Forum Replies Created
I think asbestos roofes have a instant tax writeoff available for them.
look at the linked api article.
I have RP data full service. yearly is about $800. Worth every Penny. Can let you know a guy that does it for that if you want.
Did you read what you were covered for in the fine print?
Alot of people in the brisbane floods were covered by flood damage. But being covered by flood damage was reneged later in fine print of the contract which said that if the home was within 500m of a river prone to flooding and it wasnt covered.
My partner works in insurance broking and I don't think shes mentioned either of those companies. Ill inquire as to why or why not if she has used them and what there payout rates are.
Fun fact Allianz payout rates are around 89%
How about a commercial property that has 6 retail shop fronts with 6 individual tenancies.
your insurance protects damage to the building from fire etc
also protects from a loss of rent and damage by tenants.
Commerical properties have longer leases then residential. Outgoings are paid for by tenants rather then the owner in the case of residential.
A bunch of low value properties that you can value add to might not be what the original poster required. Takes a lot more work to do that the to purchase a commercial property. If he wanted to he could value add to the commercial property and add extra walls producing more shop fronts, taking on more tenants increasing his yield.
he only needs one manager rather then using a variety for the option of low cost residential properties.
Risk is directly related to knowledge. The more knowledge you have in a area the greater your chance for success and minimizing and perceived risks
sell the family home
buy another house for 500k
go buy a commercial property for 1.5 mil yielding at least 10 percent
ensure you get insurance
150k pa
This is pretty complex legal information that you need to speak to a paid professional about about.
But as a general rule If you want to claim the property interest as a loss against your income purchasing in your own name is a lot easier then the alternative.
If you don't already have a job. Get a job and start saving for that first deposit. The more capital/cash you have to begin with quicker youll progress in my opinion. Thats practical advice.
Grant can you list some actual ATO cases of that happening.
Because i cannot think or find any on the above scenario.
I think the ATO would have a very difficult case to prove that If a person still worked a normal job and derived their income from their profession that they are in the business of renovating.. their own PPOR.
People have to live somewhere, its also your choice to renovate your own home, some people actually enjoy that.
I can now remember a case where a man had lived in over 20 homes in 30 years. He had never bought a single IP or rented, He always moved into a new PPOR. They tried to take a case to him and his reply was that it was his hobby. He enjoyed it. Never heard a word back.
I also know several developers who do up their own homes (which they own in their own names) and they still get the exemption. They run their business through different company names and trusts to differentiate the two.
Agreed!
wish i started with that much potential.
Most important think for you to do is learn knowledge about everything to do with property.
If you gave that start to some of the members on this website some would make a 5% return some would find 10% returns and some could double or triple that equity in a year whilst adding cash flow as well and keeping the assets. Different levels of knowledge.
If i was you i would be looking to do a Joint Venture with a experienced builder or developer perhaps even hiring a company to walk you through the process. Learn the ropes with someone that knows them, they could save you many mistakes.
By the way whilst you desire passive cash flow. Some developments I've found only need 1-2 hours per week in management and can give returns higher then just a passive return. 1-2 hours is passive in my mind.
Sounds like he is doing this refinance to UNCross-Collaterilise his loans.
You said that his loans are Originally
"He currently has 3 investment properties. Property 1 has a single loan attached to it. Property 2 was financed with two loans, the first secured to property 1 and the second loan secured to the actual property. Property 3 is similar in structure and cross colateralised to property 2."
That is Cross Callaterlising loan structure above
His refinance you said would lead to this
"Therefore the two loans used to fund property two (one or which was secured to property 1) will now be one loan secured to property 2 only."
That is Uncross Callaterlising his loans.
Pretty easy for his accountant to work that out. He now only has ONE loan per property.
For $2 you could buy a cheese burger at your local Maccas. Reckon that's your best bet here
So its current value is 135k after you have had it valued by the banks valuer? (no growth on your sale price).
Put the property up for sale and if you get genuine offers at the 160-165k. Sell the property. $80 to hold per week on a 135k property is alot. I pay $70 dollars for some properties worth $400,000.
If you don't get genuine offers at that price bracket you think its worth then its just not worth that.
Nothing wrong with selling it if means you are getting a better performing property.
1Km away…
Are you planning to put services onto this block.
Is it just one block or a huge vacant block with potential for subdivision.
Youd be looking at 100,000s to get services connected.
I can tell you that power companies charge anywhere from 10k-30k per power pole. there would be a couple of them over a KM at least.
Water companies can charge 500-1000 Per meter for sewage and water (In city with bitumen road)
unless you are applying independently for a FHOG or something. then the FHOG people will want you to show a copy of the certificate of title with you name on it (as i said before takes 3-4 weeks after you settle)
Contract of sale is all you will and need at this stage.
If you have a bank loan on the property you will not every get your certificate of title till you have paid off your loan. It stays in the Banks Vault, because its the proof of ownership. if your block of land is worth 200k You could say its a 200k piece of paper. They keep electronic records now of all titles as a back up.
2-3 days before you settle you will receive a settlement statement saying your costs, conveyances fees, your half of the searches, allocations for the percentage of year remaining for council rates water sewage etc.
title insurance – is paid to ensure you are receiving a title that is clear of all caveats, encumbrances or existing loans.
yes your bank will be on your certificate of title. it will be under a heading called Mortgagee. Basically to prevent you from selling the property without the banks authority or finding out.
No, not every Development approval is the same just like every deal is not the same.
Say you got a DA for a duplex on a ordinary house. There just might not be value in demolishing and building back two new homes so the DA wouldn't account for anything as its just not viable.
But in saying that i have seen DA's that have added hundreds of thousands to the next time they have resold. Especially where people have read between the lines of the Development Plan. If your looking to make money reselling a property with a DA as a general rule the more properties approved on the lot the better.
Blinds, Curtains, window treatments, light fittings, carpets. All these covered by contents insurance. Helpful to have at least $5,000.
imagine you get a Tennant that trashes your house. Those things will be damaged. for a extra $50-100 per year. Worth the money i say in case something happens.
Freckle is on the ball in this case and I do agree with him.
when you are faster than a tradie you know something is wrong.
get a job in construction – solution
