Forum Replies Created
Elders Launceston is one definitely to steer clear of we had endless problems with them. Peter Lees who we are currently with are very professional and would reccommend them for property management.
Ravenswood is split by the main road which you use coming from Launceston CBD and leads to the IGA and splits in two. If coming from Launceston CBD the area to the right of that road is referred to as old Ravenswood and is considered the better part the part to the left has a lot of commission housing and if you are a Landlord more undesirable tenant pool(to try and put it nicely)
Have to say can’t remember if I got a S32 for our purchase.
As with a lot of areas at the moment the Launceston market is flat and if there is a good time to buy there it would be now. We bought a property in Ravenswood(the good side) 18 months ago it has experienced minimal growth in that time but we are in for the long haul. Rent is reasonable giving us a yield of just over 6% currently. If you do decide to buy an IP in Launceston just be wary of the Real Estate Agents if you decide to use one for property management good ones are few and far between
Want2invest wrote:Hi Terryw,
Thank you for your reply.
I would ideally like to pay off my PPOR. I am trying to investigate if its possible to re finance and pay off my loan on our PPOR and transfer the loan over to the IP? This would obviously help with tax reasons and would be debt free with our PPOR. I would rather not sell the IP we have as there is a possibility that a unit could be build at the back of it (place across the street did this and land size is the same). Will investigate this at a later stage.
Thanks,
Jim.If you refinance IP and use the funds to pay off your PPOR the interest on those funds will not be tax deductible as the purpose the funds were used for are not income producing. Which is why Terry’s suggestion is the way to go sell IP, pay off PPoR and use surplus for deposit/buying costs to buy a new IP
god_of_money wrote:Looks OK
but why not advertise with domain.com.au
or realestate.com.auLooks like it is on both:
http://www.realestate.com.au/property-house-vic-st+albans-404831736
http://www.domain.com.au/Property/For-Rent/House/VIC/St-Albans/?adid=6773976SQM suggests vacancy rates in St Albans are around 1.6%
http://www.sqmresearch.com.au/graph_vacancy.php?mode=p&postcode=3021&t=1
This website does both of those:
Yes there are problems if the loan defaults both properties are in the mix also if you want to sell the original property you might have difficulty refinancing the 2nd property to stand alone or be up for LMI if the equity of the first property was used as a deposit.
JacM wrote:I think you'll find that to avoid the CGT, you will have to be living in the house when you sell it. The 6 year rule merely means you have 6 years to move back in to do this tax dodge. However if you've moved to another house and declared it your PPOR, and turned the first house into an IP, then you will not be selling CGT free…Don't think you need to be living in the property at the time of sale, from my understanding you will just not be able to claim the main residency CGT exemption for your current PPoR for any period that you claimed on your original PPoR under the 6 year rule.
Scenario is this thread:
https://www.propertyinvesting.com/forums/property-investing/help-needed/4333447
House Call wrote:Now that bit I do not understand. I thought rent going into the LOC was a good thing because my interest bill goes down as balance falls (effectively "parking" money there).
Can you explain an offset account, then? I thought it is a positive bank balance account where the interest earned goes against your loan interest, but that the interest you earn on it is same as any other normal account (ie low interest rate) and therefore the benefits are lower than plonking the money straight into the LOC which will then save you the same interest rate as the LOC (ie save you more) than the offset.
someone else will be able to explain it better than me. The LOC is for investment purposes therefore interest is tax deductible so you don't want to be reducing the interest paid on it when you have non-deductible debt.
The offset account would be attached to your non-deductible debt(ie your loan on your PPOR), any spare money including rent goes into the offset, offsetting the interest paid on your non-deductible debt. Say you have a loan for $200K and $10K in the offset account you would only be paying interest on $190K.
House Call wrote:good thing there is not all that much "spare money"! lol (lots of kids and cars and o/s holidays takes care of that)Think Terry was refering to the rent should be going into your offset and not into the LOC
Thanks for the replies, clears up what I was thinking
If your gain after the 50% discount is $50K then you would be taxed the amount a person earning $50K would, which would be about $8550 – 15c in the dollar from $6K to $37K then 30c up to your $50K
Yep you would still have to pay CGT but it would be the best time to sell as your gain would be taxed at the lowest rate
No Stamp duty when transferred between spouses in Victoria
Capital growth is slower in regional Vic but you can buy a near new/or new 3-4 Bedroom house for around $300-350K which will give you high depreciation. Also there are a fair few properties where the rental yield is pretty good and the vacancy rates are below 2%, we are currently looking in Bendigo, Ballarat, Wodonga and Geelong probably just going to watch the sales and rental markets for a few months but at the moment I'm liking Bendigo
Because the capital growth is slower would need to plan to hold it for longer.
Not sure about NSW but certainly with Vic investors pay more Stamp duty because of the PPOR concession
To avoid Lenders Mortgage Insurance(LMI) a state which the Lender is happier releasing equity you need to be at or below 80% Loan to Value Ratio(LVR). Currently if your property is estimated to be worth $320K and you owe $240K then your LVR is 75% meaning you could comfortably use around $16K of your equity without going over the 80% and incurring LMI. Some Lenders might go higher than 80% to 85% or 90% but the loan process would be more lengthy and stringent and you would be up for LMI
If you have the equity for a deposit and the servicability then IMO it's the good time
Was discussing this with my lender yesterday, they don't have the concept of a Line Of Credit, for investors like myself what they do is create a standard IO loan draw down the funds and dump it in the redraw for you to use as you need, would this situation be different because the funds are put in the redraw instead of an offset?
best to get a depreciation report done by a depreciator they will go trough the whole property and determine what is depreciable and for what length of time and put together a report of depreciable assets for the coming 7 or so years
