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thanks for the replies guys.. the renting the house part (and the wife working from home) make sense, i've done the sums on that… so thats defiantly going ahead..
the question is whether to keep or sell the apartment..
its in Hawthorn, which has had great growth the last 4-5 years… I think it will now flatten out.
i know doing another backyard build will make more, but holding the apartment is risk free.Sorry if I'm sounding rude but why would anyone want to mentor someone who isn't in a financial position to begin investing in property.
As stated in your other thread, you need to focus on an income that can secure the investment future you desire.
to be blunt you have zero chance at making it happen working your current job..
personally i would forget real estate (right now) and focus on your day job, study/get educated and move into a higher paying job then look to invest your earnings in real estate….
that doesn't stop you from educating yourself in all things real estate right now, however you really need a job that can support your investments
i've seen it done and it works, my sister rents and has 2 dogs, defiantly harder to find a place to rent… obviously it may take longer for the tenant with the dog to come along..
MosicLandscapes, can you post the breakdown of your figures… ? you'll get better responses then i think
i haven't read every post so not sure if anyone has mentioned this..
the money you lend your son will most likely be factored into his serviceability of his bank loan (saw this happy with NAB late last year). so if you are lending him money because he is unable to borrow the full amount, he may run into problems, unless your money is a gift (stat dec may be required).. having the money as a gift, you could still have a private agreement to claw back the money if/when the house is sold. A solicitor will tell you what needs to be done. As for putting your name on the title, I should suggest you thinking about what effects this may have in the future when the property is sold.
from what i have read on this forum you can get a loan regardless of who's name is on the title.
i'm sure someone better informed will answer your question..from the front page of grannyflatsaustralia.com.au "By investing $105,000 in a granny flat, it can be rented for around $350 / week, and then extra income can help to reduce the mortgage by several years."
wow you can almost build a house for that price…….
how will the ATO prove that you received an income?
see an accountant… however if your intention was to rent the place then yes you could be able to claim.
your too honest.
its simple.. he's a mate thats living with you, he gives you cash now and then which you spend on food, toilet paper etc..
might be stating the obvious here.. but if retirement is still 15 years away, can you not try move into a higher paid job? study, certs, courses etc what it takes to get a higher paid position. The move cashflow you have to work with the faster you will reach your goals..
Terryw, what if the profits of the sale goes to multiple beneficiary's, can they all receive the discount?
Terryw, do you know if a trust owns a property for over 12months, if there is a 50% CGT discount like owning under your own name..
Terryw that's very helpful..
I'm going to be into IT consultancy I know I can form a company and be paid that way but I'm not sure I can form a Trust and be paid into that.
Terryw,
If you ran a business through a Company and made a profit, can this profit be distributed by the Company to a beneficiary being a separate Trust that holds a negatively geared Investment Property?
thanks Terryw, but I won't be moving out for another 2 years…
the place is already well in positive, but obviously i would like the loan to be as high as possible… its a shame i didn't know about this before, as i've paid the loan some 30k down over the last 5 years.
Terryw wrote:Do you mean you will pay more interest for the loan with the offset? if not it may be worth changing. Your loan should be interest only too.Do the sums, maybe it is worthwhile putting the money in an ING account in the name of a low income earning spouse if you have one.
thanks terryw.. yes the loan with offset account is 7.04% (plus $199 per year) vs 6.74% and no fees….
so it doesn't look like its worth changing… i have asked ING about it saying i'm looking at leaving, waiting for a call back..my spouse is on a low income, so i might start putting all the savings into an account in her name…
may as well leave the redraw i have already build up there… (about 7k)..but that redraw is build up from additional payments?? so your taking back the extra money you put in…. and the total loan goes back to $230k…
also what happens when you refinance? how does the ATO know what the loan amount was and whether extra funds were taken in and out before the property was an investment..
my problem is my PPOR loan doesn't have an offset account…. unless i change products which is $199 yearly fee and 0.3 higher interest rate… which is about -$700 a year….
i've got $30k inheritance and dont know where to park it..Terryw, what if the loan is on a PPOR, then changes to a IP..
example would be owe $200k then redraw has $30k…. you withdraw the $30k (spend it..) and only make the IO payments, the next financial year you move out the property. .
the loan total is now $230k with zero redraw and is now a IP.
is the $230k deductible?
