Forum Replies Created
adco,
To answer your last question, if you are an Australian resident and earn income from NZ, you will be taxed by both countries. However, you will receive foreign tax credits up to the amount payable in Australia on that foreign income.
Hope this helps
Rhys1985 Honda Accord, hoping to leave its burnt out body at the side of the road and get a new one in the new year. Its treated me well, but time to move on.
Rhys
I would love to see Tait get a run. I hate to see Gillespie pushed out of the team, but I think its time to bring in some fresh payers. Kasper is a great bowler but I think Australia’s long term outlook would requires the replacement not to be another 30+y/o in the last few years of their career.
Rhys
stephen051
Not a dumb question at all.
An important aspect to look at when determining investment strategies is your investment time line. If you are saving for a deposit to purchase a property in say the next 12 months or so, shares may not be a good option as shares are better for a longer term view. Prices of shares can fluctuate by as much as 5% on a daily basis, this could leave you in a hole when you are looking to use your capital as a deposit if you are not prepared to wait until the price comes back up.
In summary, I agree with the previous comments, take the risk free 5% at this stage and build you portfolio over the longer term, trying to make a quick buck can get you burnt if you don’t have the experience.
Rhys
Lei,
You will be able to retain you house as your PPOR (CGT free) for 6 years while living elsewhere, as long as you don’t elect another property as you PPOR.
Eligible claims:
-Interest
-Depreciation
-Rates
-Insurance
-Repairs and maintenance(not capital expenditure)
-Property management costs
-Anyone care to add to list?Rhys
Thanks for that, I’ll have a look into it. I guess its issues like this that justify the amount accountants etc. can charge.
Rhys
Redwing,
Could you let me know about running a Hybrid Discretionary Trust and distributing losses?
Thanks
RhysAfter seeing the effect of hosting the olympics had on Australian sport with all the $ poured in, I hope we don’t see the same thing with London 2012. Theres not much better than beating the poms.
As for the cricket, I think we will hang on to the Ashes for a few more years yet. England don’t seem to have the ability to put a truly champion side away while they are down.
Rhys
Leo777,
I think you can depreciate your fence over 20 years, looking at ATO effective life tables. This means either 5% prime cost or 7.5% diminishing.
Rhys
I think it is fine but there are a few considerations:
-The rent you pay must be at market value or you won’t be able to claim 100% deductions.-Losses are not able to be distributed from a trust, ie. if you negatively gear the property the losses will be tied up in the trust until runs at a profit.
-I think you are still eligible for the 50% CGT discount on the sale if you hold the property for more than 12 months in a Trust but not in a company.
These are a couple of points to run by your accountant.
Rhys
Correct me if I’m wrong but I think unless it is through a company structure you will be unable to claim GST because GST is not charged on residential rent. I should know this but I have gone blank, I will look into it for you if you dont get anyone correcting me. Are you personally registered for GST? (If you are not it makes your question a lot easier)
Rhys
voigtstr,
Thanks for that, I’ll give it a go.
Rhys
elysean,
I’ve also been warned about the traps involved in the finance clause on a contract. I’ve been told that if the contract is subject to finance the buyer must go to all lengths to find finance ie. If the agent can arrange finance through ‘Bills Backyard Finance’ at 10% you are bound (not sure how accurate this is, any thoughts?).
I recently bought my first property and requested that the finance clause be reworded to say: ‘Finance to the satisfaction of the buyer’. When I requested this the RE agent gave me a strange look but you can’t be to cautious on your first purchase.
Does anyone know about the ramifications of the fiance clause?
Rhys
Bob,
If you are interested I could email you one I’ve been working on, I’m interested on any feedback or if anyone else may find it useful. Voigtstr has been kindly trying to show me how to make it available to everyone, but my internet related computer skills are limited.
Rhys
voigtstr,
I’m with Dodo. Don’t worry about it if its too much of a hassle.
Rhys
Voigtstr,
Thanks for the reply but it sounds a bit beyond me. I might wait until I’ve tidied it up a bit and start a thread if anyone is interested in having it emailed to them.
Thanks
RhysOn a similar point, I have been playing around with excel and have come up with a calculator of my own. Is there a way I can make it accessable so other people can give me any feedback/ alterations or use it if they find it useful?
Thanks
RhysPurpleKiss,
Correct me if I am misinterpreting your question, but are you refering to including you unrealised gains? I’m not to sure on the situations for property B and C in your example.
Your marginal tax rate is derived from income (Salary, rent, dividends, Trust distributions, realised capital gains etc.) less any deductions.
If you have held onto the asset your are selling for more than 12 months, you are also eligible for a 50% discount on CGT. Let me know if this is on track to answering your questions or clarify where I am misinterpreting your question.
All the best
RhysH and Ysar,
Borrowing costs relate to stamp duty on your mortgage and fees associated with your loan, application fees etc. These are amortised over 5 years or the life of the loan (whichever is shorter). I believe borrowing costs <$100 can be immediately written off.
Stamp duty on your property is capitalied and added to your cost base for CGT when you sell.
Hope this helps
RhysMissa,
Its great that you are looking to increase your earning opportunities through investing.
Take your time to learn as much as you can (that is why I am here) before you put down your hard earned cash. I feel that with the market the way it is (just after a huge boom), rushing in could be dangerous, I don’t see that you will miss out on any great profits if you take some time to get to know the property market.
Where to from here?:
-Reading posts on this site is a great way of learning the ins and outs of property investing.
-You can’t read enough on the subject. Have a look at any bookstore or library on investing.
-Look in newspapers and online at property sales sites. Get to know a market, learn what to look for and eventually you might notice properties that the price tag may not fit.Good luck, take your time and don’t lose your enthuiams.
Rhys
