Forum Replies Created
Cool Marisa! comes complete with tenant? Or do you have to find one? If so, hopefully they are in numbers for you
]Cheers
MelWelcome bmulrooney
Steve’s focus is postive gearing, rather than using any negative gearing to make things work – hence you’ll see no enthusiasm for negative gearing from him.
Don’t buy a property just to save on tax. A property valued at $300K that rents for $400pw I would buy. Are you sure it will cost $100 per week? Even if you borrow the full $300K, by my really quick calcs the interest at 7% (you can do a lot better) is $404 per week. So your out of pockets would be the rates, vacancy, property manager, land tax etc. etc. I wouldn’t think that this would add up to $5000 (but I could be wrong of course)….
If your research has been good, and the house is in a good area, I would buy it. Is it new(ish) ie after 1985? If so, definitely get a depreciation schedule done. This could really cut down your out of pockets.
Cheers
MelNot quite the gumball style (I can have gumballs though) – they tend to only have one type of lolly. I can have 4, 8 or even 12 depending on the machine.
Profitable – yes if you have good locations (of course). The profit level is about 50% on cost of lollies. Of course the prices vary, Jelly Beans are far and away the cheapest and most profitable, MMs and Skittles most expensive and least profitable (but more often the most successful – bugger).
Cheers
MelTip:
If buying Off the Plan, with a year or several until settlement, apply for finance at LEAST 3 months before settlement if you didn’t have approval (whatever it was worth 12 – 24 months previously) on signing of the contract.Tip:
Get a really good solicitor – not one who only deals with the Mum and Dad ‘bread and butter’ type of settlements.Cheers
Melqwerty, I reckon I might have seen it too. Had a look inside, but didn’t think I’d want to live there at the moment……
Cheers
MelI think he’s mentioned in a post that it will be for sale shortly….
Cheers
MelCel, that’s true – although they do get to claim it on tax. My little brother is forever buying new toys – I mean equipment for work. Plus they have to have a ute or a van or 4WD to carry all the stuff – and the extra petrol.
I’ve seen my brother get zapped by the electrics when fixing next doors power point – he goes through a lot of those screwdrivers that protect you from a zapping. Not for me at all!
Cheers
MelPS. Monopoly, our carpenter is providing his quote on the phone now as I type! Still can’t do it for a few weeks though. Heard from your guy?[biggrin]
Depends what you call ‘food’ Rob! My machines have four canisters, that accept 20c, 40c or $1 coins, that give one crank of the handle for a handful of ‘whatever’.
Not the packs of chips, lollies etc.
Cheers
MelHow typical that the investigators will be called rats!
Cheers
MelYes Miss Kay?
Another member and I have also been discussing vending machines. It looks like he is able to buy one the same as mine for about half price. If he can get a good site, it would easily return his invested money inside of about 6 months – plus he could eat all the lollies he liked and call it a business expense!!
I must say, 10kg of MMs staring me in the face is not such an attractive thought as it was 12 months ago. Suffice to say, I do NOT eat that much of the profits these days…. A couple (of kgs – NOT[biggrin]) of MMs or Skittles a day and I’m fanging for some real food!!
Misty, if you want to contact me – do. Else ‘air the question’ for all to share…
Cheers
MelHey Leigh
I’ve spent a lot of time with Bill, and I will vouch for the fact that he is very positive…. generally. However, he is negative on real estate at the moment, and Wraps also as we well know. I’ve had words with him several times about how negative he is on the forums….. So much so that when his brother and I discuss buying real estate, we don’t invite him[biggrin]
On other ventures we’re looking at, he is absolutely great. To be honest, I don’t think he has time to look at real estate at the moment, and IMO is a bit sick of it having been a RE Agency owner for a couple of decades…..
Cheers
MelUnless the auctioneer is going to give a kickback to the ‘friend’ it shouldn’t matter, as they are out to get the highest price possible.
this will benefit ALL of the beneficiaries – and the agent may work harder as it is a mate, rather than just doing it for the public trustee and having no real interest in the price etc…
Cheers
MelHi Misty
I’m guessing, but it sounds to me like it would be a capital cost – that is, it’s not helping you to increase/keep income, but is adding value to the property etc.
Cheers
MelMisty, I haven’t done it, but I believe it adds value to a place. Because it takes time to do (in some instances 12 months), and costs money, for a builder developer who can get straight in and build it’s great.
Even for an owner builder it would be good. However, the price still has to leave some value in it for the buyer to make their own profit from the building and sale of the second residence, or else it won’t be sold. I’ve seen a LOT of for sales lately that are only ‘able to be dual occ’, but are massively overpriced, and nothing has been done. I don’t think they’re selling in this current market though…
Cheers
MelGuys, guys, guys (and girls, girls, girls)
Shoud I clarify, and say that the $50 per hour is WAGES to be employed FULL TIME. That’s right, 5 (or 5 1/2) days per week, 8 hours per day x $50. Without any overtime, that’s $2K per week!!
I certainly understand the plumber I call out to my house will charge more than that, as he is not working 8 hours per day, 5 days per week – every week of the year.
I agree with Sue, don’t marry them! Even giving birth to them doesn’t help much – my Mum waits months and months for my brother to do stuff. It’s only when she’s really got the sh*ts and is about to call someone to pay them handsomely that he figures he’d better do it!!
Cultivate friendships, invite them round for dinner, and get them to fix the problem beforehand[biggrin]. If it’s an IP, same deal, just take them by the hand and drive them to the IP BEFORE dinner!![lmao]
Hey Monopoly, we finally got a carpenter to turn up today – but he won’t be able to do anything for us for at least 3 weeks!! At least he turned up to quote though[king]
Cheers
Melhey guys, I’ll bet you $1000 that the 15-60% Govt approved is the tax lien certificates (extremely favoured by American investors – and profitable too!) that are similar to our rates. Thing is, if they go unpaid there, the Govt whacks the payer with the % interest, but onsells the debt to investors. Investors earn that interest when it is paid (the Govt only wants what it’s owed so it can fund schools and stuff), and if it’s not paid in a certain timeframe, can go to court, and get the payer’s house….
Can whoever goes give a report back (pretty please[mellow])?
Cheers
MelHi Getting There
It’s true unfortunately. Is there no way you could make it available now? Advertise as available now, see if you get any prospects….
They may take one look – and say, no way, not fit to live in, but at least it would have been available…. although I think you could still only claim for the time it was ‘available’..
As was mentioned in response to your other post, the interest and other costs would be added to your ‘capital base’ when it comes to selling…
Cheers
MelJaffa – A list of acronyms
ie. TLA Three Letter Acronym
LMAO Lauging My A$#e off
LMI Lenders’ Mortgage Insurance
PPOR Principal Place of Residenceetc. etc. etc.
If we had them all in one place – it would save the newbies having to ask the question….
Don’t you like my suggestion of Scott’s tips on what to look for when inspecting a newly built property?
Cheers
MelA HDT can be both sorts of trust. If you borrow the funds to buy units in the trust, then rent the property from the trust, and claim a loss on your tax – that is the bit the govt doesn’t like.
If, however, the trust buys the house, and borrows money from you (in the ‘normal’ way, ie no issuing of units) and the trust makes a loss, then it will carry it forward until it makes a profit. This, I believe is acceptable, as you personally are not making a gain from ‘negative gearing’ the house you are living in…
As always, speak to a competent tax professional.
Cheers
MelManoj, if I had that last tenant, I would never ENTER that investment property[biggrin]
Cheers
Mel
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