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MJK
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@mjk
Join Date: 2003
Post Count: 157
August 11, 2003 - 1:35 am
For QLD I have found Advanced Depreciation Services excellent. 07 3889 1552
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
August 9, 2003 - 12:38 pm
Heated is an understatement.
MJK
MJK
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@mjk
Join Date: 2003
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August 9, 2003 - 12:09 pm
Thats a new one! Why dont you ask the ATO.
( Aust.Tax Office for the internationals )
MJK
MJK
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@mjk
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July 25, 2003 - 7:05 am
I would agree in principle with the old adage
” never sell” but after being in the game for a while one realises that sometimes there is a right time to sell. Often capital growth exceeds rental growth and transferance of equity into high yeild is a reasonable solution provided it ends up meeting your requirements.
Debt reduction through capital gain is viable. The mistake most novice investors make is selling too soon.
One could argue that you use equity to buy more property without selling, but you cant eat equity can you. Capital growth investors must consider income at some stage to achieve their purpose for investing.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 25, 2003 - 12:25 am
Personally I think capital gains in ACT could be a bit hard to get as the market has already boomed.
Not only that, the Serviced apartment market is probobly the least likely property type to get capital growth in as they are sold primarily as an income positive investment, created largely through large depreciation schedules. Buying a negitive cash flow serviced apartment, in my opinion would be a bit dicey to say the least.
My 2 cents for free.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 25, 2003 - 12:17 am
Del,
I think to only people that would touch Liberty are tose with no equity or cash.
What do you think ?
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 25, 2003 - 12:09 am
Hello all,
My strategy is something like this.
I own my home outright so I have no personal debt.
I have 4 Brisbane CBD houses bought over the last 4 years which create a nuetrally geared portfolio with significant equity already. These properties where purchased with capital gain focus.I believe their value will double by 2010 creating equity of $800,000 to $[8D]1,000,000.
So, now my focus is to by come cash positive property so in 2010 I can use the equity to wipe out the debt on the positive cashflow properties
and therefore own outright the high yielding properties
Hope that make sense?
I am wanting to by Commercial property for my cash flow positive property rather than houses so there are less titles to manage.
Feel free to pick the eyeballs out of my strategy.
MJK[8D]
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 24, 2003 - 2:09 am
Spot on! The concern often isnt rental amounts vs interest ammounts but more vacancy. Having a property vacant will really cost you. Some areas have high vacancy rate especially around Melbourne. High vacancy rates cause low yeilds.
Of course if its positive cashflow your after 3-4 percent rental wont do it!
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 23, 2003 - 3:21 am
Marcell,
Maybe you could buy a property for 45,000 use the other 5,000 for costs and rent it out without needing to borrow. If you did you might find you will have an income of say 2-3,000 per year ?
Or maybe the banks will lend you a bit, but I think generally they’d like you to have an income/job.
I could be wrong.
MJK
MJK
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@mjk
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Post Count: 157
July 22, 2003 - 6:04 am
My understanding is;
In relation to property you need the Title to be in your name only to claim all the deductions in your name.
There are ways of getting around this but they are usually set up at time of purchase through the contract type. If you have already bought the place in both your names then you must split the deductions,short of reorganising the contract of course ( not advisable , could be expensive)
On the upside if you get a capital gain the you can split that across both you and your wife.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 22, 2003 - 5:58 am
It is added to your taxable income.
Eg. Say you earn $50,000 at work and then have a “taxable” gain of say $ 40,000, then your taxable income for that year will be $90,000.
Not allowing for income splitting between spouses in the abouve example.
MJK
MJK
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@mjk
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Post Count: 157
July 22, 2003 - 3:12 am
My understanding is that you will always pay capital gains unless you live in the property for 12 months making it you home not an investment property. Note that the minute you rent it out it becomes liable, to a degree, to capital gainseither before or after you’ve lived in it.
The realestate agent is telling a porker.
MJK
MJK
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@mjk
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Post Count: 157
July 22, 2003 - 2:52 am
Kooringal,
Thanks for your reply, it seems to be how I remember it also, somewhere deep in the back of my mind. I personally, try to buy more nuetral properties these days because they are self supporting even without tax benifits, but there’s nothing like claiming a loss thats not out of pocket is there? Also I was wondering if changes to -ng were retrospective or only affected post dated purchases ?
MJK
MJK
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@mjk
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July 21, 2003 - 5:00 am
Does anyone understand the question or are all those old enough to remember not surfing at the moment. I hope I was able to articulate my question properly . I’ve had 30 readers and no answers![]
MJK
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@mjk
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Post Count: 157
July 21, 2003 - 4:54 am
Hi Betty,
Sorry to hear you didn’t get the growth you were initially expecting.If you dont mind could you tell us where they put you, what type of property and how much ? Also how far from the CBD. If they put you into Brisbane 4 years ago. I would have assumed you would have picked up some growth recently [?]
I would like to know more about what they have been advocating.[]
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 20, 2003 - 8:36 am
Its very hard to answer a question like this without knowing how much you want to spend and if you are looking for positive cash flow, nuetral cashflow or capital growth/ negative cash flow ?
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
July 18, 2003 - 6:56 am
Based on the figures you posted you will be losing money every year until you cash in on your anticipated capital gain. Make sure this property is likely to grow in value in the time frame you want it to or else try to find something more neutrally geared or positive.
What area are you looking at and what type of property ?
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
June 25, 2003 - 5:43 am
Katsu 88,
If you like I can put you in touch with a Brisbane agent that is very helpful ( listens to your requirements / will spend a day showing you around ). I have bought a few properties through her. She sources property from all agencies not just her own. If an appropriate property comes up she acts as a buyers representative ( for a fee ) and does the negotiation as well.
If you want more info I can email you.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
June 25, 2003 - 1:12 am
You can buy an airless spray gun from Bunnings for under $300. A good brand is a Wagner. They are very quick but you get heaps of overspray, so here’s the summary. If you are doing the ceiling the same colour as the walls and can mask off the floor PROPERLY then go the gun, BUT if you have cutting in to do forget it!
Now, I sprayed my 20mtr picket fence in 4 hours two coats on bare wood and you might say thats fantastic, but I also had to pay $150 to get my neighbors car cut and polished. Luckily we have a panel beater in the family. Some other panel beaters wanted $500.
Hope this helps.
MJK
MJK
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@mjk
Join Date: 2003
Post Count: 157
June 25, 2003 - 12:34 am
Thanks Wayne,
I thik you’ve captured it perfectly. Its that little thing deep inside that makes us go through the hurdles.
MJK