dougdot,
property investment is essentially passive, and doesm’t involve physical input from you (unless DIY renovation). Living on the income-producing propoerty e.g. an orchard and doing the work yourself might suit you now, but in 10yrs time will you still want to hop on the tractor at 6am? What if you develop health issues/injuries? Would the…[Read more]

Namasté,
Most of your questions can be answered by Centrelink. They have a financial advising service which is supposed to help people in your mother’s situation.
I believe that she can only gift $10,000 per year to an individual and not exceed the ‘deeming’ provisions. (She can give as much as she likes, but is deemed to be earning interest on…[Read more]

Kevin.
your first check would be on the FIRB website.
Then take a look at NZ ‘off-shore’ trusts – do a search – look at http://www.family-trust.co.nz or look for ‘asiaciti’. These will give you a start.
Note: not a recommendation or advice!
Terry

Terence McMahon
HomeWin
Finance

Sebastian,
I think that it might work in limited circumstances. Look at the Foreign Investment Review Board website for details. There are restrictions on foreigners (the offshore company in your proposal) buying real estate in Aust.
Terry

Terence McMahon
HomeWin
Finance

Hi Phil.
One of Anita Bell’s books (not sure which one now – I think the investment property one) has a good checklist in it. You might even find it in the local library.
Terry

Terence McMahon
HomeWin
Finance

Hi BEAR1964,
Nick has not mentioned that if you move back into your PPOR before you sell, then you should be able to avoid any CGT because of the 6 year exemption rule. You have to work out which property will have less CG and claim on the other. Anyway, why sell?!
Terry

Terence McMahon
HomeWin
Finance

Hi fullout.
The usual advice is NOT to buy appreciating assets through a company. For one property a trust would probably not be worthwhile because of the costs. Ca$hking is right about the transfer costs too.
Lenders don’t mind lending to trusts as they will take director’s/trustees guarantees on the loans.
Have a look on the Somersoft site…[Read more]

quote:
hi saskatoon,

i just worked the information based on how much the sellin price of the property is.

Other costs i just assume that will be paid in cash, and only the loan for the full amount of the purchase price is required.

thanks

still_in_school

Hi still_in_school,
yes, but where does the cash come from? I don’t consider that if you…[Read more]

quote:

quote:
I have found a property that I would offer $85,000 for that has a tenant paying $145 pw.

Can someone tell me if this is a good deal or not?
The house is neat and low maintenace.

Like you Andrew I am not sure when to step outside of the 11 second rule and to what extent.

Here to help. Cherly first up i caculated this for…

[Read more]

Hi polar bear.
in my experience a lot of investors use this arrangement. I used it 15yrs ago to good effect(the name of the form has changed recently – used to be 221D or something like that, which is why others may not have answered).
Use the money as Erika suggests – offset against your PPOR loan if you have one.
Terry

Terence McMahon
HomeWin
Finance

quote:
G’day everyone.
I am seeking advice over investing in real estate with other partners…

Hi Simon.
There have been discussions about this before.
Most people on the forum suggest that you do not involve family as it causes heartaches if things don’t appear to be going well for one or other of the investing partners.
If you want to do…[Read more]

quote:
Hi 101,
Thanks for answering your own question. In doing that you may have helped me out aswell. I currently have a line of credit against my own property, but mostley used for personal use. Until recently when I used it to place a 10% deposit on a $75,000.00 property I am buying.
I would need to claim the interest on that 10% that I used…

[Read more]

Hi Brett.
Terryw didn’t mention in his reply (this time!) that a company is possibly the worst structure in which to buy appreciating assets. Have a look at Chris Batten’s website http://www.chrisbatten.com.au for some good reading! Also http://www.gatherumgoss.com
For example, income through the company is taxed twice – once at 30% on profits, and then again…[Read more]

Hi susieq22,
a company is probably the WORST structure in which to buy investments! To find out why this is so do a search on this forum, and on the Somersoft forum. (Look in the Useful Links posts).
Take a look at http://www.chrisbatten.com.au, and http://www.gatherumgoss.com.
As a general rule any joint investments in real estate need to be through written…[Read more]

Hi jomik.
Welcome to the forum.
Chandara is right. Start at the home page of this forum, and look at all the information. Do a search when you have a question. Many beginner’s q’s have already been answered.
Then start researching!
For example, go to the local library and read any or all books about property investing in Australia. If you like…[Read more]

Hi Steve pine..etc
I use FileMaker Pro (for the Mac). It has a template which I am adapting for my own use.
Any reasonable database programme should do if you have a PC.

Terence McMahon
HomeWin
Finance

Hi Rod.
Why not stay with your friend for free, and rent out your home. This way you still own the house, and the tenant will be paying all or some of the mortgage payments. You will be also keeping any Capital Gains which occur. If you still keep paying your mortgage payments on top of the rental payments you will rapidly reduce the amount owing,…[Read more]

Huey,
different investors need different structures.
Do a search on this site, and the Somersoft forum, for ‘Trusts’. There is a lot of information!
Don’t get hung-up over costs until you know what is suitable for you, though the general fees seem to be around $3,000 to set up and a few hundred a year for accounting. The benefits would outweigh…[Read more]

Hamster et al.,
Terryw knows, but forgot to mention in this post (look for his earlier one), that you can only nominate one PPOR at a time. You should work out which property you own is likely to have the greatest CG, and nominate that one!
This topic was also discussed on the Somersoft forum some months ago, I think in the ‘Accounting’…[Read more]

Hi Huey.
In view of your intentions think about establishing a trust, and buying all future properties in the trust.
Your children can then live in ones you bought for them, renting them from the trust, with all the associated benefits.
One disadvantage is possibly forgoing the FHOG, but there could be a work-around for this.
I don’t see why you…[Read more]