Hi Jude

Have a look at
https://www.propertyinvesting.com/article04_07.html

Cheers, Paul

Hi Robo

Congratulations on accepting the offer. As you say, let’s hope it goes to exchange and settlement.

For future reference, in NSW, you could have overcome your PM’s reluctance to go through your REA buy signing a “non exclusive” agency agreement with your REA after their “exclusive” agency ran out. For an agent with a “non exclusive” agency to get paid their commission, they have to physically introduce a prospective buyer to a property. With an “exclusive” agency agreement they get their commission no matter who buys the property (during the term of the agreement).

So with the “non exclusive” agency in place you could have kept the offers coming from your REA and chased other offers yourself, while only paying commission if you’d accepted an offer via the REA.

I hope this helps.

Cheers, Paul

Hi Misty

While you’re waiting for October or November, this might be a good read:
http://www.realestatedevelopmentcoach.com/index.html

Cheers, Paul

Hi ddb

I’d suggest you use the time while everything is being finalised by the Family Court to educate yourself on the various +ve cashflow strategies available to you. A few educational resources I’d recommend are:
1. https://www.propertyinvesting.com/strategies
2. Steve’s Master Class – https://www.propertyinvesting.com/resources
3. Steve’s Wrap Kit – https://www.propertyinvesting.com/resources
4. Rick’s Positive Cash Flow Boot Camp – http://www.rickotton.com/
5. Rick’s Wrap Pack – http://www.rickotton.com/wrappack.htm
6. Rick’s Lease Option (Rent 2 Own)Home Study Course – http://www.rickotton.com/lease.htm

The above resources range from free to a few thousand dollars. I’d advise that you don’t “nickel and dime” your educational costs if you are serious about becoming a property investor.

My wife and I used some of the more expensive resources above and it’s sure worked well for us.

There are obviously other resources out their and I’m sure the forum members here will be able to help with lots more.

Good luck in the future.

Cheers, Paul

Hi Misty

Another point to consider in the situation you are purposing is land tax. In NSW a wrapper loses his/her obligation to pay land tax as soon as contracts are exchanged. As wrappees are normally owner occupiers, they too don’t have to pay land tax after exchange of contracts because it is their PPOR. However if you as the wrappee are planning to rent the property, then, in NSW this property would enter into your land tax obligations.

Hope this helps.

Cheers, Paul

Hi Misty

It is a little unusual for wrappers to allow their wrappees to rent out properties under an Installment Sales Contract but not impossible. I know a couple of wrappers that have and will consider it.

The following you should check with your accountant/tax advisor.

As you know, you don’t have to be the owner of an asset to try to make a profit from it. In this situation, you’re making a business decision which you believe will generate a profit for you in the future. It is also immediately generating business income. Therefore any losses generated by this business activity would be treated in the normal manner, i.e. they may be deductible against other income or accumulated over time.

I hope this helps.

Cheers, Paul

Hi Jay

If you buy a property for $276,800 a few weeks back and sell it this week for $350,000, then this week surely you’re allowed to say that the property has a market value of $350,000 because this is what someone is prepared to pay for it.

If RAMS now value the property at $350,000 you have two indicators that the market value is $350,000.

I’d agree that a few weeks back it had a market value of $276,800. But now it has a market value of $350,000 and all you’ve had to do is paint it for $3,000.

If at this point someone can’t say they bought a $350,000 property for $276,800 then when can they? (discounting the paint)

Cheers, Paul

Hi Misty

Check with your lawyer/accountant but here’s what I’ve been told.
1. The wrapper is not entitled to the deductions because he/she is deemed to have disposed of the property. For tax purposes this disposal is usually regarded as having taken place on exchange of contracts.
2. The wrappee is not entitled to the deductions because for tax purposes he/she is deemed to be the owner of the property (contracts have been exchanged) and an indivdual cannot claim these deductions on their principal place of residence.

However, on the plus side, you do get rid of land tax in NSW by wrapping a property. Similarly, the wrapper is deemed to have disposed of the property; therefore no land tax bill. And the wrappee is deemed to own the property but it is their PPOR so no land tax.

Hope this helps.

Cheers, Paul

Hi Jim

To start off your education, try this free resource, i.e. have a read through
https://www.propertyinvesting.com/strategies

Wraps use an Instalment Sales Contract and South Australia is the only state in Australia where Wraps are illegal for real estate transactions. However Lease Options are legal in SA so, as your interest lies there, have a good read of the Lease Options information.

Welcome to the forum and good luck in the future.

Cheers, Paul

Hi AB

I don’t want to argue with the above suggestion re negative gearing in high growth areas but remember that, as an expat, you can only offset your losses on a resdential property investment, against income earned in Australia.

And when doing your planning, it is also worth knowing that there is no tax free threshold for non residents on any money they might earn in OZ while they are away.

I hope this helps.

Cheers, Paul