Forum Replies Created
Nonleone,
I think you are pushing the boundries with bringing your child and kennelling your dog, but since you are both directors of your company/trust I don’t see why you wouldn’t be able to claim both of your cost involved with inspecting your properties (flights,accomodation etc.).
If you are planning on hitting the ski slopes while you are over there you might want to run it by your accountant to discuss proportioning your costs (business/private).
All the best
RhysI’m not sure how others feel about market forecasts but I’m of the opinion that unless you are going to buy the whole city, they are of a small consideration.
Each property is its own kettle of fish, sure it will be affected by market swings but no matter what the market is doing, there will always be good individual property prospects. I like to think that if you don’t make a profit on the purchase of a property (buy below market value) you are not getting a good deal.
I’m interested on any thoughts.
I too am keen on keeping contact with other young property investors. I would be happy to exchange emails with a group of others to keep each up on their progress to offer stories, motivation etc.
I just turned 21 and I bought my first PPOR about 7 months ago. I’m now wanting to make sure I don’t become satisfied with the good start I’ve made and ensure I use this to continue to take advantage of the position I’m in.
I am constantly looking for stories from/for younger people because I find 90% of financial article these days are focusing on retirement and super (I realise this is a large portion of the financial market).
If you are young and looking to enter the property market, 2 tips:
-Don’t be intimidated by the more experienced participants
-You can never be given too much adviceAll the best
RhysWith the mining industry booming, I know some mining contractors willing to pay up to $80k/yr (5days on 5days off) for the privelige of training people to drive trucks. Almost enough to poach me from my accounting job.
T1
I agree with gafama, you will generally need to put some work/thought into to making a property cashflow positive.
Being new to property I thought it might be worth mentioning that generally Comercial Property will give you a higher yield if you can lock in some good tennants.
All the best
RhysCupcakes,
I am in a similar boat, looking to take the plunge into the Investment Property market. One thing that has been said to me that has stuck in my mind (and supports other postings) is invest to a plan, not for the sake of investing.
If you are looking to increase your cashflow have a plan about what property you will need to find (or create from what you find, you may need to turn a slightly negative cashflow into a positive cashflow through renovating etc.)
If you are looking to increase wealth (Long term view) maybe you can sacrifice a small amount of cash now for greater long term benefit.
I am not trying to sound like I have the answer (I too am looking to take the fist step of buying an IP) but just sharing advice given to me that I found useful.
I will look out for your future posts to see how you go.
All the best
RhysI agree with JKM on this one, looking at your tax position is an important aspect when looking to maximise your real returns. Selling your apartment avoids CGT (a tax free $80k, not bad for sitting tight for 12 months) and use this money to reduce your non-deductible loan is probably the way to go.
If you own 2 properties, one PPOR and one IP, you want to ensure as much of the interest as possible applies to the deductible investment loan rather than the PPOR loan.
Rhys
Franking credits are derived from tax paid by the company before the payout dividends. Being unfranked, the dividends would have been paid from pre-tax profit, meaning you will need to pay tax on that $6000 at your marginal tax rate. The interest you have paid to finance your share purchase is deductible. You can use this to give yourself an idea of your tax payable/receivable for the year, however it sounds as though you would be best served getting your tax return prepared by a professional as there are a number of complicated issues associated with this.
All the best.
Just to throw in my two cents. I agree with the concerns about PPOR CGT exemption. Working in tax, I know the ATO doesn’t like people avoiding tax. Sure you will probably get away with it but legally they look at your intention ie. make money, more than see it as a place to sleep.
Good luck with your plans, I hope it works out well for you.
