Forum Replies Created
IP = investment Property
PPOR = Principle Place of Residence
+ve = posivitve
-ve = negativeI think there is a post listing all the abbreviations somewhere.
thank Qld007,
I was reading an article in the Personal Investor (Dec 2004), yes I know it was a while ago, it was called “Rental’s hidden traps”, anyway it says there:
” Property Investors who build new residential property houses or units for sale can face hefty GST bill if they decide instead to rent out the porperty.
Renting out the property changes the GST status of the investment. In GST terminology, the change in use has caused the loss of “creditable purpose” for the property.
This has important consequences because the substantial input tax credtis claimed during construction are no longer available once the use of the property changes to rental. Renting our residential premises does not attract GST. However, the flipside to this is that there is no entitlement to claim back any GST of things claimed with this activity.
Investors will then need to refund to the tax office all input tax credits they have claimed.”
And so the article goes on. It’s written by Tony Greco. But this is where my information come from and hence my questions.
Regards
PKCharging for water isn’t a new thing, all our leases are written up that way. Just make sure you get the meter read before and after each tenant.
I’m in WA too, so perhpas it is something that’s normal here only?
I’m sure they must be.
kp, that was an excellent thread, thanks.
Flatout, we bought a property up there 18 months ago and we were told then we’d missed the boat, but we’ve just sold it for a 32% profit. My point is, yes, you may have missed the boat, on the other hand, how does one know for sure?
Good luck deciding….
Good Luck
PKJebro, I jsut edited my first reply to add a bit more info.
Have you tried SGIO? Alos, I found when I was ringing around that most just didn’t cover theft if we weren’t living in it so we jsut left very minimal stuff at the property.
Alos find our what constitutes a renovation ie: if you spend over $12,000 you’re supposed to register as an owner builder and take out the relevant insurance, get council permission etc etc. SO it may be that if you’re spending under that, then it’s not consider a renovation in the first place.
You can then decide whether you mention the word based on the info they give you.
PK
Is anyone able to clarify?
We ahve one heritage listed Ip and never had a problem getting finance, although we didn’t need mortgage insurance so perhpas that was the difference. My bank and I believe most others would allow an LVR of 80% nowadays, although I don’t know your situatio so perhpas there’s a reason for the 65% LVR.
We’ve also never had a problem getting approval from the heritage council for any work or changes we’ve wanted or needed to do. We had more hassles from the council as they didn’t believe the heritage council would approve the work we were doing even though we had a letter of approval. It took them 12 weeks to pick up the phone and ask the hertigage council verbally if it was in fact approved. They said “yes, we said so in the letter”, council then approved it.
Other than that slight hiccup we’ve never had anything that I’d consider an issue with the heritage listing.
PK
Can you up your cerdit line so you know you have cash available?
Well, I had one property where the tenant went into default on theri first payment of rent too. I served the relevant notice adn they paid some adn then had a story etc.
In the end they slowly got further and firther behind, so I’d say serve the notices adn if they don’t rectify the breach then follow through with the court hearing. Your PM, opps, sorry, your caretaker, can take care of all of this, jsut let them know that you defintley want to follow through if they don’t rectify and you don’t want to be lenient.
Yes, they can take the letting fee out of your rent, that’s normal.
It depends who your landlords insurance is with as to what it covers, if it doens’t cover loss of rent, then after your sort this tenant out, change to a policy that does.
Good luck.
PKRing the bank that you will get fiannce thorugh, find out whihc valuers they accept and then ring them and ask what they would charge you for the valuation (the charge will be hgiher than they carge your bank, but by going direct you get teh valuation sent to you, if the bank organise when doing the finance then you most likely won’t get to see it and most likely won’t even be told what it is). So organise it yourself, but advise them that you need the report to be accepted by your bank as well, I can’t think of the right word, but they then “assign” permission for the bank to be able to reply on the report in teh report. If you don’t do this then the bank will go and do another one of their own. Sorry I can’t thin of the right word for this but I’m sure they’ll work out what you mean if you put it in those terms.
IN WA, I pay around teh $330 mark for a valuation by one of my banks accepted valuers.
Regards
PKYou can probalby get away with calling it your PPOR as Terry said if you didn’t calim any of theinterest or show any of the income on your tax return.
If you did (whihc technically you should have done, although it may have been to your benefit not to do) then it’s best to show a capital gain for the six month period that it was rented. The best way to do that would be to have had it valued when you moved out and to have had it valued prior to moving back in again. Alternativley you could have a Quanitity Surveyor do this after the event.
I htink what you should do and what you probalby could get away with are two different things and your choice.
PK
Are you talking about inside or outside?
I’ve heard of vinyl laminate on teh outside that’s basically supposed to outlive most other house coverings such weatherboard etc and oftem people put it over fibro houses to improve the look. Do a search under cladding or vinyl caldding or something like that as there was a thread about this a while ago and I think it contained a website address where you could see before and after photo’s.
If on the inside, then I’m assuming you’re talking about tileboard or aqua tile. There’s a separate thread about this, but I think you’re talking about the outside so won’t elaborate here.
PK
Do you have an relatives or friends here who might be willing to check out some homes for you. Alternatively, perhaps you could use a buyers agent and then have a relative or friend just check out one or two homes that the buyers agent shortlists.
While it’s not impossible, it will be a bit harder, but if you believe the time right for getting into the market then it’s best to do so. You’re the only one that can make that call.
Good Luck
PKOur winner was on a row of houses of which the agent had now keys ie: they were governemtn houses that had been empty for months and the keys had gone astray within the governement dept before the houses were listed for sale, we therefore had to climb through windows to get into several to have a look at them.
Once I’d found the one I wanted, the first thing we did upon settlement was change the locks so we could let ourselves in through the front door. And fix the wondows so noone else could let themselves in!
After a reno we doubled the price, certianly worth the unconventional way of getting into the homes to have a look.
PK
For air con’s I found Tony Ryan from Airconditioning Solutions (0423093753 or 93981000) to be excellent. Took the time to acually work out how we use the various rooms in the house to sort out the best set up rather than just a standard set up.
Can’t really help with suppliers for anything else in the Metro area as havne’t found anyone else to be exceptional.
This is a great thread, and very helpful.
Regards
PKThe Sunday Times on Oct 9th has a separate magazine listing the capital growth over the last 12 months for all the metro area and some country areas too. Perahps you could try ringing The Sunday Times and seeing you can arrange a copy of that weeks paper.
Regards
PKIf your sticking the tiles to fibro or asbethos, spend a little extra for the better glue that has a bit more felxibility to it, you’ll have less trouble down the track as the wall will still have a bit of movement after the tiles go on, but the type of glue will hold the tiles to it better as it allows for that movement.
Don’t know if I explained that very well, but I cna’t think of a better way to explain at the moment.
Good Luck
PKIs this the same as AquaTile tileboards (perhpas a different brand?)
With the tileboards, you simply glue them to the old sheeting, you don’t take the old material off, the instrucations for the tileboards specifically tell you to glue it to the old fibro or whatever is there.
We’ve just finished doing a bathroom in the tileboard and it looks great, but it wasn’t as easy as it was made out to be and it was amazing how much glue you needed. It can also be tricky getting it around fittings that are already there ie: we had to get it to go around a toilet cistern and the various pipes and had quite a few cuts that then needed sealing etc. It wasn’t flexible enough to get it around the cistern otherwise. Also the house we were doing was old and the it turned out the bathroom was’nt very square, this made lining up of the tiles on the tileboard quite a challenge at times.
Lastly we wer told after the event that termites love the backing so make sure you always have your h ouse regualry checked.
So, all in all, it looked great but wasn’t half as easy as what they said and it was quite easy to scratch so we had to redo a couple of sheets before we’d even finished the whole project. So we wouldn’t use it again. We’d stay with conventional tiles in the future, feel they are much hardier.
Regards
PK
