Forum Replies Created
I think the second one Redwing.
Simon Macks
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.
Will incur stamp duty on the purchase. Will lose CGT exemptions as well.
Please speak to an accountant before you go into this to make sure it is the right step.
Cheers,
Simon Macks
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.
http://www.ato.gov.au/individuals/keywordlist.asp?k=deductions
The ATO seems to have a lot of info.
There seems to be a lot on the web including:
http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FEDF-623AC39C/cpa/hs.xsl/1019_14514_ENA_HTML.htm
Just take a good look around. I think as a normal taxpayer you should expect to pay about $100 to have your tax done professionally. This fee is deductible in the following year and you will be assured you are claiming the right amount. Claiming for too much is as much a fear as claiming too little with the ATO having a range of penalties for people who attempt to defraud them.
Good luck,
Simon Macks
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.
Link doesn’t seem to work.
Can’t say I have heard of them.
Unless they do something new then I would suggest that much of the info is available elsewhere cheaper.
Possibly the most value might be in the motivation – assuming you do something after learning their info. I say that as I believe most people don’t take action and that is where the money making actually happens!
All the best to you,
Simon Macks
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.
What I was trying to say is that the taxation structure favours those who own companies rather than PAYG people.
A company owner can use the company to buy all sorts of things which immediately are deductible (to the company) whereas an employee is limited to those things used for his employment – and the guidelines here are quite strict.
You initially asked about employee deductions not Ip ones. I find standard residential IP tax to be quite straightforward and easily done by any tax professional. The deductions are straightforward.
I use the Property Manager Pro software which means I can print out a single page per property to give to my accountant. Saves me paying her an hourly rate to go through all my scraps of paper and it only takes 10 minutes each month to enter everything. I would recommend it and it can handle multiple properties.
Cheers,
Simon Macks
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.
The worst case is where funds are drawn from the LOC for non investment use. You lose deductibility for a start. There are also issues with paying down the deductible debt at the same rate as the non deductible debt. This means that any mess cannot be tidied up easier.
I generally don’t recommend LOC for an IP either.
Cheers,
Simon Macks
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.
The benefits are more from having the property in the right names. Typically a negative geared property is more effective in the higher income earners name and a pos geared property vice versa.
You really should discuss this with your taxation professional.
Cheers,
Simon Macks
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 agree. Lets not be too quick to judge people here folks. Hop off our high moral horses for a minute and try some helpful advice.
Cheers,
Simon Macks
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.
Did you get the property?
Cheers,
Simon Macks
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 suggest you find yourself a good tax agent or accountant.
I believe that as an employee there are a fairly standard set of deductions you may be entitled too.
I think that the major taxation deductions fall to those with businesses and companies.
All the best,
Simon Macks
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.
Dazzling,
I am very interested in this sort of caper. Can you provide some more details about what sort of property it was, the type of business the tenant had and what the figures on it look like today?
Thanks mate,
Simon Macks
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.
Here is a dragged out story about my first property purchase and my latest….nothing exciting but there is a small moral at the end of each.
I was living with my girlfriend (now wife) in the country city of Toowoomba Qld. Was there as an Army Officer on my first appointment. I found the place a little boring after hours and used to duck down to Brisbane to see my mates on weekends.
I was at the airport flying somewhere and on impulse bought the Noel Whittaker book – Making Money Made Simple. My epiphany. This was the only book of it’s kind around then amd like most guys my age (22) I thought property investing was for older rich guys. I read it cover to cover on that flight.
I immediately decided to buy a home in Toowoomba.
I had no deposit but a good income for my age. Iw as living to the most of my income!We looked at heaps of places and I think it was my fear of making the first step that made us hold out for a great deal. I met a REA who had served in Vietnam and he kinda took me under his wing – being a young Army Officer and upright citizen that I was [biggrin]
Finally he told me he knew of an old fella who tried to sell an IP a year or so ago but was holding out for $50K. A high price. By this time the market had moved and this was a good buy. We bought it for $52K and I reckon it was worth about $65K. It housed students and was a pigsty. The only redeeming feature was that it was behind our rented home so moving was a matter of passing stuff over the back fence!
I bought it with a borrowed $2K deposit. Things must have been different back then because there would be no way I would get that loan today. I was knocked back by the local Westpac Manager who told me to go to the new bank called Metway “Who will lend to anyone”. This was 4pm on the finance date and I turned up after closing time in boardshorts and did the deal with their young keen manager!
Two years later we sold the place for $86K. Not big numbers but a 65% profit to put it in perspective. I thought myself an expert but it was the boom of 1989 – 91 ish and a good buy that did the increase for me. (Theres a lesson there).
The lesson is that had I kept the place it would today be worth $200K+ with a loan of about $20K remaining on it.
My latest buy was a really really run down brick home by the Uni here that I picked up from an unmotivated REA (didn’t even have a sign) and an OS seller for $315K. It was so run down that the tenants had had no hot water for months. I worked a week clearing the garden and paid $300 to have the rubbish removed (cheapest quote I found!). I even discovered a low brick fence at the front hidden by grass.
We worked over a summer fixing it up. Cost $7K in materials with our labour. Got an appraisal from a REA to list for $399K aiming to get $390K. Not a valuation I know but made us feel like we achieved something. It now houses five medical students and returns $530 pw. We pay electricity and water so returns need to factor that in. Still a great earner and the tenants are wonderful kids who show a lot of respect to us and the home.
Lesson here is to find the problem that noone else wants and solve it (Thanks Steve).
We bought other places in between but these are the two most important to me.
What next? I am looking out for another problem property and watching this current phase of the market in order to pick my time (as best I can).
I think the two things to take away are pretty hackneyed sayings now but as valid as ever. “Find the problem” and “You make your money when you buy”.
In 18 months my wife finishes her latest degree and our income will rise accordingly – I wish to step up a notch then and try something commercial or a development. So much to learn…
Sorry about my boring stories but you asked for them…..
Simon Macks
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.
Great website Cilia – thay got to check their spelling!! I couldn’t read a word of it!
Cheers
Simon Macks
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 The Mortgage Adviser:Personally, I would have told the builder to go away. No-one has the right to enter your premises whether they send you a letter or not. The landlord certainly has no right to renovate while you are leasing the place. Tell him to wait until you move out and to leave you in peace. He has no recourse if you are paying your rent according to the lease.
Rob,
I am not sure that is the case. If you are given sufficient notice then the owner and/or his agent can enter the property to inspect or carry out repairs etc.
This is from the Fair Trading website:
Access and inspections
The landlord, agent or any person authorised by the landlord may enter the premises only in the following circumstances:
* to carry out a general inspection of the premises if the tenant is given at least seven days notice. There can be no more than four inspections in any twelve month period.
* to carry out necessary repairs if the tenant is given at least two days prior notice. The repairs must be necessary and must not simply be improvements or renovations. For urgent repairs no notice is necessary.Cheers,
Simon Macks
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.
Sledge,
By all means stay and continue posting – you are very welcome.
Be aware that if someone pops up on a forum dangling a URL to an investment company on their first post it is understandable that most people will think it spam. We get a fair bit of it and it is regularly removed.
This is why the URL has been removed.
All the best,
Simon Macks
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.
Maybe try an ad in your local paper?
Cheers,
Simon Macks
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.
Welcome to the forum mate and conragulations on having an interest in your financial future at such an early age – wish I had known something about it then!!
The FHOG is quite simple. You must live in the home for 6 months starting within the first 12 months.
As far as every night goes it isn’t worked out like that. Proof of occupancy is demonstrated by having your mail go to the home, having the utilities connected in your name and having your license, electoral enrolment etc at that address.
So if you live there but go away for a holiday or such it doesn’t affect the time length.
Well done
Simon Macks
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.
Jack,
You want to use your parents home and lifetime savings to start up a franchise that you have no background or experience in?
They might be smarter than you think.
Simon Macks
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.
Scheldon,
Generally it is from the time it was available to rent.
Your tax advisor will be able to help you with this one.
Cheers,
Simon Macks
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.
It must be your only home and there is no timeframe.
If you sell your home there is no CGT payable unless it was an IP prior to being your PPOR.
In this case the CGT is proportioned over the period you rented it vs the total time you owned it.
There is also a 50% reduction if you owned the asset more than 12 months.
Seek professional taxation advice before making any decisions.
Hope this helps,
Simon Macks
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.
