Hi Matt

I agree with your friend. A complex of 60 means you will always be competing against several other properties that are the same as yours, whether you be trying to rent or sell your property. That means your property will have no point of difference, which tends to result in discounting.

Capital growth is important as it helps you…[Read more]

Victorian land tax rates are here;
http://www.sro.vic.gov.au/sro/sronav.nsf/childdocs/-34FAD0EFBAFF8BE0CA2575A100442101-C580F3A333F4AD44CA2575D10080AD1C?open

As has been mentioned, a SMSF gets its on land tax-free threshold so this might be an avenue worth looking at if you intend to acquire additional properties.

Victorian land tax rates are published here;
http://www.sro.vic.gov.au/sro/sronav.nsf/childdocs/-34FAD0EFBAFF8BE0CA2575A100442101-C580F3A333F4AD44CA2575D10080AD1C?open

Hi Jason

It depends on plenty of things.

If the interest you will pay on your “bad debt” is equal to the stamp duty and buying costs you spent on buying your IP (plus the capital gains tax to pay on offloading it), then there is probably very little point in selling it. Have you taken a look at figures like that?

Indeed – as Terry suggested, I can’t understand why they won’t go under contract with a subject to finance clause. At some stage the bank will require a contract anyway…

Wishing you the best of luck :)

Terry is right. Who cares how the end number is diced up, it is how much out of pocket you are each month for your repayments that matters.

Hi IronLady,

If the SMSF were the lender then there would surely be no need for a bank in the transaction, so I would imagine that the selling agent wrote “lender” rather than “borrower” in his update to you.

That is unless they are indeed planning to loan “some or all of the purchase price” from the SMSF to an SMSF member or member’s family…[Read more]

I am assuming in your post above that rather than saying “the bank is the hold up with the superfund being the LENDER” you intended to say “the bank is the hold up with the superfund being the BORROWER”.

It sounds to me like they are still faffing about with the mortgage pre-approval stage (and possibly that the SMSF itself may not be entirely…[Read more]

It could be that they are still establishing the fund (which can be a slow process or a swift process depending on how busy things are at the ATO and ASIC). Have they provided a purchasing entity name to the selling agent or your solicitor as yet ?

I don’t think there is a law against making such comments. It might help your pondering to relay the precise comments in your mind, and remembering the nationality of your tenants, to try and understand why the neighbour feels this way, and address it accordingly.

While Wikipedia can be edited it gives a bit of a guide. Sounds like if it is…[Read more]

Putting down a bigger deposit does not force your property to grow in value faster, unfortunately, so it’ll be worth the same irrespective of how much deposit you put down.

However a bigger deposit tends to mean you’ve paid a little less interest so you’ve saved a bit of money there. It also means that if you’re that way inclined, you could…[Read more]

Up to you but quite honestly, they don’t get paid much considering how much hassle they shield you from. It probably isn’t worth your time to self-manage.

A few big cons of self managing are having to keep across residential letting laws, having to deal with troublesome or non-paying tenants, and realising your insurance company wants to…[Read more]

Hi Knox

I am wondering why you put down a 20% deposit as opposed to a 10% deposit. Since you mentioned hopes of equity in that property I presume you are hoping to access some equity for a deposit on IP # 2… in which case you perhaps should have considered only a 10% deposit on IP #1 so that you had some cash available for deposit on IP #2.…[Read more]

Hi Steven

Well done for saving a deposit at such a young age – and what a great opportunity to get in the market while your overheads are low (still living at home with parents).

We might be able to comment a bit more if we understood how much deposit you’ve saved, and roughly what your salary is.

Good to hear it’s just a hypothetical, Bill :) You’d be surprised how many people think they can do whatever they please despite superannuation laws.

It is indeed silly that it is allowed for commercial but not resi but oh well. I suppose because commercial can still generate income, whereas if you reside in a resi property owned by the SMSF,…[Read more]

I definitely would not consider investing there. Too far from a capital city or independently major regional centre. Also there is some reliance on the renewable industry sector which can be a bit turbulent every time the government changes its mind on funding distribution.

The yields on offer would need to be substantially above more major…[Read more]

Hi Bill

One hopes nobody from the ATO is reading this thread as I suspect your user-id is your actual name ! It might be tricky to get an ABN or Tax File Number issued for the proposed SMSF if they were onto your intentions, so you’d stumble at the first hurdle.

Tread carefully with how you finance the original purchase. Your lender won’t be pleased if they suddenly find they hold security over a vacant bit of land rather than what they originally financed which had a house on it. The act of doing the demolition will make the site worth less for a period of time.

It only takes one person with insufficient understanding or business smarts to be the odd one out and mess up a unanimous vote…