Forum Replies Created
CAjun,
You can have as many trusts as you want.
Even place individual properties in each trust.
Usually you would have +cf assets in a discretionary trust, and -cf assets in a hybrid trust to take advantage of the ability to claim the borrowing interest in the individuals name.
Depending on your situation it may be a good idea to put in place a Pty Ltd as the trustee for the trusts, if you do not already have one in place.KP
Miler,
You need to add up all the expenses including rates and taxes, insurance, strata levies if any, plus bank interest on the borrowings, and compare this to the rent received to know if it will be +cf or not.
Also, the non cost deductions like depreciation can generate enough of a tax refund to give you a slight + cashflow from a -cf taxable situation.KP
Yep,
I think thats the answer GP,
The CGT concession flows through to the beneficiary when you distribute the capital gain, and they claim the 50% concession
Thanks again,KP
Ummmm,
whats the point of the third party, and what do they get out of it ???KP
Kay H,
A sale for one…
Maybe a better selling price for two…
In a slow market, a keen or desperate vendor maybe happy to realise 70% or 80% of the sale price immediately and forego the balance till some time in the future, just to sell and settle the property…Maybe? Maybe not?
KP
Allan,
There is no restriction on you using private funds, if you can source them. Theres no law against it.
Just out of interest, do you have a source for these funds or are you intending to go to the market and canvass for them ?
I’m curious….
KPThanks Jay, WF,
Have downloaded the CGT section from the ATO.
Will read relevant section.
I think this report may not be accurate…(got it from a link in the Trust Magic book.
taxlegal.com.au, searhed for hybrid trusts)KP
Thanks Jay,
So the next question is …why put your investments or “property for sale” in a trust apart from providing flexibility to distribute to minimise tax (except for CGT)since it doesn’t qualify for the 50% concession ?
Other way round, how do you take adantage of the CGT concession, apart from having the property in your own name ??KP
Gee you’re up late !!
Sounds like you have a drainage problem…..you can create a gravel drain (involves digging as you suggested)
What is your soil type, (not sandy like most WA land ?)and how come the rain is collecting just there and no where else ?
There is a product that you can get from a hardware (or Bunnings) that is like a big plastic hose with perforations through it…you bury this where the water collects and it channels the water to wherever the pipe leads to (elsewhere in the garden, or into a soakwell)
Dig a channel, place the pipe in it,cover with gravel or very coarse sand, then soil at the top.
Have you had a look at the lie of the land….you sure its not lower where the water is pooling ??KP
MArisa,
Its internet lingo…
Cyber language…
NERDS invented it (you know, 12 yr old kids that inhabit cyberspace)KP
Hell Redwing…
Negotiate…negotiate…negotiate.
Don’t accept what they’re charging…
I am in a regional town with 4 agents and they all charge top rates, except one.
I had a rental available, and offered all of them an opportunity to quote a rate for management ( shortage of rentals here, with all prospective tenats registering with all agents, so it doesn’t matter anyway)
Best one offered 8. 5 %, worst one was 9.5 % so I asked if any of them were negotiable, and the best one came back with 7 % !!! Some didn’t even bother to reply.
Guess who got the management…
Don’t forget the rate quoted is plus GST…
The fees have been deregulated, so you are within your rights to negotiable to best deal you can get…
Also, if they are advising you that the rates are going up would indicate that the management contract is due for renewal, so there is no penalty if you do not renew with the current PM.KP
I remember a time in the early 90s’ when RE agents in my area were changing the way they marketed and sold real estate.
It was called the Jenman way….when did he change sides ???KP
Hi YAck,
We discussd this earlier on another thread….
Couldn’t agree with you more.
Just waithng for the cycle to turn and the fallout to come.
The wave has hit the regionals, now we’re just waiting for the backwash….KP
Thanks Paul.
That explains it.
By the sounds, if you have a solicitor familiar and experienced with wraps, you don’t really need the kit ??
All you need is his contract, and tailor it to suit the particular wrap…
Any comments…??KP
Hmmmmm C@34,
Saw one advertised down the road from you (Karratha) same deal….but I think it is now under offer…BUMMER !!!
But now you’ve got me thinking……
It seems that most of the older ones in town are still on one title..
CAn you confirm if yours is Brick or fibro ???
Cheers…KPHi Rigby,
I think Medina is good.
Also surrounding suburbs in that area, including Spearwood, Orelia.Then further south including the coastals such as Rockingham, Golden Bay all the way down to and including Mandurah.
The other areas I like are along Albany Hwy. including Maddington, Kelmscott, Gosnells.
KP
You’re being funny right Misty ?
You know the answer, but you just want to see if anyone else does….n’est pas ??
I think that has to be a typo.. as from what you correctly inferred, its negative geared when the income (rent) is less than the total expenses, which includes the loan interest and all other outgoings.
As you probably are aware, you can have a situation where the income is actuall greater than the expenses,(positive) or equal to the expenses (neutral) but by virtue of the non cost deductions such as depreciation and building write off, you still end up negative hence you get a tax refund.
The best situation in my opinion…..
Cheers…KPAW:
You pay stamp duty on the purchase of a property, regardless if it is for investment or owner occupation.
Stamp duty is a State tax and hence, the amount varies from state to state in Australia, depending on their individual rates.
There are some concessions and exemptions on stamp duty for first home buyers up to certain purchase amounts.
Capital gains tax is only payable upon the sale of a property other than the family home (which is exempt)
If the property is held for 12 months before being sold then the CGT is calculated on 50% of the gain.
Otherwise selling within 12 months will incur CGT on the total amount of the gain.
CGT is calculated using your marginal tax rates, therefore will vary from individual to individual.
I believe in NSW the state govt. will levy an additional stamp duty on the equity increase on a property when it is sold. This comes into effect on 1st July 2004.I think this is correct…hope it helps…
KP
Misty, Misty, Misty….
What will you be doing with the properties after they are build ? Do you intend to keep and rent , or resell…and if you rent them will they be +cf or -cf…?
I would say, that if you intend to acquire a few properties over time, it would be best to buy through, and keep them in, a structured entity (eg family or hybrid trust with a Pty Ltd as the trustee fo the trusts)
Have you got a copy of Trust Magic by Dale G Goss ?
Its a great starting point in explaining the virtue of trusts with some examples to boot..KP
Well if you insist…TYPICAL FEMALE !!!
