Forum Replies Created
kkowalsk,
No need to do it now. Won’t affect the numbers, plus you will pay anything from $300 to $600 for the report. Best to do it when it is an IP so you can claim it.James
Kristie,
Don’t let them bring you down, because ultimately, they are very much aligned to selling their products and if you don’t meet their requirements, then you get the response you heard.Go to a mortgage broker, they will be in a better position to find out alternatives for your scenario and future investment goals
Good luck
James
Hi Kay,
I have a I/O loan on all my IP’s. This has in part enabled me to reduce outgoings to service each of the loans.
The difference between I/O and P/I for my IP’s are
approx. $225 & $240 per month. Of course these loans are relatively new so the differential won’t be great.Paid out I/O loan??
Do you mean the time period that I/O loans are normally allowed? You would either go to P&I or refinance to another I/O loan.James
Tridean34,
Maybe the postcode has some restrictions with regards to the % loan you can get.
Maybe $160k is overpriced??
James
If you are negative gearing, then you will stop negative gearing when you move in. No implications, unless you have a tax variation in place based on a rental for greater than 6 months in the same financila year.
With regards to CGT, when (and if you sell), you will pay CGT (50% if after 12 months) on a prorata basis. For example if you live their for 5 years (60 months), then it would be
Capital Gain – (Stamp Duty) * 0.50*(6/60)
Stamp Duty is claimed back at the time of selling by reducing the cost base of your property.
I am sure someone will correct me if I have missed something here.
James
Depending if it is new or near new, you would be looking at between $350-$400 per week.
All the land packages being sold there for approx 500-600sqm are renting up to $400pw.
James
Forget the name of the building. I heard it on the radio very briefly the other day…..I’ve got someone who has had some dealings there and he has alluded to the same thing…Give me some time to get the correct details.
James
Not saying that it wouldn’t be premature… Given the reports of some properties currently ready to be settled at a valuation $100-200k below original contract price, I would assume there would be some impact and flow-on effect on the existing properties in Docklands. You probably would argue that in a rising market, your property is worth more and potentially re-value if you saw fit. This would be a significant move by the banks, admittedly, but knowing that no-one has been able to get anything more than 80% loans on Docklands for well over year now, not sure whther we have come to a critical mass….
Banks can certainly ask for it….I don’t think it is illegal. They did this on commercial properties in the early 90’s.
James
Its something that Hans Jakobi uses I believe….Ready to preach!!
James
Dreamergirl,
I would look at 5 year interest rates today and add 1-2%.James
I am almost positive she was from Olympic Airlines….positive..[
].For anyone who has flown with them, they will know why…
James
Marlin,
Just to clarify, are you talking about buying a share in company x to purchase property y versus you buying purchasing y individually?
James
Still don’t understand the issue here. People purchased OTP, with full information, since then, the market has gone down. Unfortunately they have lost out (if they sell or cannot afford to settle).
Have I missed something here? Sounds more like a political issue (notwithstanding the VCAT ruling the other day)
James
RussH,
Welcome to the forum.LVR – Loan to Value Ratio
(Loans Amount/Asset valuation)
James
Spi, if you can do it financially, don’t be afraid to do it by yourself. Why are you asking for another in this process?
James
Is current lease payment reflective of market rates?
The real estate agents should give you an idea. Do your own research.Is there any work required on the building?
Is it a separate building or strata titled offices?
Condition of building? Services connected to building ie internet, facilities, lifts…Location of building, prestige/otherwise of building
Quality of lessee is pivotal in successful commercial property. Can the property attract quality tenant??
How long has the current tenant been there? Are there any options for either party in the contract??
James
The terrorist threat (Madrid) and the potential effects of Europe now being involved will also have a dampening effect.
Realise that the issue of terrorism is much more significant or its implications more serious than their effect on interest rates….(it is no silver lining…)
James
Dono,
An individual can have a business name, although the legal entity is still, you, as an individual ie personal income tax`rates
A company can have a business name, the legal entity is the company, and is taxed accordingly. 30% corprate tax rate
Ultimately, it is the type of legal entity that dictates the tax treatment.
Trusts are probably the best answer if you want to structure yourself for future IP purchases. But it depends on your personal goals and circumstances.
James
Gringer,
Then I can spend as many pre-tax dollars as I like and write them off as company expenses, then pay tax on what is left. Is this correct?
Depending on what those expenses were and if they were allowable under current tax law, yes.
If this is possible, how is it that you can access the funds, for example, to pay yourself a wage? Does this transaction attract regular income tax?
If you pay yourself an income for work being undertaken as trustee or as an employee of the trust, then it would be captured as income earned on you personal income tax return.
James
Delboy,
No expert but hopefully I can answer some of your questions.The bank lends the money to the trust, but will ask you (if the trustee is a company, then the directors) to guarantee.
Sometimes, banks will only put the name of the trustee on loan documents or bank accounts
Any income goes back into the trust. If you don’t distribute the income to the benficiaries, you pay 48.5% tax. Therefore, it is common to distribute the income to the beneficiaries to minimise tax payments (in the case of a family trust).
If the trustee is a company, there is no requirement for it to maintain a certain level of business. Ultimately, you as director will guarantee the due performance of the loans of the trust. There will be an annual and accounting fees for maintenance, however, if you are planning to buy multiple properties in the future, in addition to the tax benefits, deductions , this will be worth it.
Hope this has answered some of your questions.
James
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