Forum Replies Created
Hi Guy’s
Living in a country town is great our family (wife and 4 kids) survives well on only 60k PA. (we don’t live on any of our property income)
But it’s not how much you make that matters its how much you spend. I know people who earn heaps more than me and yet they are living week to week.Congrads on the promotion Richmond, Eddie must be getting a bit worried.
westan
Hi Guys
i use Homepath a lot. http://www.homepath.com.au
Once again as with all the others they are often incompetant but
They offer rates of only 5.65%
No monthly account fees
No application fees
No valuation fees
i have not found a product out there as good as there’s.
on the down side they take 60 days to settle.Hi Nativemetal
some thoughts i have about your post. The strategy of buying multiple properties (say 8-10) if you could afford the repayments was a great stategy to use 5 years ago and those who bought in capital cities have done well for themselves. But what about the future with N.G properties they have to appreciate faster than the cost you are incurring in owning them. If the market remains flat you actually lose money.
The great advantages of Cash positive doesn’t come at the expense of Capital gains (although historically properties that are cash pos.have had lower capital growth).
A wise investor can still buy cash positive properties and have capital growth. i haven’t finished steve’s book yet he may say this but another advantage is you can keep buying more and more proerties if they are cash pos. My income (job) is only about 45k yet i have over 20 properties. i could afford 1 NG property. Today I have control of about 1.8 million worth of property. as well as making an income from the houses if they appreciate at say 5% on the average for the next 10 years my properties go up 90k each year, thats better than working. I actually expect to make more that 5% because of the areas i’m buying in.
So i will make cash from the properties plus i’m having capital growth. You can get the best of both worlds.
So yes NG worked well in the past but what about the future ?
So rather than a mixture of NG and Pos properties i’ll buy cash pos that will have capital gains.
Regards westanHi guys
that’s very true that they are working for the vendor (in theory). My experience is sadly they are working for themselves. Most have little regard for the vendor. as a buyer and seller i have found the above true. If they work for me as a buyer they know that one day i could be a seller, were the seller is often gone out of the area. i have many experiences where i as a buyer have seen the agent fail to get the best price but arather settle to keep me happy knowing that i’m back to by more properties. Other times i’ve had agent fail to get back to me when i’ve expressed interest in a property (the agent failed to call me back with the price of the property)instead the have sold it the first person who approached him. i’d not be happy if i was selling and another buyer wasn’t given the opportubity to put in an offer.
So ultimatily in my books the “Agents” (maybe they are from the Matrix) work for themselves and i deal with them in this way.
regards westansorry one other comment. i’m actually selling a few (about 12 properties) but i’m using the money to reinvest in another area of the property market. The reason i’m selling is, my property prices have risen and this new investment has better returns.
westanHi alf
yes you need a good accountant. i’ve just made contact with one many on the forum use. He is a property investor himself and is very knowledgeable about all investing and trusts etc. He has written a book on trusts. I found that the acountants i was using knew about the same as i did about tax and property investing (a worry). I think i have a very good knowledge but i want someone who know more that me to advise in that regard. I went to an accountant about 6 years ago when i first thought about investing in cash positive properties. He advised against it and said i sound invest in education bonds for my children future education. Luckily i didn’t follow his advice (which cost me $70, i still have the receipt one day i’ll frame it). Today these properties have made enough money that i no longer need to work. So yes get a good accountant.
If your in melbourne i’ll tell who it is. AD on the forum has mentioned in the past that he travels from interstate to see this accountant.
regards westanGee Alf
we need a bit more details if you want some response.
Like where the property is.
how much is it rented for
what is the market value now
what will be the cost to keep ie any large maintenance issues.
if you sell how much CGT will you pay
what you will do with the cash?profit if any (ie another property and then we need all the info on the new one to see if it is better).
we also need to know what your stategy is ie Buy and hold ? etc.
What is your long term goals in investing.
all these things must be taken into consideration. If yopu have no plan you will make short term decissions when you have to have a long term plan. If you don’t you will be influenced by every little bit of negative news ie “property market to drop by 30%”
you need a stategy .
if some of this is too personal for the forum email me at [email protected] and i will share my thoughts
regards westanGood on you Richmond
Thanks for taking on the responsibility of a moderator and helping to maintain this fantastic site.
regards westan
Go Tigers
hi all
up until recently these deals were all over the place, in regional towns and cities.
In the past 18 month i’ve bought
40k rent 110pw
44k rent 130pw
40k rent 100pw all in Hamilton Vic
40k 115pw in stawell Vican example of this year
75k 155pw in Horsham Vic
42k 105pw in Stawell Vicso they were out there Steve was able to buy when there were many available. Today you have to look harder
westanMensch
I spoke to my accountant on Monday and he stated that achange of trustee does not contitute a CGT issue as the asset is still owned by the trust. This accountant has written a 200page book on trusts, so i accepted what he said.
I will put my own home in the trust if i rent it out. The house is worth about 150k and the rental income should be about 400pw. I am expecting prices to plateau for a while and am aware i lose capital gains exemptions. I also plan to do some improvements in the next few years if i return to live in it and will then be able to claim these as deductions.
any comments appreciated
regards westanHi amit
you can both be trusttees of the trust.
If you want to later you can set up a company to be the trustee, therefore a corporate trustee. All you need to do is change the trustee this will not contitute a sale therefore no CGT is applicable. But you may have some issues with your loans. In the case where you are a trustee you will buy the house in your name, in your capacity as trustee. The morgage will be in your name in the change to a corporate trustee you may need to set up new mortgage’s. It’s a bit complicated isn’t it.
So i think get the stucture you want from the beginning.
I’m not an accountant so check with the proffessionals. But remember they make their bread and butter from administering companies. Find an accountant you can trust.
regards westan
PS you were quick to make that Tax(i) alteration i was about to have some fun at your expenseHi all again
RodC
yes i will have to pay stamp duty, if i decide to place my home in the family trust.Stefank
you still have assett protection in a family trust even if it is not a corporate trustee.Mensch
Boy i’d hate to see your accountants bill each year. why the need tohave multiple trusts as benificaries? Is it nessassary.
westanHi Guys thats a tricky one
i’m inclined to think that if you are buying in regional areas you can still buy today if you buy carefully. I think that the market may slow down but i would be surprised if it dropped by a great amount. where are you looking ie what state and capital city or regional.
thegovernmentis looking at housing affordability and the obvious one is people should relocate out of Sydney and Melb if this were to happen the old market could have some more legs. But if you do buy maybe play it safe and fix some of the loan
regards westanKristine
i agree with the accountant about the company structure because
1. costs to set up and administer
2. Could be a higher tax bracket always 30% tax.
3. no provision to get the 50% Capital Gains free of tax.
westanyes, there are even better areas keep looking.
One warning about tas. Avoid some suburbs of Hobart , Clarendon Vale in particular is a bad area (i mean real Bad). i luckily sold my house there after 5 yaears of continual problems. i would never buy there again. There are other bad area on the east shore but some great places also.
Do your homework, don’t buy sight unseen.
regards westanHi Gocat
go through the seach facility and you will find a lot of discussionabout country Vic. My experience is rental demand is strong in Victoria out side of Melbourne. With the Govn’t new emphasis on housing affordability this will only help regional cities and towns. If you want specific advise about a particular town reply to this post but if you don’t want half the world to know where you are looking then email me [email protected]. Or try ringing property managers and asking how many vacant 3 bedroom homes are on their books and what demand is like.
regards westanI know of a bank down here in Victoria who was lending for relocation of homes. i relocated a house 6 yrs ago and didn’t use this bank but the relocation company said that the local Westpac had approved loans like this.
westanHi amit
i own our own home in our name, so when we sell we are exempt of CGT. However i’m thinking about renting it our so i will probably sell it to the family trust.
All of my Properties are owned in a Family trust. I am the trustee and the properties are still in my name but purchased in my capacity as trustee.
The reason for the trust include the ability to distribute the profits to the lowest incomes in the family. Assett protection is also an advantage. the other advantage is that if i die we don’t have to worry about transfering assetts as the trust continues on for 9oyrs or whatever it is.
regards westanhi Recoveryman
welcome back to the forumthat speeling has difinatlee improoved.
I’m a shocker at spelling but i’ve descovered you can edit your own messages which i have done sometimes when i’ve been embarressed over my spelling. (see i can’t even spell that how about a spell checker on the forum?)Firstly i’m interested in the SIM card is it a prepaid one ?
Well done on your hunting trip.
regards westanCongrad’s on the New IP. so tells us about it, without giving to much away, what price, rental etc.
Can’t wait for the duet
regards westan
