Forum Replies Created
Alliance_22
You need to stay in house for 6 months to meet the governments requirements for the FHOG and get your stamp duty exemption.
After that ( well more after 3 months or so ) the house becomes your PPOR, you do not pay CGT if you sell your PPOR. You are allowed to leave it for up to 6 years and it will still be your PPOR and CGT exempt, as long as you do not claim another house in that time.
You can rent it out through an agent or not it doesn't matter. You are not breaking any rules.
If you move back into the house for 3 months and then leave and rent it out again later ( within 6 years ) the 6 years restarts.gmh454
I think I get the drift?
You agree with me about the book being written in another part of the cycle that is gone.?Don't you just love all those real estate agent terms, especially the old favourite "Now is the best time to buy"!
Yes, they should sell their house and downsize before its too late to get some capital.
Alliance_22
5% return is excellent in todays world. Especially if you put in your wife or husbands name if they do not have an income, so you pay minumum tax.
Or put it in your offset account and save the full amount on your mortgage
or buy shares today like a bank and get about 8-10% return effective with 100%imputation credits.You don't need to think big if you have a mortgage or an I/P with outstanding loans
Alliance_22
Was refering to Steves first book, the one Whoopi 2 is reading.crashy
Agree
devo76
Was thinking sell now get $1,000,000 rent for a while or live with family for a while. When prices drop, buy your block of units or townhouses, move into one and rent the rest. Or some variation on that.
Alliance_22
Assume you are renting at the moment or live at home?
Is it your first property ? Is it in both names ?If its your first property then you will need to move into it for 6 months anyway for FHOG etc
If its your property and you rent or live at home then you still should move in for 3 months to make it your PPOR, then you can think about renting out etcWhoopi 2
Is your pension from Kevin Rudd or a superannuation pension?
Forget what you have read in the books, its all fairy land stuff, even Steve McKnight admits his book is not possible nowadays.
Most people will tell you to go to a Financial Planner , which is fine if you are stupid and know absolutely nothing about investments – just look at what has happened to everyones superannuation ( not mine by the way) and shares and investments in unsecured deposits.
The second obvious thing to do is sell your house before its worth $600,000 by next year, buy some cheap units or townhouses near a station that shows positive cash flow and relax.
good luck
PropertySeeker
I think, the main thing is to be honest and underestimate slightly to cover any unforseen income or rates drop. The Taxman is really only interested in people who are trying to cheat the system.
shel25
First of all the CGT is only payable when you sell, thus you do not need to think about that for a while.regarding your plan, well…I don't know your income or your partners so cannot say how you are going in that. But, I would not be buying at the moment, wait, house prices , especially in the about $300,000 mark will fall over the next few months and years.
Your Adelaide house maybe negetive geared – you are putting in money, but what are your depreciation claims??
As you indicate for your Brisbane house – you are better off selling it, do not rent out at the rent you indicated – only do this if we are in a bull market for prices which off course we are not.good luck
hsingh10
In 6 months when you get your $80,000 put it in your offset account ( assuming you have one ).
Then start looking for IP's. They will be cheaper and you will have saved thousands.. in the mean time keep reading and doing your maths.
crashy,
thanks for info.
But, if I had spare cash, in the long run… you would be better off using gearing and buying say property or shares.
Just to let everyone know a basic item of financial interest….." You will never get rich by putting your after tax money in the bank!"
jaffasoft,
Why have you got money in the bank?? as dr house says its fully taxed on the very small amount you are paid. You end up with less than inflation!Buy shares in the banks and enjoy the fully franked yields.
If you have spare cash them you should have it in an offset account, if you don't have any loans then get out there and buy something, as long as its got potential. This may be hard at the moment of course, but just buy something small, like a townhouse by the beach or near the station.
As Michael888 says, we are waiting for prices to drop so we can jump in. But waiting is boring, but in the long run it will be worth it..
_joyce
right
LOC explained above.Offset account is a loan with an account that is associated with the loan. Thus if you put $1 in the account , then thats $1 less you get charged interest on the loan. But you get no ordinary interest if you have more money in the account than you owe on the loan.
Tara30
I have sprayed or paid for spraying, but I have a new tactic. If the tenant is happy for the following.For houses that are close I buy a $20 spray kit ( 2 litres for outside ) it last for at least few months and one bottle will do twice, so I leave the container for the tenant to use next time.
Or for ones I cannot reach, I get the agent to advise them to buy some and spray themselves and pay for spray.I know you will now get people complaining about OH&S etc, but if they do not follow instructions then they can sue the makers of the product. Its available at all stores.
Or sue the store.carlin,
Ok Thanks. Good luck. I suppose if you have some calateral and some deposit you can use different lenders to avoid the LMI or each lender, but I would have thought the lenders would want to know where all the money was coming from and check up and see for themselves? But I haven't read the API article, so maybe I should.NonnieE
Also, suggest you let the seller know you like the house, would love to keep it in good condition etc etc. In other words , let the seller think you like what they have done and they will think favourable of you. But not too much suck up.
If you have finance already availble then let them know, if you have a large deposit then let them know, just tell them all the things they want to hear.
But , also beware , as this is your first investment property offer, don't let the real estate agent push you around, give him your best offer and stick to it, let him know you are interested but not fixated with getting it. There is always another house around the corner. And make sure you are buying for the profit, not to loose money, I hope you have done your sums, we are in a falling market. There is a long way to go before we get to the bottom.
Good luck.
Yes,
I got it and deleted it…Eventually someone will always find a way of getting spam into the system.
carlin,
As you know the answer is you need 20% deposit or equity on the complete loan.
Don't think you can get out of LMI by going to seperate lenders, you may be mistaken.good luck
C2, Michael888 and harb.
Happy New Year to you and all the regulars on this happy happy forum.
And thanks for all the valuable information from you guys and all the other contributors
.Just copied this from http://www.bantacs.com.au newsletter.
Bantacs Newsflash
– 3 –
Capitalising Interest
Just by way of a comment PBR 84855 further verified capitalised interest is deductible by stating:
'Further, interest on a new loan used to repay an existing loan, or pay the interest expense incurred on an
existing loan of this type will generally also be deductible as the character of the new loan is derived from
the original borrowing.
Terryw,
Thanks again for reply. Understand more now.
I will do some maths and look at it over time. I have never tried one of these before, I guess I am just too conservative.
.
