Forum Replies Created
Hi Mark
Welcome :)
Low rental yield and a chance of slight capital gains doesn’t sound enticing to me. What is the definition of “low rental yield” and “slight capital gain” ?
On one hand $40k may not sound like much in the grand scheme of things, but I’m pegging it’ll take you ages to save that amount, so it would be a great shame if your $40k didn’t start earning its keep. That’s what investing is, ultimately. Getting the money you have to earn its keep. Help you into more assets sooner than you could otherwise save for, and/or produce income to assist with reducing your reliance on a job which is money in exchange for your labour.
It is unrealistic to expect one property purchase will ever make you financially free, let alone do so instantly. However it should be stepping you closer to your goal.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Oh wow ! It’s finally all done and dusted !! Congratulations :)
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
There is no stamp duty or CGT on transfer to a beneficiary under a will or intestacy laws.
I’m glad that we’ve been able to point out the tax advantages as Terry has described above. I think if you and your mum sat down and worked out the CGT and stamp duty that would be payble you’d get quite a shock.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi propman
While you mother might prefer to transfer the property to you now, would she have the same feelings about it if she realized the high cost of stamp duty (to you), and capital gains tax implications (to her) in doing so ?
Just because someone “can” do something doesn’t necessarily mean they “should”.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Argyle
How many $$ does your SMSF have in its bank account that could be utilized for the purchase of property?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
The good folks at Home Stagers do precisely these sorts of things (they offer home staging but also renovation management). Give Dianna a shout and discuss your needs. She does a great job and is very strict with keeping the objective focussed on “ensuring the renovation increases the value of your property and/or rental return” http://www.homestagers.com.au/
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
The boys are bang on with their comments.
Also when you get up to the part that you actually NEED an accountant, they do not need to be located near you. All can be done via email/phone/skype. So you need one that is a suitable balance of good in the field you need them to be, and appropriately priced. They can be located anywhere in Australia.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Slightly messy. To minimise CGT you would have to “give” your land to the developer before construction, and would then have little to no certainty you’d get a unit in return. Be very careful and talk to a solicitor first.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Reiya
Welcome :)
Option 2 becomes a hassle if you have children because there is more “stuff” to move, and if you cannot get a rental in the postcode catchment of their school, then they have to change schools.
You don’t necessarily need a broker in Perth. You need a good broker. Most good ones do their work via email/phone/skype these days, so they can be located anywhere in Australia.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Well there you go – Terry’s the man in the know on the topic :)
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Further to what Tom has mentioned, it will also depend largely on whether you are able to secure finance to do a build. If you cannot, then building is not an option anyway.
Maybe do a bit of a look into that to see if you are eligible for construction finance or not.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
A really great post Corie, thanks for sharing !
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You don’t necessarily need someone in Tasmania.
Accountants often do their work via email/phone/skype these days so you could choose someone good irrespective of their location.
Solicitor… for what purpose? Property purchase? It might not be the case that a Tassie solicitor you choose would be able to act for you on a purchase in another state. So define what the purpose is first.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi AJC
You don’t necessarily need someone located in a specific area. A lot of the accountants do their work via email/phone/skype these days. You want someone good. Doesn’t matter where they are located.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Which state is the property in ? If it is in Vic you might be eligible to do a spousal transfer….
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
It’s easy. Check the agreement you have with your current property manager as it probably ties you into a minimum term with them.
To move to a new property manager, just select the new one, sign forms with them and they will send their authority to the old manager thereby relieving them of their duty. The new manager would go and collect the file and keys from the old manager, and the new manager would contact the tenant advising them of the new arrangements, how to pay rent going forward etc. Keep an eye on the rent during the changeover to ensure that any rent the tenant pays to the old manager either gets paid directly to you, or across to the new property manager’s trust account.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Keren
A broker that is clever from the perspective of assembling a portfolio would assist you with restructuring for no charge.
Note that my comment is about restructuring of loans as opposed to “structuring” though.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
There is no hard and fast rule.
Keep in mind that you may see things in the condition of the property (or in fact smell things such as mould or damp) that the advertising photos do not reveal. This would have an impact on the amount you are prepared to offer for the property, as well as your terms.
In some cases the offer is legally binding, so you don’t muck around making offers for which you have no intention of going to contract.
Generally best to view the property before making an offer.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Splendid. You’re “getting it”. If you can keep that focus of steel you can step closer and closer to your goals. Don’t let unnecessary noise distract you. Stick to facts and your knowledge and keep moving forward.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Another thing to think very carefully about is rental yield. A property priced at $550k would need to fetch a huge weekly rent to stand on its own two feet. It would be worrying if the ability of the SMSF to service the mortgage on this property relied on you working and thus having your superannuation contributions from your wages dripping into the SMSF. Conversely a property that stands on its own two feet (or close to it) enables the SMSF to start saving for its next investment.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
