Forum Replies Created
there are lots of areas in se qld which are suitable for investing. Dont restrict yourself to one particular suburb or area as you may “sell yourself short” QLD reginal areas are also starting to really kick along. Depends on how much money you wish to spend and your longer term outlook. There are still properties to be had from $50000 in some areas. A 20% drop in price is only $10000 where a 20% drop on a $300 000 house is $60000. Not a good comparison but again it all depends on how much you have to invest and your goals and let that dictate the location.
Steve
steveatfhog.com.au
for my 2 cents worth some of these programs do help out genuine battlers, but the majority of stories are “poor me” and its everyones fault but mine. Granted there are scam merchants out there and you have to be wary, but these scammers arent that smart. So the old adage applies, if it looks to good to be true then it probably is. Risk & return, there is no such thing as a few lunch yada yada yada
Steve
steveatfhog.com.au
Michael
What may seem like a simple questions is fairly complex. Your trust can make a loss, income less than expenses but this loss is carried forward into following year. Have to watch trust loss rules. Complex area. Tax Office dont like the idea of putting your ppor into trust. You would have to pay rent to trust on commercial terms for the use of the residence part of the house. The house will then become subject to captial gains tax if and when you sell. Maybe also higher stamp duty on purchase and may also be subject to land tax depending on which state you are in. Unless deductions for office are significant I would have to ask why you want to do this.
With setup costs it depends on what they are. Some are not deductible at all, others may be written off over 5 years.
Steve
busterk
For CGT the 12 months is based on contract dates, not settlement dates unless there are some overiding contract conditions. And the ATO consider 12 mths to be 12 mths and 1 day. Go figure but people have been caught.
Steve
[email protected]hgwells
I would be very careful about this type of structure. There are some accountants who do not understand the requirements. Based on your question there are several red flag issues. This type of structure if set up now has to be wound down by 2009. Although thats 6 years away you dont wont to be forced to have to sell property at the wrong time because the structure is wrong. You also need to look at the cost of set up and managing the structure and assess whether the potential tax saving are really worth it.
The Tax Office are vey active with super fund audits, home loan unit trusts and similar. Once they get a whiff you end up getting bogged down for a long time.
Also the unit trust must distribute any profit according to unitholders entitlements. That means your super fund must retain its share of any earnings or profits. You cannot use this to repay debt.
Be careful and make sure the advice is spot on
Regards
SteveHi kattan
Welcome to the forum. I am sure you will find lots of useful information and helpful forumites.
I am sure most people on the forum will agree the best way not to max out you loan is to invest in cashflow positive properties. There are several ways this can be done from vendor finance, lease options etc. Take the time to go back over past posts and you will gain an insight into this exciting area.
Regards
steve
Hi Judith
Most of the properties I have purchased I only put down $1000 but I guess it depends on how willing your Vendor is to accept that. Also i guess it depends on the cost of the property. In Qld 10% of the purchase price is a darn sight less than it would be in say Sydney or Melbourne. As they guys say estalish your line of credit and that will give the power of negotiaytion if the Vendor asks for a large depsit amont. Of course you know the answer – Invest in the Sunshine State.
Hi there and welcome to the forum.
I can’t comment about Sydney (although I doubt it) but certainly In queensland you wouldn’t be a million miles away from doing your first wrap with that sort of money.
If you want me to crunch some numbers on stamp duty etc feel free to email me [email protected]
Hi Chris
Why sure the property is only half the equasion. Surely the purchaser and his ability to make repayments are just as important. Let’s face it, as you are never likely to live in the property (and as long as its a saleable or rentable asset if all else fails)and are probably just looking for positive cash flow the suitability of your purchaser is probably a big consideration. If you want some ideas on how to ascertain whether you have a good purchaser or not feel free to email [email protected] and i will help you crunch the numbers.
Cheers
Dear Mike
Rather than put all your eggs in one basked why dont you consider wrapping cheaper properties which will give you a higher return over the long term. Whilst im not a representative for the Qld Tourist Board the State has many areas which are lower priced. You could use a Lodoc loan to obtain finance to fund the first few purchases and use the positive cash flow to live on or discharge the loan balance to create increased cash flow long term. If you need any more infomation feel free to shot me an email [email protected]
Dear Amit
Rather than Joint Venture a wrap with someone In NSW have you considered Qld. In many od the Regional Towns prices start at as little as $60,000 giving a good annualised return. If you need more information please email me at [email protected]
Hi Shelly
Have bought about 6 properties in Toowoomba and surrounding areas. Have you considered wrapping it instead of just purchasing an IP?
Happy to give you some ideas. [email protected]Hi PJ
Im in Brisbane and would be happy to give you any advise. Feel free to email me with any questions [email protected]
Richard
Hi Blue
The equity raised from your LOC can be used as the deposit for as many properties as you like subject only to their price and your ability to service the total indebtedness.
Usually you would look to put down 20% of the purchase price as deposit plus purchase costs and therefore depending on the area you are looking at investing in maybe limited to 1/2 new properties.
If you would like me to crunch some numbers for you I would be happy to do so. [email protected]
Richard
Your State Home LoansHi Guys
This is my first post. This topic gave me motivation.Investors certainly add to pricing pressure but it is only a small part of the puzzle!. If there were no tax incentives for IPs then landlords would ask for higher rents or not invest at all. This would mean either a shortage in properties available for rent or very high rents, which in turn would push some potential renters into purchasers which would have its own impact on the property market. The fundamentals of the Aust economy must be playing a large part in the price rises. Take the USA. 30 year fixed (not variable) interest rates are around 6.5%! and you get a tax deduction for your home loan and they are certainly not in a housing boom.
cheers
Hi there
I guess it all depends in which State you are in.
In Qld if you purchase shares in a Company that is consider Land Rich the Stamp Duty payable is calclated at the value of the Companies Assets i.e $1 million.Hi there
If its any help by train the Wellington Point railway station is 30.5 kms from Roma St CBD.
Birkdale itself is around 25 Km’s from Brisbane City and around 4 kms from Manly.Hi Matt
Might like to try either St George Bank or Rams.
We do a lot finance in Brisbane for small apartments. Hope this helps.golfer
Depending on your LVR a lot of the lenders we deal with still offer honeymoon type products so the 1st year has a reduced interest rate around 5.25%. If you need any more information please feel free to email me at [email protected]
Regards
GolferEssykay
If you are wrapping the properties you may find that it is illegal to x collaterialise them depending on State leglistaion. In Qld it is a breach of the Property Act to redraw or use 1 security as security for another loan.
Same old story to be on the safe side check with your Solicitor.
