Forum Replies Created
All,
I think that Alan Bond's case was the instigator for the rules as Linar has explained.Boshy888
I was actually thinking last night about interest rates, returns and tax, etc since I have some money sitting in offset accounts thus saving interest. This was done a few months ago now when interest rates were high, rents were only starting to rise, capital returns were zero.
This was the best return after tax at the time.. I figured about 6%However,
Now that interest rates are falling, rentals rising, capital gains still flat… maybe now the best is to buy as long as the rental is around 5%, after costs should get effictive 2-3% or more depending on depreciatin etc. If any capital gains then even better, this is about par or better than offset if interest rates keep falling.That's my general observation at the moment.
crashy,
Whilst not a professional painter myself. I have painted houses in the past and my own house.
I have used some of the cheaper paints on the inside and they have been fine – lasted over 10 years.
But for the outside I usually use a well known brand. Always use Solaguard on facia boards etc and get 10 years or more.
As per World Changer I have used the Big W paint or one that is sold and backed up by a big store is OK, best not to use cheaper paint from corner stores.freelance2020
Hi, I've never demolished and rebuilt myself.
But , its very strange that two houses in the same area are empty or left to wilt, what with the rental shortage etc?
You can easily check with the local council on the property zoning for dual occupancy or cutting up the block etc
They could also tell you if the land is owned by private or maybe some other organisation ( probably will not tell you the owners name unless you live next door and want to know so you can send them a bill for fencing or some such ?)
Good luck.
C2
Yes this can happen, but as you say, its likely to be classed as tax evasion since the main purpose was to avoid tax.
Well thats what the tax man will say, its really pushing the limits that one.
But thanks for example.DamienO,
If all the properties are close, have you asked for a discount from the real estate agent?
I parcelled up my properties and a few mates together and got a good discount.
It's worth asking or playing off a few agents till you get the best deal, and if your not happy then go to another.prichard
This is a common thing to do around universities etc, mostly to Chinese students.If they are all the same nationality they will usually get along together and share costs.
The council don't seem to worry much about it with regards health and safety etc.
But , it can be very risky, you will need seperate locks etc for security. But, still a risky venture, will be worth the risk and can you sleep at night?? that's the main thing.
Good luck
imaginaryhero
Hi, above is a good start .
Some other ideas – not sure of lots of details so probably not that accurate for you.
– If your Mum's situation is OK with not needing all her money at once. Can you buy half her unit thus giving her some money and a start for you – you will miss out on FHOG this will mean only a small loan.
– unsure of what your prices are or how much rent you are paying at the moment. or do you have a family etc. Maybe you can buy with a fried on 50 50 basis?
– or buy and rent out spare room for extra cash for repayments.
– lots of people nowadays buy and live in house for 6 months or so, then rent out and go back home for cheap rent and then can claim all expenses on their house.probably lots of other ideas. lets get the forum suggestions running.
good luck.
frances52
Is this house your PPOR ? or an IP?
I would say yes, you will need to pay stamp duty on half the value, you may need to get a valuation done so you have a figure for tax purposes in the future, are you to then make it a IP?emmajane06
Yes.
Your friend would be up for solicitors fees, stamp duty, probably loan costs etc. It doesn't sound like a very efficient way to do it.Maybe you should all go straight into it as 1/3 equal shares and not worry about FHOG at the moment and rent it out. You can still get the FHOG later as the place was used as a rental. However, I am not sure about the stamp duty levi exemption, maybe someone has already chased this one up ??? anyone .
soloinvestor,
Well, you should be sent out a valuation each year by the Queensland government telling you the unimproved value of your land at each address. This is all added up and should come to some figure say $400,000 and if you look on the government web site it will give you a figure that you do not need to pay land tax if below say $350,000.
Thus you may be up for land tax, I think you can actually go above the $350,000 value by some small amount before having to pay ( it will all be on the web site ). Thus you can work out how much you need to pay each year to the state government.
I own three properties in my name in Queensland and sit just below the land tax value, so depending on the sites you may be OK. It is your responsibility to find out if you need to pay, ignorance is not an excuss for land tax, the government will catch up with you eventually if you don't pay, and they will come down hard on you if they think you are trying to dodge it.
If you are married you can put the next property in your wifes name as land tax is person specific.
erichmj,
Going back a while it was +2%. But with the financial crisis etc it has moved up a bit, I think it is now around 2 1/2% or so, but varies with different banks and organisations.
The reserve bank obviously wants us to spend spend spend but not on imported goods but local goods to help prop up the local businesses. With the depreciating value of the dollar they will get some assistance.
but I think people are slowly turning from spenders to savers, but this will take many many years to get the Australian public to start thinking beyond their next pay check.Krishna,
Whilst its good to hear you are planned to improve yourself, it's hard give a direct yes or no, since we have not seen the place or know exactly the location or even the street.
No need to tell us the street.Assuming all the good. How are you going to get a loan for the improvements? The bank will not loan you the money on the home loan?
Are you going to do all the work yourself or pay someone else, this will make a lot of difference to the outcome.
You won't have to worry about CGT if its your first home and you get the FHOG and live in it.
fishngym,
I am not quite sure about the lead up.
When the place was purchased originally, you or your defacto must have lived in for 6 or 12 months to get FHOG.
So do you live in it now or is it rented out?If you now rent it – then I would assume you have 6 years grace before it is not CGT exempt, unless you move back into it for a while.
But do you have a house of your own?
We talk alot about stock markets getting to its historical levels of growth.
Well guess what the All Ordinaries is now there. If you look at the long tern graphs on the Yahoo 7 web page and change it to linear from log you can see we should be at about 3800 or so.
Is it now a good time to buy stocks – probably not. We need to let it continue to fall below the historical level, then if it settles, jump in and enjoy the next ride up again.Scamp wrote.
I'm not going to warn people anymore about buyingO no. I don't believe it?? This forum won't be the same, we need your input to set everyone off.
I'm sure he is just kidding.
devo76,
I think you are referring to real estate agents!Kylie,
Why is everyone talking about the end of the world as we know it?
I also think the economy is in bad shape and getting worse, but its not quite to the end of the road just yet. Lets all just hope it doesn't get to the pack up my swag and head for the hills stage!Macnatt,
Are you utilizing all your claims? Do you have a depreciation schedule, etc, do you work and have an income to claim your losses against, are you claiming your holding costs etc?You haven't given enough information for us to check your situation, but if all is as you say, then unfornunately, your best option may be to sell and maybe you can claim against a capital gain to offset your losses.
Most people expect house prices to fall and keep falling for a while yet.
kev2008
By your explanation of yourself ( working two jobs to pay the mortgage ) it doesn't sound like you should be trying to get into investment properties? I think you should be trying to repay your mortgage and build up a buffer before getting into IPs.As mentioned lots of times on this forum – I'm sure you have read this – Now is not the time to buy.
The forum is used as a place to post questions and get answers, but sometimes the questions are asking for too much information that cannot be simply answered with a few sentances.
Regarding getting a mentor. That is asking a lot of someone out of the blue who doesn't know who you are, or your circumstances. You may be best trying to find someone you know already who is into real estate.
Good luck with your future, don't be discouraged, but suggest you start by getting yourself ahead on your mortgage first before chasing IP's, house prices are falling at the moment, why throw your money away just so you can say I have an IP?
