[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

July 28, 2012 - 2:15 pm

I'm a noob investor but I DO love my spreadsheets!

The decider's for us:
We wanted to invest close to home but its hard to find cf+ properties in perth metro and we are too busy.
One of us pays a lot of tax so we could benefit from a negative/neutral geared property with some capital growth potential.
We wanted to make both scenarios work.

We did our gearing calculations first then added the NRAS benefit back in. We looked at the NRAS as icing on the cake, especially as we have also got some capital growth expectations in our target area.
 
We found a cf neutral (in year 2) property in NRAS and we'll use the incentive to pay off our non-deductible  property in less than 10 years.

Nobody has a crystal ball but if the investment ticks all the normal boxes why would you not go for the incentive?

So far we've had everything come up to market (no high fees or valuations) and actually got lower management and strata fees.

We did decide we would NOT buy off the plan because we wanted tenants from day one of settlement and no uncertainty about costs and finishes.

One thing I found is that there are so many different scenarios out there you just have to knuckle down and crunch the numbers in your situation.

This calculator was really helpful.

http://www.investmentpropertycalculator.com.au

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

June 21, 2012 - 10:48 am

I am in Perth and I got great advice here: http://www.bantacs.com.au/QandA/index.php?xq=386

Julia Hartman is so knowledgeble in this area and she got back to me very quickly. You can judge the quality of answers by looking at previous questions.

It's the best $60 I spent in a long time. I don't know what you normally pay but I've never walked out of my regular accountants with such a small bill!

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

June 21, 2012 - 10:37 am

PropertyMonopoly wrote:

Hi Caz,
As jmsrachel mentioned, a reasonable cost would be in the $10-$15k range for a new kitchen excluding appliances. the cost depends on the size of your kitchen, eg how many cabinets are required as you realise big kitchens need more cabinets and more bench top and it all adds up. Other cost factors are finishes, eg vinyl wrapped or patterned doors, 2 pack paint stone bench tops and glass splashbacks or tiles. Going to auction can be good especially if you can install yourself or even buying seconhand….

…Put in plenty of research and drive a hard bargain, it can be fun. When you get a bargain kitchen all your friends will want to know where you got it.

If you were in Adelaide I'd be pleased to offer you a quote, however as that's not the case, I hope this may help.

http://www.kitchenstoimpress.com.au

Thank you, all great info! I am refining the design and getting a few quotes. Looking forward to posting some before and after pics

Carolyn

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June 21, 2012 - 10:35 am

antheap wrote:

Hi Caz, I would highly recommend TS McMahons auctions in wangara. I did a full kitchen reno a few years back. I now have a solid stone bench top, & a enamel sort of coating instead of laminex on the cupboards. They all come ready made, you just bolt them to the wall. you do have to have a good imagination on how it will fit in so best make sure the measurements are spot on. I only spent 6 grand & came home with all the cupboards bench tops & overhead cupboards, rangehood, sink & mixer, & my kitchen is bigger than average so finding one under 5 should be easy if its average size. good luck

Thanks for the suggestion. It sounds like you got a bargain!

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

June 18, 2012 - 10:30 am

I did a reno with that veneer paneling and hideous 70's wallpaper. Sanded it all down made sure it was all sound (pvc glue in the areas that needed it), Painted with oil based undercoat and paint in a light colour and it looked fantastic.

You can also fill the grooves in veneer and joins in wallpaper and sand back to smooth if you want to. Not suggesting you do that on large areas, I had to work around existing cupboards and fittings so didn't want to rip out and gyprock.

Caz

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June 14, 2010 - 1:06 pm

Thank you Greg

We are now in the top tax bracket so looking for future capital growth, with the best tax breaks while we hold it. I've not seen another NRAS opportunity advertised in Perth and I'm wondering where one does find them.

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

May 12, 2010 - 3:56 am

Thank you Terry

I'll make a note to take to next meeting with accountant.

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

May 10, 2010 - 8:44 am

My first IP had beautiful Jarrah floorboards but they were covered in black stuff under the layers of lino and carpet. After some experimenting I discovered that the stuff only extended 18 inches from the skirting and  was soluble with metholated spirits it then washed off with water. I did spend a few days on my hands and knees but at least never had to sand them!

 It was common in the past to paint or wax only the edges and lay a rug over the rest, so lifting the edge of the carpet may not reveal the  true condition of the majority of the floor, a trip into the crawlspace under the house is recommended for wooden floors to see the timber in its untreated condition (maybe can even be lifted and turned?). Where they are covered in layers of grime and glue and paint I do reckon it's worth doing a major sand because in the long run the timber floors will be an asset.

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May 10, 2010 - 8:25 am

My partner and I have just started a discretionary trust with ourselves and our daughter as beneficieries. We have started a business and the income from my husband's share of work in a newly signed contract would otherwise be second income for him and attarct the highest tax rate. I work as a principal in the business but as yet have not brought in any of my own clients (though hope to change that soon!). It cost us $550 for the legal documents to be drawn up and accountants initial advice and that is much less than the tax which would have been due on the first month's work if it was not paid to the trust so I am very happy.

As for buying IP, our accountant seems to think it is better bought in the name of  the highest tax earner if it is negative geared, although I admit I was having trouble focussing by the time we got to that part !

Like Terryw he explained that the trust does not pay tax unless the profits are not distrubuted, it is the beneficiaries that pay tax after receiving it into their own taxable income (including the cat?).

However, what I am not clear on is if, say, a trust has several assets and/or income streams, can they be offset against each other. Total income + gains against total expenses + losses from all sources equals profit to be distributed? If that is the case it seems like it can be very flexible with the right planning.

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

May 10, 2010 - 5:29 am

Just my 2 cents worth on "wood" flooring.

We had the floors in our own home covered with the vinyl strips that look like wood but are less noisy than laminate or floorboards. They are warm and soft under foot and very hard wearing, also water proof, and look great. Cost less than a similarly durable carpet and damage is easily replaced by the strip (buy an extra pack in case your colour is discontinued). Would have been easy to DIY but we had a guy come in and do it in half a day after we prepared the concrete floors for him. Forget the trade name but we got them at Carpet Choice.

[CazziePParticipant@cazziepJoin Date: 2009Post Count: 24]

April 24, 2010 - 4:27 am

This discussion makes me wonder if Perth rents are too low.

I've been looking to buy something under 300k that is at least CF neutral and not having much luck. And yet there is a lot of talk locally about the lack of affordable rentals and the difficulty of renting a decent home. Makes me wonder if Perth rents will rise higher sooner rather than later.

Maybe Sydney is a better bet, although I did want to personally inspect before purchase and probably can't travel within 12 months which is why looking in Perth and southern regions of WA.

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April 23, 2010 - 9:13 am

Interesting. I just posted a question about this scheme in the help topic. I am not sure how this scheme can be an advantage to small investors looking for just one property. Can you explain how or else let me know if its not worth considering on a small scale.
Thanks
Carolyn

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November 16, 2009 - 10:48 am

Any chance of a snapshot?

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November 16, 2009 - 9:21 am

Thanks Sonya

I've been looking at the pitfalls and what can go wrong and I guess we need to take off our rose coloured glasses. I've been seriously looking at the granny flat idea and we think it would be a reasonably good solution to have one put in. We can have an agreement drawn up about the assets division and I can move into the granny flat and rent out the main house to boarders (possibly as international student housing). If I get a full time job later I'd be able to move back inthe house and rent out the granny flat (hopefully thus avoiding capital gains tax too).

Lots to think about!
Carolyn

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November 15, 2009 - 10:10 pm

Thanks Tuff-ET

I work part time and I am self employed so I'm not the best looking borrower on paper but I know there are ways of doing it.

I was looking at the property again yesterday, it's a huge block with several garden areas and has a powered shed on a concrete slab the size of a one bedroom unit. Fortunately there is no rush for this separation to happen, we are dealing with things quite well. I'm thinking we'll get a couple of people to look at the area where the shed is and give us some quotes on replacing the shed with a granny flat. Yes, we should be talking to a lawyer as well in case things go pear shaped in future.

I think I'm beginig to understand why some people seem to wait until they retire or the children have all left home before they get divorced! It makes a big dent in your joint investment plans if a lot is invested in your family home..

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November 15, 2009 - 9:30 am

No answers to this? I thought the people on this forum would be creative and have ideas how we can achieve our goal.