Forum Replies Created
Hi Recco,
I run the West Australian's Investing in Property monthly meetings. A group of property investors come together to talk about property in Perth. our next meeting is on the 28th May, in Burswood (the suburb, not the casino). If you want to email me at [email protected] (not my normal email address but I am in the UK at the moment (Troybec gave you my normal email [email protected] ) would be happy to chat or give you info on our meeting. I currently am doing renovation and development projects so happy to talk to you about perth property at the moment. In a declining market it is really important to ensure that you carry out the appropriate due dilligence so you don't end up with a lemon. Yes, in 2005/06 it was easy to buy a property and make a profit, whatever property in general it was, but much more important now that you don;t just take any advice, take the best advice – so your girlfriend can spend more of your money (I think that is what you said anyway)
Kel
Don't know what the cost is sorery, but have dealt with Hegney in the past and would reccomend.
Cheers
KelHello Everyone,
The second meeting for the WAIP (West Australian’s Investing in Property) group is this Wednesday. We are very fortunate to have a member of the Property Wizards coming to present to us.
The last meeting was a great success. If there is anyone out there in PI.com. land that did not attend last meeting and would like to please email me at
[email protected] and I will forward you the details.For those of you who did make it last month, I have sent you an email. Hope to see you there!
Warm regards
KellyP.S. For those who had trouble last time, yes there is no “.” at the end of the email – sorry about that!
If the mum has no property, what about buying in her name? That way when sold, there will be no CGT. Check with an accountant on what effect this will have on her pension etc.Good point Terryw, my friend has explored this avenue but unfortunately it is not feasible at this time. Thanks for your help and suggestions guys, much appreciated.
Thanks
krsThis will also depend on your goal as a property investor. For example the cost to set up and ongoing fees for a company is not viable for only a couple of IP’s. Make sure you discuss with your accountant.
Good luck!
Thanks guys, much appreciated. Back to the accountant for me it seems.
Kel
Thanks guys, some great information here. I really appreciate it.
Any of you want to be my accountant? Just kidding.I presume from your comments that land tax is not only calculated on the amount of land one entity holds but the amount of different titles the entity posseses? Is this correct?
Cheers
KelHello Whittleherbert,
Is the property in your personal name? Have you been the only resident at the location ? (i.e. you didn’t rent it out before you moved in) If the answer is yes to these qu’s then you shouldn’t pay CG tax. Your own home is CG free!!!![thumbsupanim]
Cheers
KelHi Guys,
Where a company owns the same asset after the capital profit has been distributed to the shareholder, tax payable will be effectively 48.5 per cent.I thought that when you bought and then sold a property in a company that the company while being liable for 100% of the CGT would only pay 30% flat tax rate?
So for example if I purchased a property in a company structure (no trusts attached) and did some cosmetic renovations to that property and sold it within the 12 month period, and made a $30,000.00 capital gain then I thought the company would need to pay $10,000 tax on the property (i.e. 30%)?
Am I wrong?
Cheers
KrsHello Wylie,
The cost of the “proper removal” will depend on where you live and sometimes how far you are away from an approved licensed holding facility.
Unfortunately you are absolutely right it is expensive. But the hassle and potential health effects/liability are probably worth spending the money. Some unaccredited removalists will dump asbestos in wetlands and other unapproved sites and will not be extremely familar with the best safety equipment to use and therefore as you mentioned asbestos fibres will be left around the property.
Proper licensed removalists must be registered with the governing body in your state (in Western Australia it is the Department of Industries and Resources).
Sorry I couldn’t help with cost but having it removed properly is sop important when you are dealing with these types of fibres. Sorry for the lecture, I have had a lot of experience with asbestos and asbestos removalists and so I would always recommend being cautious when you are looking at cost vs. yours or your tenants health.
Good luck
KrsHi Matt,
When you crunch your numbers/budget, I would advise you to always add 10% for undisclosed costs. If you are then still achieving +ve cash flow then I hope everything goes awesome for you!
Good luck
krs
Good advice Derek!
Beth
Another creative way could be to put your house on the market at the end of the financial year and only sign the selling contract at the beginning of a new financial year. This way you do not have to declare this CGT until your next tax return (12 months away) and then, as already mentioned in previous posts, you don’t need to pay the bill until April the following year. Yes it’s legal!!!
This way you can use the money for other investments, reduce debt etc.
Cheers
krsHi LadyBug,
I used RMG Accounting in Subiaco. Their details are on their website. Sorry, I don’t have them in front of me right now. They were really helpful in answering questions I had in relation to the family trust docs.
It’s odd your accountant won’t help. Any reason why? Maybe they are recommending you seek legal advice before signing?
Good luck anyway!
Cheers
krsHi Jenny,
I agree with amerc79, if it’s working and you feel comfortable (and I suppose you are making money!) then go for it! Everyone’s different and only you can decide if the goal you have set yourself is right for you.
Good luck!
krsHi Craig,
In Perth subdividing costs are around 15-20K usually (this also normally includes the purchase of required fencing). In Perth watch out for public open space policies that normally lie buried deep in some councils planning policies. If you don’t account for it, it can increase your costs significantly and is proportional to the amount of land that you are subdividing. Only some councils have the policy. Good Luck!
Cheers
KelHi All,
Great post Dazz!!!!
I am employed as an Occupational Hygienist for a large Mining company in Western Australia (and no it doesn’t mean that I clean the toilets!!!! – I only say that because that is what my grandmother asked when I got my first job). I am sure you can imagine the look on my face after four years of University! Basically I look after employee health for the company. I love my job. Every day is different and every day I can be wearing a different hat, one day physcologist, next day counsellor, next day scientist, mentor…you get my drift. I have also worked overseas as a Health Professional in places like South Korea and China.
My goal is that by the time I turn 28 (18 months time), if Dazz asked this question again I could say I was a full time investor and did my “real job” (ie Occ. Hygienst) as a contactor (therefore whenever I want cos’ I felt like it!!!)
I love hearing about the different things people do, so keep posting guys and once again great post Dazz!!!
Cheers
Kel [aacool]Hi N_Lam,
the main draw back is that lenders who I have spoken to won’t give me a loanHave you tried more than one lender? I have learnt in this game that it is important not to give up if a wall is in your way…there is probably always another way around that wall…… but you need to take action to ensure this. However, if you are maxed out, is there another way, maybe by finding a partner who has the capital if you have the time……?
2nd Idea: Buy a researched property which I think will appreciate.You need to have a goal yes, but be careful about basing your ideas on the fact that you think the property “might” appreciate (it may take 10 years!?). Why not back yourself and find a property in the area that you have researched and “add value” to that property that will ensure that it will appreciate?
Anyway just some thoughts, comments welcome.
Cheers
KrsHi N_Lam,
Welcome to the forum! My first tip would be to look at the huge amount of information on this forum (if you have not already) to get some ideas about how others have been successful in property investing, a lot of us have had the same queries as you at one time or another!
My number one concern is CASH FLOW.I want to spend a maximum of $250K on my first property and rent it out, but the repayments work out to be approx $450 (including annual costs). Even if the tenants return, at best, a rental of $250 I’m still putting $200 out of my pocket per week.Most people cannot afford to buy more than about three investment properties (I say most) because they max themselves out with lenders. If you are interested in purchasing multiple properties then I suggest that you look at setting up a structure (for example a discretionary or hybrid trust)to allow you to continue your investing beyond a few properties. In the search mechanism on this forum type in “trusts” and you will receive a wealth of information on their benefits when looking at purchasing multiple properties.[aacool]
Good luck!
krsHi C@34,
Cheers for the feedback…I obviously need to do some more research!
Good luck!
krsHi C@34,
I was talking to an experienced investor today who has used LOC’s in the past in their property investing.
Some of the information I got out of this person is outlined below.
1. Current interest rates are used and payable only if/when you draw on the loan.
2. There are no additional account keeping fees (but depends on who is the lender) – the bank I am looking at doesn’t have these fees so good to know that there are one’s out there!
3. Limit on future borrowing capacity has more to do with existing equity in your properties rather than the income you earn.
4. The benefit in having a LOC is that ‘when/if’ a new property is found, only the new property needs a loan and valuation. All other matters have already been dealth with.Anyway just thought I would share. Good luck!
Remember this is not advice, just info I found out in conversation.Cheers [shades2]
krs
