Forum Replies Created
Terryw,
There was a large advertisement after your comment, it was plastered on most topics earlier today. Selling cash flow properties and had nothing to do with any questions being asked…. hence the comment
Sorry to offend, I will have to write this over about six discussion topics if he removed them all…..
Echelon6,
I can only write and fill you in with a limited amount of knowledge on this website.
I am happy for you to visit my office to give you an insight into property investing. You will require about three hours…..
As you have so much to learn this may be a good option, then you can come back to this and other sites to fill in the gaps and get a validation on my comments. Just a thought? Let me make it clear, there are many ways to skin a cat. I will not claim that I am the only person that could make you wealthy. I have had many discussions with the owners of large companies . They are wealthy people and have many angle's on how to make money, they clearly make plenty of $$$, through there strategies. After many discussions I have understood the value of taking on board the opinions and advice of many people and applying a little piece of their wisdom to my personal circumstances only when applicable. I never force the knowledge to fit me, but I apply the knowledge where applicable. i.e. what I have to say may not be you, but some may well be?????
Please note; I will not charge for my time,
I am located at Castle Hill in Sydney.As stated above it can be done, taking into consideration CGT (where applicable) and stamp duty.
Further, you have to consider Part IVA of the ITAA, (an arrangement set up for a tax benefit). You may require a private tax ruling, in any event you will need a good reason such as "asset protection as your spouse has a job where they may be sued".
Sorry, and who are you helping?????? I can answer that , that will be yourself…….
Sorry, and who are you helping?????? I can answer that , that will be yourself…….
Sorry, and who are you helping?????? I can answer that , that will be yourself…….
1. No you cannot refinance the the original property to increase the available tax deuction (but you can be creative depending on your circumstances, name on the title etc).
2. Yes the property will be valued at $600k for CGT purposes,
You have confirmed yet again the reason why you should almost never pay your home loan down and why you should almost always borrow the maximum.Banker, sits on the fence.
Try $400k for a typical loan, and you will find that there is a large difference, in fact it is enough to purchase another property.
Hey, but if your not interested in making money, you can sit there like average Australia and pay off you home until you are 50-60 years of age and then you will invest. In the meantime I have retired at 34 years (10 years experience counts for nothing when when you still have to get up and work each day- not saying this is you but it is most of Australia). When you give examples please keep it real, as you are helping people on this site. It is not a competition, but a forum to guide people through the investing maze and the pitfalls.
I am not sure what you are saying about the money in the offset equal to the loan. You must have mis-interpreted what I had to say. I am unsure why the experienced guys do not get this, MONEY IN YOUR OFFSET IS UTILISED TO PAY FOR FURTHER ACQUISITIONS- THIS IS HOW YOU MAKE REAL $$$$$$$.
Why do you want 5 debt free when the numbers work better having 30 properties with debt. Oh! if you really must have debt free- sell 20 at that point and have 10 debt free. (I keep forgetting about peace of mind) And really, how many clients do you have with incomes large enough to pay down 5 properties, this is not realistic. (excluding properties that are $50k – postive geared or like).1. Your right, I have never done this for a client with $30M, but $450k is the norm… I am being realistic.
2. If i did not look at the numbers I would be doing all my clients a poor service – litigation.
3. Still not over this one……..
Anyway, happy to have this conversation again with another topic……. this is what is good about this site. Learning and thinking with like minded, intelligent people. Cheers
1. I can borrow the same number of dollars, you read too much on how you cannot get cash out etc. The $$$ are the same. As you mentioned I do these often.
2. Peace of mind (sorry, I look at the numbers first – intrinsic feelings cannot buy a house- research the reasons why you should not pay down debt v feeling good about yourself).
3. Sorry, you have lost me here, are we talking about FTB/Child support or divorce settlements?
You have one valid response, of which none are good reasons, so I will maintain "Almost never"
1. You can only borrow the same amount of dollars regardless. i.e. loan capacity is the same. e.g. offset =$50K+ borrowings=$250k v offset = nil + borrowings $300k Both add up to $300k to me?
2. What are the estate planning and taxation consequences-if any? A little open ended?
3. Valid- but where this arises, a simple deposit works well.
4. As I have already suggested- poor discipline- same thing, different spin.I am still interested……….
Ask for a private ruling if you are concerned. I was audited last year, if you are keeping things real, you will have no problems……
Yes, the cost base will be taken from the date available for rent. Subtract the cost base from the value of the property when you took it off the market, and you will pay CGT on 50% of this figure (less anything that may increase the cost base- capital purchases, interest if you have not already claimed as an expense etc).
Please talk, I am very interested.
Ryan,
Is the director of the corporate trustee of the trust in question not liable for negligence? You may like to confirm this one, with written advice that can be substantiated? Particularly as most people state it as the main reason for establishing a trust.
Further, trusts cannot distribute losses.
I also like to think that I am not being negligent when leasing a property – but if the case arises I have my public liability when insuring the property. $10 million with NRMA for incidents that happen on or outside the site – that is one bad broken arm?
Paul,
What is one good reason for paying this down as opposed to utilising an offset account?
I have the answer – Don't respond.
If you have no discipline, and you are going to spend this money on depreciating assets.
So almost, NEVER………
http://www.birchcorp.com.auTim,
As stated above, only the interest costs will reduce your taxable income….. i.e. the principal repayment is not a cost of earning your gross income.
Further, you should never pay this debt down. Think about future tax deductions if you require the money for a non tax deductible asset. I see the words "offset account" splashed all over this site…….. Now this is the time, and real benefit of an offset account…….
Makes complete sense to me,
As you have an assessable income to declare, you may offset this with your costs (interest is an allowable deduction).
I like the acronym K.I.S.S.
This is very simple, as "I-dream-houses" has stated set up a testamentary trust ( a lawyer will do this). It will simply place your assets into a trust on your passing. The beneficiaries are your family. It lacks complexity and low cost ( approximately $100 on top of your will -Total about $300). I sometimes have trouble understanding why accountants, planners etc require complex arrangements when a simple solutions are required, actually I do know why………….
This is all very simple to me, you have a property valued at $370K (estimated = expected return $37K p.a.-capital growth) and you are concerned about $30pw = $21pw after tax. The property game can sometimes be complicated. In this event it all points to one thing – DROP THE RENT.
Sorry, I am telling you what others are too soft to say……… AND yes, you may get $380pw, but really, if I had these skinny margins on an investment, there is no way I would be there in the first place………
I'm interested,
