Happy New Year Folks![biggrin] Here we go again.
While we are on this topic , thought that I could pick you’all brains re problem/question.
I am both citizen of Aus & UK. Living in Aus for 30+ years continuously (apart from UK holiday breaks). My old father lives in UK. Has his own purchased home. However, its way too much for him now, and needs to downsize.
Problem is, it looks like it will cost him money to downsize… as ground level, better socio economic area, quality dwellings in higher demand etc. (We need to come up with a soln, as he has been mugged twice in the last 12 mths where he lives. )

He has NO savings left, and a better dwelling area is likely to cost him twice as much as he’d get for his old place. What I thought is that if I could buy flat for him… let him live in it, and he pay us a token rent, just to say we get an income for it. We would buy in our name… so that the house wouldnt be ceased by the system for his nursing home costs/accommodation down the track. Then the money that he has from the sale of his 1 st home would be some spending/living costs money for him(even though he’d then have to pay full council tax, no free bus pass, and no free prescriptions). It would give him a better life quality etc.

SO my question is, does anyone know how the tax would work on that one…. both if we can claim losses while dads living in, and later on if we keep the place to rent to a tenant & it eventually goes positive cash flow. Can we do that if we arent currently UK resident? I have asked my accountant & tax office… they all say that they have no idea. Help please would be appreciated. (PS Dad wants to stay in UK rather than come to Aus to live with us. )[worried]

BreakEven… once you get the independent valuation… would you post it on this thread… now I am sure that we are all interested. I am in a (almost similar position to you). I have unit in Brisbane, 2 bed, within 3 kms of the CBD.
4 yrs ago the banks valuation on it was $300k. We have used that valuation since, as the price would have dropped over the last few yrs, so we avoided having the bank revalue.
However, we know that a unit same as ours recently sold for 360K, and a few real estate people say that it could be put on the market for anything between 315 K and another agent 395K. The bank advises us not to have it revalued at the moment , in case it comes in at less than the original 300K. I cant sort that one out either![eh]

Hi Jaydee. Best advice I was ever given is “Dont Panic!” and never make any decisions, nor ‘go with your ideas’ while you are in fear, panic or confusion mode. You will more often that not make the wrong call, and kick yourself later. See accountant to make sure you’re getting max benefits .Ask bank to give you a cut on interest rate etc, unless yo’ure locked in.
You didnt say how old you & hubby are, and where property fits into your wealth creation plan? You are a stay at home mum, so I assume that you have a longer time frame to make your plans work for you. Thats a good place to be.

I’m also assuming that youve drawn up a household budget, and have the $s tied down tightly.ie, there are no “leaks” draining your cashflow.
Just to give you another perspective…. I chose to go with new IP properties, in really good locations for growth/demand… so there s not too many of THEM that are cash +, especially when I had no deposit, and no $ for costs when I was buying my 1 st one!
But I DID have equity in my own home.(I think {for me anyway{), equity is king… because I sure didnt have cashflow… being on $37,000 gross income a year!
I was afraid of taking the leap, because of the heavy -ve cashflow, and I tell you that there were times when I felt like chucking it all in, & panic set in. But your next biggest asset s (after having done your cashflow analyses, buying the right property etc) is grit determination and lots of patience. Ask…How bad do I want this?
Both my IPs are -vely geared, and thats ok, just a different pathway…….I know that many people prefer the buying a reno & adding value.. but Jaydee, I literally cant hammer in a nail, cant unblock a drain, and power tools scare the crap out of me.. so thats not for me. I buy nice shiny new, and have a prop manager look after the lot. I KNOW that my way is the s l o w e r way of getting there, but it fits me, and I dont have to be involved with them as much
In 1999, I stared off with $120,000 in my own home equity, but no debt. I now have a debt of $405,000, but equity of $980,000 (ish), and the rents are rising fast. A few years ago, I lost a whack of equity in one IP, and admit I was tempted to sell & cut my losses…. but decided against it, and so glad that I hung in there, as now the equity has caught back up soon after the rental vacancy rate tightened, and the rents started to rise.

Slow but sure and I am learning to be content to plod. I havent had a s many o/seas hols as I would like to, and have an old car, and cat-scratched furniture, but I reckon thats my trade off, and I am happy with that, as I know that if I can give it another 6 yrs, I feel will be in a better position again…. and I can make more choices.

There are good people giving helpful advice on this site, and if you all reading are one of them…t hanks! I’m learning lots too.
[This is NOT financial advice.. but just by way of encouragement.][smiling]

Hey this thread is full of bright sparks and comedians! (What was the question again?)
Oh yes… a ‘friend’ of mine borrowed money from the bank …..at variable rates, ……and bought shares in an unlisted trust that pays 13 %income .
They pay back the banks interest owing each month, and pocket the profit. All that had to be done, is to pay tax on that profit margin at tax time.
This is a higher risk strategy though… that you may lose some or all of the original capital. But in this case, not only is this ‘friend’ recieving an income stream, but the trust units have recently been revalued at 20% more than they paid for them a few yrs ago. Liquidity is obviously not as good as a listed company, but a few folk have wanted to get out, and others buy in, and theres been no problem. And its not sex toys, drugs or other dodgy stuff![lmao]

And re pubs… I agree… that we DO lose money on! Steer clear. [glum2]

Thanks Trajic
So I assume then that I’m not actually getting as much tax relief as I has thought, ( being on the lower tax rate). Bum

Land on the moon for sale!? You fair dinkum? I have to save up for a Virgin Galactic fare to view the site for my due diligence?
Honestly… wondering how that works?