Forum Replies Created
How much debt is he in? Would it not be easier to use his $1200 – $1500 per week to pay down his debts and then move on in a few years time by himslef?
Luke.
You go to a mortgage broker- Richard Taylor, Michael Chan from Shape or Jamie from Pass Go. If it can be done, these guys will do it.
Cheers,
LukeOne thing to take into account is that repairs and maintenance can be horrendously expensive in a mining town.
Cheers,
LukeHi Jins, I have just sent you a private message. Please feel free to give me a call as I think I will be able to help you.
Cheers,
LukeHaving your parents be a guarentor for a loan is one thing, but a guarentee to purchase a business is a different thing altogether. Many businesses fail within the first few years, and so having a guarentee to purchase a business is WAY more risky in my opinion. I have had a guarentee from my folks to purcahse a property, but would never ask for a guarentee for a business loan due to the high risk.
Luke.
I just wish everyone talked to an accountant before paying down loans because it seems every two weeks someone start a thread with these exact same questions!!!!!!
But if you seperate, then your partner still owns a portion of the property? Doesnt this go against your goal of asset protection in the event of a seperation?
Luke
Legaaly you could look at holding the property in a trust. I have read that you can set up trusts with yoursefl as the primary beneficary and your wife as a secondary beneficiary. Then you could specifically exclude any ex-wifes that you might have from being a beneficiary to protect yoursefl in the event of a divorce. Of course this would mean you would lose your PPOR CGT exemption.
Best speak to a good lawyer about this as it needs to be set up right.
Cheers,
LukeJamie M wrote:lifestylez wrote:I want to read another of hers "20 Must Ask Questions" before I buy my next property.It's a good read – I would have listed it.
Dolf De Roos also has a good book that covers the basics – can't remember the name of it though.
Cheers
Jamie
Real Estate Riches by Dolf de Roos I think you mean. It is a good one.
You need to check how the drainage is going to work, maybe get a draftsman/architect/surveyor/builder/hydraulics engineer to have a look. a slope from front to back is generally not good, and costs may blow out if it doesnt work well.
Cheers,
LukeThanks Jack, an unbiased and interesting view as usual.
Hi Sonny,
If your accountant has told you it is best to pay off your investment property while still having money owing on your PPOR then it is time to get a new accountant. I don't mean to be rude but getting bad advice like this can cost you lots of money in the long run.
Cheers,
LukeIt can be done, but you would need to consider your budget and plan accordingly. I think $10k sounds like a pretty small outlay for a reno and you might not be able to improve it much with that kind of budget.
Cheers,
LukeIt depends on where it is located. Without knowing what council the land is in, no one will be able to tell whether it can be done or not. Sure you can fit them on, but whether the council allows it or not is another matter.
Cheers,
LukeI don't think you should make the decision not to purchase in a trust just because it is your first property and it seems hard. It is pretty easy if you have a good accountant, and would surely save you money in tax in the long term as Terry has mentioned.
Cheers,
LukeHaving a high income and paying lots of tax is a good problem to have. If you were to purchase property, it should not be for tax benefits. If you do purchase property, it would probably be a good idea to purchase using a discretionary trust structure so you can direct the income into the lowest income earner and save on tax.
Cheers,
LukeI am pretty sure Centrelink sees through trusts and counts the assets of the trusts as if they were the ssets of the beneficiaries/appointer.
Cheers,
LukeRight, I think if you are targeting executive market then you should do the job properly and replace the cupboards.
Cheers,
LukeHi,
Trusts can be pretty complex so it would be best to get your accountant to help out. I can say though that if the trust repays $2000 to you as a part loan repayment, this is not taxable income for you. The trust can not claim the $2000 as a tax deduction, in much the same way as you can not claim the principle component of a bank loan as a tax deduction. You can only claim interest repayments as tax deductions, not principle repayments.
I do not quite follow what you mean by Secenario 2 sorry, I am not a tax expert and it is late on a Friday (and my colleague just handed me a beer so I have switched off!!)
Cheers,
LukeI think it depends on what area the property is in. If it is in an affluent area, then a new kictchen would be worthwhile. And in a lower socio economic area it might be best to do a cheap job and save a bit of money. Also depends on what kind of house it is.
I would think that in most situations it would be easier just to replace the cupboards, they arent that expensive expecially if you are installing them yourself and if the kitchen isn't too big. You will be able to depreciate new cupboards, but not really be able to claiom much if you just repaint them, so a bit of a tax break will help ease the pain of the cost of the purchase.
Cheers,
Luke
