Forum Replies Created
Hellman, I am scared that you see what Packer etc are doing & that this must be right. Just remember that they also go bankrupt but this does not mean it is applicable to everyone in Australia. Yes trust are also used but may not be needed by all. As I previously suggested, speak to an Accountant & Solicitor to see what is appropriate for yourself.
I am with Dazzling. I have my own home & all equity is being used for investing. I had contemplated selling & unleashing the cash but I have two dogs & who wants to rent to someone with two big german shepherds. Besides how much more cash can I get by doing this 20%? Big deal, then I have to pay someone elses house off not to mention the constant possibility of being told I have to move out. No thanks
Tommi, do not be driven by fear. If this is the house of your dreams then maybe think about it. But I personally see my house as somewhere to store my junk & sleep at night. Most of my excess cash goes to investing so weigh up whether you want those repayments against what you could otherwise have in terms of investments &/or your own place… Hope that made some sense[blush2]
Colobok, it really depends on your personal circumstances. You really should speak to an accountant before setting up a company. Alot of things that are written, whether it be by Kiyosaki, De Roos, etc can refer specifically to their country of origin. For example, Kiyosaki will tell you how you get a tax deduction for the interest on your own home loan. Now this may be true for America but does not really apply here. Happy reading all the same & that book will make you start to think a bit differently.
I agree with the ressy tenant thing. I have had to take the ressy tenants to thr tribunal twice but my non-ressy tenants I haven’t spoken to since we negotiated the lease in October last year. I am just enjoying seeing the rent go in the bank…[biggrin]
Newcastle Panthers sounds good too. What about set up a company, have the business valued & sell off some shares????
Exactly. Now if more properties were being purchased through the trust maybe I would understand. But given that this is a single income family & Lee has made a point of telling us that he is in the top tax bracket, I don’t see how this transaction will personally benefit him. I only see a CGT & stamp duty issue. Once again, how will this expand his property portfolio. Mind you I am learning alot from the comments you make on this site Simon so I must thank you as well.
Originally posted by Mortgage Hunter:
It wont? Surely claiming the interest on the home will decrease his tax bill?Let’s go back a step. The PPOR is to be purchased by a trust. The trust is negative geared NOT the individual. The individual cannot have losses distributed to them for the benefit of a tax deduction.
Sure, but this isn’t going to reduce his taxable income. I also don’t see how that will advance him with regards to his property portfolio
I’m sorry, I have obviously missed the underlying idea here. What is the advantage to yourself. Trust is the one negatively gearing & losses cannot be distributed to the beneficiaries assuming it is a family trust of course. What is the point you are trying to make????
Mine would have to be from having a soft spot for my family & always trying to advance them at the same rate as myself which I have finally realised cannot happen.[juggle] Mistake 1, did not buy a workshop which was going at a good price, right before the boom mind you, because father in law wanted something bigger for a business he was looking to set up. Mistake 2, so focused on negotiating & financing the purchase of a duplex for my parents that the duplex I had a hold on did not come through for me. The contracts were sent to me for signing but I was too busy with my parents to sign & the owner decided to keep them & sell them for an additional $60,000 the next month[bawl]
Fun, I suppose I am no different to the answers already given as to what keeps me motivated. On the flip side though, what takes the motivation out very quickly is when people around me start to put me down & make me think what I am doing is wrong. Once I realised this, my circle of friends changed & although you can’t get rid of family, I just stopped telling them what I was up to. Now my answers to their questions are too broad for them to take me down eg. my properties are fine! I found it hard at first because you expect family to support you but when it is something strange to them or out of their comfort zone then it must be wrong. I find getting together with friends with like goals to be very motivating when we share ideas etc.
Hi Jewel,
I used a gentleman by the name of Bruce Jamieson (0438 885 318) to do an inspection for me. He was from Brisbane way but did the inspection in Toowoomba for me for $295.00 (this included travelling) which I thought was quite reasonable. He sent me a fully bound report with a heap of photos of inside, outside, in the roof & also of things like hot water systems etc so I had model numbers etc on file. Given I am from the South Coast of NSW, he saved me a heap of time & money.RichLee, it depends on whether the property is positively or negatively geared. You will find negative geared properties on any corner but the challenge is to find yourself one that will make you money. Good luck with your search & make sure you educate yourself along the way.
Thanks for the heads up Resiwealth. Good luck with your pursuit.
Hi Dazzling. Finally a post that might help me analyse as you would. I am struggling to grasp how people are analysing deals compared to myself. If I look at this one as you have posted it & assumed the loan you obtained of $2.39m is at 7%, the rent of $158K still leaves you as negative $9300. Am I missing something? Please don’t take this incorrectly as I am trying to learn as I go. Any help would be appreciated.
Thanks for clarifying that for me Don & Liz. I suppose the next question is then, how much is acceptable to be making per property in terms of positive cashflow? One of the mappers was happy with $1000 per property. When I do my calculations on a property to see if it is worth pursuing, I expect more than $1000. What is everyone’s acceptable level?
Hi Zyleth, I live in NSW but have property in SA. I first had the agent email me as many photos as he could before I did the deal. I went & saw the property just before settlement but everything else such as deposits, contracts etc was done by mail, email or fax. Fortunately I had family in SA so I did a combined holiday & inspection. The problem I have found is control. As I am a bit of a control freak, I am not handling the fact that I am leaving it up to the agents to carry out want I need done & have recently spat the dummy & put the property on the market. If you can do it & find good competent agents, good luck because there are great deals out there. With regards to “positiveness”, it doesn’t cost that much to travel anymore with cheap flights etc so it really doesn’t take that much away from the property cashflow.
Kim
I usually use the 5% idea & then surf the net for rentals in the area but all areas are definitely different. I have a property in Willaston SA (Barossa Valley region) with a 3 bedroom house renting at $180/wk & single bedroom granny flat renting at $115/pw but I am struggling to sell for $247,000[blink] It just shows the times we are experiencing at the moment.
Hi Doogs81. I totally agree with Luci. Before you do anything, do as much research as you can. My husband & I watched the area we were to start investing in for 8 months before taking the plunge not to mention all the money spent on books & seminars. I have seen people start investing during the boom & are now bankrupt. Just because the guy next door did it, does not mean it will work for you. The only other thing I can say is that you will learn a little from each book etc you read. Don’t take all of them for granted & try to apply to your own situation. They won’t all fit.
Kim
