Forum Replies Created
Well said Terry……
Just remember Sweet, property isn’t the only method of investing. To have such enthusiasm is great, but if the numbers don’t match up, you may be better to put your cash in a term deposit until the day they do.
All the best,
Mark.
Yup…… Looking forward to it.
Regards,
Mark.
Hi Rav,
Some mighty fine points there – Thanks for the response….
Thankfully it is a mining town in question, and it has just committed to another 30 Years Lease with the land owners.This makes it a bit more appealing. Have sent out the feelers to try and learn more.Have a great weekend,
Mark [biggrin]
I’ll agree with you all… That stretch of land between Caloundra and Noosa is unforgetable. I’ll keep saving my pennies and hopefully one day I’ll get to call that neck of the woods home.
From what Ive seen and heard, with all of the attention heading upwards to Maroochydore and Noosa etc., there still seems to be a few bargains to be had at Caloundra.
If anyone has any comments or experiences on this, I’d love to hear them.
Cheers,
Mark.
Way to go MM [thumbsupanim],
Congratulations – You’ve got some exciting and memorable times ahead of you.
You both must be so happy and proud.Buying your first house at 23 says a lot for your character mate,
there’s no doubting you’ll snap up that second one well before your 30.All the best to you both,
Mark. [biggrin]
Hi Redfox,
Sounds like apartments may come under the Commercial Property umbrella, and therefore require the 30% deposit.
From what I’ve seen, even in times of spectacualr increases in property prices, apartments tend not to be great in the capital growth stakes, but with a 30% deposit they tend to be positively geared. Just remember what it is that you want from the transaction – growth or cashflow – or both [biggrin] before making your mind up and you’ll be fine.All the best,
Mark.
Hahaha.. Good call Dr X [thumbsupanim]
Hi Terry,
Not 100% myself, but I’m going to have a stab in the dark…..
I don’t think this would really be that different to a normal transactionI’m guessing if they sold the property on the day they took possesion for it, they’d have to pay CGT on $999,999. I’m sure if they stuck the 30 years through they wouldn’t mind sitting on it for another 12 months to reduce the CGT.
However if this is the case, since you’ve been paying tax on the monies received throughout the term of the lease, will there be a tax credit due from the capital loss on the property?What do you think?
Regards,
Mark.
Thanks Terry.
Hi Terry,
Currently in a similar position also. These are a few of the things we’ve considered.
If you sell the block of land with a house on it after 12 months of living in it, it’ll cut out the CGT.
You’ve already paid the Stamp Duty on the land, and there’s a big differnce between this value and that on an established property.
If you sell the land now -say you’ve had it for a year and a half- you’ll pay CGT on 50% of your profit.
If you build a house on the land for investment purposes, you should be able to depreciate it at 2.5% for 40 years.
Consider which one should experience the most capital growth in the next 12 months – 2 years, and think about keeping that property as you PPOR to minimise the CGT.
Having that amount of equity in your current PPOR may mean that you could receive a positive or neutral cashflow on it, with CGT calculated from the current value of the property.The growth we experienced in Darwin was partially due to the rise in land values as demand soared, but the rest was labour and raw material costs. If there is a slump in building in your neck of the woods, you should have a great opprotunity to negotiate and get the sweeteners thrown in. Hopeully when the market swings and these goodies go away and prices increase you’ll win.
FYI, I’m not a professional, but this is what I have learnt over the last year.Hopefully it’s correct and helps with the decision. [biggrin]
Regards,
Mark.
Hi Shane,
I’ve considered this option also, but remembering what myself and my friends were like when we were that age has somewhat deterred me from it.[biggrin]
Mark
Hi Tyron,
Good to hear I’m on the right track and have been reading the right books. Still got a whole lot more to learn though.[biggrin].
Thanks for the article. Might have to read it a few more times to make sure it sticks, but I’m sure I won’t be the only one to get something from it.
Have a good one,
Mark
Hi Elka,
Don’t stress too much, I’m still trying o figure that one out myself [biggrin]
Mighty fine question Terry.
Looking forward to the answer also..Regards,
Mark.
At the 4% depreciation rate, the property would only be able to be depreciated for 25 years – is that correct? Is the depreciation only applicable to property built for investment purposes? What would happen if it was a PPOR back in 87?
Thanks,
Mark.
Hi Daniel,
Some of my mistakes;
Not having a plan,
Finally getting one and not doing anything to make it happen,
Not trusting my own instincts and research,
Buying lots of shiny things [biggrin]Finally snapped out of it one day though…
Some of my wins;
Both myself and my wife worked 7 day weeks for a year to save for a deposit on our PPOR, $15,000 – may not seem like a win, but we were the only ones we knew that didn’t need any grants or family assistance to be able to purchase – yay us!
Experiencing 2 years of 20 + % growth on this property, or as I like to call it – KARMAAll the best.
Mark.
Me too…..
Does anyone know who the best person to speak to about this would be? Lands Planning and Environment etc.? I wouldn’t mind trying to get hold of a copy of the legislation etc for it.
Thanks!
Tough one to call, but as Steve says, money or terms.
If you go in tight, offer a speedy settlement to make the offer more attractive to the vendor. Alternatively if suitable, stretch out the settlement period if the vendor won’t come to you on price. No reason not to ask for both though if the property has been on the market for a while :o)I’ve found mining or defense towns tend to pay better dividens than their metro counterparts. If you don’t mind travelling to see them naturally.
Good luck !
