Forum Replies Created

Viewing 20 posts - 1 through 20 (of 20 total)
  • Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    April 2, 2010 - 10:50 am

    Generally speaking (and very generally) anything benefit you receive from your employer (such as purchase of appliances) is a fringe benefit and subject to Fringe Benefits Tax – ie. same as income tax.

    What you should look at is LAFA – Living Away from home allowance – see…. http://www.ato.gov.au for details of the tax benefits

    I personally wouldn’t bother shipping white goods unless they were very high end. Most companies just compensate you for your loss when selling and buying new ones in the next country…. (just like your car). If they break it is a nightmare.

    L

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    August 16, 2009 - 9:52 am

    Not sure that it really helps but it might be worth considering how you account for the capital loss on your alternative investment. My first thought would be (abeit not ideal) offsetting the capital loss against capital gains in an IP via selling one. At least then you might get something for it! You’ll need some advice on that one.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    July 14, 2009 - 11:49 am

    And living with three girls can equally be dangerous ;)

    ciciwx wrote:

    Don’t knw if anyone offer this type of insurance?

     

    Hey

     

    I rent a house at the moment and share with 3 girls. Lease under my name only, they are house mates.

     

    I also own 2 IPs.

     

    I was chatting with an IP investor the other day. He said if someone cause fire and burn down the house etc….  Even though the landlord’s insurance will cover it, the insurance company will still chase the person cause the damage and recover as much as they can. If so, then any assets under my name can be threatened.  Is that right?

     

    I want to know if there is any type of insurance that can cover this type of liability. The Renters insurance on the market is only cover the renter’s content.

     

    Thanks very much !!

     

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    July 14, 2009 - 11:44 am

    I think this may be the point of liability insurance – you will find that most contents policies have this (though I would have my housemates on the policy).

    I experienced this first hand where my tenants accidentally flooded my unit (and subsequently those below!) through their apparent negligence. Their insurance covered their liability as I understood it – I didn't see any claim of liability (nor should I have – I didn't undertake any action to be liable for!).  I also had liability insurance.

    It did teach me something very important though – contents insurance provides you with xx Million of public liability insurance inside and OUTSIDE of the home. I saw a good example on some dodgy current affair show that explained that a guy who accidentally hit another person with a golf ball, causing brain damage, would have been covered by such insurance. (as it stands – he didn't have the insurance and both parties suffered).

    I would never rent without comprehensive contents cover w/liability.

    Asset protection is always a good fallback though.

    ciciwx wrote:

    Don’t knw if anyone offer this type of insurance?

     

    Hey

     

    I rent a house at the moment and share with 3 girls. Lease under my name only, they are house mates.

     

    I also own 2 IPs.

     

    I was chatting with an IP investor the other day. He said if someone cause fire and burn down the house etc….  Even though the landlord’s insurance will cover it, the insurance company will still chase the person cause the damage and recover as much as they can. If so, then any assets under my name can be threatened.  Is that right?

     

    I want to know if there is any type of insurance that can cover this type of liability. The Renters insurance on the market is only cover the renter’s content.

     

    Thanks very much !!

     

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 11, 2009 - 11:08 am

    and a depreciation report should be <$500 :)

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 11, 2009 - 11:07 am

    You can accumulate losses whilst non-resident. Have a look for the book "The australian expat – the luckiest person on earth" which has a simple explanation. It also explains depreciation.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 11, 2009 - 11:04 am

    You should also think about your liability (Someone with more knowledge should chime in here) but if you are jointly liable for the entire mortgage it will significantly impact each of your serviceability for further investments.

    This means that each of you are treated as having the full mortgage not just your share!

    This was always the major downside with joint ventures with friends – your net serviceability goes down… Hence it only made sense for short term investments that you could turn around quickly.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    June 13, 2008 - 1:32 pm

    Just manage your risk and maintain the necessary buffers (in our case 2 years unemployed) …. direct property for me is a long term investment (though many here have the skill and time to make it a short/medium term investment)

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    April 21, 2008 - 9:48 am

    We haven't had too much trouble with ours – and we do have tenants that you would think twice about this with. (share house – but the guys are quite responsible)

    We were initially nervous so we originally factored in pool service and chemicals – but ratcheted this back to just providing the service monthly. If the right chemicals aren't available at the house, the pool company charges us and the tenants compensate. The pool company did directly bill initially but wasn't worth their while (understandable). It is a pretty rare event so works well.

    The professional service is essential imho – about $60month. Unless you have really good tenants who you trust.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    February 19, 2008 - 11:26 am

    all costs are salary sacrificed. additional costs over and above are probably hard to argue as it is marginal (maybe 3k / year). I guess the benefits are factored into the additional km that reduce salary sacrifice fbt. 

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    December 5, 2007 - 12:49 pm

    They did do the initial inspection – albeit with nil comment. the initial condition report was not thorough, reality was that the place was just grotty with some rough edges – reflected in our thorough amendment to the condition report.

    But does raise the fact that inspections seem really rare in Sydney when I talk to people.

    I contrast this to my agent who treats it like a business and is straightforward and reliable.

    (Then again, you'd be mad to buy the place I live in as an investment, great as a renter tho)

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    December 5, 2007 - 11:03 am

    Relocation is just an inconvenience.

    I suspect, given advertising, that the agent has good expat market that would yield higher than us anyway so it wouldn't fuss them :) The owner is an expat as well so there is no close management .

    That being said, 4 years and no inspection – not sure I would be comfortable with this but each to their own.

    Happy to be firm but fair with them – shame we have to get to this point but our new property manager seems not to be focussed on making it easy.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    November 15, 2007 - 10:02 am

    my 2c

    Off the plan resort in Australia is fraught with potential issues, let alone the Philippines. Make sure you factor in the political risk – it is still a third world country.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    October 26, 2007 - 2:22 pm

    I wouldn't be too worried – we are roughly the same age with good salaries and a few IP's – Time is our friend and if you take a ten year view, it is all positive. Remember that super is a larger contributor to the GenX/Y than in the past.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    June 26, 2007 - 2:22 pm

    Leasehold (ie. ACT / NT) is the exception.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    May 28, 2007 - 11:10 am

    Be transparent, straightforward and non-emotional. Allow some reasonable allowance for those less fortunate (either emotional intelligence,  financially endowed or other circumstances) and you will be fine.

    It is an investment after all…. Best not to react and be pissed off.

    T.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    December 14, 2005 - 4:09 pm

    Firstly, I would like to say that this site has been very useful to me over the last 12 months, my suggestions:

    1. Long Term Investing
    Some (many?) of us apply the buy/hold strategy, and in my case I am income healthy / time poor so it makes sense at my point in life. Some thoughts and analysis on the long term outlook, strategy and how this fits into a balanced portfolio.
    (I know this is boring but buy/hold is very common – does it make sense long term? ie. 10+ yrs)

    2. Balance!
    I am as aggressive an investor as anyone but I think the message to “step back and smell the roses” is very valuable! Enjoy it before you are dead!

    3. PPOR Conversion
    Interesting issue for many reasons… but I am one of the “new” investors who has IP’s but no major PPOR as yet (God bless Sydney house prices! I have one that I have moved away from but hold until it “expires”)…

    This is a strategy that is becoming more common… How should we approach this? Finance structures? etc… Transition plan to move to a PPOR/IP portfolio?

    Maybe a market opportunity for your next book Steve? :)

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 7, 2005 - 10:50 pm
    Originally posted by foundation:

    Are they declaring the interest you pay them as income for the purpose of income tax collection?
    I can’t believe you’ve left it until now to look into what are crucial issues!

    It is a relatively small amount and yes, they are declaring the income.

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 7, 2005 - 2:51 pm
    Originally posted by Benny:

    Since then I have been renting it out…

    Is this now treated as an IP from the date I put it on the rental market?

    Thanks!

    Hi Thinker,

    I believe this was an IP from the moment you advertised it as a “renter”. But there could be other issues – one of those is the CGT exemption of “your own home”. Will you get to retain the CGT exemption on sale down the track? I don’t know…
    I am a little concerned about the CGT, I plan to keep it long term (10+) at this stage. I need to understand exactly what I need to do at that 6 year mark. e.g. Can I get a valuation and claim CGT only on the growth past that point assuming I don’t have a new PPOR

    This seems to me to depend on a few things:-
    1. Did you claim the unit as your PPOR? I think so

    Haven’t claimed it either way yet but given my answer below it should be yes

    2. Did you use FHOG to buy it?yes

    3. Are you now living in another PPOR? no, renting in Sydney is cheap but have another (joint) IP.

    As I understand it (and, I’m NOT an adviser, or accountant, so this is just my “take” on things) you can live somewhere, claim it as your PPOR, then move out for up to SIX years – as long as you don’t purchase another PPOR in that time (are you now renting?)

    The FHOG issue adds a further dimension of which I have little knowledge. If you DIDN’T use the FHOG, then the above should apply, but if you DID use FHOG, you should check this out in detail with your accountant,
    This could be tricky but my advice at the time was that their was no clear definition of PPOR or a conflict between state/territory and commonwealth law. Either way, my move was outside my control and not expected so at least there was some intent to stay (if this counts :) )

    Thanks for your reply
    Benny

    Profile photo of thinkerthinker
    Member
    @thinker
    Join Date: 2005
    Post Count: 29
    March 7, 2005 - 2:43 pm

    It is directly backed to backed with a loan to my parents (in their name) from the bank if that makes a difference.

Viewing 20 posts - 1 through 20 (of 20 total)