Hello Ajay,

Yes, you are correct. Many State governments have introduced additional stamp duty for foreign buyers (note that there is no discrimination against Asians as such). Some State governments have also introduced an additional land tax component.

http://www.sro.vic.gov.au/foreignpurchaser
http://www.revenue.nsw.gov.au/taxes/spd
https://www.business.qld.gov.au/industries/service-industries-professionals/professional-financial-services/transfer-duty/investors/afad

The Federal government is also in on the act by phasing out access to the CGT discount while also increasing withholding on sales by foreign property owners and somehow charging foreign owners who leave their properties vacant.

http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_16.htm

We’ll have to wait and see how effective these new measures will be.

On one hand the additional taxes may strangle the foreign golden goose buying up (mainly) off-the-plan properties – which in turn supports construction, jobs and GDP. On the other hand, if their aim is capital preservation (as is the case for some Chinese investors who just want their money out of China), then a little extra cost is unlikely to worry them if the bulk of their capital is safe.

Keep an eye on the movement in property prices. As we come into Spring, and with a spike in off the plan properties due to hit the market soon, if the additional demand for housing does not match the increased supply then prices should fall.

All the best,

– Steve

How does that compare against what you might pay a developer under the basis you mention above?

Which State is your project located in?

Regards,

-Steve

Hey Greg,

Couldn’t you just engage a skilled town planner to run the project for you? Why does it need to be an investor?

Regards,

– Steve

Might be a good time to try out commercial property. Growth is usually lower, but income is better and aggravation is, on the whole, better too.

Well done on your success. I am proud of you, and for you.

– Steve

Hi there and welcome to the community.

I’m a little confused by the question, but here’s a stab at an answer:

1. Buying a business

This is not a tax deduction, but instead is the acquisition of an asset. The income from the business is assessable, and the costs of running the business would be a tax deduction.

2. Buying an investment

Same as #1 above. The purchase price paid is the cost of the asset. Rent would be the income, and interest and running costs would be the tax deduction.

3. On disposal

On disposal of the asset, the surplus of sale less cost is a capital gain. If the sale proceeds are less than the cost then there is a capital loss.

4. Annual Operating

In regards to operations, if there is more income (assessable income) than expenses (allowable deductions) then you will pay income tax at your marginal tax rate. If there is a loss (expenses > income) then that loss can be carried forward. You can only get a tax refund if you have paid tax in the first place.

Regards,

– Steve

Hi,

Just letting you know a small number of tickets have been released for Conference. Details here:
https://www.propertyinvesting.com/topic/5025119-millionaire-mega-conference-limited-tickets-left-get-yours-here/

– Steve

Redwood wrote:

Steve – moving to the states? where will you based and why? All the best with the move

Moving over to the USA for 12 to 18 months for a change of scenery and life experience. Will be based in Florida. Will be interesting to see what opportunities arise. I have already been sounded out to be part of a big US property speaking tour, but that’s not of particular interest right now.

– Steve

Hi and thanks for the post.

We are just seeing how many tickets are left for Mega Conference and then will begin marketing this week.

My guess is that after the market updates we have less than 100 spots available.

FYI, Mega Conference will be in Melbourne on 20, 21 & 22nd May.

Another great line up of speakers this year, and I will be doing quite a lot of speaking as it will be my last public event before moving to the US for 12 to 18 months. I will be putting together an information page for release early next week.

If you really want a ticket and you’re reading this then email Romy ([email protected]) and see what she can arrange.

– Steve

Gurtofen,

I acknowledge your humility in making your latest post and greatly respect you for doing so.

Yes, there is considerable expense in getting six monthly US appraisals, but the cost is worth it for the accuracy and transparency.

We are working on getting an investor portal implemented where investors will be able to download all the appraisal reports, as well as other relevant financial information, pertaining to each property in the portfolio.

All the best with your investing,

– Steve

Gurtofen wrote:

Surely being a RE expert you are able to differentiate the difference between an Appraisal and a Valuation? You have consistently intermingled both terms as if they are one and the same.

Well, in my defence, here’s how dictionary.com defines appraisal:

“an assessment or estimation of the worth, value, or quality of a person or thing See also performance appraisal. 2. a valuation of property or goods.”

In truth an appraisal or a valuation can be something basic, like a broker’s price opinion, desk valuation by a banker, or frankly – anyone’s BBQ opinion. Or it could be something more structured and elaborate, like that given by a member of Australian Valuers Institute (who give valuations) or the American Society Of Appraisers (who give appraisals).

What’s not in dispute is this… the appraised value of the US properties in the Fund, as adopted by the Director’s, are based on the independent third party arm’s length valuations provided by Capright, who employ qualified and experienced appraisers.

– Steve