I just thought I’d take some time to reply to you Pebbles as I think there are some things you haven’t considered.
Tax. Both Income and GST. I assume this will be done through P/L company so you don’t attract CGT. For each prop you’ll have to pay 10% GST. And on your EBIT you’ll have to pay company income tax at 30%.
1. Yes. CGT is a federal tax initiative.
2. If by cosmetic you mean inexpensive, then no.
3. I don’t think so, but you can claim depreciation on your renovations but this is only good if hold the property.
4. Haven’t looked at the example…sorry. []
We have to very careful with CG tax, it can sneak up on you in a variety of ways. A couple of examples:
1. If you own a house for 10 years and live in it for the first 5 and then rent it out for the second 5 you are subject to CG tax for the second 5 (there are some ways around this if you still declare this your primary residence if…[Read more]
If milen007 puts a clause in the contract that gives him 7 days to change his mind and the vendor accepts there is absolutely nothing dishonest about it whatsoever.
However…I would be surprised if many vendors did accept such a clause particularly given the current market conditions.
1. When I consider a property I always factor in a vacancy rate as a safety margin, no matter how good the property and how much demand there is for rentals. I use 5% of the gross revenue(rent).
2. The other consideration of vacancy rates is the current level of empty rental accomodation in the…[Read more]