10 months ago, I would never have contemplated buying property interstate. One month ago I settled on a property in SE Qld. Now investing interstate doesn’t hold the same fears.

2 years, being geared and taking on debt to the extent that I have was unthinkable. Today, my $1m debt doesn’t concern me.

What I have done, I would have previously…[Read more]

I recall that with the introduction of the GST, there was supposed to be a plethora of state taxes which were eventually going to be disbanded due to the extra revenue. This obviously hasn’t happened. Well the increased revenue is there.

As an electorate, we are high maintenance. (Like my ex- girlfriend!). We like it when the government spends…[Read more]

Thanks for clarifying Scott.

James

And who knows, the ATO may even knock on your door asking you to explain.

I have seen similar comments in other posts about overstating income and potential Tax office implications, but are there not privacy laws which preculde the bank or financial instituion from giving the details about their loans to third parties?

James

Do they do discretionary trusts? I have had a look and it seems they do standard family trusts..

James

Kev,

A very basic example

Buy IP: $300k
Sell IP: $400k
(held for over 12 months)
Depreciation claimed: $20k

CGT liability assessed on = $400-$300+20k = $120k

Bear in mind, that when you include back the depreciation amount, it is nominal terms. Not indexed, so effectively, if you hold a property for 10 years from today, the benefits you will…[Read more]

Just some comments/contributions

1. From a macro economy viewpoint, let’s not hope for a crash, becasue if people perceive the value of their investments falling, households/businesses will become far more cautious and reduce spending/investing. The effect of rising unemployment is obvious for all in the property sector.

2. Family member is in…[Read more]

If you buy both books at the same time, you actually get a discount. For memory, I think the two cost me $168.

James

At http://www.incorporator.com.au you are able to set up a company, which based on what acountants charge for doing this, might save you around $200.

Might be easier to do this and then get your accountant to establish the trust only.

James

Andy123,

Essentially, banks will assume that you will max you credit card (even if you have a zero balance) and need to account for the minimum monthly payment to service that debt. Carlover mentioned 3%, which is what the minimum payment works out to be for a $7500 credit card debt at $225 pm.

Don’t forget, it will also be included in your…[Read more]

Misty1,
At the end of last year, I re-financed my apartment in Melb inner city. I submitted my estimation of the value of my property based on real estate valuations and other comps. I then stretched this and placed another $20k on that price.

At this bank (one of the majors), they did an internet valuation and accepted the price, 24 hours…[Read more]

Lawry73,
Have done this myself. I rented out my 2 br apartment and now rent a 1 br around the corner. I made the in principle decision based on many reasons , but from a numbers point of view my 2br rents for $350 versus $225 for the 1br that I am renting. That doesn’t take into account, other costs which are claimable.

In order to figure out…[Read more]

I suspect there may have been sarcasm and tongue in cheek response from Acey. Of course there may also be in yours as well!![biggrin]

james

Well, I guess if you are thinking outside the box, then maybe a wrap or lease option solution might come into play. ie Buy the place and then approach the couple afterwards.

However, to be honest, if I am bidding at an auction (with an intention to buy), I am purely focused on purchasing at the best price I can. It would not register what…[Read more]

The discussion about headline rates of inflation and interest rates are somewhat dettached from the investors decision matrix.

Can I point out that ultimately, it is firstly real interest rates and the expectation of real rates into the future(interest rates minus inflation) that will guide an investor (whether it is property, stocks or bonds).…[Read more]

Fully furnished (non-holiday accommodation), generally includes a fridge, microwave, TV, video/DVD, kettle, toaster, lounge suit, coffee tables, dining table, beds, bed side tables, washing machine/dryer, linen, cutlery, glasses.

I have looked at the possibility of renting out my apartment as an ‘executive lease’ as they call them, however, in my…[Read more]

Paul_S,

Freshwater Place & Eureka prices are in the vicinity of $6-7k per square metre. CE are around $4.5-5k psm

That makes a significant difference. Sure, the internal fit-outs and facilities might be a little better in quality but these are two different markets.

The back of Victoria Tower is a vacant block which has plans for a commercial…[Read more]

Questions
Do you need to sell?
How confident are you of getting that price?

Suggestions if keeping
Could re-value, establish LOC for future investments
Depreciation schedule from QS to maximise tax depeciation benefits

Suggestions if selling
By waiting twelve months after purchase, you reduce CGT liability by 50%.
Get comparable sales figures…[Read more]

I tend to see the two like different routes to get to the same destination.

James

Just think of it as a success tax! (I guess most taxes are)

Doesn’t ease the burden of paying it, however, the land component of your property will drive the capital growth and future wealth. So the more land, the more growth, more wealth…..yeah, more land tax…

James