Forum Replies Created
- Nucopia wrote:Im sorry, but I was under the impression that a Ppor could be cgt defered by taking the money from the sale , pay off any mortgage you have then buying the new Ppor and defere the Cgt all together ? or some thing like this…
is this correct ?
There is no CGT on PPOR, what you are talking about deffering CGT on investment is not applicable in australia it is an American thing.
I think you would have to take alot of factors into consideration one of the main ones beening how long till you retire.
when you sell your existing properties you will be up for CGT, then if you hold the bulk of your equity in your super fund it may limit the amount of investing you can do as you won't be able to lend against the property in the super fund.
I would probally rather hold three properties and earn $300,000 in capital growth and pay CGT out of that, than hold one property and earn $100,000 capital growth and not pay CGT,
but as I said I havn't spent the time going over the ins and outs of super rules yet, I am only paying the minimum into my super at the moment, a good finanicel planner should be able to give you some advice on retirement stratergy,
remember if you are not planning on selling your properties till you retire, you can time the sale of them so that you sell them in a financel year that you have no income from your job so your tax will be reduced, and you get a 50% CGT discount any way.
The best place for search for infomation is the council website or talk to a town planner. you should be able to make an appiontment to meet with one, which is an absouloute must,
from the council website down load every bit infomation you can, on subdivision, zoning and you'll need to look at things like Tree management also,
I think a few paved section in a street can look quite nice and may increase streets appeal, But I wouldn't pave the whole street.
deadcat wrote:Which "burbs" are those. Brand new 3 bedder for under $350k in Brisbane?
Where?
Also, we are not on $90k (we are on less). We are most certainly paying rent and food bills.
The hard part comes in once you take kids into account. Health wise, the best time to have kids is in your 20's. My wife and I want to do that… so we won't have 2 full incomes once that happens. We need to keep that in mind when we buy something.
quick search of realestate.com found 20 pages of properties in brisbane for under $350,000 around the northern suburbs of Petrie, Strathpine, Kallangur, Aspley alot of them look quite nice
I myself picked up a good little investment property in Petrie which is about 35mins from city about 18 months ago for $257,000 it is a house divided into two units under the one title, One three bed unit and a one bed unit, the combined rent is currently $390/week.
this kind of property would be great for some one just starting out trying to save to build equity for there house they wish to settle in one day, you could move into one unit and rent the other out.
r_windows wrote:stock market will bust around 2010 when the the baby boomers start to retire at age 65 and take there cash out of superannuation and managed funds. Interest rates will rise and property boom will be on but we will see many foreclosures ripe for picking.I have been thinking about this for a while too,
my thoughts were that when I look around at alot of the baby boomers I know, (and I am talking the average joe here) not many of them actually have overflowing super funds most of them actually have quite limited super saving's due to the fact that they have not been putting money in their whole life as super has only come about in the last 15years or so, so the great sell down of stocks might not turn out to be as big as people imagine,
Also because of there limited funds in super and government incentives alot of boomers will continue to work past their retirement age, possibly still contributing to super,
another factor that might have some affect is alot of people that have been preparing to retire have already begun switching their super funds to a more conservative footing so you may find alot of their funds have already moved away from shares and into fixed interest, cash and property funds,
Also due to their lack of super alot of retirees will down size the family home and move to retirement villages, this will have some impact on prices in the capital cities I am sure.
Alot of baby boomers own succesfull business's When they sell these business they may even invest the cash into their super funds who knows.
I am glad to hear you and your partner are striving towards your goals,….
alot of people put owning a property in the to hard basket, it's so much easy to blame house prices, the government and interest rates.
Myap wrote:thanks really helpful. You are a genius! I will take what you said in consideration and try my very very best to practise it. Again. freckin brilliant! You are somthing very special! Your friend MattSorry if I offended you with my tongue in cheek answer,
I actually thought that this thread was a prank, surely If your 19 and you have $900,000 cash and own your own home, then you must be surrounded by some people who quite well off and very skilled at managing money, talking to them one on one would be the first thing I would do,
Your original question was quite open, if you do want to throw around some ideas ask some more specific questions about what it is you need to know,
Dead Cat,
your first post defending generation Y may having been refering to some of my comments,
I am a member of generation Y myself, I am not some baby boomer looking down on todays generation, I turned 25 in march and have certainly not found it difficult to get into investing in property.
So the market has changed, affordability has decreased,….. So what,
spend less than you earn, and invest in growth or income producing assets to get your deposit, and I guarantee you will get there.
sitting there saying I can't because,……. rents are to high,…… house prices are to high,….. I don't earn enough,….. my partner doesn't earn enough,… I have kids,…. I want to have a social life,….. that house is to far away,…… that house isn't good enough,
I don't like that area,…. I wouldn't be able to go overseas if I saved that much,…. etc etc etc. these are all just excuses.yes the market has changed,….. so change your stratergy,…. stop thinking 'I must save for deposit' and think 'I must invest my money so in 3-4 years I will have a deposit.
Think outside the box there are so may differant stratergies you could use,
Maybe try a timber mill, They maybe be able to make a batch to order,
which side of bris vegas you on,… in the north side you could try narangba timbers
The person holding the silver spoon in your mouth should be able to offer some good advice,
Your right Jon,
alot of young people have really high expectations, My girlfriends bestfriend was complaining about 2 weeks ago that she hates the fact that she is 26 and still forced to live with her parents because she refuse's to pay what she classes as 'High' rents, and she said house prices so high there is no way she could afford to by a house,
As she was explaining this to me she was conecting her digital camera to the television to show me all the photo's she had taken on her recent trip to europe, and she wasn't planning on working for a while because in 2 months she was going to the usa on another trip and she had enough "savings" to live off till then. so between two trips over seas and weekend benders drinking vodka crusiers there is no way that she can afford to leave home or buy a house, shouldn't the government be doing somthing more to help the poor little battler trapped in this kind of situation.
I
I don't understand how the profit from selling your car can leagally be tax free, wouldn.t it have to be declared as income.
secondly, a car is not an income producing asset, it may increase in value but unless you are renting it out you have no weekly income from it, but you will be incurring holding costs such as insurance.
I would approach this situation by working out how much I could sell the car for today, lets say $120,000, now find out how much interest this amount of money would save off your home loan per year, probally 8% compounded monthly then add on your holding costs for the car on top of that figure, if you don't think you car is likly to increase by more than that amount each year, then I would sell the car and invest else where,
atleast then you will have better cashflow, probally be better as far as growth is concerned, and lenders will lend you more money, I can't see a lender giving you an lvr of 80% on a car
kum yin lau wrote:House prices can and do come down but who can tell me when? Million dollar question, isn't it? I'll be happy with 5% growth pa.
Good luck,
Kum Yin
Would you really be happy with 5% growth, when your intrest rate on your loan is 8% and inflation hitting 4%,
Please excuse my ignorance, but what is land banking I have not heard of this term before,
+ cash flow after tax means that the property might be slighlty negative geared, how ever after you have claimed depreatation and other costs it produces a + return into your tax return,
On another note if you are paying P + I repayments I would suggest put your loan onto interest only so you have more more cash flow to clear down your debt on your own home, if you don't have a home loan then place the extra funds in an offset account link to you investment loan so you are accumulating funds and saving interest, then when you wish to buy your own home use the funds in the offset account as your deposit so you have as much of the debt still against the investment as possible, so you end up with more tax deductable debt and less non tax deductable debt.
Investing just to offset tax is never a good stratergy, after all what is the piont in earning a $ then going and losing it just so you don't have to pay tax on it.
Negative gearing should be a short term stratergy and only applied where you are sure your capital growth will offset the amount you lose in holding costs, remember that property only goes up 1/3 of the time, the rest of the time it is flat lining or down trending, but your holding costs are always going to be there,
for example if you bought a property in 2003 for $215,000 and you have been getting $180 a week rent, after all your buying costs, negative geared holding costs and selling costs, you will have to sell it for over $240,000 just to break even, but in alot of areas property hasn't really moved much in the last 4 years,
On the topic of DHA they are good set and forget investments for any body who doesn't have the skill or courage to get into investing hands on,
I believe there is a lot of other factors affecting the prices of WA property than the mining boom alone.
a free man wrote:They went on to say maybe this will be a one in a hundred year resource boom? Who knows but imagine if they are right what will that do to house prices? You should check out their site great for research.
If you believe there will be a one in a hundred year resourse boom, buying property isn't really the best way to take advantage of it,
If you want to ride the back of a mining boom, invest in mining companies or companies offering services to mining companies.
Any longterm lease should have slightly higher rent (even $5 a week), with an annual rental increase built into it,.
I have a lease on one property where I have written into the lease that there is an annual rent increase of Cpi the previous year + 1.5%
As Devo said, in a down town the game is just really survival, if you only hold one or two properties then I probally won't risk trying to time the market buying and selling, just hold on to you investments and focus building your cash flow and reducing debt,
If you have built up a portfoilo of over 3 properties and you are confident that you have built up good investing skills and are capable of forming a decent opinon of what stage the property market is at then if you believe the market has gone flat and a down turn is coming then maybe sell the properties you feel will be hit the hardest or are neg geared and will not perform well in the coming market so that you have reduced your debt there by protecting your portfoilo and freeing up some equity ready to snatch up any good deals that will be coming onto the market duruing the down turn,
Remember a good investor is playing this game "to win", a poor uneducated investor plays the game "to not lose" so often is fearful of things such as recession's and the like. a great investor has stratergys that will build value in any economic climate,
