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  • Profile photo of ThackThack
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    @thack
    Join Date: 2010
    Post Count: 11
    October 7, 2010 - 5:48 am

    Whats the issue with a head lease ?  Why do you want to avoid them ? 

    I'm very close to signing a contract on a NRAS property, one with a head lease & one without.  (I think)

    Also your accountant can apply for a PAYE tax variation to you don't have to lose money all year & then get the $9k back at the end of the year.

    Profile photo of ThackThack
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    @thack
    Join Date: 2010
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    October 3, 2010 - 12:43 pm

    Hey D,

    I actually work & live in Newcastle, so if you need any info on specific suburbs let me know.  I'm also looking at investing in the area at the moment.  I'm thinking more about renovations than developments, (but to my limited experience) but a few properties I've seen have got me thinking.    If you looking at small developments, I'd be suggesting suburbs like Merewether, Adamstown, Cooks Hill, (near beach & cafes, shopping) where increasing land value makes it make sense to turn an old house into a few townhouse or units.  

    I've also recently seen a few very big blocks close to town than could be subdivided & really developed, but there a little above my experience at the moment.  Eg, Couple of acre blooks with one house or 2 Houses located on approx 2.23 hectares of land close to the City. Suitable for development. Zoning 2(1) Residential.

    Let me know if you need a trust worthy local partner 

    Profile photo of ThackThack
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    @thack
    Join Date: 2010
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    September 11, 2010 - 12:37 pm

    Thanks Terry

    Profile photo of ThackThack
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    @thack
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    September 11, 2010 - 11:08 am

    Thanks, I've found the links for the various states. 

    Trusts seem to be heavily hit my land tax & seems to reduce their appeals to me.  Am I missing something ?

    When it says that my PPOR is expempt, I assume that means it doesn't count towards my threshold at all in that state ?

    Profile photo of ThackThack
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    @thack
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    September 11, 2010 - 11:04 am

    I'm also just learning & about to buy my first IP.

    Also remember that most ads quote "Gross Rental Yeild", so you then need to take into account your expenses like rates, maintainence & property management (if any), to get  a "Net Rental Yeild" (before loan costs).  This is the number you need to compare to your loan costs to see if you have a positive cash flow property. (Before tax)   However, depreciation can turn a provide significant benfits to turn an investment positve cash flow after tax. 

    Profile photo of ThackThack
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    @thack
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    September 8, 2010 - 11:21 am

    Is there anywhere the outlines the different rules that apply to Trusts or different structures & tax strategies for investing ?  Any book you could recommend ?

    Profile photo of ThackThack
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    @thack
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    August 25, 2010 - 11:07 am

    Thanks again all for the comments & great advice. 
    Evolve could you or anyone else that know elaberate on your comment in 4. Hybrid trust / property trust

    "4. Hybrid trust / property trust

    – If correctly structured with the right loan / lending set up you could get the best of both worlds – i.e. deductions on a loan in your personal name but ownership held in a legally separate (protected) entity with the ability to distribute future income and capital gains in a tax effective manner to lower taxed beneficiaries"

    What is the structure needed to achieve this ?  Is there any info you could share or point me towards ?

    Thanks,
    Thack

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    @thack
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    August 13, 2010 - 2:55 am

    Thanks everyone for the comments.  Greatly appriecated.  Gives me lot s of good things to think about & discss with a good Accountant (when I find one.)  I hadn't really considered the SMSF, but I do have over $100k there avaiable to pay with.

    I had read (in a US book) that an Limited Liability Company (LLC) could elect to be tax in a way that allowed negative gearing (as could an S-CORP).  Is this not possible in Australia ?

    PC_Melbourne, did you do 1 or 2 ?  Would many employees allow you to be paid into a family trust ?

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