Richard Taylor wrote:

all in all it boils down to the individual client and their goals and objectives.
I am sure Site Manager will convince himself the Upper Coomera has some redeeming features but it is not for me.

Totally agreed everyone needs to set their goal and work backwards. FYI I don’t in any way peddle the area just noting to the OP that a major westfield might finally see some injection of life there after years of under delivering. There is a big risk people come on here to convince themselves of the plan they already made in their head, I don’t know how many actually think things through and come with a totally open mind, but a lot wouldn’t.

Jamie Moore wrote:

gaurav wrote:

It was touted as an area to invest by one of the so called INVESTMENT CONSULTANTS touring canberra

Hi Gaurav
Nice speaking with you this morning :-)
Those consultants are glorified real estate agents flogging overpriced off the plan properties for massive commissions. Steer clear.
Cheers
Jamie

This is some very good advice.

In terms of the area historically it has been a gonna gonna for a long time, but the Westfield might finally turn it into a real growth area. I like the corridor from Bris to GC as a whole, first invested there 13 yrs ago, but due dilligence and finding value is the key.

A very quick pass shows established options cheaper if you want them – eg hypothetical something like this?
http://www.realestate.com.au/property-house-qld-upper+coomera-121067138

@adriannqld good advice.

Hi @stevehank this is a common issue, it takes a while to get the feel of different data sources, some measure house vs unit, others only the total market, and still others by the bedroom. Personally I have a few paid data sources and I like to check them against each other, not that one is always correct, but the more source points I have the better picture I get. For example your suburb:

One data source had the house median at $370k at end of 2014, it has fallen a bit but on a very small sample so that could mean low stock and statistical anomaly or falling market with no buyers, all based on actual sales.

Another has Lower Quartile:$306k
Suburb Median:$388k
Upper Quartile:$424k
but this one doesn’t differentiate between units and houses.

Another has a median list price (current for sale not sold) of 3 bedroom homes as at $355,500

Again, small sample size, low stock levels can mask median figures and make them very difficult so alone it isnt a magic number. I agree buying below median is a good way to reduce risk when investing but so is knowing your market. If you really know the area and your gut tells you that nothing is listing below a certain price and the market is strong then your median ballpark might be ok. Another way would be to cross check the medians of nearby larger suburbs because their data set is larger leading to better statistical validity. If you know that suburb x is 3 times bigger, and around the same price, then look that the median over there to check against your suburb.

@madison889 Firstly I will just say please consider getting good advice from an independent experienced accountant. This is a specialised area and it is always worth getting good advice it will save you in the long run. My thoughts are potentially worthless but should get you started at least.

Secondly I have no knowledge of how capital gain events are applied to the pension, this is important and worth checking with the accountant as per above.

Thirdly the cgt will depend on your ownership split, you will pay a little less if it is 50 50 and from your wording I will assume this is the case.

Fourthly the cgt 50% reduction is the biggest policy you need to know about for properties owned over 12 months. Basically half the total gain is taxed.

Fifthly renovations can be added to the cost base, repairs claimed, so either way if you sell you wont pay double tax on the blinds or gain.

Sixthly the mortage total isnt deducted, the ATO doesnt care whether you bought for cash or had debt, just that you made a gain, but mortgage discharge fees will come off the taxable gain and sale costs do to.

Now – for a laymans rough check over this is what I would assume in terms of cgt numbers are very rough you will need to work them out properly

85k purchase, sale 300
total gain 215000

stamp duty and costs at purchase 3000
reno 5000
sale costs 8000
taxable gain 215000-16000 = 199000
50% reduction due to length of ownership leaves taxable gain = $99500
ownership 50 50
total taxable gain each = $49750 (amount to be added to your pensions)

NOW – If you are considering selling due to tenant problems, can I ask why don’t you terminate the lease at next review, put in the new carpet and blinds and put a better tenant in? It would save selling altogether and keep the rental coming in. Of course if you need to sell or want to for other reasons, then go ahead I just wanted to ask.

Jamie Moore wrote:

Esther wrote:

We are thinking of moving to Umina beach and rent out our PPOR. But is this tax wise a good idea? Is it maybe better to sell our PPOR and buy another house to live in?

No – not really.
You’ll have a large non deductible debt (Umina) and a small deductible debt against your previous PPOR (now IP).
Might be best to sell the PPOR (CGT free) and then place the funds against Umina (perhaps in an offset just in case you decide to rent this place out later).
In any case – talk with a good accountant about your options.
Cheers
Jamie

^^^ what he said.

Murali wrote:

Hi Nandita Rao, Did you finally go with Spring Financials can you provide some feedback on them? What are the drawbacks?
RegardsMurali

@ilarum unfortunately many come to ask a q but don’t stick around to learn and participate. As you can see above the companies that take commissions for recommending new properties and advertise as financial advisors or investment gurus are in a conflict of interest. Some are in trouble with ATO for a range of blatant problems, others not but still a conflict in my opinion. At least sales agents are (mostly) honest about the fact that they work for the vendor.

cs_rlewis wrote:

thanks i believe a good broker is vital, because I’ve only had one so far but since then I’ve learned i could get better deals elsewhere. its all a learning process, the more knowledge you possess the more power you have.

Correct @cs_rlewis – having a great team speeds things up and make them easier. Overall it is a balancing act between LVR and DSR. You want growing equity (LVR goes down) and growing income (DSR goes up) if you can balance these two with every purchase you maximise how many you can buy. To further speed things up you add some equity and cashflow yourself through market growth, renovations, extraordinary deals, or developing (or any combo of those). I see too many people buy 1-2 or maybe 3 capital city newish properties all together in one market with no value add potential and low income and they don’t see the wall coming but it comes, and then they have to stop and wait a whole cycle before buying again. Spreading things out (location and property type and value add method) gives you more diversity. Finance is a critical component of the equation but also so is the property selection, and price paid. Get either of those things wrong and you will be stuck.

@lblanden As you can see even from a few posts above people have very different viewpoints. Personally I am in love with property and it SUITS ME JUST FINE that many folk aren’t. If everyone was into property the competition in the market would be so much fiercer. If you stick something (anything) out for long enough you become better than all the jonny come latelys and making profits get so much easier. For me property is that thing and after 15 yrs it gets to be more fun every year. @benny has got good advice above too so read that twice!

leoniey5 wrote:

Just putting my 2 cents worth in – I found Depreciator great to deal with. Reasonable pricing and they give a discount for more than one property and for each consecutive property you purchase.

@leoniey5 they are good aren’t they? Scott for prime minister I say.