Forum Replies Created
Is it me Monopoly, or you really seem to enjoy neat picking on words and picking fights?
It certainly makes for more colourful posts and longer threads, yet still… I see no reason for picking on good old Russ or all the others you pick on Jo Victoria. … was wondering if you would get that many responses with a less revealing avatar? [cigar]
May God prosper you always.[biggrin]
MarcWell…if you want to discuss the difference between religion and faith we can have a go, but I do not think the rest of the forum will be interested, as demonstrated already in another discussion where my signature was the focus of attention.
Remember that when you say good by, you are saying “God be with you”. When you say Shalom, you are saying much more than peace, it literally means, “I wish for you a state of well-being that affects wherever you walk and whatever you touch.”
My signature is a wish of prosperity, something that is consistent with the quest of people that post on this Bulletin Board. I hope you take it as for what it is, a good wish to you. Nothing else. I am not disputing your believes nor your disbeliefs since I am not religious.
May God prosper you always.[biggrin]
MarcAdvantages are very relative.
In general banks will see a loan as commercial if the block has more than 3 units, so will lend you less on it or not at all.The cost of strata title a small 4 units block comes to around $10,000 in Queensland, not considering any building costs, like fire rating between the units. The comment that metering needs to be separate is correct, but in order to rent them they need to be separated anyway, so it’s assumed they are already.
If you ever need to sell, it is much easier to sell separately, but I’m not sure it warrants the cost. I am asking for an alternative quote, but I am not too taken with the idea.
On second thought, may be the price obtainable for the flats separately IS somehow higher than selling them all in one. Anyone has experience with this?May God prosper you always.[biggrin]
MarcYou may get a reply if you explain what or where is Ayr?
May God prosper you always.[biggrin]
MarcYou cannot talk about tax and skip the politics that made the Tax system. Our politicians wave with the left but drive with the right, and so we have the inconsistency we all know about.[withstupid]
As for religion, I don’t see any “religion” in my post.
Comments made are of a general nature and should not be construed as advice to any particular individual.So if you prefer the Pacha Mama … be my guest.
May God prosper you always.[biggrin]
MarcOf course, if you had a job that can be done as a contractor, (say IT for example) you can form a company and be paid as a company and taxed at 30%. (Of course losing your holidays, sick pay and other fringe benefit, your invoicing must reflect such loss in the form of higher hourly rate).
What is your second job? Can you invoice your boss instead of receiving wages? You would be surprised as to how much employers welcome such arrangement; it saves them heaps of money too.Your plan to buy your own home is good, but remember that it is a liability and not an asset as you may think it is. (Read R. Kiyosaki’s ‘Rich Dad Poor Dad’ book). So it will take money from your pocket at perpetuity.
An investment property on the other hand, and providing the income services the mortgage and leaves some left over for you, is an asset since it puts money back in your pocket.To give a balanced view, it is also true that 95% of people obtain capital gain, probably the only chance to ever see any capital gain, through the sacrifice that implies purchasing your own home. This some times leads to chances to re-invest in other assets using this capital gain the Banks like to call equity. If such capital is not reinvested in income producing assets, (with the consequent risk of putting your own home on the line), any CG on your own home is academic since to access it you need to sell your house, and this has a cost, I think the economist call it cost of opportunity.
Your tax “problem” is not unique, and it is because our tax system works on the “Robin Hood” principle of taking from the one that has, and giving it to the one that has not, with total disregard as to the reasons why we have or have not prospered.
Since politics is the art of purchasing votes for the next election, and the have not’s are more numerous and all votes count the same… give away what’s not yours and you are assured a victory at the polls. (End of cynicism)
To escape the rat race, you need to switch from a lineal income, where you trade dollars for hours to a residual income where you are paid many times over through leveraging on your capital, contacts, knowledge, inventions, art, and whatever else you can offer.
This Forum is dedicated to the art of purchasing income producing assets, namely real estate, a very good way to build residual income. Yet this is surely not the only way to build residual income.
May God prosper you always.[biggrin]
MarcInteresting thoughts, memories and opinions.
I went to see an ex hotel turned into boarding house for sale, not long ago. The gross yearly rent from all rooms (forgot how many… ~15?) was over 56,000 and was rented to students in the local police academy. What looked as a fantastic return on the $400 asking price, ended up being a business that was making a loss, not able to service the mortgage.
After taking into account cost of a manager/cleaner/general duties, the cost of heating and mainteneace of an old building, this was a money pit waiting to happen. It ended up in the hands of a solicitor who needed to write off some of his “excess” income.Yet I think that had I been a local, I could have managed and serviced this boarding house and made a mint every week even by employing others to do the menial tasks.
With multiple tenants, just like when you buy a block of flats, the money is in the numbers. I say, keep on looking into it, and it would be nice to hear from someone who owns a boarding house or a multiple tenants property.May God prosper you always.[biggrin]
MarcHum Mini, sorry to saythis but the moral of the traders story is …?
Success = stress and arrogance,
Pizza dude = happiness and relaxation?
[confused2]May God prosper you always.[biggrin]
MarcAgree with melbar.
Also, the cost of transfering the property from the trust to you will incur in CGT, stamp duty, solicitor fees etc. If the house has gone up in value 3fold, CGT alone will be a sizable ammount.I would work out exactly how much is the cost of the whole deal, and how much will you save in maintaining the company and trust.
Furthermore, since the trustee that holds the house is the company I think that you can sack the trustee and fold the trust, but you must confirm this with an expert.
You will then have to pay accountant for only the company. Find an accountant willing to do the company returns on the cheap since there are nil transactions and almost no work. The difference between one accountant and another can be as much as $1000 dollars.
If your house is 300,000 or more, I think that the cost of transfering it to you will pay for 50 years of tax returns.
Consult a few different accountants, you already suffered because of poor advice. It is time that you have some peace from worries.
May God prosper you always.[biggrin]
MarcWhat’s the matter boys and girls? Someone is needing some attention?[baaa]
How good or bad investment areas are is a matter of opinion not scientific fact. [blink]
I don’t own properties in Broken Hill but a friend of mine who has being buying CF+ properties before Steve even graduated from university does own two and is happy about them so far.
The question was posed to give practical answers.
An example is there for all to see, a block of flats in Mt Isa. Now in the spirit of a constuctive debate, why don’t we debate if you would purchase such block of flat or not and in each case what makes you decide and why.I start the ball:
Need local knowledge to know if it falls in local no-go-zone or not. Need to know if furnished or not. Need to know if undercover carport are available.
This town has a very high per capita income, one bedroom and two level is on the cheepest side, will probably get tenant that are not at work.Visit with an independent person that has local knowledge is essential. Note that the agent is from out of town. My guess is that the local reputable agent and Jay’s is one of them, would not want to know about this property, but that is only a guess. May be a good deal, but needs a good deal more research “in situ”.
Your turn.
May God prosper you always.[biggrin]
MarcRipping off the tenant . . . hum err come again?
The exchange of goods or services for money is the basis of the economy. Prices are the reflection of the market, unless you hold the RE monopoly on the whole town, you could hardly “rip off” a tenant. And considering the socialist legal system we have that protects tenants that steel fixtures and destroy your property, I’m not sure where do you come from.May God prosper you always.[biggrin]
MarcMm, yes some more good points, it probably bothers me more then them.
Now lets for a moment put all the very valid personal considerations aside.Do you have any practical suggetions as to how to go about it? I thought about a house with a granny flat, or buying a house 1/2 each. They could probably pay 300 per week I must probably throw 200 in the mix, or 100 if the g/f is rented.
What do you think, how would you do it if you were to do it that is.May God prosper you always.[biggrin]
MarcWow guys! so many responses, and personal stories. I truly appreciate all the valuable input and viewpoints.
Family matters are a sensitive issue because they immediately bring to mind our own experiences and the advice we offer is always heavily influenced buy our own story.You all make good points.
Give a man a fish etc: True, but … when I was 29 my wife was still finishing her medical degree and I was working 10 hour days and 2 kids to look after, I had moved houses some 3 times and getting sick of it.
My father in law came one day and asked me to take the day off. We bought the newspaper and went to see some properties in the area, picked one, and he paid for it in full and in cash, and gave it to us as a present. When we came to Australia, the money from our first house was the deposit for a house in Sydney, and I settled my number 8 IP two weeks ago.So the fish story is not necessarily always so.
Aceyducey,I like the idea of charging board and setting it aside for daughter 3, still at home, thank you.
Luckyone, you are correct. Help one and not the other and you start resentment. That is precisely what I don’t want to do. That is why I proposed to buy one property 1/4 each, all equal shares even when my eldest daughter was maxed out and could not borrow any further and my youngest one has a good job but no deposit nor equity, so we got the loan based on my equity and our income.
Yet at the time, the one that would have benefit the most, opted out. The other two had a helping hand and the one I indented to help has nothing.
Wejons1
Part of being a parent (my opinion) is to try and provide your kids with options and opportunities that you didn’t have.Everyone is different, some learn some don’t, and everyone learns at different rates too.
Give them the opportunity, do what you feel is best for you and your children and if they let it slip then you have done all you can.
Thank you[thumbsupanim]
Everyone learns at a different rate and in different ways. I feel that my dear daughter and son in law will benefit from some form of help that puts them into a house they can call their own even if they need to make repayments for a long time.
How to do it without ever having to hear from one of the others that I “gave” them something I did not the others, is my dilemma.
However, may be I am being overly careful (?)Kay Henry, your opinion is interesting (do you have children?), you seem to see it from “the other side of the fence” as a kid would. Why would one sibling resent the other? why in deed! I know I did. When my parents split up my mother put our house on my brother’s name to keep it from my father. We where 18 then and I did resent it.
Lucifer, you remind me a famous beekeeper that wrote a revolutionary book in the 70tiesm about bee keeping. Against all the traditional literature he said (in a nut shell), spend you energy not in helping the struggling beehive, but in maximising the one that is doing well. Spend less energy for better overall results.
True . . .only that our kids are not beehives nor subsidiaries.
Piscis, I agree with you. We are parents for life, not just for 16 years.
The point of my post was not so much about telling you my life stories, but to see if someone had some practical suggestion as to how can I help my daughter to have her own house.
Today I was trawling the net for houses with a granny flat. It occurred to me that perhaps buying a house with a G/F that can be rented would just make it possible for them to make the repayments.Residentialwealth, yes, you are right. Some practical ideas would not go amiss.
Calvin…clever! She missed out the first time, I can help her now. True.
Hope the others see it that way too. Any ideas as to how?May God prosper you always.[biggrin]
MarcHei, no need to be so carefull, I asked didn’t I?
Calvin:
Nothying wrong with her, she just started a family stright after marriage and one income is not so flash. The other two girls, one is DINK and the other is still at home.You are spot on about them not beeing business orientated. I Offered to puchase an IP 1/4 each just to get them going but my son in law declined, so we purchased one 1/3 each with the other two that did not realy need any encouragment. They missed out on some 30,000 last year alone with that silly move.
I could just get them to buy and underwrite the mortgage, or draw up a wrap at no profit but they can not repay 350k, you need some 600 for that.
Monopoly:
Yes our kids are all different, ‘like the fingers on our hand’… I like that.
Even when my last daughter (12) seems a ‘twin’ of the eldest one (28)So you say to buy a house and just subsidese their rent. Mm, I suppose I can do that, but how does that help them to have their own house?
Wouldn’t that just perpetuate the dependency?
None of the sisters looks down to them, I just don’t want to do something that I cannot do for all.
I have been thinking about another possibility but it is a bit more in the future. I want to move to a farm in Camden, Cobbity or therabouts, and they could build their house on the farm next to ours, by taking out a smallish loan, yet that would make an even bigger mess, since such house would be un-sellable unless I buy it the day they want to move.
[glum]May God prosper you always.[biggrin]
MarcPerhaps the lender has a point, not to be overlooked.
Risk minimisation tells you to buy a bit everywhere. Suppose you have 10 properties in a small town and the local mill closes down…
May God prosper you always.[biggrin]
MarcHa ha, you are spot on Calvin. Not only if you buy and hold you can easily say who cares, this tax has smoked out all the sellers who have jumped on the market all at once, choking it with listings that where waiting for another extra $10,000.
Never been so good to buy in Sydney, not since 1992, and it is going to get even better if we get a rate increase next month.
Welcome, by the way!May God prosper you always.[biggrin]
MarcRent increase must be seen as a business decision.
When I bought my first Sydney IP, it was rented and the tenant had lived there for the past 5 years, last 2 years paying $200. When I asked the PM why had the rent not been updated, she said the usual, that it’s a good tenant, you may loose two weeks rent or more if they leave, etc.It reminded me the reasoning some people make when they keep on repairing their car instead of trading it in for another. They end up with a 20 y/o car that is worth $100 and need to fork out 20 or 30k to buy a decent one.
I though if the tenant leaves it will be a pity but the next one even at risk of losing one-month rent will be paying market rent. If I keep the rent unreasonably low, I am hurting myself and I am screwing the market. So I put the rent up $20 to 220 and have kept it up to the market value ever since, with no ill effect on the tenant.
As for the guilt side of things, I see no guilt in the supermarket when they keep the prices up to date according to market forces, nor I see it in the petrol station owner, and no guilt whatsoever in the vendors face when they ask for a sometimes ridiculous price.
Prices are the result of offer and demand, if you have a house in Balmain you bought for 150,000 15 years ago, and now is worth 900,000 are you going to feel guilty for charging the tenant $700?Remember that many of the lower income tenants recirculate your own tax in the form of rental assistance, between a rent of $42.20 x week and a rent of $106 x week, each $10 you increase the rent is subsidised by ~$7 with your tax, up to a maximum of $47.20 x week with some minor variations according to circumstances.
May God bless you
and prosper you.
MarcI’m single, non smoker, no major operations, I work in intellectual/psych disability, etc. Think of ‘George Costanza’ from ‘Seinfield’ minus the weight and baldness and that’s where I’m at.Even as a Seinfield fan, I don’t really understand where you are at.
Income protection is not life/permanent disability insurance, and looks at your employment history as well as health.
You say you work, they will ask how long, how secure your job, how good is your health. If your have a basic salary plus overtime, they have all sorts of ways to pay you only the basic salary and for a relatively short period. They will factor in your right to receive unemployment, factor in your partners income, investment income, the ways for them not to pay or pay too little too late are far too many.
In addition, the rates are relatively high in comparison to the benefit. I cannot say they are not worth it, but you must shop around.
If I was determined to have such insurance, I would go through a broker to have it all explained in fine detail, I would only believe half of what I see printed and nothing that is told to me.
May God bless you
and prosper you.
MarcYou do not say if the house your mum lives in is under her name or yours, I assume it is in her name, and that she has no other assets and is on full pension.
Is your house big enough to have here living with you?
If so, she can sell her property and the equity remaining will be her contribution for you having her for life in your place. Must be done legally and is called the “granny flat interest” or “life interest”.If your house is not suitable, you can either build a granny flat, subdivide and build another house in the back, or sell both and purchase one that has a granny flat or that is big enough for privacy. Again, it is you who buy the new property and your mother who purchases a right to live there for life. In this way, her money is not counted as a gift and will not affect her pension. If she just gives you the money to buy in your name, anything over 10k will become an asset and affect the pension under the income or asset rule.
If both houses are in your name, she can claim rental assistance right now, since she is paying you rent. The maximum payment she can get is $95.40 x f/n and this if the f/n rent is $212 or higher. No rent assistance if f/n rent is lower than 84.80.
If she purchases a life interest in your home, no rental assistance is payable, but if both houses are in your name and you still have her with you in a granny flat or in your house, rental assistance is payable according to how much she contributes in the form of rent. The assessment varies in this case if it is only rent, board and lodging or sharing accommodation.
Before doing anything though, please consult your Financial Information Service Officer FISO in the local Centrelink office.
May God bless you
and prosper you.
MarcHi Tony!
Excuse the manners of the previous posters, but I think your own post was mm how to say …venturesome.
You don’t go to the airline check in and say to the check in chick, I have a bomb in my luggage, ha ha April fool . . . Don’t try that, you will get your back side kicked. They take security seriously and people around here take market indicators seriously. It is bad enough to listen to the media commentators drivel, parroting what is fed to them for a fee.
Despite some people thinking they may benefit from a sharp price correction in RE, nothing is isolated in the economy and such fall would indicate that the whole economy is in turmoil and an economy that is in a downturn can only spell problems for almost everyone.
What most around here seem to agree upon though, is that no such fall will take place and that we must find opportunity where most see doom. Think different. Never follow the crowd.
People rush to sell in an indifferent market in Sydney to beat a smallish (jet unjust) new tax. Save $8000 and drop 30,000 from the price in order to sell seems a bit foolish to me but hey, who is complaining? Offer $50,000 under the market price or more! The fun part has just began
and if you are smart, you may just get the chance to prove that money does not make you happy.[biggrin]May God bless you
and prosper you.
Marc
