Forum Replies Created
dealing with centre link is a nightmare john. One of your major problems is you have everything in your personal names and setting up a different structure will cost too much due to transferring assets due to stamp duty and capital gains tax.
I am in a similar situation but sold my negatively geared property in 2005 after my two daughters were born due to the idiotic notion that a loss is actually a gain. This meant a tenant lost their home and have not since purchased anymore investment properties.
I only have one house rented out and I own it so no negative gearing.
However I had to pay centre link back their payments as the capital gain was considers income – funny how a capital loss doesn't come off my income but capital gains can be deemed income immediately.
I could have claimed parenting payments for the last 5 years of a measly 60 a week and a healthcare card but having to report my earnings every 6 weeks seems to me to be a degrading intrusive process. So I did not claim it and I also have over estimated my income so that my family payment A is less with remainder paid at EOF and family payment B is paid at the end of the financial year so I do not get accused of fraud or have to pay money back to centre link.I have done a rather drastic restructure and formed a company so I would recommend you get some accounting advice on what is the best structure for your investmewnt goals and situation.
Unfortunately I have a property in joint names that will cost too much to transfer into a company ownership.I can not by law advise you what structure to use as I do not know your situation and even though I have a degree in commerce with a major in financial planning I do not have the FSRA financial planning licence from ASIC
This is a grey area of tax law but from what I remember of tax law it is a replacement of the whole unit and is not a repair.
see this link I found on the subject
http://sites.thomsonreuters.com.au/tainsight/2009/06/12/repairs-v-improvement/
http://www.washingtonbrown.com.au/property-repairs
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR9723/nat/ato/00001http://law.ato.gov.au/atolaw/view.htm?Docid=TXR/TR9723/NAT/ATO/00001
see point 35 this may be what you are thinking of
remember tax rulings can't be relied on they are not set in concrete they do not set a precedent in law and you may have to apply for a tax ruling via your accountant for your particular situation.I have used my rental manager to use the trademen on their books in the past
I have also used the grey army before they franchised http://www.greyarmy.com.au/services.nb
I have also found hire a hubby to be good also http://www.hireahubby.com.au/
they can be a little bit more expensive but I was happy with the end resultJims may be another source http://www.jims.net/
If you want to use local people get the local paper for the area and all the local trades will be in it.
Sometimes bigger companies are too busy but the local tradies in the local paper will be interested in doing the work required.If you buy condo ask yourself how many people can afford to rent it out from you ?
If you buy cheaper property how many people can afford to rent it from you ?
contact council see if you can renew the DA application
this is a property forum however
aweber is a good service you may wish to investigatehttp://www.aweber.com/pricing.htm?gclid=CIG31_7l97ACFUKDpAodall5Cw
duckster wrote:there are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
development application to council fees
building application fee
building units cost
landscaping costs
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)
marketing costs
sales commission and advertising
interest costs (18 months to 2.5 years)
setting up body corporateas you do not know what you are
doing a private town planner may be usefulthere are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
application to council fees
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)as you do not know what you are doing a private town planner may be useful
there are many books you could buy alex
you could look at www.activepropertynetwork.com.au
rookie developer courseFeasability
Ask your self what costs are involved
Surveyor
civic works
application to council fees
contribution for loading infrastructure called head costs sometimes
most important point what does a town house sell for (work this out and work backwards on costs to see if profitable)as you do not know what you are doing a private town planner may be useful
it comes down to who is holding your title.
If you get a second loan and the bank says don't worry about a deposit we will add your other property as security plus the new property as security for this new loan that is cross colaterisation of securities .Your accountant should be able to add the air conditioner to your depreciation schedule and work out its effective life of the air conditioner.
Town planner
http://www.google.com.au/#sclient=psy-ab&hl=en&source=hp&q=town+planner++bondi&pbx=1&oq=town+planner++bondi&aq=f&aqi=&aql=1&gs_sm=e&gs_upl=337l2907l1l3040l6l5l0l0l0l0l615l1897l2-1.0.1.2l4l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=9f75178bb8882800&biw=1280&bih=588Go to an accountant and get the right structure ie company / trust ask accountant .
I have not done this myself but town planners sometimes have access to architects and surveyors ect.
Hopefully you have factored in capital gains tax liability on the sale of your investment property in your next tax return.
http://www.allbusiness.com/business-planning/business-structures-corporations/686-1.html
Capital Gains tax is calculated differently so ask your accountant how this works under a company
Ask your accountant if they can set up a shelf companyhttps://www.propertyinvesting.com/forums/property-investing/general-property/4321654
http://www.netlawman.com.au/info/trusts-ins-and-outs-australia.php
http://www.ato.gov.au/content/downloads/mei00182084nat72538.pdf
Susan, It has become hard to find private finance since ASIC created new credit laws that make it cost prohibitive for private credit providers to meet their compliance requirements to keep a credit license and provide credit.
You may find a joint venture where you share the profit based on the share of investment may be worth investigating.
I have found a previous posts for you in this site that mentions an investor club
https://www.propertyinvesting.com/forums/property-investing/general-property/4330494this may be how you could network with other investors from Brisbane.
http://www.meetup.com/brisbanepropertygroup/What features does it have ?. What makes it stand out from all the other properties on the market !
Does it have a nice garden
Does it have central heating
Does it have evaporation cooling
Does it have cooling
Does it have neutral colour schemes.
Does it have a carport
Does it have carpets as some tentants prefer polished floor boards.
Does it have a water tank
Does it have nice light fittings
Does it have curtains
Does it have the option to rent a BBQ or does it have a deck under a pergola.
My all time favorite and most important for Tenants DO you have built in wardrobes ?
Do you have a toilet roll holder in the toilet
Do you have towel rails in the bathroom
Do you have a vanity mirror in the bathroom
Do you have broadband wired up in the house !Do you allow pets in the property good rent marketing point maybe you let dogs in back yard
My tenant has a dog and I do not think they will be moving too soon as they know I know about the dog in the backyard as I found out about the dog when I got the fences replaced. They also know I do not mind the dog in the backyard .
You sometimes have to think like a tenant
Here is my tip for cutting straight lines. (1) use a drop saw
(2) use a saw bench(3) I use a piece of square wood and place this on top of the timber to be cut
Then turn the saw blade so that the blade touches the wood you want to cut this way you can see exactly where the saw is going to cut.
Place the square against the square wood and once sure of position then use two g clamps to hold the guide wood in place .
This allows you to cut the timber from both directions as the g clamp can be further down the timber away from the saw motor.
If doing multiple cuts the drop saw is the way to go ! but for wider jobs I use step 3Worth checking what your local Bunnings has to offer also
ORSM wrote:Also how is CGT calculated?http://www.capitalgainstax.com.au/capital-gains-tax-calculator.htm
it is complicated to explain. joint ownership you split the capital gain 50% each owner
>12 months ownership from contact dates not settlement dates then another 50% discount
Then cost base has to be considered to subtract from the final profit
http://www.ato.gov.au/corporate/content.aspx?doc=/content/36557.htmBut you can't double dip on this soas an example if you rented and claimed interest costs against rent each year then you can't claim interest costs as a holding cost on cost base.
what ever is left is added to your margin tax income to calculate what tax you will pay.
Be careful as you can only claim one property at a time as your main residence. So if you moved into another house but deemed to treat the original house as your main residence s118-145 iTAA 1997 you cannot as they coin it double dip by trying also to claim house number two as a main residence.
see
http://www.ato.gov.au/corporate/content.aspx?doc=/content/86191.htm
