Forum Replies Created
Natasha 77,
I hope you have studied the tax returns and books for the shop and taken them or had an accountant check them ?
I remember visiting fish and chip shops as a kid, so they seem to go on forever, must be some money in it.
I knew a family that run a fish and chips shop, to me they seemed to get more out of it in tax savings and bulk buying discounts etc than making money selling chips. Main problem was the heat from the cooking for the workers.. But you see lots of people at the beach buying up big.
Good Luck whatever you do.Peter is correct.
You need a valuation ( paid for to registered valuer not free real estate quotes) for your Melbourne property as that becomes the starting point for any future CGT.You have up to 6 months leeway.
Your price paid for the Brisbane house is your starting price for it for any CGT ( if you decide to nominate it as investment ).
Prices need to be adjusted of course for purchasing costs, selling costs etc. NOW is the best time to record all this information whilst you remember them and have documents.Desilucky,
Don't buy. You will loose money.
You only buy if house prices are rising faster than your repayments minus tax savings plus cost minus the first number in your head etc…The global community is toast.
Lizzie,
I am trying to sell a house in Townsville. Let me give you a clue as to house prices.
Going back a year there would be about 4-5 pages of houses for sale at Kirwan, now there are 14 pages.
Houses that were $300,000 are now $250,000. I suggest you buy in Brisbane, but it is also dropping, so maybe don't buy..Good Luck
Great post fellows keep it up. Finally, something curent and interesting to read on this site.
By the way Steve Keen is posting articles again on the current housing prices…Yes, I know lots of people are now saying "what does he know, he sold his property years ago thinking house prices would fall". Maybe he was just a little too early, and as he says didn't think the government would react as strong as it did, reducing interest rate ( yeh yeh its the RBA ) and upping the FHOG etc. But I have just read his part 1 today, suggest it as a good read.
Personally, I am a baby boomer, just retired early, and will be selling off my properties over the next few years ( slowly to avoid too much CGT – although will be offsetting by rolling into super ). But I am worried that house prices are going to fall and have predicted them to fall over the last few years, but was early like Steve Keen maybe ??
Let hear from a few others out there about their situations with regards to buying , selling etc, maybe that will help us with predictions for house prices??
bye
Hi DWolfe and others,
I know I posted a forum saying that house prices should fall from about Sept 09 I think it was , due to rising interest rates, etc, etc. But I was wrong they didn't, but as I said it's still a chance it may happen soon.
I couldn't help but notice in my area these interesting things just happened over the last week or so.
House been for sale for weeks, started at $490,000 about ( 5 bed but no garage ), just had auction – highest bid was $355,000 vendors bid was $390,00, passed in.
House for sale for weeks started at $480,000 then $460,000 then $430 – $450,000 and sold unsure of price.
House with lots of land – quoted at range of $750 – 850,000, nothing in bids then bid of $700 just before auction – highest bid $450,000 passed in , owners went back to 700 bid people and now say only will pay $460,000.Just 3 examples I have noted recently, of course people will know of ones going up, but just my observations..interesting times ahead maybe.
DWolfe – no I'm not running down property as an investment for the long term, just an observation of recent sales in MY area not yours. But please keep up your comments they are always interesting, and you are welcome to comment anytime.
Scott,
I understand your position, but do you own the property now ( not your PPOR ? )
The land tax is on any property that's not your PPOR, or over a certain value ( depending on other properties ) which I'm sure you know about, so I am guessing this property is your PPOR at the moment ??? or am I missing something.DWolfe,
I think you have touched on a very important subject. EDUCATION. I wont rave on here about it but it is a very valid point that we in Australia need a better Education System. Especially need more financial education at school and at home.gmh545,
Thanks for your input. As the others have said, your clients are probably the ones who attended those gold coast type seminars and purchased units etc at a premium price with no idea's about what they were getting into. I feel sorry for them, it shouldn't be allowed to happen by the government.Keep up the inputs its very interesting reading.
harb and DWolfe,
I was wrong…there I said it.
Next time I should read it properly ( sometimes it's hard to get any peace in this house – four kids wanting to get onto the computer and the misses plus a grandchild wanting to play – I think you all get the idea ). The heading left out the word month so I presumed it meant over the last year since I guess I was looking for that in the back of my mind.And yes my prediction was wrong. I was sure property would fall going back 12 month's with the reasons I gave, but some didn't come true ( like unemployment rising ).
But don't call victory just yet, the fat lady hasn't sung yet..the world economy is going to catch up with us sooner or later. Lets see how prices are going in another few month's.
I don't wish house prices to crash, I want them to rise above inflation so we can all make money, but alas I cannot see it happening, I really think we have had our lucky streek, and at best we can hope that house prices can stay steady or even keep up with inflation.Almost 1 year since posting.
Lets see now
http://www.news.com.au/money/property/house-prices-dip-and-will-fall-further/story-e6frfmd0-1225932622360?area=money-sub-one
House prices down 0.2% see I told you so….LOL… I rest my case…Just joking..but still If inflation is at say 3% then really the loss is 3.2% roughly. So I guess I was sort of right.
Over last year interest rates have risen.
Employment has dropped.
Consumer confidence has risen over last few months.
Australian dollar has risen in value – thus cheaper imports and oil etc.
Huge exports of iron ore and coal etc has improved our balance of payments.So overall economy has strengthened, but for how much longer ? Interest rates probably to rise soon, employment well unsure about that, Australian dollar maybe rise slightly more but usually followed by large drop if history repeats, China demand strong but for how much longer ?
Interesting to note Ireland property has now just collapsed and country now on verge of collapse, Greece and other PIGS in austerity measures with citizens in the streets protesting, US economy held together with sticky tape till printing presses break down…
Interesting times ahead.
Which is why I don't use an accountant. This just reinforces my view of them.
Problem is most people believe every word they say, even when you send them an ATO ruling.OK so if the consensus is that housing will be flat for many years and no boom coming…. ( most people seem to go along with this ??).
Then the obvious question is WHY are people buying investment properties ??
Since and correct me if I'm wrong – you get rich from capital growth not rental income, why would anyone be throwing money away purchasing I/P's ??Which now leads to the question – WHY don't we all sell our rental properties now and lock in our gains ??
Well for me – this question relates back to CGT…Which on the side again, is that we are all getting ripped off by the Taxation System doing away with the indexation method.. No one complained about this when capital gains were high, but now if houses just went along with inflation, then we wouldn't be up for CGT.. But now with low capital gains we still pay CGT.
I think I am getting away from the main origianal post, but anyway some thoughts for others…Your 10% deposit is from an offset account – thus the extra interest, on that money is interest you can claim. You can do whatever you like with money in an offset account.
However the 10% you use for your husbands property cannot be claimed by him, And he cannot now get a loan for that 10% and claim it because it is considered as money paid off so to speak.Hope that makes sense ?
This post from Steve Keen maybe the start of some house price action ?? House prices finally turn the corner ??
Hi,
I think you are all looking at it from your point of view.
Now imagine you are the ATO.Someone comes to you and says I borrowed $2 to buy something that is worth $1, now I want to claim interest on the $2 loan.
It's the way they would look at the property purchase, you cannot borrow $500,000 and use $250,000 to buy half a house and then claim interest on $500,000.
The other $250,000 you borrowed is given away to your partner for the other half of the property, thus you did not invest it in something that earns you rent, so it is not an investment purpose.Remember we are only talking about interest on the loan here, not other things like rent, deductions etc. This is what the ATO lecturer was going on about, he was very clear cut about the ruling.
Now I remember, the banks, solicitors, accountants etc have been telling me in the past..It doesn't matter who's name is on the loan, its who's name is on the title that determines who can claim interest on the loan…Which is WRONG.
Also note the ATO says that : A guarantor on the loan is OK, it will not change the person who is making the loan.
Maybe this site needs a rulings section for these things ??
Hi,
Just by chance, last night I went to an ATO seminar on Buying, Keeping and Selling Investment Properties.
There were lots of people there.
One question asked was about borrowers and names on contract. It's actually the opposite to this but maybe gives some insite."
If the loan is in both names and property is in one name – can one person claim all interest or both share interest ? "Answer – NO.
Each borrower shares the interest – thus only borrower with name on property can claim against it.
So my guess regards opposite – one name on borrowing and two on property, would be that the borrower can claim half the interest ( since only 50% of money used for investing – other 50% given to spouse or other person thus not used directly for investing ). Also can only claim 50% of bills and 50% of rent etc since a joint owner.
There were too many people lined up at the end to hang around and ask about this senario.
Badgers_R_Us
Good on you and best of luck.JPS25,
I think maybe I read it wrong for the solicitor…If you mean the solicitor was just for the loan then as above.
But if the solicitor was for the transfer of property etc then it not deductable and is a cost of the house.as for CGT etc.bye again
JPS25
I presume you mean, you paid your monthly repayment at the end of July ?
Yes your interest is for 2009/10Loan cost so deductable over 5 years. Your name doesn't matter its all on your husbands tax.
bye
