Forum Replies Created
gmh454,
True, another 4 months is not going to make a huge difference in terms of capital gains with respect to value of the property. My point is simply, why pay ANY capital gain, when you don’t have to. Even if Shackles off makes a loss, another 4 months won’t make a huge difference, and it will be a few months of extra claimable deductions. It depends on how much more Shackles off will lose if he/she waits as opposed to if he/she sells the IP now, which btw is not a good time, best left till after the holidays (hence 4 months is a good compromise).
Ultimately, the final decision rests with Shackles off after he/she weighs up all the pros and cons and has sought proper financial counsel.
Finally, excuse me if I am a little miffed at the prospect of paying ANY CGT but when you have paid out almost quarter of a million on your own to the taxman, you tend to advise people to steer clear of the taxman’s grasp as much as they possibly can.
Jo
I’d suggest you hold onto it for at least another 4 months to take you over the 12 month threshold, which will make you eligible for the 50% CGT discount. If you sell under 12 months, you will be liable for the full 100% CGT bill.
What you do from there is up to you. It depends on the value of the property; that is if it is growing in value, albeit with poor returns at the moment, I would be inclined to hold on to it, especially if you are not too deeply out of pocket each month.
Property is not a short term investment, serious investors realise this and are prepared to weather the bad times along with the good. Folding is a good strategy when deciding to walk away from a poker table, where you risk losing your shirt.
Jo
Regarding NET figures, it is not hard to work out the worst case scenario. Just take the gross figure and take away 48.5%. The sceptics should be happy that they have a NET figure then.
I’m no financial whiz, but even I know that the worst case scenario doesn’t necessarily equate to the above formula. There are people who have (and do) achieve huge gross earnings and who equally have run at an even larger loss!!!
Nonetheless, I am not disputing the MAPPERS successes and I agree they have done well, whether they could repeat this is another thing in the current market.
But all in all, they are deserving of the accolades, they rose to the challenge!!!
Cheers,
Jo
Without getting into a heated debate about the program, and I must agree shows such as TT really are not the most reliable source of information. They are more “overview” type of programs aimed at attracting your attention and boosting their ratings.
The biggest criticism most people have of Steve’s second book (re the MAPPERS) is the omittance of “net” figures; specifically not outlining all the financial details, hence this oversight is interpreted by many as generalisation of gross estimates which are both inconclusive and of little worth in the greater scheme of things.
The TT show was pretty much just a celebration of targets that were achieved, and if nothing else, Steve and his MAPPERS deserve that recognition.
Jo
Subject to Due Diligence??? [eh]
How and what do YOU define as “due diligence”??? This varies from one person to the next, and even so how can it be proven that you have done it satisfactorily and to what degree. Frankly I think you will get the same response as that which I had when I first read suggestion of such an inclusion….[blink]
Jo
Okay Yack, you win!!!
Forgive me if this does not sit well with everyone, it was not designed to accommodate anyone in particular, but rather a summary of my year as I saw it:
2004 for me was the year:
1. I stumbled across what appeared to be an investment forum, but later discovered was indeed (as someone so aptly described it) a fanclub more than it was a forum. I later moved onto better and less “greener” pastures, finding my way to a place that was not only friendlier, but was relievingly filled with more open mnded people who knew what they were on about.
2. I became familiar with names of authors and titles of books, REAL books, the investment types, that I had never even heard of except for the odd reference that got bandied about at some social function amongst the more affluent “wannabee” gatherings. Two such books actually crossed my path, one as a gift from a journalist friend, which I quickly recycled back into the community, and the other as a “treat” to myself that proved to be highly entertaining and a welcome introduction to the world of investment books/gurus.
3. I exchanged my Marie Clare subscripton for API instead; a worthwhile exercise, but daresay one that did nothing in helping me match my new designer shoes to my new dress!!!
4. I decided to diversify my portfolio more effectively by re-dabbling (with not such a faint heart this time) in the share market, and in just a few short months made the equivalent return that would have been achieved from a year’s net rental income.
4. Above all, I sold the last of my interstate IPs for a 100K profit (in a cool market) and replaced it with 2 IPs purchased both in bayside suburbs which IMO should fare nicely as they are so close to water you can hear the fish flapping about merrily!!!
As for 2005:
1. Continue reading investment books
2. Continue buying property (no more selling)
3. Continue investing in the share marketSorry, if my future goals are a bit sparse but I hadn’t given them too much thought at the moment; I am too focussed on other things!!! [blush2]
Wishing you all a Merry Christmas and a joyous, and prosperous New Year.
Cheers,
Jo
Benzene is a name for the chemical compound used to make petrol.[biggrin]
Hey Minxii,
As per the last paragraph of my post which highlighted same, with respect to 100K this is about as good as it gets in Victoria. Sure there will be people that will tell you otherwise, although I’d imagine not too many realistic ones (people) that is. Unfortunately, even if you do find something <100K in a regional town the population and infrastructure may not be substantial enough in size/potential to make investment worthwhile. It really depends on what you want, how much you want to spend and HEAPS of research.
Not exactly my cuppa tea either, but then it’s horses for courses I guess!!![blush2]
Jo
Hey Alex,
Don’t let it bother you, alot can happen in 5 years. It’s the nature of the beast, and I find it amusing (to say the least) after watching 4 cycles to find my first IP bought for 27K nearly 24 years ago sell for 550K in a cool market….go figure!!! [biggrin]
“Sit down, buckle up and enjoy the ride” I always say!!! Works for me!!! [winking]
Jo
Hey Minxii,
Don’t know about the finance side, you’ll have to check with one of the MB’s on here, but as far as properties in Victoria under 100K, here’s a few I sourced from http://www.realestate.com.au in less than 5 minutes using the Advanced Search (stipulating 100K max). By the way, I didn’t even have to get out of my chair:
These ones even come with acreage!!!
And this one even has a current long term tenant:
Now if you’re looking for something a little closer to Melbourne CBD, well I’m afraid you going to have up your limit as 100K in Victoria is only going to get something like one of these babies!!!
Jo
Here are the two articles from Somersoft as mentioned by Richmond:
http://www.somersoft.com/forums/showthread.php?t=18255&highlight=quiggles
http://www.somersoft.com/forums/showthread.php?t=18101&highlight=quiggles
Should make for some very informative reading!!!
Yep you guessed it!!! [biggrin]
Yep I daresay more of the “where can I buy positive cashflow properties?”[blink]
Hi Jules,
I don’t know that I can shed too much light on the subject, even as a fellow Victorian. However what little I do know is that the SRO is looking at changes (increases) affecting land tax across the board in Victoria with the biggest impact being on commercial properties.
Businesses will be hit hardest. In the news just this evening there was one (of probably many more to follow) stories of the well known Metung Hotel closing its doors as the result of increased land taxes; the owner claiming that increase in rates from $4000 to $43000, not to mention further increases expected to reach as high as $80000 over the next couple of years has forced his hand in bringing his business to a sharp end.
There has not been much information provided as yet, however I am sure WE (Victorians) will be informed in due course, and I daresay it will not be pleasant news.[bawl]
Jo
Different crowds Yack!!! [blink]
Luke,
If you bothered to do a search on the 11 second solution this thread would have been among many to pop up and was posted as recently as only yesterday:
https://www.propertyinvesting.com/forum/topic/14386.html
In it, Mr McKnight offers an explanation of same, and even suggests that if you have further problems understanding this theory, you may like consider re-attending the masterclass seminar.
If you conduct a search using keywords such as “11 second solution” or “11 second rule” and selecting the “subject title” as the preferred option, you will find pages of information that may help enlighten you further on this theory.
Good luck with your application of this rule / solution / yardstick, regardless of whether you apply it to the market or to the property, you’re going to need it!!![eh]
Cheers,
Jo
Hi Lumwood,
I guess the “worst house in the best street” probably defines it well for many, just as long as the “worst” doesn’t mean too many $$$ otherwise it can chew up all your profits.
For me personally, a property that requires a little (or a bit more than such) cosmetic enhancements (paint, plaster, polishing, cleaning, re-freshing etc) but not a total overhaul. In other words, no structural damaged places.
But each person measures things differently, and it depends on how much time and money they are prepared to throw into the deal.
Hope this helps.
Jo
Seriously though, have I ever told you Niki and I are spelling authors? (Legends in our own lunch hour!!) We wrote Rigby Heinemann’s “Strategic Spelling” Program (14 books from Grades 1 – 7). It’s still a best seller after all these years.Yes I know the program well!!![biggrin] I am humbled by your presence!!! [thumbsupanim]
Seriously, that is tremendous going Greg. Do keep up the good work as our kids need more people like you and Niki to fill the gaps that our education system is currently unable to fill!!![glum2]
Cheers,
Jo
Hi Keira,
No you will not have to pay any CGT if you sell within the 6 year period, PROVIDED you are not claiming another property as your PPOR at this time, for example if you are currently renting elsewhere.
You are only even entitled to one PPOR at any one time, with the exception of a 6 month transition period for instance if you are moving from say your old PPOR to your new PPOR (ie.awaiting settlement of either premises).
Cheers,
Jo
Originally posted by Greg F:Originally posted by FireCaesar:
I’m not sure how one goes about obtaining the rental yield (%) when given the value of the property with the rent per week. Perhaps someone can enlighten me on this. Thanks.Monopoly answered me back in May this year on precisely this question. Hope she doesn’t mind if I quote her
Pssst…Greg….[winking] here’s the thing (a) it is not my exclusive formula, and (b) take the credit yourself (no one will know, and I promise to keep it [sealed]) [kiss]
I have no objections to being quoted, as long as you spell my name right (which you have done) so go for it!!! [tongue]
Cheers,
Jo
