Forum Replies Created
Martin
You might be able to get copies of the local newspapers for the areas – they would have ads in there for that sort of thing. I think you can contact the papers / newsagents in the area to get them sent to you.
Linda
Hi Tom
Inala is growing in value (I lived in Oxley for 8 years up until January this year – now live the next suburb over). As the prices are increasing, the riff raff are also unable to afford the rent / house prices so are moving on. I would say the house prices have pretty much doubled in the last couple of years.
There was also a report that they are going to build a train station at Richlands which will service the Inala are – I can't remember the timeframe though.
Also Inala is only about 15kms from the city so nice and handy for people who have to commute to work – while waiting on the train line people can catch buses or drive the 10 minutes or so to Oxley Station (or one of the other ones). If you can find a suitable house in there I would seriously consider it if you can make the numbers work for you.
Linda
Stevie07
You also have the option of selling your PPOR – and accessing the money there to use for investing.
In the meantime you would be able to rent which, depending on where you are could be 1/2 (or more as you're paying more on your mortgage) of what you're currently paying on your mortgage.
Then buy a PPOR in the future with profits from your investments.
Linda
From what I have read – if you do the renovations prior to renting the property out they are not a tax deduction they are increased capital which you wouldn't get the advantage until you sold the property.
If you have rented the property out and then did the renovations and then rented out again I believe the renovations are tax deductible.
You would be best to check with your accountant though.
Linda
Microsoft also has templates to use with powerpoint that you can download from their site.
Linda
I think in this circumstance the tenant may have mislead you about her occupation so you wouldn't discriminate against her – she may also do some modelling so this isn't exactly lying.
I had an experience this year when I was evicted by my landlord after demanding she fix the stove – under emergency repair provisions – if we wanted to stay we could have taken her to small claims but decided to move on because she had breached the tenancy agreement numerous times over our tenancy (around 9 years). Then when we started looking for another property she told prospective real estate agents that we had vandalised the property – we phoned the RTA and were basically advised to lie about where we had been living for the past 9 years as there was nothing they could do about the situation.
Perhaps your potential applicant has been discriminated against previously because of her occupation and was given similar advice.
However, it is your property and you have to feel comfortable about the person you're renting it out to. What main concerns are you worried about with her personal lifestyle in your home?
Linda
Hi Amanda
Thanks for sharing. I know it's going to come in handy for me very soon.
Linda
Thanks for clearing that up for me.
I'm hoping to make my first investment in the coming months so the other analogy of the 2 houses 1 slightly cheaper with less interest paid over a shorter period is very interesting. The "cheaper" homes will be where I'm starting.
Linda
I have a query in relation to buying and selling houses in this respect as well. People always mention how much they bought the house for and how much they sold it for – as already mentioned they never take into account the lower amount due to the tax they have paid – but I'm also curious as to why they never include the interest they pay on the loan – if it's their Principal Place of Residence they can't claim any of this as a tax deduction but everyone I know always neglects to take into account the interest they have paid on a property.
For example. I did a calculation today on a $350,000 loan over 30 years at 8.5% with monthly payments – the total paid off (if you have the loan over 30 years) is $968,830.99 – $618,830.99 of that amount is interest payments. Granted the majority of people don't keep a house for 30 years but my thoughts would be that the interest you paid would be proportionate to the legth of time you are paying off the mortgage which on sale would decrease the amount you made on the sale – so why isn't this ever taken into account?
In the above example by blogs it is stated that people say they make 100k which is actually 70k after tax – but if this was my example over say 5 years wouldn't you also have paid approximately 30k in interest so wouldn't this reduce the amount you have made to 40k?
If I'm wrong please correct me but I've always wondered why interest is never taken into account?
Linda
Narangba and Morayfield are really taking off at the moment. Narangba is a little closer to the city than Morayfield – you also have Burpengary in between the two of them (another area that is taking off).
Approximately 30 minute drive to the city on the Bruce Highway and also about 30 minutes drive to Caloundra / Bribie Island. Travel to the city via train is approximately 45 minutes.
I grew up around that area and it has definitely come along since then. I would think the closeness not only to the city but also to the Coast make it a good option – and still pretty affordable at the moment as well. Also about 15 minutes from Redcliffe which you may have seen from other posts is really booming at the moment.
Linda
From the amendment it doesn’t look like they can ask for all of their money back – just the money that is over what they would have paid for market value rent.
For example if they were paying $300 p/w and fair market value was $250 p/w then they would be able to get the $50 x eg 26 weeks back so $1,300 – the market value portion ie $250 x 26 = $6,500 would be kept by you.
Plus the proposed change says
(1) Section 6—after subsection (2) insert:
(2a) A contract under which a person has—
(a) a right or obligation to purchase land; but
(b) an obligation to pay rent in respect of a period of occupation of the land of more than 6 months before the right is exercised or the purchase completed,
So this could be taken to read that this would apply for example if they had an option to buy at any time – eg 2 years – which would be over the 6 month period. The way I read it, is if you charge market value, then if the tenant chooses the option to buy then you would be able to increase the payments to what they would be paying under the purchasing contract.
If you were charging above market rent for eg 2 years, then the tenant would be able to request the monies paid over fair market value if they decided not to take the option.
Perhaps you can just change the contract to read that the tenant has the option to purchase. Before they take up that option they would be required to pay market value for rent – this rent payment may increase depending on market trends (maybe it could have a clause to be reviewed 6 monthly or annually). If the tenant chooses to purchase the property then they would be required to pay x amount.
Because you’re not guaranteed the extra money perhaps you could put a set timeframe – for example if the option is not taken in 2 years and the tenant would like to purchase after this 2 year period then sale amount would be reviewed at that time and the tenant can decide at that time to continue with the contract. This would allow you to increase the price depending on current market value to make up for the lost revenue while the potential purchaser is deciding on whether to buy or not.
Not sure if you will be able to do it this way, obviously you would need to get legal advice but this could be a way around the proposed legislation.
Linda
Try going to your local library and borrowing some books from there. I have just borrowed a couple of books on this subject – The Complete Idiot’s Guide to Business Plans, and Anatomy of a Business Plan and have a couple more on hold.
If you have access to the libraries online search facility do a search on subject Business Plan and see what’s available. Then if you really like the book – look at buying it from there.
Actually, don’t worry about sending the details – was able to find them online.
I’ve just had a quick read through the details – it sounds pretty interesting – think I’ll see if I can get there.
Thanks for mentioning it.
Linda
I would be interested in going depending on the time etc.
Do you have a link with the details at all?
FHOG = First Home Owners Grant. To be eligible for this you need to move into the property within the first 12 months. A lot of accountants recommend that you have at least one bill sent to the property to show you have lived there within the 12 months – see your accountant about this.
Hi Paul
I was reading a book called “Monkeying around with Shares” it explains in here what the things you asked about mean. It’s explained simply so everyone can understand.
Might pay to get the book from the library and have a read if you’re interested in buying shares. The explanation is in the first few chapters.
Linda
