Forum Replies Created
shocked2] Wow Kay, shocked2]
If I told you that I had to pick myself off the floor after reading your reply post, you’d probably think I was being my usual sarcastic self, when in fact, I am overwhelmed, and that’s just because (for the first time EVER) you have called me by my name!!! Many thanks!!!
Nonetheless, back to the issue at hand. Well, be it skill or not, you did well, and no doubt when the tide turns again you’ll be (as many others) set to ride yet another huge wave!!! At that time, I expect many will be writing their “I did it my way” type books!!![grin]
Cheers,
Jo
P.S. I too agree, the past is history, not to be forgotten but to serve as a reminder of where we came from, but mostly it is best left where it is (in the past) therefore as they say……..onward bound!!! [biggrin]
Kay,
Of course there was a level of skill required. I don’t believe for a moment that the properties you acquired over the last few years just fell into your lap. You obviously chose them carefully and with much forethought, and in return, one would expect provided you adequately did your homework (which I am sure you did) you will inevitably reap the rewards for your efforts (and skill) in the next few years.
Hence, get out the pen and paper, and start writing!!! For one day, others will be looking to you for the same answers you seek of those before you!!!
Jo
Originally posted by qwerty:Hey mono,
Pity the family law courts don’t see it like that (what’s yours is yours and what’s his is his).
Marital assets are marital assets no matter whose name their in!!!!!Hey qwerty, ain’t it the truth!!!!! [glum2]
When I say MY IPs it is only as a reference point, as I do not refer to my husband’s IPs whenever I answer anyone’s questions.
Believe me, I don’t buy under my own name with the dellusion that this will safeguard my assets in the event of (another) possible bitter divorce settlement!!!
I know only too well (unfortunately from first hand experience) what the law courts decide; I have not only been battered, flipped over and rebattered, but well and truly fried by our so-called “justice system”!!!![smash]
Not happy Jan!!!! [glum]
Kay/Residentialwealth,
From my limited experience in property (commercial and/or residential) there is little money to be made in a flat property market, anyone who argues differently is dellusional. Sure commercial properties may well, and indeed do, return higher rental yields than your average residential, but then your initial outlay (capital) is much steeper also.
If ongoing money-making is your goal, then you need to have your hand in every pie; property (commerical and residential), shares and cash. This is so to counter balance the differences between one’s boom and the other’s gloom times!!!
So I guess ultimately, my view on the matter is, don’t hold your breath for anyone to write a book about how they are making money through property investing in 2004, because in reality most savvy investors will use this time to buy opportunities (or future money-makers) as opposed to trying to reinvent the wheel!!!
But hey, if you can tell me otherwise; bring it on baby….I’m all ears…..[biggrin]
Jo
Personally, my golden rule, never buy in joint names, even with your husband/wife!!!
I have been buying separately since I was single, and it hasn’t changed as the result of two marriages. Whenever I refer to my IPs, I am referring strictly to MY assets, not my husbands, that is a different story.
BTW…IMHO a PPOR is an asset not a liability, but more than that, it is my “security blanket” or to some a SANF!!! [biggrin]
Jo
Hi Flash,
I am “assuming” then that the tenant is wanting to change her lease to a “month-to-month” type of set up in that case???
Having to travel extensively is a real pain, and I can fully appreciate her situation, thus I would tend to be somewhat more empathetic, and as such leave the monetary things as they currently stand.
My main reason for not upsetting the status quo is that she has only been renting the premises for 6 months, and provided payments were always timely, and the property kept in order, I would be reluctant to raise the rent at this point. I think it is only fair (regardless of whether the lease dictates it or not) a 12 month guarantee of no rent rises is always more welcomed by prospective tenants, and I would hope for the same if the shoe were on the other foot.
But it isn’t me wearing the shoe, and it’s not my foot, so the final decision has to lie “solely” with you!!! [lmao]
Cheers,
Jo
Before making any decision, I’d be asking a couple of questions first…..
Why do they want a periodic lease???
(I am assuming here the tenant is current, and if so…)After how long???
What is the time length of the “period” they are seeking???
Cheers,
Jo
Originally posted by gilad:I have two major factors with this:
The first being that if i want, i can live at home with my parents, and hence pay no rent. However, if i don’t live in the first property for 6 months, then i won’t qualify for the 12k fhog. I think i do need it…
Whatever you do read this warning first:
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=12988
Cheers,
Jo
No problem [specool] thanks for that Phil, but errr [eh] still not sure if you’re asking me or Andrew, but as far as I am concerned, sadly no I’m not (my husband in the golf pro in the family) [biggrin]
Cheers, [tongue]
Jo
Hey Phil,
I don’t know if your question is aimed at Andrew or me, but for the sake of curiousity, what is RPGC??? [blink]
Cheers,
Jo
Hi Andrew,
Firstly I need to clarify that I am not against cashflow or income primarily, only that CG is important to sustain long term wealth, which inflation and other factors can chip away at.
As for your question re skill in establishing what has or hasn’t got CG potential; it is true that alot of this is reliant on the market, and what is a “hot spot” one minute, soon becomes a stagnant area the next.
The key is simple; always look for properties which are close to all (or as many) amenities as possible. These include: parks, beaches, city/town centres, transport, shops/centres and schools, or that at least have solid infrastructure plans in the pipeline. This will help immensely in determining what sort of future the location of your property will be faced with.
All the best,
Jo
Hi Robbo,
The difference between a dual occupancy and subdivision is the title/s applicable to the land. For example, the plans you have of building a unit/flat at the back of your property to lease out is fine and dual occupancy will cover this nicely, as both the unit and your current property remain on ONE SINGLE title, just that it has 2 (hence dual) properties on it. You cannot sell the unit separately because it is part of the same title your other property is on, hence leasing it is the only available option.
The subdivision of land means that you basically divide the land into parts, and each section is allocated its own title accordingly, which is ncessary should you wish to sell it (the land, or land & property) at a later stage.
Yes dual occupancy is generally cheaper.
Hope this helps,
Jo
Hi Daniela,
Derek summed CGT up beautifully, and if I may, I’d like to add that generally one of two formulae
are used to calculate the amount payable; these being indexed or discounted.I have included a link which may help, and by filling in the boxes, the CGT calculator will highlight costs associated with both methods, and recommends which would be the cheapest for you.
http://www.cch.com.au/cgi-bin/cgt00isapi.dll/
Remember, this calculator is only a GUIDE and consultation with your tax person (accountant or agent) is highly recommended/advised for a more accurate indication of what cost you will incur from sale proceeds.
Cheers,
Jo
Hi Andrew,
Have to agree with Derek on this one; I would steer as far from these “remote” properties as the word suggests!!! They may well be cashflow positive and hence generate income, but for such small returns, IMO it is hardly worth the headache, especially considering that you are not concerned with growth potential!!!
I still find it difficult to come to terms with people who say they are not concerned with CG, mainly because, as far as I see it, without same, any dollar you earn today, will be worth far less tomorrow as the result of inflation and so on. A good balance of cashflow and growth not only makes for a healthy portfolio, but helps alleviate risk and minimise one’s stress level!!!
But at the end of the day; whatever works for you I guess!!!
Cheers,
Jo
Hi Gums,
The only way to know for sure is to ask the respective council in question, as there are differences from one council to the next.
Generally however, I would not imagine it to be a problem, after all, provided you satisfy all the requirements/legislation associated with this process, it is, at the end of the day, your land to do with as you see fit. Do bear in mind though that subdivision is a costly exercise, and I believe there are associated minimum size specs involved, so maybe it would be a better option to dual occ (and lease) instead; either way do your homework!!!
Good luck, [biggrin]
Jo
Originally posted by bbruham:Then I could annoy Monopoly by breathing into her right ear.
I prefer you do it into my left one!!![lmao]
Plus if I play my cards right,even score a bed for the night.
You wish!!!! [lmao]Okay look, I have been following this thread for some time, and I can’t for the life of me, figure out where sense/sensibility took leave of absence!!!!
What EXACTLY is the point of the Latin lessons here, and what are we agreeing/disagreeing on??? [blink]
Jo
Hi Brenda,
I must admit I am surprised by your surprise [biggrin] of people buying negatively geared properties especially at a time in the Oz market, when +CF (as you have found) are becoming so much more difficult (yet not impossible) to come by!!!
People are starting to realise that +CF positive can be achieved in other ways, rather than buying them as such straight out.
As I mentioned many times, without growth, the proverbial “wealth well” slowly but surely runs dry, as profits become engulfed by inflation/increased interest rates etc etc!!!
I know many will disagree with this notion, and that’s fine, but there are more and more coming to terms with the knowledge, that cash (alone) in your pocket today does not, and cannot sustain wealth!!!
Jo
Hello Bonnie,
Congratutions are in order on two counts here:
1. For the purchase of your first IP (woo hoo!!!)
2. For asking, albeit a basic, but very worthwhile question, especially for any newbies out there!!!Well done!!![thumbsupanim]
IMO smart property investing should incorporate a mixture of both +CF and -CF (neg geared) properties, thereby having the best of both worlds!!! Many will refer this type of strategy as offsetting, but call it what you will, an even balance is always highly recommended to maximise your income and tax advantages.
In reply to your diversity question, yes this is also an important factor, especially to start off with, and as you progress through your investment journey you can re-evaluate, and bring things closer together (this is what I have done); that is, I used to have interstate properties, but then preferred to have them all in my own backyard (state) so-to-speak. Please note, this was MY personal preference and there is absolutely no reason why one cannot have IPs all over the country, and indeed overseas (ie. NZ)for that matter; it really is just a question of personal choice!!!
For the sake of those screaming “shares, shares” as I type this, let me add, that diversification is not only about geographical investment placement strategies (hey, I like that, does such a term exist??? If not can I lay claims to it??? [biggrin]) it is also about employing more than one investment vehicle. That is, combining property, shares and cash. This is mainly because (although there are many who prefer one vehicle over another), it is common knowledge that when one market is down, the other will be up, and so (again for the purpose of balance) it is not a bad idea to have you hand in more than one pie!!!
As for “how many IPs???”[blink]……Well, as with any investment (regardless of type or volume) as long as you can maintain your SANF (sleep at night factor); then IMO the sky’s the limit!!!
Cheers,
Jo
[lmao] More like a guru’s mother you mean!!!! [laugh4][laugh4][laugh4]
I am sure Steve realises I meant no disrespect to him as a result of my scolding; it was all done with the utmost regard of both his character and in recognition of his success!!!
Cheers,
Jo
