Forum Replies Created
Hi Karl and Rita,
Try Julia from here or SS, she is in Bechmere Qld (not sure if that is close to you). DaleGG from SS is very reputable also (especially with Trusts) and although not in Qld has clients from across the country.
Try Julia Hartman [email protected] or http://www.bantacs.com.au
Cheers,
Jo
Mini,
I was not scared off by Michael’s post; I don’t believe anyone should be scared off by anyone’s post. The whole idea is to read the posts, take in what you feel valuable and leave the rest; simple. As for the reason I was attracted to this thread, it was predominantly out of interest especially considering some very recent events involving friends who had travelled that path and suffered because of their lack of experience, knowledge etc in property development. I was commending Michael on posting the warning, as all too often people are unaware of the pitfalls that first time developers are blinded to by their enthusiam (understandably).
Equally unaffected am I by your inferences towards (and of) me, and my comment re this topic, none of which were aimed at you (or anyone else) exclusively, so you can ease off on the lengthy self justifications. As long as you are happy and confident in your new ventures then, terrific!!![thumbsupanim]
All I am saying is, I have seen people (really nice people) get burnt, and those considering developing would be wise to exercise a degree of caution and do their homework thoroughly, especially in the current market.
I am not a developer, never have been, and don’t have any immediate plans to do so; maybe one day, but at this stage I don’t see the need (for myself) nor the profitablity to merit taking that journey.
Good luck Ms Developer, it’s a long (but can be an inevitabily profitable) road for some; I sincerely hope you are one of same.[biggrin]
Cheers,
Jo
Originally posted by Mortgage Hunter:
One might need to consider what cover you have for a friend or famly member working on your property for you though?I would hope Simon, that you (or whoever) would have adequate public liability, as this is generally sufficent to cover “friends, family and public in general” but of course, as with any legislative ruling, is never totally conclusive, especially if the case is strongly in (or against) your favour.
Originally posted by Mortgage Hunter:
You are either trolling for an argument or are an idiot.Hardly fair, simply because Jason is questioning the validity of a legistlation that ultimately could impact on his (and others) investments???
Perhaps his comment re Derivex was not to your liking, hence your deletion of same, but you don’t have the right to call him an idiot simply because he is not gullible enough to take everything that is put in front of him as gospel!!!
Cheers,
Jo
I’m sorry but after reading the information of the provided link, repeatedly, I STILL cannot fathom the correlation between the need for Workers Comp insurance and residential property owners cover for tenants!!!
The ONLY section that even HINTS to have some merit is:
Example 3.
A sub-contract paver who happens to be a working director repairs the paving of a rental property owned and rented out by an investor. The investor, in this instance called the principal, would be required to cover the working director because the working director performs the work and the work is for the purpose of the principal’s trade or business – the investor is in the business of maintaining and renting out residential properties.However, as a “CONTRACTOR” this tradie would have to have his/her own insurance cover to safeguard against injury, based on the fact that they are indeed a “contractor” and not an “employee”.
Jason, I agree wholeheartedly, this claim does not hold water, well not on the surface anyway. Thus I too, would like to hear from those who can verify its legitimacy!!!
Cheers,
Jo
Originally posted by Mortgage Hunter:Can you change it?
If the answer is no then pay it or don’t own property in this state.
Why waste emotional energy fighting it or complaining? Turn your effort to something a little more productive.
If the answer is yes then change it and everyone will be happy [biggrin]
Are you asking ME specifically?? [blink]
If yes, as I said Simon, I am not overly concerned, if it has to be paid so be it.
I don’t know that it will apply to us here in Vic (it may well do) and again, if so, so be it.
All I said was “I don’t see how it correlates.”
Who’s complaining?? [blink]
Cheers,
Jo
Originally posted by Mortgage Hunter:Originally posted by JasonBourne:Why would residential IP owners need workers compensation insurance? Sounds like BS to me.
What are you saying Jason? That having an insurance that may be a legal requirement is something you wouldn’t do?
No Simon,
I think (correct me here if I am mistaken) Jason is questioning the need for residential property owners (landlord/ladies) to take out workers compensation insurance, when clearly this type of cover is designed to safeguard “employees.” In that regard, I’m afraid I have to agree, how does it correlate??? [blink]
I personally can’t understand the need for it, but obviously if it is a legal requirement, then I guess I (as will most) landlord/ladies have to cop it sweet!! [blush2]
Cheers,
Jo
Michael,
What an awesome post!!! [thumbsupanim]
I am not a property developer; I never have been, nor do I intend to be (well not in the immediate future). Why??? Because I agree wholeheartedly with you; I too have seen many “developer” friends go from owning a hefty portfolio to (some, not all) near bankrupt, those that survived are currently renting and paying off someone else’s mortgage!!![bawl]
IMHO all too often people get caught up in their greed, and think that if they can achieve profits with single property investments, all of a sudden they can “develop” a string of properties and hit the big time!!!
I say crawl before you walk, and walk for a while before you run, otherwise you could fall flat on your face!!! [blush2]
Cheers,
Jo
P.S. I’m not saying “property development” is to be avoided, only researched, perhaps even moreso than if you were to research into the purchase of a single property. It stands to reason, mutliple your research by the number of properties you intend to develop (and then triple it again just for luck).
Originally posted by nowork:Would anybody be able to help me to find population rates for areas around Australia that are free.
ABS Yearbook Australia (Population)
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/3ddd24a55e971933ca256f7200832efb!OpenDocument
It is the most current (2005). From there you can select the category of interest (for example):Population size and growth
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/6a5aabd7621230adca256f7200832f77!OpenDocumentPopulation projections
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/1be550b68482564fca256f7200832f25!OpenDocumentABS Yearbook Australia (Population)
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/3ddd24a55e971933ca256f7200832efb!OpenDocument
It is the most current (2005). From there you can select the category of interest (for example):Population size and growth
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/6a5aabd7621230adca256f7200832f77!OpenDocumentPopulation projections
http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/1be550b68482564fca256f7200832f25!OpenDocumentOriginally posted by leo777:
I’ve read in the newspaper about the land tax. “Property owners slugged”. In Victoria, is the land tax relevant ??
Unfortunately YES [glum2]As far as I know, it is only relevant in NSW, but I might be wrong.
Again, unfortunately YES [glum2] See below:Land Tax is applicable in:
VIC
http://www.sro.vic.gov.au/sro/srowebsite.nsf/landtaxNSW
http://www.osr.nsw.gov.au/portal/page?_pageid=33,1&_dad=portal&_schema=OSRPTLTWA
http://rol.osr.wa.gov.au/taxcal/SA
http://www.revenuesa.sa.gov.au/taxes/ltax.html#CalculatorTAS
http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/stat-v/215QLD
http://www.osr.qld.gov.au/calcs/downloadzip.htm
(You will need to download the calculator)For more information visit the ATO website (land tax section):
http://www.ato.gov.au/businesses/content.asp?doc=/content/33834.htmQuote: Land tax is imposed in all states and the ACT, but not in the Northern Territory. It is a tax levied on landowners, except in the ACT where it is levied on lessees under a Crown lease.
If the land tax relevant in VIC, then how we’re going to calculate it ?? Is the land tax is valid for both residential and commercial property ??
Refer to the website for individual state calculators. Land Tax is applicable to both residential and commercial.Is that the cost/expense that we need to pay annually ??
Yet again, unfortunately YES [glum2]Originally posted by foundation:
PS – If you follow Enzo of REIV’s logic, that:
CAPITAL LOSS = $10,000
can more positively be described as ‘slightly negative growth’ or ‘more realistic levels of stable capital appreciation’…[biggrin]Foundation,
It wouldn’t exactly equate to 10K as obviously there are other factors that need to be taken into account, and yes, it could well end up as a “stable capital appreciation” HOWEVER for the sake of simplicity I thought it best to not try and confuse the issue too much; as it stands, I still don’t think the message will reach its target!! [blush2]
Cheers,
Jo
Originally posted by leo777:Recently, I was approved for the first home owner grant. The settlement date of the property would be the end of March. I have a plan to move to the new house next August, and during the vacant period (April – July), one of my friend agrees to rent my property.
Leo, I am not an expert on FHOG but from the little I do know, the answer is a definite..NO!!! YOU have to live in it otherwise you will be required to payback the grant amount (someone correct me if I am wrong please)No probs Josie. You are wrong with your definite NO. The property can be rented. As long as you take up residence for 6 months within that first 12 months you qualify for the FHOG. This means you can rent it for 11 months and then move in for 6 months and retain the FHOG. If you don’t move in then you need to repay the grant. Hope this helps [blush2]
Am I still eligible for the first home owner grant if I’ve decided my friend to rent my property for 4 months, and after that I will move to my property continuosly (i.e. August) ??
(See above)For tax purposes (capital gains), can I claim the loss that I’m incurred (if the expense of the property is greater than the income that I’ve received) ??
NO…CGT is not about how much income you have made it is about CAPITAL GAIN in value of property from time you buy it to the time you sell it. It might be easier for you to understand if you read up on its definition before you ask these unrelated questions.Example:
Buy house in 2005 = $250,000
Sell house in 2006 = $300,000 or $240,000 (loss)
CAPITAL GAIN = $50,000
CAPITAL LOSS = $10,000 (if you sell for 240K instead of 300K)And what kind of legal document do I need to show to the tax officer, that I am doing the business (of renting my property to somebody else) ?? Do I need to form a company or apply for an ABN number ??
NONE, This is not necessary and makes no sense.Thank’s for your advise.
Hey Resi,
It may be a simplistic view but really I guess the fundamentals of “making money” generally are, that is, people do it (make money) all the time; they sell stuff, or more everyday-ish, they go to work and MAKE money. No great mysteries there!!!
The key IMO is not “how to make money” but once made “how to sustain wealth” that needs to be established. But this is a PESONAL thing, and it depends on “horses for courses” subjectivity, as it should. Nonetheless, there are some pretty interesting (to say the least) ways to do this; notions as unique as the individuals who conjure them up. [biggrin]
Thinker,
Relax, you will be CGT exempt because:
a) as part of the FHOG you would have had to claim it as your PPOR to be eligible
b) you are renting where you are hence not claiming another place as your PPOR and beside, from my understanding, you were RELOCATED because of work hence there is not so much onus place on what is and what is not your PPOR during this 6 years, nonetheless….
c) you have 6 years in which you can rent it out and not lose your CGT exemption (however, if time runs out and especially because of your work situation (ie. relocation) you can just move back into it for say a couple of weeks, then restart the 6 year clock when you move out again)
You should have had a valuation done at time you moved out (each time) however you can backdate this (at a cost approx $400-$600 depnding on who you use) and keep it JIC (just in case) you decide to sell at any point (and remember the valuation fee for this service is tax deductible and can be factored into the cost base when calculating CGT if applicable)
Finally, if you don’t plan to sell it in the long term, the CGT should not be an issue anyway.
Cheers,
Jo
Leo,
In answer to your (repeated) question, see your other thread as well:
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=16134
Cheers,
Jo
Hi Turbo,
I know I already contributed my 2c earlier, but in the meantime a friend who invests in “student accommodation” type properties has sent me an email saying that there are both pluses and minuses that need to be considered (as with any IP) along with a couple of links that may be of interest:
http://money.ninemsn.com.au/article.aspx?id=19552
BTW….he makes a killing on his investments, and he knows this market well, which is always an important factor when buying into ANYTHING. To quote but one example, he has a 10 bedroom, 2 bathroom student accomm that returns $1400 per week!!! True, he pays the electricity, gas and water bills, plus he provides internet facility, and his CG may not be as good as surrounding properties, but heck, if it’s cashflow you want, it is a great opportunity IMO. [grin]
At the end of the day, you have to make up your own mind. Do what is right for you. [biggrin]
Cheers,
Jo
Originally posted by leo777:Hi, I just new in the “real estate” world.
There are some issues that I want to ask.I’ve excess money and I’m thinking to buy a property, and the question that comes up from my brain is:
1. After I bought the property (for investment), say I want to renovate some area like kitchen and toilet. Can I claim the expense that I spend (for the renovation) as a capital loss for my tax deduction ??
NO – you can only claim a CAPITAL LOSS at the time you are factoring in the cost base for a property upon it’s sale.2. Say I bought the property on August, and after doing some renovation for 1 month,
WHAT TYPE OF RENOVATION???
Repairs are not capital losses. This can be ambigious hence exercise caution.
the property was ready to be rented on September. Say, no-one renting the house for 2 months (until November), and on December, a couple rent the house (so I have the income from December to June next year). In case of negative gearing, when I can claim as a capital loss ?? Is that from August, September or December ??
IT IS NOT A CAPITAL LOSS. Even if it were, it also depends of the type/level of works being conducted in determining habitability.As for claiming any loss, your claim would be income/rental loss which, because it was never tenanted in the first place, you can make income (ie. rental) loss claims, but MAY prove difficult to establish. Check with tax accountant for more precise advice on this matter.
TIP: Wherever possible, renovate whilst a property is tenanted, thus making all REPAIRS not CAPITAL IMPROVEMENTS immediately tax deductible (within that financial year of course).
Regardless of all of this, YOU CAN CLAIM interest paid on your negatively geared property during this time (as at any other) as well as any advertising costs incurred for prospecting of tenants.
NOTE: CAPITAL IMPROVEMENTS are factored into cost base for CGT/Loss calculations and as such are NOT immediately tax deductible.
REPAIRS are tax deductible, but can be vague to differentiate between renovations for repair or for capital value adding, hence seek professional tax advice or check with ATO on 13 28 61.
Hey Jaffa,
Hope to see you back in here soon!!!
Personally, I will be going o/s end of this month but have decided it might be a good idea to withraw a bit earlier than anticipated; seems as though I am an upsetting some of the newbies
https://www.propertyinvesting.com/forum/topic/16025/2.html with my psycho babble [blush2]You take care Jaffa, and please don’t forget to keep up the good work with the “best of”s they are good value as are you!!! Will miss ya!! [biggrin]
Cheers,
Jo
Originally posted by Dazzling:
My father was disappointed a few years back when he successfully bid on a property at auction and after the crowd dissipated and contracts exchanged, the agent didn’t put a sold sticker on the auction board. He said he forgot about it – his loss really I suppose. Dad felt a bit deflated however. Sign stayed up for the next 3 weeks without a sold sticker being slapped across it ?? Who knows.
I’m sorry to hear about your father’s disappointing incident, however if no money was exchanged (which was my point in the first place) at least he didn’t lose too much except for his faith in REAs.Yack – I agree with you, they are an eyesore and potential security risk. Definitely detract from the neighbourhood amenity.
Fair enough that you see them as an eyesore, although I can’t say I understand how they are a security risk, and really I’m not asking for clarification, I’m sure you have your reasons for thinking them as such.Monopoly – Disagree with you totally. You have reduced this fine thread to a drivelling mess, with enough pschobabble and personal attacks on Yack to be laughable. I’ve noticed many times on this website when you disagree with someone, or more specifically if they dare to disagree with you, you smother them with headtwisting rubbish and deviate off into a personal attack until they relent. Yack continued with integrity despite your vehement slandering. IMO you ain’t no sleeping lion.
There have been quite a few posts written about forum members reducing some threads on this website to a slandering match and adding little constructive value, even supported by Steve.
Monopoly, it’s OK to have other forum members question / or heaven forbid disagree with you without you flying off on some psycho babble slandering tizz.
Fair enough Dazzling, you are entitled to your opinion of me which is undoubtedly not a positive one. I will heed your words and lower my voice to a dull roar that should please the masses.May I also suggest you take your complaint to admin I’m sure they would be interested in your views, especially if troublesome posters such as myself engage in “slandering” fellow forumites. As a former moderator of this site, I don’t think that type of behaviour should be tolerated, and on that note, should be asked to leave.
I will respectfully oblige if that is the case.
Cheers,
Jo
Take a cut lunch and make sure you fill up the tank before you head out!!! [biggrin]
Seriously, as long as you do your homework, research the area well, check it out thoroughly and then if the numbers stack up and you feel that its worthwhile then go for it.
Myself personally, I wouldn’t invest anywhere that had little CG potential, regardless of how high the cashflow prospects are. Why would I want to buy out the middle of nowhere where opportunity for CG is minimal for the sake of a measley 2K a year??? But hey, if that works for you [specool]
Cheers,
Jo
