Thats alright JL. I am actually studying Estate Planning now as part of my course in Financial Planning. Have a week long course to start in 2 weeks so this is good research. I find this stuff really interesting. Should have an answer for your tonight

OSS

Paul,

I know that death does not necessarily constitute a Capital Gain/Loss event. I believe that when a natural person receives an asset from an estate the beneficiary is recorded to have acquired that asset on the date of death of the nominated person. No tax will be payable until the beneficiary sells it later, which that person will pay at…[Read more]

I think a rise in oil prices will have a huge impact on property prices for the following reason:

It will make filling the lawnmower up with fuel so much more expensive[biggrin]
People will want to move out of houses into units so there is no need to pay for fuel [idea]

Ok so i am not serious here but just could not resist throwing that in there.

Question re hybrid trust. If you set up a hybrid trust and buy units – aren’t the units then an asset of yours and open for attack from bankruptcy, litigation etc Where does this leave your asset protection?

Terry,

if I (individual) was to borrow say $30K at 7% from a bank for a deposit and loan that money to your trust to buy a property, i understand that the interest on your loan ($3OK) is not tax deductible. However what if the trust paid you interest on your deposit eg at 1%. As you are now receiving income from your borrowed funds – could you…[Read more]

Peter,

I went to your money magic seminar in Brisbane in 1999 i think and you were talking then about your dream to get into acting and going to NIDA. Being a wannabe actor myself, just curious what happened to that? Do you still wish to go or did you not make the cut like so many others?

Kay Henry – “bigben, ya funny thing There are some cheap Mounts in Queensland- Mount Isa and Mount Garnet and Mount Mount. Well, I made that last one up.”

There used to be some cheap mounts in the Fortitude Valley but all have upped their prices recently

There are a number of private providers who can deliver the DFP course and some that are only accredited to deliver selected modules (eg 1, 3. 4. 5 etc). Get in touch with the FPA and they can supply you with a list of organisations who can deliver which subjects. I have worked in the industry and have used FPA (through Deakin Uni) and…[Read more]

kp,

I saw something that may answer your questions on the ATO website. Do a search under either vendor finance, instalment sales, instalment contracts. This should produce a list of test cases etc and i know one of them will address you question. I think it mentioned CG is assessable once the title is handed over or you are cashed out of the…[Read more]

My thoughts on this come down to one word…Balance

Chasing both..not exclusively one or the other but go after both depending on the market conditions. When property is hot, i will be chasing prop that has a good likelihood of increasing in value (as long as any neg cashflow can be absorbed) – hold, not to sell and continue to refinance, draw…[Read more]

Cornel,

Try the tax office website. They have a number of infomation booklets you can download for free and give you details on what you can claim, what documentation is required, depreciation guides etc. I would download these read them, gather the information you have already and or look for more receipts etc. Then take these to an accountant…[Read more]

Thanks Jeff. I do not have the necessary cash or equity to purchase myself, I believe i could service a loan that is why i am looking for other alternatives. I am not sure about buying it and reselling as a block – not alot of capital growth in its present location but there is a very strong rental market – actually rentals are not done by…[Read more]

Can you purchase on option on the land? Eg pay $xxxx for the option to buy the land in 12 months at a set amount. This will free up your finances but you will still have control over the land. I guess you will need to seek advice from a solicitor on this and negotiate an option fee with the seller.

I am trying to work a deal using an option at…[Read more]

Devil,

I would consider the following:

Does the tenant wish to move? Is s/he a good tenant? What is the current market like for property and units in your area – are they still rising and do you believe the value to futher increase in the area?

If i was happy with the area and tenant, i would use the $5K to go towards another property in the…[Read more]

Devil – the cost for the schedule is $770 inc GST. What confuses me is that they have worked out the land component, building component etc based on my purchase amount ($130K). I would have thought it should be done on the actual costs …..I have so much to learn…

Don’t know too much about the current status of the market there, but i am aware of the need to check how your property may be affected by floods. You should be able to gather this information from the City Council.

It is important to note the comments from ziz – funds used to purchase income-producing assets. The investment you purchase must produce income for you to claim the interest costs as a tax deduction. eg You cannot claim the interest costs on funds used to purchase a block of land, unless it generates you an income.

Dear All,

Wow – what a response. I was expecting only a couple of messeges. Thank you very much for your advice, your experience and suggestions.

I like the suggestions about detailing all my fears about each investment decision. Would people mind if i posted back some questions i may have on overcoming some of the risks? I guess i can only…[Read more]

Isnt there a 6 year rule from the tax office where you can still claim the house as your principal place of residence? I am pretty sure i read that in some info from the tax office

Northy

Ok so i may be a newbie to posting on this site, but is the purchase of a product the way to answer this original question?

I am sure i read somewhere that the purpose of this site is to promote discussion of positive cashflow producing property investments…or something like that

So come on, could someone with a little knowledge on this share…[Read more]