Check out

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1359

This might answer some of your questions….If not post more and we will see what we can clear up..

Cheers
Pete

…Beware of the dreamtakers…

Fun;

Just a query to get you thinking…you asked if you can get a local investment partner?

I am just wondering what you are looking for and what you hope to gain from a joint venture? Both financially and (for want of another word)‘educationally’??[]

Simply – market yourself !!! Why would someone want to JV with you???

Pete

…Beware of the dreamtakers…

This is a tricky one.

However,if you have 1 property, you are more then allowed to claim as much as you want.

You will have more chance claiming richdad then robbins, as there is no direct nexus with robbins motivation and income producing.

…Beware of the dreamtakers…

Basically, if you can prove that you are in the business of trading properties and class the properties as ‘trading stock’ then yes no CGT would be payable as the houses would be classed similar to any item such as a toothbrush at a supermarket.

Unfortunately, it ain’t that simple because you must pay GST on the properties, get taxed on all the gains (where as assets owned in a persons name which have CGT payable are entitled to a 50% discount), so you will not pay CGT but will pay tax on your earning like any other shop/business. plus there are a few other issues..

Hope this has given light…

Pete

…Beware of the dreamtakers…

Basically the law states that you can deduct from your assessable income any loss or outgoing..:
– that is incurred in gaining or producing your assessable income

It looks like in your case as you have not settled this property this financial year and thus no assessable income has been ‘gained’ therefor no deductions will be allowed…

However all the costs incurred prior to the producing of assessable income may be classed as incidental costs incurred to acquire the CGT asset and will help reduce any CGT payable when you dispose of the asset.

Sorry Mate

Pete

…Beware of the dreamtakers…

Doing a lease/option like any other investment opportunity is not about the property (or stock) itself its about the cash on cash return…

quote:

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Andrew secures a 3 bedroom property on a large block just outside of Geelong (Victoria) for $80,000. The property was purchased vacant but previously rented for $170 per week.

Andrew ran a classified ad to attract people who would be interested in the idea of a ‘rent-to-buy’ program.

Sharyn and Adam answered the classified ad and said they’d like to own a home but didn’t have the required deposit and as such could get finance through a bank. They mentioned that they currently pay $200 per week in rent.

After pre-qualifying them, Andrew presented Sharyn and Adam with the following ‘lease-option’ deal:

Rent of $192.50 per week
A lease term of 5 * 5 years (25 years in total)
$2,000 ‘Option Fee’
Option price of $96,000
Andrew’s nett costs are:

Deposit (20%) = $16,000
Less Option Fee Received = ($2,000)
Plus Closing costs – inc. legal fees = $5,000
Total = $19,000
We also need to consider Andrew’s cost of finance too. He would seek a 25-year loan for $64,000 (80% of his purchase price) at let’s assume an initial five-year fixed interest rate of 6.4%. His principal and interest loan reayments would be $5,128 per annum.

The rent that Andrew receives is $10,010 ($192.50 * 52). His cash on cash return is:

(Annual Income – Loan Repayments) / (Deposit + Closing Costs – Option Fee Received)
= ($10,010 – $5,128) / ($16,000 + $5,000 – $2,000)
= $4,882 / $19,000%
= 25.69%

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**taken from https://www.propertyinvesting.com/strategies/lease-options

THATS A 26% RETURN GAURANTEED (like all investments does have risks though)- WHICH BANK IS OFFERING THAT AT THE MOMENT

So its not about the house itself, its about how much you invest in relation to the income recieved. The house is just the vehcile used in this lease/option.

Pete

…Beware of the dreamtakers…

quentin is spot on the money, however…

One thing that you must keep in mind when giving excessive gifts to employees is the issue of Fringe Benefits Tax, which is payable by the employer on excessive ‘gifts’ which are possible replacements for salary…

Pete

…Beware of the dreamtakers…

Kind off the topic but thinking from a different angle, not the $$$ view..

Ever thought about offernig the $$ the vendor is after (even slightly more then you could get it for) but trying to win on the terms of the deal…

Such as
– longer settlements
– early entry to property (prior to settlement for renovations)
– Them ‘fixing’ aspects of the property

Hope this gets some creative juices flowing….

Pete

…Beware of the dreamtakers…

Polaris,

Ok, well in your senario I don’t think i can help much,as I am only aware of L/O in investmetns terms. I have no experience or knowledge when the property being Lease/Optioned is the primary place of residence…

Lets hope someone else can shine some light….You have me interested..

Pete

…Beware of the dreamtakers…

Enlighten me on why you would want to do this?
I am not sure what you are trying to achieve.

Cheers
Pete

…Beware of the dreamtakers…