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Something to keep in mind is that you can definetly claim the costs of inspecting properties you are currently recieving taxable income from.
However you can’t claim the expenses for properties you are not currently claiming taxable income from, such as posisble purchases or going to renovate the property..
Also O/S trips are also definetly deductable when inspecting properties you own. Also O/S trips to confrences and workshops related to your profession or buisness (in the sense that you gain taxable income from the knowledge learnt) is also deductable.
Hope his helps….
PeteP.S. I am no tax expert but have just finished studying this topic at UNI and this is my understanding…well hey i did pass the units…
Hi
In reply to your question
quote:
Now, if it’s not too much to ask – how can I add maximum value for minimum cost????There a number of simple things you can do to maximise value in terms of increasnig rents which will hopefully drop your weekly out of pocket expenses.
Things like give the tents a ‘free’ fridge or dvd player but increase their rents by say $10 p/w – you can pick up god DVD’s for aound $150 these days and will be paid off in 15 weeks and you then get the extra $10 p/w as cashflow.
Basically any way to increase percieved value is a great way to increase rents and the added margin will put a little extra in your pocket.
Hope this gives you some ideas….
Pete
Are you referring to buying a property by ‘assuming’ the current loan?
Pete
Hey Ad,
You are spot on with the Monopoly theory…
…just a side note when I was in the States (over our summer) I came across a book titled
“Everything i know about business i learned from MONOPOLY”Its actually interesting read and view. It compares saving vs investing, the role of luck in business and the game, balancing resources etc. Gives a number of tips on winning Monopoly and how the game rules relate to “real life”
Also i came across TRUMP – the game. Property Tycoon Donald Trumps game – he has to have his name everywhere (i love it)…
Its similar to Monopoly, however theres a lot more deal making and bidding. I haven’t had a chance to play a full game but looks like a bit of fun…
Pete
I am in the middle of the Course in Real Estate for Agents’ Representatives….
I’ll give you an overview when i’m done.
Is there anything particular you wanted to know?
Cheers
PeteThanks for letting us all know about this….should be interesting…
They are also having a online chat with these “property masters” at 9:30 – could be very interesting..
Cheers
PeteGlad to hear your back..the forum wasn’t the same…
Also check out the Vendor Finance Assoc…last time I heard they were setting up a section on their site where money partners could advertise etc…
http://www.financewraps.asn.au/
Cheers,
PeteAnother issue which hasn’t been addressed here is CAPITAL GAINS TAX….
If a CGT ASSET such as a property is owned by an individual for a period greater then 12 months they are entitled to a 50% discount on the Capital Gains Tax payable…whereas a company has no such exemption…
This is where TRUSTS come in as they have similar asset protection features as a company but when the profits are distruted to the beneficiaries they are entitiled to the CGT discount..
Gaining the 50% is a major consideration as it could be the factor that makes or breaks the deal…
Pete
Last years event was on the same day as the RYKA lap of the lake and parking wasn’t too bad…so hopefully it will work out the same this year….
Katey…
My pleasure – hope it gives you a starting block…
They once had a section on their site which helped you plan out a reno job but I tried to find it and post the direct link – but unfortunitly i couldn’t.
Hope you have more luck…
Pete
Our thoughts are with you and hope you can get back real soon to continue to share your wisdom with us all..
Pete
Remijack…
A great Aussie resource is provided by the “RENOVATION KINGS” Geoff Doidge and Paul Eslick.
They have a website at
http://www.financialsuccesssystems.com/index1.htmThey run seminars on how to renovate well on the cheap etc and offer some great resources on their site…
I have seen their presentation and not only is it sensationally entertaining but very informative..Hope this gives you somewhere to start..
Pete
Here’s the first thing that came to my mind..
“Positive Real Estate Systems” or
“Positive Property Investing” or
“Passive Income From Positive Property Investing” or
“Passive Income From Positive Properties”But I do like Kirby319’s
quote:
“The Positive Way to Real Estate Riches”Cheers
PeteNo probs..hope it cleared some things up…this is what the forum is for…good luck
Pete
Alexandra,
Well, I just finshed studying this area last year so in theory i am supposed to know a little here, but I have been in the US partying for 5 months so I am a little fuzzy..anyway..
quote:
If a property is purchased under an individual, and she is intending to sell it to a trust, can she minimise her expense (stamp duty, etc…) by selling it at a loss?This method would potentially lower expenses but it is highly liklely that the tax department would look at this transaction at ‘less then arms length’ thus finding it a transaction purely with the intent to lower taxes and would strongly look down on it.
quote:
Can an individual donate the property (as a gift) to the trust instead?As far as I am aware this is possible but stamp duty etc would still need to be paid based on market value as the ‘paper work’ in regards to new owner would need to be filed etc.
However if you are the sole beneficiery of the trust I think you are able to transfer property to that. I am fuzzy in this area but that is my understading.
Well, I hope I haven’t confused you anymore…i get back to OZ next week so if you want clarification let me know and I will dig up my text books…
Pete
Susiemac..
Well, sorry i can’t help with your first two points…but in regard to the third point, it might be worth trying to contact a local real estate office and see if they can give you a copy of their standard template, try to sell yourself as a owner looking/shopping around for an agent to represent them – might have more luck. It may also be worth checking with your states real estate institute (their links are at https://www.propertyinvesting.com/links).
I am currently in the US at the moment, but will be getting back to OZ next week (i have been here for 5 motnhs so am very keen to get my hands on a vegimite sandwich) anyway I think I have, or atleast should have, a copy of the one we gave our tenants (came from a RE Agent though)on file somewhere at home, so if you have no luck let me know and I will try to blow the dust off ours….
Pete
Hey Scotty..
Check out the creative financing section at:
https://www.propertyinvesting.com/strategies/creativefinancingPoint 4 – Steve has explained this here..
Personally I know of a few investors who have gained a sizeable portion of their portfolio using this technique…Bottom line is that you have to sell yourself and your chosen finacing technique to your lender..
Good Luck
Cheers
PeteHey Wendy.. i’m actually heading to LA in about 3 weeks, I’ll in town for about 4 days from Nov 25th. So lunch is always possibilty?
Let me know.
Pete
Hi Jarrod,
I am currently in Geelong, if you would like to catch up and chat, shoot me an email [email protected]
Pete
