Forum Replies Created
Hi all,
If you are an australian citizen and you are overseas as a non-resident you can accrue your income tax losses each year and these losses can be used to offset any capital gains tax in the future.
Manic – we are aussies working in Singapore – we have a great accountant here who specialises in aussie expats and investment properties – i have pm’ed you some details.
We sold a property a couple of years back – we bought it for $135,000 sold it for $330,000. Did not pay any CGT on it as the income tax losses we had accrued over the years offset it.
On another note -to be classed as a resident of Singapore – you have to be working in Singapore for more than 180 days – which you will be… so that will not be an issue – also just to let you know income tax here is very low…. for example on an annual salary of say $100,000 your tax will be about $5000 for the year. Tax does not come out monthly here – you pay it in one lump sum every year.
Pm me if you need any more details.
Mei
We use Druitt First National on Scarborough Bch Rd.
They manage our place in Scarborough.
They are excellent – have recommended them to a couple of other forum members.
Mei
* From the Website*
New Release
Stage 4 Lindsay Beach
Stage 4 at Lindsay Beach is due for release at the end of March 2006. Approvals are currently being finalised with the expectation that the land will go on sale at that time.Stage 4 is located at the southern end of the estate closest to the Lagoon Beach and foreshore reserve, and is close to all of Yanchep’s natural amenities. Many of the lots will have ocean views and views of the public open space and foreshore reserve.
All the lots will be sold off the plan with an expected selling price starting from around $180,000. For land this close to the coast it will be outstanding an unbeatable value.
Please be advised that not all of the lots on the plan may become available for sale.
You can also view all the anticipated new releases for 2006 and a summary of the conditions of sale by going to the FOR SALE page and clicking on the relevant PDF.Construction for Stage 4 is to begin in May 2006 with titles expected to issue around November 2006.
Hi Ken,
Oh i totally agree with you that it’s only a paper gain atm however if we were to sell tomorrow…. we Would get $1000 psf… this is based on the resales that have already been transacted.
I don’t believe prices at sentosa cove will fall….. it is a very unique project – nothing else like it in Singapore – there is a huge demand from foreigners…. only 2600 homes in total (including the condo units)… i feel there will continue to be high demand after the whole development is completed – pushing prices even higher.
Have you driven around the area – it doesn’t even feel like you are in Singapore – feels more like somewhere in Oz!
And have you seen the amount of money they are using to improve the whole look of “sentosa island” – millions!!! and not to mention when the Integrated Resort/Casino is finished in 2010!!!!
Could you clarify what you meant by
4. I’ve do doubt over what you had said presently.You DO doubt or you DON’T doubt? [biggrin]
We actually bought this as a lifestyle choice – as we have always wanted to live on the canals in Perth – … the fact that it has gone up is a bonus!
Thanks for your congratulations.
Mei
Ken – where have you disappeared to???
Check out http://www.sentosacove.com.sg — alot of money going into this whole developmnt and alot of money already been made by investors in this high end luxury market.
Next condo to be lauched Sept this year.
We bought into the first one at $765 per square foot. http://www.theberth.com
Second condo was was launched at $1000 per square foot… sold out within hours – average price 2mill
Prices at sentosa cove just keep going up and up!!!!!!!!!!!!!
[biggrin]***UPDATE***
Hi guys,
Haven’t been on the site for a while and thought I’d update what has been going on…..Not sure if anyone is really interested but here goes….
The titles for our block in Wellard have been delayed till June…. Will build on that as soon as titles come out and rent it out.
Also picked up a block in Capricorn Release 2…. titles out around Aug/Sept.
Looking into flipping the 2 hectare block and making a quick buck[biggrin]
And saving the best for last!!!!……………. Our property in Singapore has gone up to $2million….. Bought at $1.5 million about 14months ago!! It is still not ready yet – It won’t be ready till Sept this year.
See ya, Mei
************************************************************************
Hi everyone,
This is our story….
When I was 25 my husband and I bought our PPOR in Westminster, Perth in 2000 for $71,000. We paid cash. It is an old house on a 850sqm triplex block. It is now worth $300,000. We are hoping to develop it in 2-3 years and build 3 villas. We are planning on holding 2 of them and selling one to pay for the development costs of the villas.
We bought our first IP in Westminster, Perth in 2001 for $135,000. We sold it for $330,000. We did not have to pay any capital gains tax as we have been working in Singapore for the last 9 years and have built up a capital loss that offsets the CG.
In 2002 we bought our second IP in Scarborough, Perth for $355,000. It is currently valued at $600,000. We have tenants in there paying $450 a week. We will be working overseas for a few more years so will continue to build up more Capital Loss to offset the Capital Gain when we sell this one.
In 2004 we bought another IP, but this time in Singapore. We bought it for $1.5million. We needed a deposit of 20% which we had- ($300,000 cash). We have a loan here of $1.2 mil but interest rates here are only 1% in the first year then it goes up to 2% in the second year then stays at around 2.5%. This property is now worth $1.6mill but it is still under construction – not ready until the end of 2006. It is predicted that when the development is complete it will go up even more – here’s hoping!!! We are not sure what to do when the time comes – either move in and enjoy the lifestyle (those of you who know Singapore – it is on the island of Sentosa on the canals) or rent it out – rent here is high –we could get about $8000-$10,000 a month for it.
Earlier this year we bought 2 hectares of land in Perth for $160,000. Paid $120,000 and took a loan out of $40,000. The land is now valued at $220,000. (There is a strong possibility to sub-divide into 2 blocks in the future)
We have also bought a block of land in The Village at Wellard but titles are not out till March 2006. We will hold this land for 2-3 years and hopefully come back and build on it and live there then who knows???? Not sure how to go about financing this one – but we have a few months to figure it out…..
So to Sum up:
PERTH
Value $1,120,000 (not including the last purchase at wellard)
Loan $583,000 (paying interest only)
Rent $1800 a month
SINGAPORE
Value $1.6 million
Loan $1.2 million (Don’t have to start repayments till completion of the development – end of 2006)
When we bought our first PPOR in 2000 we did not use the FHOG so we will be using it when we get back to Perth to live.
We sort of “fell into†property investing but have been very lucky with our purchases. This forum is excellent and has motivated me to look into doing it full-time and learning more about investing. Thanks everyone!!!!
Any advice or any comments on our story – positive or negative would be appreciated.
Thanks, Mei
*************************************************************************Hi Jman,
We’ve been working in Singapore for 10 years and we have dealt with Commbank here. We used an unsecuritized property we had in Perth to borrow $160,000AUD. The interest rate was 3% but you have to watch out for the exchange rate. Potentially money can be made if the rate goes up.
EG: our loan was $160,000AUD changed to SGD at 1.2573 = SGD $201168.
When we wanted to repay the loan the rate had gone up to 1.28.
So 201168SGD / 1.28 = $157162AUD. (AUD repayment was lower than the initial $160,000 so we made a bit of money)
If the rate had gone down to say 1.2 – we would have had to pay back $201168 / 1.2 = $167640… (7000 more than the original loan)
If you leave the loan in AUD you still have to pay the Aussie rate of 6-7%. You need to convert your loan to SGD to get the 3%.
The exchange rate now is around 1.22. It has dropped over the last 6 months or so and I think will continue to fall.
You say your father is a dual citizen of Singapore? Singapore doesn’t allow dual citizenship?… would he be a PR of Singapore/Aussie Citizen?
Not sure about with holding tax as our loan was not for a property in Oz.
Hope this helps a bit.
Mei
Hi guys,
Thanks for your replies.
I called summit homes… http://www.summitprojects.com.au – they do everything from the initial feasibility study – to getting council approval etc etc.
Has anyone built with these guys? or know of any other reliable builders of villas/townhouses?
Marisa – I have pm’ed you.
Thanks, Mei
Thinking about selling one – holding the other 2 and renting them out.
Looking at either building a single and 2 doubles or 2 singles and a double – the block is elevated and there would be great views of Karrinyup from a second storey.
Thanks, Mei
By the way – we work in Singapore and would have to organise everything from over there.
In Perth on holiday till the end of Jan and hoping to get the ball rolling.
Anyone have any builders they can recommend for building villas/townhouses?
Thanks, Mei
Hubby, bubs and I will be leaving Singapore xmas eve – arrive in Perth at 1am… no one in the family knows we are coming!
Will surprise the parents first in the morning – spend xmas morning there then go over and surprise the in-laws in the afternoon!
Can’t wait!
Mei
We are Australians working in Singapore and have not had any problems with getting loans for our properties.
We deal with the Commonwealth bank direct. They just send out the documents – we go to the Australian High commission to get the documents witnessed – $24 a signature. Easy!
Mei
I’m not stroppy! Who said I was stroppy!!![chill]
And no I don’t really care what you do with your free time – just making an observation.
Hey Guys,
Firstly Dazzling — yes I should have said about the 3k refund in the initial post – was distracted by a crying baby and had to cut it short…. not all of us have hours to surf the internet everyday – like your goodself!!!! I just read a post where you had spent the last 90 minutes surfing for commercial property! You must have alot of time on your hands. [blink]
Secondly – purplekiss – yes for $3000 I sure have done the research and this is what is on the ATO website.
DO I HAVE TO REFUND MY CUSTOMER?
If so, what do I do?
Under GST law, you are not legally required to provide a refund. However, you may be required to provide a refund under other laws that apply to your situation. For example, any reimbursement you provide is a contractual matter between you
and your customer.If you choose to identify these customers, you may not have to bear the cost of the GST refund. This is because the GST you collected and paid to us may be refunded to you.
As you are the person who paid the GST to us, we cannot directly reimburse your customer for any GST that you overpaid.
We can only refund the overpaid GST to you after you have reimbursed that amount to your customer.
2 HOW DO I PROVIDE A REFUND TO MY CUSTOMERS?
If you decide to reimburse your customers, the method you use is your business decision to make. We do not expect you to follow any specific process. However, if you choose to reimburse your customers, it is important that you do so before
seeking a refund from us.You can choose to give a refund to the customer who paid the GST to you by providing either:
†a credit note to an existing customer (a credit note will only be acceptable if it is reasonable to expect that you will be able to honour this in the foreseeable future), or
†a refund to the customer.
We have only received verbal confirmation that they are going to refund us. Nothing in writing.
I was thinking of telling them we are not interested in chasing the $750 from the tenant so they can get moving with the GST money.
When we have the $3000 safely in the bank I was then thinking of fighting for the money as it was their fault they did not change the bond over?
I know Dazzling thinks this is a hopeless situation but anyone have any thoughts on my plan?
Mei
Hi Guys,
Lawry – just sent you a PM.
Ken – Sorry – I’m not 100% sure but I think banks will now lend 90%.
My cousins flat is in Hougang Central and yes it is an executive flat – block 851. Just did a search – there is one on the market in block 833 for $470,000.
Are you any closer to purchasing your semi-d? Good Luck with this.
Mei
Hi,
Does anyone know if those 3 planned high rises are going ahead or still being debated?
Thanks, Mei
Fun!
I’m “Desert Spice”.
Mei
Hey A,
How exotic!!!!
My baby daughter is also a quarter chinese – as I am eurasian – can’t tell though as she has blonde hair and blue eyes!!! [biggrin]
Her eyes are a little almond shaped though – and I think her hair will get darker as she gets older. Can you tell you have any chinese in you?My grandmother is from mainland china. My mum is chinese, born in Singapore. My father is from Yorkshire, England. They met on Christmas Island where I was born and lived for 7 years. Then we moved to Perth.
Great topic!
Mei
Hi Guys,
Thanks for your replies. Yes the agent did issue a new lease to the new tenant but did not change the bond over to her name.
The problem now is I can’t p*** the agent off as we are due to get a $3000 GST refund from them as the ATO recently passed a ruling stating Aussie expats did not have to pay any GST from 2000-2005. They are not obliged to refund this money but are willing to so I can’t afford to annoy them atm.
The agent said she wants to sort out the tenant problem before sorting out our refund.
Not sure how to proceed.
Any ideas?
Thanks, Mei
