Forum Replies Created
- Originally posted by brahms:
hey Jo – depends on who you are having coffee with, who your lunch dates are..??
Too true brahms,
And although rare, I’ve had shockers on both counts!!! [wacko]
John,
Follow and listen to the adage “if it sounds too good to be true, it usually is” and not your friends.
60% is an awesome return, and I’d imagine any investment strategy claiming such returns (if it can be achieved) would entail exceptionally high levels of risk.
Just my 2c worth.
Jo
Ausprop,
Rightly so; but then that is your business/ livelihood and as such is really just a matter of what you call it, as TerryW (also correcly) points out.
TerryW,
Agree, wholeheartedly, call it whatever you like, but TAX is TAX; ugly no matter which way you look at it.[glum]
I corrected you, only for the sake of disspelling any possible confusion to those less versed in its (CGT) application.
Cheers, [biggrin]
Jo
Originally posted by Terryw:I would say no. CGT only applies to assets held more than 12 months. But the profit will be classed as income and will be taxed the same.
TerryW,
Just one correction here, CGT applies to ALL investment or revenue-generating assets, be it property or shares, regardless of length of ownership. If they are held for longer than 12 months, the tax is reduced to 50% otherwise, if sold before the 12 months, the full 100% CGT applies.Bjdj
If the property is your PPOR, then no CGT will be applicable, it is ONLY if you intend to use it to generate income (ie. rent)Cheers,
Jo
Dom,
I was having a bit of fun at your expense (in jest of course) hence my Nike reference!!![lmao]
It is not my place to tell you what to do, and in any event, I wouldn’t even attempt it. I am sure you are quite capable of making up your own mind, and as I also said, whichever way you go, just remember do what’s right for you.
Cheers,[biggrin]
Jo
Awww shucks!!!! [blush2][blush2][blush2]
Seeing as you’re my #1 fan KP; here’s another (but yet again, I can’t lay claims to it)……..
Dom, with respect to buying at this time:
JUST DO IT!!!!
NookieNikeDom,
Pardon my ignorance, [blink] but what (to you) is the “true value of property”???
I know what it means to me, and what each one gives back (not just in monetary terms, but in (investor) satisfaction, security etc etc) hence in so many regards, its value is for me, “priceless”!!![biggrin]
Jo
Too true qwerty, especially if the rumour turns into reality, and neg gearing does indeed get abolished, you’ll be picking up properties for a song Dom!!! [biggrin]
Jo
I daresay the politicians wouldn’t be so stupid as to try this tactic, but then again, they are reknowned for their stupidity, and as such, I wouldn’t totally dismiss it’s likelihood. However, if they DO take this onboard, it will (as before) be a temporary thing, and the key is hold tight, and weather the storm as best as one can.
IMO if this rumour hits the even faintest of heart type investors, it could create havoc (panic selling) and that in itself will have a huge impact on the current market climate.
Personally, I will be prepared for the fire sales, checkbook firmly in hand!!!
Jo
Fine…bring it on!!! Then sit back, and watch, as history repeats itself and……
RENTS WILL SKY ROCKET!!!!
Sandals are good too!!! [biggrin]
Yes, I hear what you’re saying Dom, but what I am suggesting is that you have to look at the bigger picture.
If you believe that prices are reduced from say 6-12 months ago, which indeed they are, then how can this be paying too much??? If you are hanging on, hoping to achieve even a lesser price, then you could be shooting yourself in the (sandalled) [biggrin] foot!!! When I buy, the only future gazing is done for the purpose of anticipating growth or increased value, and not the possibility of reduced price tags!!!
If you find an IP that is to your liking, meets all your requirements, and you can negotiate a good deal, where’s the problem??? The “unknown” future, in that that property might have been say 20K cheaper in a few months??? Unless you have a crystall ball, and can accurately foretell the future, that kind of logic is both irrational and unfounded!!!
Either way, I wish you all the best in whatever direction you feel right for you Dom.
Cheers,[biggrin]
JoDom,
It’s simple really, you either buy or you don’t!!!The only question that should be stopping you (if you feel you are in the market to purchase) is “is this the one I want??” based on property type, location and of course price. What more do you want people to say??? [blink]
No, now is not the time???
Yes, yes buy now!!!
(please tick the one appropriate response)??!!!Oh pleazzzzz [rolleyesanim]……..if you’re old enough to tie up your own shoe laces, you’re old enough to make up your own mind on what is right for you!!!
Jo
Hi Picklesam,
Yes either a rent book or some other form of record to show that you have received income from boarders, which you can produce for your accountant or tax agent when it comes time to lodge your return.
Bear in mind also, that as you are going to be renting out some of the rooms, even whilst it is your PPOR, should you ever decide to sell the property, CGT will be applicable and apportioned accordingly for the period of time in which the premises generated income.
Cheers,
Jo
Hi Mini,
Just a quick point, I meant no disrespect (let alone any button pushing) in my reference to “luck” nor do I have a problem with people (who regardless of whether they know the facts) correlate it to my own personal set of circumstances. In all honesty, as far as what people think, it is not even secondary to the truth, for as long as I know what really transpired, people’s understanding of same is IMO immaterial, and of very little interest to say the least!!!
Cheers, [biggrin]
Jo
Congratulations on your decision Rose,
Sometimes we need to stand back and look at the bigger picture, and this is exactly what you have done; a wise move in itself!!!
Just one point though, extending upwards (if done correctly) SHOULD add heaps of value, and as you’ve already identified can be much cheaper in the long term.
All the best,[biggrin]
Jo
Hi Picklesam,
Gotta dash off ATM, but have noticed the PM red light, and had a quick sticky at your message, thanks for the vote of confidence; I am both flattered and humbled!!! [blush2]
Anyway, I promise to get back to you ASAP, you have my word!!!
Till then, be good [winking]
Cheers, [biggrin]
Jo
Are you serious?????
Simply:
NO WAY!!!!
Well done; congrats!!![medieval]
Don’t worry too much about the low rental yields, some of the most expensive postcodes throughout the country are returning low yields, but the potential for CG is still strong!!!
Jo
I’m not going even try and disagree Mini/Kay; there are deals, some good, some not so, but all in all, property will always be a good thing!!!!
Cheers, [biggrin]
Jo
Hi Clare,
Welcome to the forum!!!
Well, although I am certainly not a newbie here, even at this late stage of my membership I have only just recently been informed of the definition of a “troll”!!! From what I understand, it is (please correct me if I am mistaken please veterans) someone who is argumentative for the sake of causing disharmony betweem people within a community (such as a chatroom or public forum) like this one. In short, trolls like to come in a cause mischief!!!
I hope this is correct.[blush2]
Cheers, [biggrin]
Jo
Hi Richmond,
Actually it was 4 cycles, although the first is a bit of a blurr only because it was the first one for me, and I was just too “gun hoe” (sp) to really pay too much attention to what the market was doing!!!
True, there are mixed reactions, and people’s memories sometimes fail them, self included!!! [blink] However, generally the cycles have been IMO fairly consistent in their turn-around timeframes, that is, generally speaking between 5-7 years.
There have been similiarities, however, other factors have influenced the markets, and by this, I am not just referring to the property market. One example, is the governments abolishment of negative gearing back in the 80’s which had almost catastrophic effect on the rental yields virtually overnight!!! The infamous “Pyramid” crash had a huge impact, as did the high interest rates at 17/18% etc etc etc; all of this had a bearing on ALL the markets respectively.
Although I cannot predict with certainty, after all, if the analysts can’t pin it, I will have buckleys!!! But IMO, the pendulum will swing back eventually, once the correction has been made. Furthermore, what WILL determine the length of time it takes before the change happens, IMO, is the herd. Aside from inflation, goverment policies etc, it will be the herd mentality that will ultimately determine how long it will be before things really move.
I believe this correction period, is similar to those before it, and the reduction in property prices is nowhere near as bad as it was in bygone cycles. It just seems that way, because we are living through it right now!!!
FWIW I hope this helps.[biggrin]
Jo
