Forum Replies Created
- Originally posted by as41:
I have tried to find answers to two questions I have on the forum posts but I am still in need of more detailed clarification:Can you help me please?
Q1: IP-tenants leaving end of year. We want to put in new kitchen and bathroom and a car port. SHould we take this opportunity to do this when IP is empty?
IMO Yes, when it is empty is the best time to do it, have your tradies ready to go once the tenants depart, you have a end date for the tenants so you have a start date for your tradesmen.
Will this affect our claiming of improvement for depreciation or anything tax wise???
have you done a deprecation Scedule on the IP yet? If not i’d suggest contacting Scott from depreciator, I believe its best to get this done prior to your reno
Q2: What is the benefit if we go from a I/P loan to an interest only facility?
I/P Loan ?Does it just free up more cash for further investment etc…In what case sould I consider this?
Interest Only does free up more cash, but is not the only way to go..IMO build up a relationship with a good mortgage broker, they’re worth thier weight..
Q3: We have a household income of only $85K between two people. We are in the lower tax braket and our IP is negatively geared. Is this still o.k ?
Sounds like a great income to me and better off than a lot of others..If your – Gearing then hopefully you anticipate good Capital Growth?I believe one of the best things you can do is build your team of people; Not only tradespeople, but finance, legal, accounting, etc and this forum has a pretty good spread, find someone who you ‘click’ with and ask some more questions..
Snowflake
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorLike this to increase his posts many moons ago..
Must’ve worked he’s still near the top of the Members list!
Plus, I just boosted my ranking[biggrin][biggrin]
Red is is for the 4 star Moderating Generals, what is Steve..GOLD ?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorChan posting..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI remember
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks Marc
heres a link for Oz as well
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI’d strongly suggest you get Dales book’s Trust magic and Tax Battles they are essential reading if you are looking at this structure..
Ed Burtons book is also a good read, so is Rentons..I’m waiting for Ed Chans..It’s a complicated beast that many accountants don’t even fully understand, so its worth becoming a bit more informed..
Plus..not every Bank will like the structures..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAre you talking about someone else as in your wife or by other means such as a friend (who doesn’t really live there)or renting a room (but in essence the house, as you will be renting the room on paper).
Would this not make it a lot harder by then having to apportion rent, electricity etc ?
Would it not be better to do it up front as Avranjes hasdone, as long as you show that the trust is established to acquire wealth creation assets with the goal of making a profit?
I’m sorry if i’m Misinterpreting your post Terry..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorNo..
But sounds interesting..
I have a wealth of data as well, One day i’ll put it into a more user friendly system (maybe even a quick reference guide)
let me know how you go..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks Life X,
After this one it will be interesting to get everything revalued at the 3 month period to see where we stand.
RegardsREDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by Terryw:Watchout for the taxman. Have you considered putting some distance between yourselves and the trust by having someone else rent the property from the trust (and you live in it)?Terryw
Discover Home Loans
North Sydney
[email protected]That sounds even more fraudulant Terry?
Geez you may as well go the whole hog and do it the illegal way by < edited >
If you are acquiring assets in the Trust and it is structured the right way, then i cant see theproblem, especially if you are aware of the disadvantages as well..
There seems to be ‘many’ ways of conducting this in a legal manner and if you sell or start making a profit the ATO gets their cut, if not, then i’m sure it will be done in the manner described above..[wink4]
[biggrin]
REDWING“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by munjy:Can’t wait until I turn blue.
Munjy
PS I only really replied to this thread so that I’d get one more notch. One more closer to that coveted veteran ranking!
Hold your breath and count to a hundred Munjy..you’ll get there sooner than you think[puke][puke]
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorSuzette..
Just wondering, did they locked themselves out of the house..or their Individual Rooms, if it’s Individual Rooms you may want to put punch code locks on the doors,if your doing this long term you can change punch codes each tenancy rather than change locks, also ensure the doors are not self-locking (they have to use the key to secure the door- that way keys aren’t locked in)?
If it’s too expensive for them (locksmith on a Sunday is about $150-200 isn’t it?) you can bet they’ll ‘break-in’ or start leaving something open.
These type of problems usually happen at the start of a lease (Semester) with students, but get better as they get used to it.
I’d speak to the REA Licensee regarding the PM..You may as well do it yourself if thats the kind of PM you get..so much for privacy.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAnyone know much more about Celebration Homes??
Ausprop?
Reason I ask is the new IP is a celebration home..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI agree with a lot of what you’ve said Coasty..a local APS I spoke to, when asked, informed me she is neither an accountant nor a solicitor..
Would you then say she is a sales rep?
I’m glad to read this post of yours, as I hold you in pretty high regard when it comes to these issues and can only say its good to see that you realise what is happening in your industry as well.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI think you have to be careful as well being a buyer with early access and carrying out major reno’s..the vendor could love the work done and call the deal off.. it’s ambigious as to the law in these cases IMO..
Does anyone know more on the legalities of such a deal if either party renegs?
;o)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThe area we bought in is a stones throw to two different lake areas and the ‘Dress Circle Area’.
With our negotiations I believe we got a bargain and I will revalue it in 3 months from O&A date.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWho are the better Non-Bank Lenders ?
By the way my Certificate of Title has been found (My broker contacted the BDM at Bank B and expressed concerns and funnily enough it was found on someones desk..)
Everything is now progressing well towards settlement and didn’t have to get the Big Guns out..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI think the official line is only..”it must be earning an Income” before repairs can be deducted, there is no time stipulation regarding how long before it earned an income..
I’d follow some of the great advice above and play it safe though.. why tempt fate (or the ATO)..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Richo
look at the various Real Estate Insitutes for each State, you should find lots of info there
http://www.reiwa.com.au for PerthGoogle.com.au is ‘great’ as well…
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAlso what structure you buy the property under..
There’s a lot to think about..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
