Forum Replies Created
I have posted a comment previously regards this.
The legislation just says you need to have them and check them within first month of tenant taking up rental property. After that it is the tenants responsibility to replace battery and clean, don't believe all the crap you hear – google fire alarms and read it for yourself.
I do a once a year trip and change the batteries myself, clean them and test – just need to hold the button – that is all the professionals do. Have you ever seen a course at tafe for fire alarm testing !!!.
I have also fitted battery operated units next to hard wired units to cover all manner of faults , its very cheap to do and easy.
You can claim your trip – your parts etc on your tax.
JETT,
It's not advise, it's only my opinion or guess. I don't tell people that what I say is true or will definitely come true. It's only a forum for peoples opinions, so people can get a feel for what others think.Everyone can have a different opinion than me and that's fine. No offence taken.
John,
Good Luck at getting $600 /week rent on a $600,000 property.
Maybe you should start out a bit smaller.Johnl,
Can't advise as to where to find stats, but over 10 years so many things can change, I wouldn't go along and buy a house in the biggest gaining suburb over the last 10 years, that is not the way to make money.
I would suggest using your own knowledge of Brisbane , look at what's in store for the future not the past, I'm sure you know in the back of your head where to buy for future growth, just take a look around.
I don't live in Brisbane but have houses in the northern suburbs about 12 – 15km out and they have done very well, but further in has done much better, but these may also be the first to fall over the next year or so.As they say, just buy in good quality area, close to amenities like trains or education or shops or beach or river, just make sure there is some reason to buy in that area. If there is no reason to buy then prices will not rise.
Best of luck.
Maree,
It will probably revert back to $7000, I don't think the government can afford to continue with the $14,000.
But, if so will create a large drop in house prices, especially the low end prices..daniellee,
I was reading Steve Keens posts, I think he said a 10% drop this year and next, and is taking inflation etc into account, so he is on the conservative side. I would still expect maybe 40%over two years – allowing for inflation and probably only for higher end properties. FHOG is proping up the low end at the moment, but its only temporary not sustainable.Just sit it out for 6 months, the world economy could go a lot worse, it certainly will not suddenly improve to any significant amount. Keep your cash in your offset account, be patient, worse to come.
ps Didn't need to pay $50 to hear someone advise his guess, I can guess myself.
seddar,
There is not much detail in your question. Does your sister own any other property? Is this her first property ? What did she pay for it ? How much did she borrow ? Does she have a job and what is her income ? Did she get the FHOG or stamp duty concession ? etc etc etc……..But, Yes, the idea is to buy property, use taxation etc, to help pay it off, hope it goes up in value, and get rent. Suggest you do lots of reading before you jump into investing in property. This forum is a good start.
denormaliser,
I assume you know that your PPOR doesn't need to be lived in? That is you can do what you said you wished to do. For the first 6 months it would be the owners start up PPOR and you can move out for up to 6 years and it can still be your PPOR as long as you don't claim another place when away?
Like wise for the second place.JimmyJ
Not a fiancial guy. But , maybe with the line of credit, you can take out only what you want and thus pay for what you need, also as duckster says only pay interest when used.
Are the loans same interest rate and do they both offer offset accounts ? Also same costs of running and setup??dan1114,
Its a forum, we are here to give our optinions and try to help others. If we are correct then that's great, if we are wrong , then you can tell us about it, hbbehrendoff must be congradulated for making a brave call, he maybe wrong, but that's fine. At least he is giving reasons for his call, he may save people lots of money ?shel25,
Your friend is a classic case of someone who know something but not a lot.
The 6 years is related to moving out of your PPOR and then back in before the 6 years is up to sell it CGT free.
You need to pay CGT on your Adelaide property because it is an IP, not your PPOR.
But you only need to pay CGT if you sell it and if you make a profit. The negetive geared or positive geared has nothing to do with CGT. You pay CGT on the profit less 50% if kept for over 1 year.
eg. House cost $200,000 later sell for $250,000 three years later. You deduct your buying costs and selling costs eg say $20,000 so profit is $230,000 – $200,000 so its $30,000. Now take away 50% so its now $15,000.
You claim $15,000 on your tax as income for the year you sell, so if you are paying 30% tax at marginal rate then you pay 30% of $15,000 so about $5,000 tax. This is a rough guide, see the ATO site or just google CGT.Positive geared is good stuff, you can then buy more IP at negetive geared and offset with positive geared.
Agree with Scott No Mates,
It's like say you are currently a clerk and go to university to be a geologist. You can not claim since you are currently a clerk so can claim say maybe an accountancy course, but not a geologist course since you are currently not paying tax as a geologist but a clerk.stephen051
As Scott No Mates suggests – it depends on your job or what they are used for. And as god_of_money suggests you would need to depreciate the laptop at the percentage you use it for work.
Textbooks if used for work or student etc is depreciated in a library pool usually, so over 10 years or so.. The stationary if used for rentals is tax deductable, the bag is tax deductable if used for work, the calculator is also deductable if used for student or work plus batteries.
So basically, if you buy something that is used for work or rentals etc you can deduct it, if you can prove it was required for work. If over $300 then you need to depreciate it. But don't think you can deduct a laptop if the main purpose of the laptop is to play games etc.
Badgers,
Sorry you interpreted my response as an insult, maybe I didn't put it correctly.
What I meant to say was – your post was a good one and I agree with it to a point, most investment seminars are not for the experienced investor. But some that are very specific probably have some good content and of help to many, probably the getting together with others is the most important thing of the seminar?
But when I said – sometimes we get it wrong.. I was referring to myself answering a post not your post is wrong….sorry I messed up on that.dome11010,
11010 isn't that the modem call?
Never mind, the land tax is state related. Thus you can buy in different states and it is person related, so you can put the properties in both names ( 50% land tax for each ) or in one name then other and spread the load so to speak.The other thing you can do is buy in trust, read all about them on the site or ask an accountant. Or maybe through a SMSF ?
Land Tax is a ripoff, as you say , you hit a wall once you get to the land tax free limit, after that the number all change.
Badger,
You don't need to tell them anything. You are entitled to a view. But don't take what anyone says to heart, we all sometimes make mistakes or post something that is not correct, and get advised of the correct answer etc.
Your post has a good point and other have their point and leave it at that.gmh454
I'm with you 100%.
I haven't purchased for about 4 years now, have been paying down debt and patiently waiting for the prices to fall, and they are now into the fall ( admittedly FHOG is holding up low value houses at the moment , but it will pass ).
As you point out why invest now and get 5% return, if you wait a little longer and prices fall a little its now 6% etc etc. For the last 4 years it hasn't been worth buying ( besides maybe Perth or mining areas ). With shares still falling everyone now has to save more and more into superannuation to try and catch up, then there is the unfortunate who are loosing their jobs, everyone is getting bombarded with doom and gloom, house prices falling etc… If you can just sit tight and wait and with some luck we will see the bottom and then buy buy buy and retire.
AJTS – but in Australia, most property go for auction ? I don't that this is true, maybe in the centre of cities but not out of the city.
Yes, all your valuation checks or pest inspections or building inspections and your loan approval or deposit needs to be arranged before the auction. Which can be expensive for nothing, thus have never purchased at auction, good to visit auction and see what price it gets passed in or buyer interest.
Playa Chicken
In Australia, you need to put down some sort of deposit after you agree on a price. Theory says 10%, but usually 5% or even $100 if you can swing it, law says if you pull out without valid reason you loose 0.25% ( unsure at the moment if its off your deposit or full price – think its full price – but if you only have $100 down then that's all they can take – I think, please correct if wrong someone thanks.
Shareholders unfortunately have very little say in executive renumerations.
Have you noted that the directors allocate their salary and the CEO salary, talk about the elite bunch, these are the ones that we will be beheading at the rallies when the masses rise up, you know like the French Revolution.
As a shareholder you get to vote for the directors ( who choose themselves and all their mates ), you can sometimes even vote on executive salary packages ( but the directors get most of the votes – since most shareholders don't vote or muck it up so they step in and vote for you ). Even if it somehow passes the directors overrule the decision anyway and give themselves a pay rise, its just not right, what is the government doing to stop this…. Nothing as they get kickbacks and money from the companies.The world has run its course in the last few decades of spend spend spend and expand expand expand etc the logarithmic chart has hit the wall, we are in for a long and painful recession, we will all need to now start to live within our means ( and the planets ability to support us ). Lets hope its not too painful.
