Hiya All !
I’ve only been a member for about 3 weeks, and I must say this Forum is a far cry better than any semi even fully proffessional advice.
I have been travelling for years and now is the time for settlement, VIC is my home and would like to own IP’s ( 3 bedroom houses ) around the state.
I have 3 IP’s ( zero credit ) and $800 K to begin with, I am opening an ABC Pty Ltd ( Company not trading as yet ). I hope people don’t see this as very blunt or even arrogant, but I believe I will get many different scenarios from this question.
I would like to hear from some of the IP guru’s out there on what they would do if they were in a similar position ?
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] Apetite for wealth
Michaeldo you play golf?
Michael I wouldn’t be buying a property in a company….no CGT relief in a company. Purchase in a trust.
Sounds like you’ll be on your way quickly. Good luck, I’m sure you’ll do well.
Will you adopt me? [
] [?]Seriously, well done. For my two cents worth I am struggling with the high maintenance required on owning loads of low value properties for renting and wrapping. In your position I would look JV’s in some higher risk/higher return options like development of townhouses/units in larger regional areas or outlying metro areas where populations are increasing rapidly and rent vacancies are low low low. I’d also sell most of them to cover costs and get a bit of profit but always retain a small percentage (eg 1 from 5 townhouses) to enjoy the income stream and capital growth.
Happy investing!!
MelTar Muchly for the qwik response Kelly.
Can you explain CGT relief in trust ?
Are you saying I have less CGT to pay if in trust ?
Yes I do play golf aussierogue, my handicap is being left handed & I’d rather shout out ” 6 ” instead of “4” coz it’s greater.
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Michaelmichael – good answer, i’ll try that one if you dont mind.
malanie – yr giving great contributions (along with nothousesonly). i’d adopt you but im only 2 years older so people wld talk
cheers
Thanks Mel,
Regarding adoption NO, looking for informitive & like minded persons YES.
However if adoption was a tax deduction I would seriously think about it !
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MichaelHmm, yes, my Sicilian boyfriend first probably!! (Actually he wouldn’t hurt a flea, unless they got into his violin case of course …)
But we digress. Come ‘on all you property guru’s – throw up options, dying to hear them!!
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MelAlso Mel
I forgot to mention that I’m only interested in 3 bedroom house.
My aim is to help struggling families , renting IP’s to them @ 20 % lower rent.It’s my way of feeling great at what I’m doing, the wealth really to me is a domino effect from this strategy.
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Michael[
][]Bad new all round guys….no tax relief for adoption (at least none that I know). Trust me if there was I have a teenager going cheap.CGT relief in Trusts – to answer Michael’s question. In a trust you can still access the 12 month 50% reduction in CGT, in a company you can’t.
Example…buy for $100,000 hold for 12months and 1 day, sell for $200,000.
In a trust you’d be paying tax on (200,000 – 100,000) = 100,000 x 50% = $50,000.
In a company you’d be paying tax on (200,000-100,000) = 100,000.
Admitedly in a company your rate of tax is fixed at 30%. Any tax you pay in the company’s profits you can take out in the following year as a fully franked dividend…..and this is getting way too technical….
Does this help.[?][?]
Mel,
Sicilia is a very wondorous place, I spent many moons in Siracusa and bathed at ” fontana bianca ” several times.
You are a very lucky person to have found such wealth in beauty.
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MichaelAbsolutely Kelly,
Fully franked options is an area I’m yet to investigate. Fortunately for me I am a qwik learner.
Tar Muchly [
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MichaelDoh! There goes the beachfront apartment.
Thanks Kelly for your info, always helps!
Michael if that’s your strategy have you thought about contacting Centrelink and St Vinnies and places like that where people in need tend to hang out. For starters they’ll tell you where these guys live ie where rents are fairly cheap to begin with, and you can organise to be paid directly by Centrelink (as rent assistance esp. to pensioners and non-working single mums etc.) and then the difference of the fortnightly welfare payment goes to the recipient. This way you are sure to get your rent and if you wanted to ‘refund’ 20% of the rent you could maybe do it via vouchers, services etc instead of cash – although this heads into tax-world and beyond the realms of my knowledge – Kelly? Lovely plan Michael, go for it!!
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MelWow everyone is quick today, or I’m slow ….
Welcome aboard newbie, I’m actually a professional mortgage broker and amateur trying to catch up in the property investor stakes and learning heaps! I think Kelly is your CGT guru but yes there are pitfalls for your plan, namely ability to cover all buy and sell costs AND cop CGT at your marginal rate on full value increase – most successful fix and flicks do it in under two months, ie v v slick, to minimise holding costs, probably as a company to only pay 30% tax. Kelly??I’m Paulette from WA, really just a novice (at the moment) you certainly sound like you know a thing or two.
I am interested in wraps but I believe it is just a little to difficult for my at present. I was looking at the possibility of being a “mini” developer, ie; buying “the worst house on the best street” renovating & selling in quick succession…do you kmow the pitfalls in terms of capital gains tax…must I set up a pty ltd to minimise tax…. any help would be great!
[?][?]Hey Mel,
I may adopt you after all !
Yes I’ve been to Centrlink but never thought of an ” voucher scheme “.
I do have worries ( slight ) of rental evaders, however if Centrlink take care of that part of it then ” wealth is certain “.[
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MichaelMel can you explain the voucher scheme a little more does it relate to all states? I have two centrelink receiptents in my investment properties and had a several time where I have had to chase up the money.
This may make life a little easier.
Davo70
Howdy,
Was just using Steve’s example of ways to reward tenants other than cash. Think vouchers to nurseries as he suggests are fantastic, but for Michael’s target maybe to Myers or the like may be more appreciated, and I think it should be linked to keeping the place in good order too, it’s a partnership afterall.
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MelHiya Davo,
What I beleive Mel meant is that if tennants are getting say 20% cheaper rental, then that saving can be intro’d into an agreement between centrlink, tennant & investor. May be used in food, landscape or even extra rental subsidy.
[|)]hope that helps
MichaelWhat a screwed up world we live in where you
have to offer people incentives to respect
another’s property.I think that I’ll try to steer well clear of
the welfare set.andy
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