I’m not a solicitor nor an accountant.
To my understanding, a trust permits the _flow_through_ of 50% capital gains tax discount. That is whether 50% discount can be taken depends upon the entity to which the capital gain is distributed.
I don’t think a trust gets the land tax discount (under NSW law anyway). I suggest asking the Office of State…[Read more]
Steve and Dave mention in their seminars (and perhaps in Wealth Guardian) that banks have a maximum amount they want to loan to a person, regardless of their cashflow and asset position.
The solution is to have properties owned by an entity (or entities), instead of owned by the individual.
The individual controls the entity(s) (usually best if…[Read more]
I disagree with you. It is probably a good investment for Westpac.
Just not a good investment for those who buy into the REIT. But there are plenty of people who like others to solve problems for them, so Westpac will probably do very well out of it.
I wouldn’t touch such REITs with a barge pole.
I checked out Defence Housing as an investment years ago. The gross returns were too low and therefore the investment too ‘negative’.
An investment trust’s returns reflect the quality of its underlying assets. If the underlying assets can only provide negative cash flow returns, how is a trust they…[Read more]
Don’t know what state you are in, but here is my NSW experience:
They might charge you $137 for “the trust”, but check whether that includes the stamp duty to register the trust deed with the state govt. In NSW, my last trust (in 2000) cost $200 to register.
Really you are just paying them to provide you the text of the trust deed (which they…[Read more]
In NSW, councils publish LEPs (local envirnoment plans) and DCPs (development control plans) which communicate their subdivision policies.
“The council provides facilities, services and administers regulations, which enhance the lifestyle and wellbeing of a diverse community.
Most superannuation accounts are not known for good returns.
If your house loan allows an offset account (where any balance reduces the interest on your home loan), I’d put it in there (so it is available for investement).
If it doesn’t allow an offset aco<edited> and your house loan allows you to redraw, I’d pay it into the loan account.
Assuming it is in NSW, the Land Titles Office has a record of all owners.
You can visit them in Sydney CBD (perhaps also other offices around the state) or go via one of their online brokers to get the registered owner.
An addition to my original post:
I had a look at Investment Detective today and there are some purchasing costs I do not know how to estimate, e.g.
– mortgage registration (with whom?)
– building inspection
Three other things I would check to see if they would add value and flexibility to a strategy:
1. What is the zoning? In light of the industrial area nearby, is anything permitted on the site other than residential use?
2. In light of the industrial area nearby, is the site well-positioned for advertising and is the council flexible…[Read more]
In my amateur opinion:
1. If one does not have time to look for properties which will give you a good return, don’t buy. Perhaps you can hook up with someone who has the time to look and be an investor with them.
2. I would go for houses rather than townhouses or units as land tends to increase in value and buildings tend to decrease in…[Read more]