Forum Replies Created
Thanks for your response Terry. Well here is the problem. We didn't actually live there for the first 6 months. We only directed our mail there. My concern is the ATO could contact the electricity company and get confirmation that another account(name) was registered at that address at the time? Am I being paranoid?
Thanks again for all your help.
Naremburn
Thanks shape. I’ll be using 120,000 from a loc to fund the 20 per cent deposit and the closing costs plus the granny flat. So once the granny flat is constructed I’ll have 120,000 of my own cash in the deal. I’ll have a stand alone loan for 172,000 on the house. That’s why I’ll need a revaluation. So say it comes back at 290,000 with the granny I can go to 95 per cent lvr and get most of my money out. So I’m basically wondering how much value the granny will add in relation to it’s cost?
Thanks guys,
And Petria, 5.94 sounds incredible. Are there any tricky conditions attached?
Hey guys,
I had another question. Luke, you said you don't need approval under the sepp affordable housing act. This is true. But you're only allowed 40sqm detached and and 60 if it's attached.
What constitutes attached??
Thanks for that advice guys.
These were my thoughts and I'm sure you'll correct me.
1 –
If I buy in a company structure. The profits held in the company are taxed at 30%.These funds can then be used for future purchases etc. If I need to access some of the cashflow, I can then distribute that money to myself or my wife etc in the form of employee payments. Is this correct? Is this possible? And what are the possible issues? I'm guessing super will be just one issue. As I said, I'm just trying to get my head around this.2 If I'm not planning on selling – then does the loss of the GCT discount become a non factor. Meaning the company structure becomes more attractive?
3 Can a company structure offer the same protection as a trust setup? Am I protected with a company structure??
4 If my partner is planning on not working(kids) would a discretionary trust work best? As I could distribute funds to her?
Thanks alot for all your help guys! I appreciate it.
Naremburn
Great thanks guys!
I've looked into it and as some of you have alluded to, it's very difficult.
Does anyone know where I could buy a second hand granny flat to keep the cost down? Or could you recommend a cheap granny flat provider?
Thanks for all the great feedback.
Great thanks guys! I appreciate all the feedback.
DeanThanks Terry,
Some great thoughts there. With the first two options, would the owner have to pay any CGT?. One property(they're side by side) is already his PPR . If we're transfering the properties to a new entity, but he's not selling them, then he can't be liable for CGT? Is that right?Also with this option – Get the owner to do it all on his own with you guys providing building works. How does the CGT get calculated? If he knocks down 2 houses and builds six. Sells five and keeps one. Do we just pay GST on the five that are sold then distribute the profit? I'm assuming they'd be no stamp duty at all??
Thanks Terry,
Some great thoughts there. With the first two options, would the owner have to pay any CGT?. One property(they're side by side) is already his PPR . If we're transfering the properties to a new entity, but he's not selling them, then he can't be liable for CGT? Is that right?Also with this option – Get the owner to do it all on his own with you guys providing building works. How does the CGT get calculated? If he knocks down 2 houses and builds six. Sells five and keeps one. Do we just pay GST on the five that are sold then distribute the profit? I'm assuming they'd be no stamp duty at all??
Thanks for that feedback guys.
Very helpful. And Steve, I agree with your sentiments and think that a town planner might be the way to go in terms of getting a definite answer.
Cheers guys
Naremburn
Ok great. Thanks guys!
Thanks a lot guys!
That was very helpful.
One last question to clarify trusts.
Say I'm using a family trust. The trust buys a property, I develop it and make $100,000 profit. Does this profit sit in the trust? Untaxed? Until it is dispersed? and then it's taxed at marginal rates?
So In theory you could do many deals and leave the profit in the trust and then use it to buy your family home, and you wouldn't pay tax on the profit that was held in the trust?
Cheers
Naremburn123.
Thanks MR501,
I really appreciate you taking the time to write back.
Cheers
Great, thanks for that Derek.
Great.
Thanks Jamie,
I really appreciate you taking the time to provide that feedback.
Hi Bronwyn,
Thanks a lot for your help.
That's great!
Dean
Hey guys,
Yep I think this will really slow the market down. And if the other big 3 follow with their own rate hikes it could get really interesting. Especially in the mortgage belt areas like Sydney's outer west. I was checking our rates from a few years ago, and people were getting loans at 5% SVR. Now we're 2% higher. That's huge for the average family.
What does everyone think about the prospect of the other banks also increasing rates?
Dean
Thanks for taking the time to provide feedback guys.
And Terry, I'll look into what you were talking about.
Cheers
Dean
Thanks a lot top rental returns.
Do you know of any companies that do the moving at all?
Hi Snowy,
I've read both, and 0-260 is probably better for now.
