In NSW the land tax office will NOT send you a bill prior toinitial lodgement of your assessment.

It is your responsibility to lodge the initial paperwork that acknowledges ownership from then they will asses what you owe retrospectively and then will send an annuall assesment.

If you don’t lodge the initial return then any land tax will simply…[Read more]

Hi All

Looking at this as the landlord my initial thought is “you’ve got to be crazy”. I don’t have a problem with improving properties where the improvements are part of the building. But any improvements that that have a high or expensive maintenance risk is certainly to be avoided.

Where we buy property that has a dishwasher we will even…[Read more]

There is an advantage in QLd. As mentioned by steve for land tax purposes entities are grouped together but in Qld trusts are treated seperately and trusts get the threshold.

What this means is you get a $200k+ threshold for each entity and thus avoid land tax in Qld.

Cheers

Hi Bill

I don’t disagree with the thrust of your argument but I do want to highlight that the markets you refer to are generally very volatile markets.

It has always seemed to me that country areas are much more prone to market turbulance, with a complete lack of demand when the cycle turns against property. From personal experience I don’t find…[Read more]

Hi all

If you want to have a laugh and maybe scam the scam artists then have a look at http://www.scamorama.com/

Seems people are fighting back as far as these scam artists are concerned. I just can’t believe how people can fall for their lines.

Cheers

Retain

The realestate agent is only working for himself. You will be able to draw down that equity in the years to come like you had that money sitting in the bank.

In relation to using it to get the next one, try and not cross colaterise. First go to the back and borrow the equity, tell them its for reno. Then you can use this money as the…[Read more]

Boy talk about a coincidensce last three posts hapening at the same time. As Mike says Paul just relax and take a breath.

Cheers

Paul

Excelent contribution and finally establishes some credibility and some relevance as to where your comming from and heading to.

Firstly why did I say it is an idiotic question. The focus of retirement is a personal thing. You may see retirement as driving your motorhome to the sun. Personally I see this as work as I would must rather walk…[Read more]

Hey Paul

Instead of asking idiotic questions that have no immediate relevance you might want to do some research into structuring.

From the info given you have your investment property paid of but your still carrying a personal non deductable mortgage. Loosing heaps to the tax man.

“i have a fully franked income of 48k per year as well as my…[Read more]

Hi Del

I like you have my Superfund pay my life insurance. This makes the life insurance tax deductable but because it is the superfund the tax deduction is only 15%.

Terry the link you included is not working could you please correct it as I am interested in researching further.

Cheers

I would have to agree with Mitch and Dave.

Mitch you are absolutely right that if the figures work and you have left sufficient buffer in the deal to cater for contingencies, like double interest rates, then great.

But as Dave has indicated there is a bust after a boom. In real estate this tends to be a flattening out where supply exceeds demand…[Read more]

Hi Susiemac

Firstly I agree with Quentin and for your first property get it managed for a while to get the hang of things. You can shop around and get a good management deal. If you do manage it yourself then the most important thing you need to educate yourself about is the tenancy act of your state. This sets out all the rules re notifications…[Read more]

Sooshie

All the best from my family and I. I am sure you will be back on your feet in no time keeping everybody in order.

Cheers

Hi AD

Well done. Iam somewhat curiuos as the partnership seems somewhat lop sided. How come the profits were not based 50/50?

Cheers

Hi Boris

It depends on what you use the money for.

If the money is used to purchase further income producing assets then the money is tax deductable. I

If the money is simply wasted on a home extension, doodat or any other non investment related use then it will not be tax deductable.

So the specific answer to your question
“Would I be able to…[Read more]

Hi Ivan

Iam confused as you indicate that you already have a settlement date. This would indicate that the sales contract is final, meaning it has exchanged.

If the case is exchange has taken place then there really is no avenue for recinding the contract without foregoing the 10% deposit or more if subsequently the vendor gets a lesser price…[Read more]

Hi gazza

My personal opinion is that the property market is way over heated and that at this point of the market you can actually make loses over the shorter time frame (0-5 years). If you are willing to venture out of the main capital cities then at least you can pick up a property with cash flow but the flip side is you will wait a very long…[Read more]

Hi dosser

Are the payments that you are making currently the same payments ones building has finished?

If the payments are the same then renting out the two completed houses should ease your financial posiiton.

I would suggest you do a full financial analysis projecting your cash flow to ensure that there is enough.

If after doing this you…[Read more]

Hi Northy

I tend to agree with Del and would strongly suggest that you simply concentrate on getting going on a rental property.

Then as Peter suggest look at the potential problems that may occur and plan to negate each one.

At the start of our investment adventure the main risk I identified for myself was the vacancy factor. So to overcome…[Read more]

Hi Kristy

You divide by two because there are 52 weeks in the year, which is close enough to 50 to be 50.

The other way that you can look at this is if the property is for sale for $80,000 then double it and drop some zero to arrive at $160 which is a 10% return.

I do this particular calc almost automatically to determine the ball park return…[Read more]