Forum Replies Created
Midas,
Was mentioned earlier in a couple of posts. Some perspective though.
Lets assume most new residences would have approximately $10k in depreciation benefits. If its a 15% reduction, this means $1500 loss of benefits.
Based on the following tax rates, this means the following bottom line impact.
On a marginal tax rate of 48.5%, the increase in tax payable is $727.50 per year or $14 per week.
For those on 18.5% marginal tax rate, the increase in tax payable is $277.50 per year, or $5.35 per week.
You decide whether it will make a difference for you.
James
Chan,
I have received some information in the mail about him, which is really advertising his 2 day course, but I don’t know much more about him at the moment.
I know he is into +ve CF properties, asset protection and ome off-shore investing, but that’s about it….
James
Kaloni,
Details are scant for your situation, so I will answer based on what I have done for me.10% has been the deposit I have paid. Happy to pay mortgage insurance as it doesn’ tie up other funds for next IP purchase.
Given that you will negative gear, the greater “loss” by borrowing more is probably more of an advantage….
James
If you are purchasing an existing dwelling, it is possible to use the depreciation schedule that has been commissioned by the current vendors. This will depend on the wording and conditions in which the schedule was undertaken and produced.
I have been able to utilise an existing depreciation after recently purchasing, however, one that I got done recently in Melbourne, had a clause on it that it was only valid for me and could not be used by any future purchaser to claim depreciation.
I am not sure whether that is a way of generating multiple depreciation schedules or whether that is a legal issue.
James
Given, that you are in large part dependent upon the individual/organisation managing the property, then I would suggest due diligence on them as much as on retirement villages in general, location etc
Do the people who currently manage have a good reputation?
Do they manage other sites?
Do they have feedback (from customers)on their service?
Are the employees happy working for them?James
I have never come across anything similar in all my time searching.
What essentially are you after? Is it a broad measure about the market in general or is it specific to a post code or small region??
James
Hi Rachel77,
If you had asked me that question 6 months ago, I would have said, invest in the area that you live in.
Of course investing in Melbourne is a much larger choice than if you were living in a regional centre.
However, with technology, it is much easier and less costly to research and invest in other states or regions (even countries eg NZ). It is initially a leap of faith, well it was for me.
I decided to purchase in QLd, because of the fact that the market and opportunities for growth were more favourably than Melbourne. The business case dictated to me where I should be investing next. If the numbers/property intelligence was pointing me in the direction of Melbourne, Sydney or Broken Hill for that matter, then I would do that and be much more comfortable in doing that today.
James
Dyes30400,
Try these topics, should be plenty of food for thought.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=6565&SearchTerms=retirement,units
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=6102&SearchTerms=retirement,units
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=7151&SearchTerms=retirement,units
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=3968&SearchTerms=retirement,units
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=3708&SearchTerms=retirement,units
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=3482&SearchTerms=retirement,units
James
Steve,
You are buying property off the plan? If so, I don’t think there is a requirement for the vendor to have a depreciation schedule.
Most are done at planning stages (obviously) and you would need to get another one done at settlement to actually claim.
James
Kay, contemplating coming up for the day from Melbourne.
I have had a look at the website, the seminars etc. Have you guys decided whether you would be attending the seminars predominantly or just walking around
The reason I ask, is that it would be the seminars that most interst me personally and maybe for the sake of ensuring everyone gets maximum return for the day, that the information/notes that may be circulated or taken down on the seminars can be provided to all, whilst others who may want to go walk around on the day can do so and still get the seminar info.
Or is this too anal!!!James
You were too quick for me Kay. I have posted the same thing (depreciation Allowance Changes), although I have taken the liberty of putting in some quotes for those who don’t want to fork out the money.
James
Thanks Terry.
Funnily (or not funny really!), about 8-9 years ago, I went along to probably a similar event which the ANZ was putting on. It took me another 6 years before I actually purchased a property.
At least when I go this time, I will have some runs on the board….My how time flies!
James
Kay,
I agree with your comments about reading as widely as possible on what is happening. And neither am I denying what is evidently happening today in the market..
I however, look critically at the source of the statistics and theory and future predictions that they expouse as a result of those numbers.
James
Those thinking of buying soon should plan to keep the property for at least five years or preferably 10 years or more, said Nikola Dvornak, associate quantitative analyst at CommSec.
There’s a revelation in property investing (sorry for the sarcasm)
About 160,000 new homes will be built this financial year, down 6 per cent on last year. Another drop, of 7 per cent, is expected next year.
With continued strong immigration, this is actually good news for property investors in general
As prices begin to stagnate, investors hoping to make money out of real estate will have to focus more on rental returns and less on price growth, a report has found.
Well, maybe the proponents of +ve CF have it right!
No doubt we are in a softening phase, some harder than others….but 10 years to wait before property prices rise??? I know that’s a headline, I know its meant to get a reaction and make people read the article…but where are the facts.
The media’s love/hate affair with property is like a spoilt child who continues to rant and rave to get attention. It gets your attention once and then becomes progressively more annoying.
James
What specifically is she referring to?
James
Not at all Redwing.
Its just that your head is small![biggrin]
James
One more that might help
http://www.ato.gov.au/SearchResults.asp?fm=&so=&sh=&ps=10&si=&kw=RENTAL+PROPERTIES
Select number 3…..
James
Yes you are correct – land tax is deductible.
James
ADJAPOUR29220,
The land tax amount is based on the total land value of all liable land owned at midnight 31 December 2003.
Therefore, land tax would apply, in your case, to $529k – $317k = $212k.
$212k * 1.7% + 100 = $3704 Land Tax
James
Damians,
No issue to transfer the property across, however, you will be paying stamp duty on the transfer.
Depending on what type of property investments, ceratin trusts may suit better. Hybrid Discretionary Trusts suit those who would like to negative gear, a straight Discretionary Trust may suit positive cash flow investments.
Do a search on this forum on trusts and structures and you will see much discussion. Also worthwhile to do a similar search on http://www.somersoft.com.au. Ultimately speak to a professional though to guide you.
Your father could pay rent on the holiday house. What would be the advantage for your father to do that? From a tax deductibilty perspective, it would need to be at commercial rates I believe (?)….
James
