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melbear
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October 31, 2003 - 2:25 am
Dave
That would make a nicely negatively geared property wouldn’t it?[xx(] No thanks, I’ve got one in Logan area already.
Cheers
Mel
melbear
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October 31, 2003 - 1:54 am
Steve
Simon and I have both answered your question in the preceeding posts. If you purchase an ‘IP’ to live in it for six months you are really purchasing a PPOR – yes?
If you move out in six months to a new house you have bought, you will be making a decision as to which of the houses is your PPOR.
If you are doing what Simon said, to have the overlapping 6 months where you can have two PPORs, then David is right in saying that it cannot be rented out before you sell it. If you have rented it out, then the two PPORs rule will not happen, and you need to make the choice as to which is your PPOR. If you choose the first one (that you have sold afte one year) there will be no CGT on sale. However, when you go to sell the second one, it will be pro rata based on how long you have lived there.
My question. Why would you be looking at selling a house every six months?
Cheers
Mel
melbear
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October 31, 2003 - 1:45 am
Oh. i’ve now looked more closely at Poltergeist’s response.[][] I thought he said ‘i subject line changed’. But it’s an exclamation mark![]
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Mel
melbear
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October 30, 2003 - 2:54 pm
Steve
I think it cost me $695 and it was held over two weeks, with about 5 half days, and one full day or something similar. Some ‘homework’ and an exam at the end.
I did the course so I could ‘hold the hand’ of my sister’s friend who I was going to employ to manage my properties. Sadly, that arrangement hasn’t worked out, and my new aim is to steal a top notch manager from one of the firms when I have the $$ to pay them at least an equivalent – for probably 10% of the work.
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Mel
melbear
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October 30, 2003 - 2:50 pm
I don’t recall saying there was a guaranteed profit. In fact, the phrase which you quoted had me saying a property you plan to onsell. This strategy could also be used where you are planning a renovation, and can get early access.
I am aware of many people getting burnt. It’s all over the news quite often.
Cheers
Mel
melbear
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October 30, 2003 - 2:23 pm
I would reduce debt – as long as you have a plan to create more wealth for yourself than would be in super. Realistically you can’t touch that money for another 20-25 years, so make use of it now.
Cheers
Mel
melbear
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October 30, 2003 - 2:20 pm
Naughty Poltergeist! I wondered about that cos I didn’t think we could change the subject!!
Moderator, too much power to the platinums here!! Moderator, oh, d’oh, have to be careful, Poltergeist could ban me!![]
So I’ll whisper secretly to the moderators then ……………………………
Cheers
Mel
melbear
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October 30, 2003 - 2:18 pm
Hey Doug, that’s good to know!
It saddens me to see so many people who are out for all they can get.
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Mel
melbear
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October 30, 2003 - 2:13 pm
Josh
You lost me when you divided the interest rate by 54!!
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Mel
melbear
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October 30, 2003 - 2:11 pm
Hi jack
I wasn’t going to respond cos it’s late, but I will and then I’m off to bed.
Don’t buy appreciating assets in a company name! There is NO discount for CGT in a company.
As to your situation – it depends what you want to do. Personally, I am buying my properties in a discretionary trust (there is a lot of argument for hybrid trusts as well – I think that’s in heaps of detail on the somersoft forum), which has a company as the trustee. I think you’ll find that Steve and Dave have done the same.
As always, speak to your accountant. You could also do a search on this subject – it has been debated/discussed many times before.
Cheers
Mel
melbear
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October 30, 2003 - 2:07 pm
I’m not sure quite what you are asking. There have been a couple of posts a while back – perhaps search the treasure chest – that a few people gave examples of ads that they have used.
Alternatively, i believe there are a couple of products that Steve and others produce that give examples of ads that work. From memory there is an example in Steve’s book?
Cheers
Mel
melbear
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October 30, 2003 - 2:02 pm
That’s just typical of the banks!! Not that I’m planning on using the loans, but why can’t they call them like they are, rather than making them sound great, and get people’s hopes up?
Although I seriously wonder if you should be buying a house if you haven’t got any money saved up at all.
Cheers
Mel
melbear
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October 30, 2003 - 1:26 pm
Muppet, I told Fudge to make it self destructive for you Kiwis, I hope he listened. Either that, or once you do it it puts a jinx on those nancy boys you call the All Blacks
Cheers
Mel
melbear
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October 30, 2003 - 1:17 pm
Hey Josh
I think there are also a couple of products out there (St George being one of them?) that offer 100% loans. Haven’t looked into it, so don’t know the details.
Cheers
Mel
melbear
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October 30, 2003 - 12:58 pm
Me too Joy. I’m purchasing an office so that I can hire a friend of mine to deal with the nightmare one day per fortnight – which will grow I’m sure, but it’s as much as i can convince her to take the time off her ‘real’ job at the moment.
At the moment I have paperwork at her house, my bedroom floor, the loungeroom floor, the study, my partner’s house (SOME of that’s in a filing cabinet) etc. etc. I want to do my tax return so I can get my refund, but I’m drowning.[][!][xx(][xx(][xx(]
Cheers
Mel
melbear
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October 30, 2003 - 12:46 pm
Bear, you can ALWAYS have one PPOR (except in the case Simon mentioned where you can have two). Your PPOR doesn’t have to be the same property though – it can be forty in your lifetime if you are unfortunate enough to move house that often.
Cheers
Mel
melbear
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October 30, 2003 - 12:22 pm
Hey Steve
My long term goal is to have an employee who manages all my properties for me. Then I will pay them a salary (which is what PMs are on anyway – the agency takes the commission). I will also be ensuring that they are interested in investing, and aim to help them/invest with them as a partnership so in the end they will manage our properties.
If you manage yourself, you can collect a bond of between 0 and 4 weeks rent. You then still have to lodge this with the bond board in your state as the agents do.
Check out suzi bilosh’s book Aust Landlords Handbook. she manages (I think) 7 or so of her own properties and sets out what you need to do. Or else you could do the Property Managers course that is run by the various Real Estate Institutes. I did, and it made me realise i would never want to work for an agency – too many long hours!!
Cheers
Mel
melbear
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October 30, 2003 - 12:18 pm
Hey Leon
What happens with any capital growth? It sounds an interesting concept, but one I’ve not heard of – that of ‘moving’ people to the country anyway.
Cheers
Mel
melbear
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October 30, 2003 - 12:17 pm
Hey ENJOLady
Your bank bloke is probably right, but also wrong[]. I know a while ago my Dad was going guarantor (we jointly owned a property, but I wanted to take the debt on, not him, and he had to sign as the security holder as well), and had to go see a separate solicitor to have them explain to him what he was doing. That solicitor actually told him that they wouldn’t do it again as they were unhappy that the banks were walking away from their ‘risk’ and passing it onto the solicitor.
But I do know people who are still going guarantor, and I think a few have mentioned it on this forum as well. Another way of ‘going guarantor’ is to buy the property jointly (better with the folks than other investors) in a 99/1 split, which enables the 1% to have income taken into account for the loan.
I think it probably comes down to contacting a mortgage broker if your current bank won’t help, and they should be able to find somebody who will as they have so many to choose from.
Cheers
Mel
melbear
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October 30, 2003 - 12:04 pm
Hey Simon, I wasn’t arguing/disagreeing, just clarifying. Your post actually said ‘home’, and you can differentiate between a ‘home’ and a ‘PPOR’. I think you and I both understand, but want to be crystal for anybody out there who’s learning the concept.[][]
Hi TheRC1
You can only have one PPOR at any one time, so while you were renting out your first home, and claiming it still as PPOR, you cannot claim the second house as PPOR.
So if you moved out of house 1 and rented it for four years and then sold, paying no CGT as it was your PPOR, meanwhile living in a new house you had bought, for those four years, you could not claim the new house as PPOR, and so when it came time to sell it, you would pay CGT for those four years. The ATO doesn’t care in this instance about the loans (ie purpose etc.).
Cheers
Mel