Well – we turned it around. We sold some shares,
put some of the money aside into our home loan – and used it to upgrade our PPOR to bigger (growing family)
and then used some of the money to renovate the unit, and (as someone else elegantly put it) “Shot the dog”
We sold the unit. We got a good price, put the money into our…[Read more]
Some Tough decisions to be made here.
Perhaps the following story from my similar situation will help.
We were in the same boat as this mid last year. We had three investments that were neg geared.
We were out of cash. Had about $1000 left of holding costs, about 2 months worth, and after that? could see danger up ahead.
1 unit not renting…[Read more]
Over a nice lunch (not just liquid mind you!!) I talked with my accountant. A great way to pick someones brain and be guided away from dangerous assumptions…
Amongst other things, I floated the idea of selling my house to a trust and renting it back. Short answer: No.
The ATO looks very dimly on this they issued a warning to accountants late…[Read more]
Paul Ramsley is at Springwood, opposite Ikea. (south of Brisbane)
The business name is Rockland Business Consultants
He is a property investor himself, and partnered also with a seperate business is an investment advisor – specialising in limited property trusts.
I like using him because he knows property, has a keen…[Read more]
Originally posted by Terryw:
Another pro: You could rent the house to yourself furnished and then claim decpreciation on your big screen TV etc.
Another Con is Land tax, and you would have to pay your trust market rent, so over time it would become cashflow positive.
It may be a good idea if you only intend to live there for a…[Read more]
Turn your own home into a IP.
Here’s a (non original) thought.
You could “Sell” your PPOR to the HDT.
(at market value for “arms length”)
(costs = refinance costs, stamp duty etc).
Then once the entity owns it, rent it back
(at market value for “arms length”)
This turns it into a tax deductible asset. Kiyosaki be blowed!
Then if you move…[Read more]
I would very much like to see some more discussion in this thread also. The author has succinctly asked the right questions that are mulling about in my head also, and I look forward to seeing some answers.
GO Hard John! Well done and I hope it turns to Gold for you – I’ve just finished my first renovation and I like the results. It’s hard work but lots of fun if you like mucking about with Power Tools, paint etc. Plus the results can be great.
Warning: About 1/2 way through you might experience a slump as the place looks like a mess, and you’re…[Read more]
alwayscurious replied to the topic depreciation on house (also known as deferred tax) in the forum Legal & Accounting 14 years, 9 months ago
Correct me if I am wrong – but
If you don’t claim it, I think you still have to pay the same capital gains tax as if you do?
it’s not the ATO’s problem if you don’t claim it – they offer it to help private investors house tenants.
OOPS – Scott – you got to it first. Should have read your reply more closely.
Slap on the wrist???
I hope they get a good solid kick in the goolies.
Ie – a big fine.
doubt it though – with the agencies being ‘policed’ by the REIV – who also happen to receive money from teh agencies and are advocates for the agencies.
As useless as a hatfull of busted ars*****s!
As happy as a dog with two tails!
“It’s Easier to ask forgiveness than permission”
My Dad’s (From Jackeroo days)
All over the place like a mad woman’s s**t !
careful with dictaphones. Recording someone without their knowledge goes against some privacy laws I beleive. I think you may have to have a warrant to do so.
Just a thought, not entirely sure on legality.
Keep it legal.
If you do everything above board – ie a diary is fine, but recording may or may not be.
I watched an interview with “Crazy John” ilhan – the mobile phone guy. Basically he grew up in a tough scenario and his attitude is if someone says “you can’t do that” He says “Pardon?” What did you just say? And a dangerous look crosses his face….
Red flag to a bull!! Then he goes and does it.
I like that attitude. Too often I’ve been…[Read more]
Remember also that the real estate agent is now acting for their interests and may try and pressure you into closing the deal and accepting the offer.
This is because they have a commission (almost) within their grasp and will work hard on the easiest party to condition them into a sale.
That party most probably is you at this point. Whatever…[Read more]
Sounds like a scam. If you’ve had the pest control reports done every year tell them that you will happily provide them with the reports and that they can deal with your pest company. Another bargaining point is that you were prepared to buy the house with the existing damage and have been VERY careful *yearly inspections* which is more than…[Read more]
You’ve got some good ideas here – keep going! you’ll get there if you persevere.
A couple of points.
Quantity surveyor is well worth the money as they find every little bit of depreciablity in the house such as light fittings, switches, taps, blinds etc.
They cost about $400 + GST or more I think. More than $200 anyway.
I was there!
I was wearing a white shirt with big cuffs, and I am a fairly short guy with dark hair, glasses, and a big grin.
I was sitting on the right hand side, about 5 rows from the front
It was a fantastic time.
I met a few really great people also!
Thanks Steven & Dymocks for putting it on.
“oh, the places you’ll go”
Hehe, I found my english deterioated significantly after living overseas for a year.
I dropped into the local patios and I find myself still doing it – even if the person I am speaking to has perfect english!!
That made me giggle a bit. I remember this one chap who was from elsewhere in Asia who had to run from the law, ended up in China…[Read more]
Weekly Rent x 500 <= purchase price.
IE weekly rent = 100$ per week.
Times 500 = 50,000.
Purchase price should be no more than $50,000
If you quickly do the maths it’s EXACTLY THE SAME as the ’11 second formula’
weekly rent divided by 2, times 1000 <= purchase price.
In my opinion Steve’s books & courses etc…[Read more]
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