Hi all,
I am in the process of buying my first property, now waiting for settlement, less than a month to go. It will be PPOR and looking to move out and convert it to IP in 6months time. Finance is all good to go. Please advise me as to what I have to do now till then? ATM I do not have any accountant, could anyone please recommend one for someone who is just begining.
I was told I need to get a depreciation report?? when should I do that. and with regard to filling out a tax variation form, should i do that when I turn it to IP? Can I claim depreciation if its a PPOR?
I am buying a villa so its under strata, What kind of insurance do I need?
And lastly when should I be using trust name for buying a property comes in place? this one will be under my name.Just want to get it right, so the journey does not slow down. I am looking to buy at least 1 property a year and in 10 years should have minimum of 10. But will look into commercial property along the way.
Could anyone in who knows the sydney market well comment on my first purchase.
2brm villa in blacktown.
in the complex on resevior rd.
205k, agent confirmed rent around $210 p/w and this is not hard to get tennant.while living there for 6months I will be sharing with a mate so he share the rent. this will make things alot easier.
Sorry for the long questionssss, A young kid with alot of things on my mind [baaa]
Any comments would be appreciated.
Have a good day,
MR2
[shades]ATM I do not have any accountant, could anyone please recommend one for someone who is just begining.
Find an accountant who is familiar with the type of investing you want to do and with whom you communicate well. Try interviewing a few, I think steve McKnight has a datasheet on this site somewhere for choosing one. And try to find an accountant that wont charge you every time you pick up the phone to call them.I was told I need to get a depreciation report?? when should I do that. and with regard to filling out a tax variation form, should i do that when I turn it to IP? Can I claim depreciation if its a PPOR? You only need a dep’n report done if the place is built after 1985 and it is an investment. You can get this done any time during the financial year. Before june 30 06, if you want to claim the cost this year in your tax return!
I am buying a villa so its under strata, What kind of insurance do I need?Your loan will require building insurance for you as a private home owner, this will need to be changed to an residential investment building insurance when you rent it out… but I’d also reccomend getting landlords insurance to cover tenant damage at this stage. See a broker.
And lastly when should I be using trust name for buying a property comes in place? this one will be under my name. There are many pros and cons for buying using a trust structure. There are a number of good resources for you to read first. Steves Wealthguardian, Dale Gatherums Trust Magic, do a search on this site for more info! It depends on what you want to doJust want to get it right, so the journey does not slow down. I am looking to buy at least 1 property a year and in 10 years should have minimum of 10. But will look into commercial property along the way. Great!
Could anyone in who knows the sydney market well comment on my first purchase.
2brm villa in blacktown.
in the complex on resevior rd.
205k, agent confirmed rent around $210 p/w and this is not hard to get tennant.
I don’t know sydney market but 5.3% rental yield is very good for a capital city!
while living there for 6months I will be sharing with a mate so he share the rent. this will make things alot easier.Sorry for the long questionssss, A young kid with alot of things on my mind
You will do just fine, congrats on making the big plunge to buy
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Live, Learn and GrowLifexperience
oh, and you can’t vary tax until you start renting it out IE: it becomes an investment. I suppose you could get a dep’n report done at this point if you want to.
Live, Learn and GrowLifexperience
hi psyduck
not sure of the name but the investment from my point of view looks ok.
Blacktown has a relativly good growth and I think it will move further, I was at toogabbie today at a meeting and there is alot of commercial going on there which means jobs which means people looking for property.
5% on a villa for this market is also ok.
this is in your name but for me it should have been in a trust.
there is a meeting on the 11 sept in gladsville and you will meet people who will tell you why.
I would talk to a good accountant you can email me roy gardian networkgroup( I think) or mortgage hunter.
I can give you an accountant to organise this before exchange the cost to do it know is relatively cheap but in your own name may be more expensive later on.
You need to act before you settle and before stamp duty is paid.personal name is ok if you are keeping as a ppor but ip is a business and should be seen as such.
Like the ambition to gain 1 a year like the drive.here to help
Are you buying the unit through the FHOG?
1 IP a year..? Become friendly with a Pro-Active and helpful Mortgage Broker, I’ve found you’ll soon run into a brick wall called serviceability and you’ll need a ‘leg-up’ getting over it ..
Deprecation Report..May-June sounds good..but busy, help your accountant and have everything filed correctly, reconcile everything and know what you are doing..they’ll be glad to help, if you’ve got a good one.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorPsyduck
Congrats on taking the big step on your first property. You’re on your way now!
Sounds like a great return for capital city. You’ve made a good choice.
All sounds advice above.
Can i add – you can’t claim depn until it’s a rental property. Chan & Naylor (Dave Austin) at Oatlands (Dundas) are great accountants and understand property totally. They will be able to advise on all of the above plus why you should use structures and which ones suit you best.
It’s probably too late now, but buying this one in your name was probably not the best idea, esp, if you’re planning a decent portfolio. Before you sign anything else, go have a talk to them (or someone). Could save you thousands if not more, by getting it right.
Don’t let that put you off however. Most of make the same mistake first up!
Hope this helps.
Megan
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.hi gafama
some of us made a lot more of a mess the first time by not get the vehicle right from the start and hence I tell everyone that it is in there best interest.
I still haven’t sold it because to sell will hit me with a very hefty capital gain tax so let the kids worry about it.I get the rent.here to help
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