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I tend towards a middle class house on land.
But you need t owork out your goals first then it will all fall into place.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How did the last one go?
Hope this one is an unqualified success!!
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Jessica3:Mortgage Hunter you are the Master of IP on this forum, you seem to have solution or answer to everything hahe.
The building is about 4 months old and does have lifts, swimming pool & gym facilities. I will definatley get a report done soon, thanks. If I decide to keep the apartment for just over a year I could claim for the entire refund?
Which firm were you referring to?
Thanks again for your help.
You must get it done. The first years claim is the biggest as many low value items are written off 100% in this year.
http://www.depreciator.com.au is the mob I use. mention my name to Scotty and he wil llook after you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Any broker can show you how to use a LOC as used by Sample and Partners and all the other mortgageminimisation carpet baggers. Wont cost you $3000 either.
Combine this with a strict budget and you too can achieve the same results – in fact better as your LOC will have an extra $3000 to start with.
But this is aimed at normal folks who’s goal is to pay down the mortgage ASAP.
An investor would direct all principal payments into the home loan and open new loans against the equity to invest in other areas. More property for most here.
Another strategy is to use the lazy equity to open a margin lending account and buy high yielding investments such as managed funds or shares. Direct all income into your home loan and let any interest capitalise. Eventually your home loan will be gone leaving you with investment assets and deductible loans. You will be ahead of Mr and Mrs Smith on a budget paying down their LOC.
That is the fastest way I know to reduce the home loan.
There – just saved you all $3000 plus!!
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Peachey2000:Check the wording on the FHOG… I think it might say occupy “WITHIN” 12 months, not “FOR” 12 months?
Don’t quote me… any other takers on this?
Pleading the fifth, but am aware of at least one PI that has utilised loose terminology
Hey, I’m new at this though, so do your research!
The wording is:
You must occupy the property for at least 6 months starting within the first 12 months.
it is amazing how many people assumed it is for a year and also that you lose the FHOG if you buy an IP.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No – you claim it in the same financial year that yo uspent it. Plus you claim the depreciation figure he gives you.
My latest property was buil;t in 1960 and I was able to claim an additional $3000 I didn’t spend in that year alone. The report lasts for 20 years.
If you have a newer place it can be much higher. A new apartment with a pool, lifts etc can be very high as you get to claim your share of those facilities.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Jessica3:Originally posted by Mortgage Hunter:An average would be $600 -700 these days. Depending on the property and the location.
I do know a firm who will do report based on photos if you have an IP in a remote locality.
Cheers
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Mortgage Hunter,
Do the Quantity Surveyors estimate construction costs as well as estimating costs for plant and equipment items all in one go, or are they considered seperate?
I don’t know too much about this but what if I currently have the apartment leased, how would they go about estimating the costs of items in the apartment?
Your knowledge & tips would be most appreciated[thumbsupanim]
Happy to help.
The ywill estimate both at the one time though they should use the actual builders cost if available.
If the proeprty is tenanted then they will arrange an appointment through the PM or yourself if privately rented. They do this all the time and are conscious of tenants needs in my experience.
The firm I use has a guarantee that your first year refund will be more than the cost of the report. If it isn’t then they refund the cost and the 20 year report is free. With that level of certainty I can think of no good reason why you wouldn’t get it done.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
An average would be $600 -700 these days. Depending on the property and the location.
I do know a firm who will do report based on photos if you have an IP in a remote locality.
Cheers
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by row:Terry, is IO Interest Only? What is PPOR? Thanks.
PPOR = principal place lace of residence = home
IO = Interest Only
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by daniellee:Hi, Guys
After reading the opinions, I just wanted to clarify on redrawing extra repayments and taxation.
The redrawn extra repayments will not be treated by tax deductible, due to the fact that those extra repayment is considered your own private money (Your own earnings).
So, when Row moves out and declares her old home as an invetment property, ATO will then view the interest generated from the remainder of the loan in her old home as tax deductible?
Regards
Daniel Lee [specs]When the current home becomes a rental property the loan will be for the purpose of buying that property and be deductible because that property generates income.
Money paid into that loan at any time is seen as a repayment.
Money drawn from that loan is seen as a new loan and the purpose it is used for determines deductibility.
If used to pay rates, insurance, repairs etc on that original property it will also be deductible.
If it is used to buy a new home, car, boat, plasma telly etc it is deemed as personal use and not deductible.
This means a loan with a X% that is always nondeductible. You cannot pay this back faster either. It must be paid down in equal propertion to the rest of that loan – so until the loan is 100% paid out it will always have X% nondeductible.
You can see what a mess this can create.
An offset account is my vehicle of choice as the money saved never contaminates the actual loan and stays in a seperate account always.
It is neither fair nor unfair. It is the law and we must work within that framework. Not worth fighting it, just plan properly.
Hope this helps make the situation clearer.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Most any broker I know can do a NODOC loan – if that is the solution to your problem.
You need to choose one and discuss it further.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Pizang:Dear all,
My name is Daniel Johns and I am writing for a publication titled Your Investment Property Magazine from Key Media http://www.keymedia.com.au
I was wanting to know if any of you would be interested in doing a profile for our first issue which comes out in February of 2006.
Please let me know. Thank you.Dan Johns
Guessing you mean 2007 or is this a really old post? [blink]
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by boon69:I was always under the impresion you could get a good deal buying off the plan – doesn’t look that way at all,
OTP worked for a while during the last boom. I should think that it isn’t a wise strategy in this climate of lower CG.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
contact Scott at http://www.depreciator.com.au
He is a hell of a nice fellow and will explain it all over the phone at no charge.
He will even tell you if a report is worth doing or not – but I bet it is!
I agree with the others – you need a new accountant. I cannot believe that any exist that have never heard of a depreciation schedule.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I wouldn’t pay down your current home unless you know you will be there for a long time.
Put the money into an offset account instead. Has the same effect and if you do rent this property you can draw the funds from offset without affecting the tax deductibility of the original debt.
I would be either:
paying down the car loan
or investing in alternative investments.
When you have built up more equity in the home you can borrow it for the shares and that loan will be deductible.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am with Alistair.
Use a 20% deposit. Have an IO loan and save money in an offset account.
This is all absolutely vital if you plan on renting the property in future.
I would also consider somewhere else to keep your funds before then. Perhaps a managed fund is not apporpriate given your time fram. But investigate gearing into a fund or share portfolio with any funds left after buying the property.
I am no advisor and you should seek professional advice.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Terry is right.
I always counsel my clients to structure the loan as Terry describes if they think that they may be moving onto a better place and renting out the first one.
It may feel unfair to you but it is the law.
There are ways around it – none cheap. Typcially they involve “selling” the house to a spouse or trust and that new buyer borrowing 100+%. These funds are then used to buy the new property.
It leaves you with a deductible loan and all your equity in the new property. But it generally triggers stamp duty and trust fees if you choose that path.
Some people opt to sell the property and buy a renter but this just adds in agents fees as well as the stamp duty.
All the best
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Lighten up mate. I am trying to help you.
These sorts of apartments sound like they must be in high demand – there are never enough services for the people who really need them. I suspect they would only be too glad to have your one available for another needy person.
Have you spoken to them yet? Maybe you are imagining problems that don’t really exist?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
CGT is paid on the overall profit. So it would be $35K less all buying and selling costs. Also less any capital improvements you made.
But if you claimed depreciation then this has to be added back.
You will need documetns to prove everything. Not for your tax return but for any audit that the ATO may conduct.
Tenant on a month to month lease is ideal. The new person can then be a homebuyer or investor. A five month lease isn’t too bad but a 12 month one may turn away a lot of homebuyers.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by lburcham:Originally posted by units4me:Gee, a bankrupt trying to break a lease.
You sound like the perfect enemy to most on this forum.First of all, for your information I’m not trying to “break” my lease. The apartments I live in do not hold you to a lease if you are buying a house or moving to another state, which I am buying a house. I will have ownership and pay my part even though my name will not be on the loan. Second of all, I suggest you know the reasons behind the bankruptcy before you pass judgement. I always had perfect credit and it was through no fault of my own that I found myself in the situation where that was the only choice left. I’ve been a single mother since my daughter was 8. Until you’ve walked a mile in my shoes how dare you judge me. I am trying to better myself and get back on my feet. By moving in with my daughter and her husband it can benefit us all and I can be with my daughter and grandchild and not have to live alone. So until you’ve been a single mother with hardly more than two pennies to rub together between pay days, I suggest you keep you opinions to yourself. I posted this question for a little advice and help, not for someone who knows nothing about my situation to look down his nose at me. This forum is to help people, not pass judgements. I assume you are a man. A woman would be more compassionate and understanding.
I think he just meant that a bankrupt person wanting out of a lease wouldn’t be the first choice as a tenant to the landlords on this forum. I understand that this is a difficult time and a sensitive subject but if you bare your soul in a public forum you need to have a little thicker skin – how is that for a mixed metaphor!
[biggrin]
As I said earlier – the short term pain of the lease is not as bad as the long term pain of being stuck in 10+% rates.
I don’t understand your lease agreement but it sounds different to a normal lease.
Can you write a letter to the PM and explain your circumstances – perhaps even a letter from your solicitor might help? Perhaps the decision makers will treat your case compassionately and let you out of the lease? Is worth a shot.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
