not putting in any cash, the deal is now negative, how many properties can you afford that are losing you money each month????
Hi Lisa,
We have an industrial workshop in those old red bricks & to top it off, the owners/builders thought that since it was only an industrial property they didn’t clean the bricks properly. The first thing we did when we had the spare cash was render the place. Mind you that was a few years ago & we are still arguing over the colour to paint it. Perceived value is 100%, even the neighbours commented on how the concrete colour looks better -[biggrin] One day I will really dazzle them with a colour!
