Forum Replies Created
Richard
I'm in the middle of breaking up with my girlfriend. We own a couple of investment properties together and I need to find out if I can borrow enough to get the properties into name and buy my self a new place. But call me old fashioned I do not really want to discuss this issue here in public, I'd prefer to sit face to face.
Juergen
This thread is already a bit dated and I'm wondering if the above recommendations are still valid or if anyone can recommend a good mortgage broker in Perth. My current one is a bit of a disappointment in regards to knowledge.
cheers
Juergen
My tenant called me today to let me know that they have two(2) wasp nests under there balcony.
We have stated in our lease agreement that "…the tenant is responsible for the eradication of insect and vermin infestations caused by the tenants activities or lack of cleanliness. "
Well I guess it is not really there fault that the wasps build there nests there so that clause may not apply.Is there a rule as to who should pay for the removal of the insects?
Hi Robert,
your link does not seem to work, for me anyway.
Try this one http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm
and scroll down to “Tax on capital gains”
jsandso
KP,
Oh dear,
The amount of misinformation masquerading as fact being spread around here is staggering!!I have just done a little research in regards to CGT and believe that the capital gain is not added to your gross income.
Therefore it is not lifting you up into the next tax bracket it is only taxed with your marginal tax bracket you are in. So if your salary is $50,000 you are in the 30% bracket, that means your gain is taxed with 30% and if you were holding the property for more than 12 month you get only taxed on half of your gain.
Remember that I’m not an accountant and have not sold any of my properties yet but try this calculators they may help to understand:
http://www.cch.com.au/cgi-bin/cgt00isapi.dll/
http://www.yourmortgage.com.au/calculators/capital_gains_tax/jsandso
Just to answer my own question above about how to calculate the CGT using Roberts figures.
$56,051.00 Capital Gain
50% discount because property was held for more then 12 month
= $28025.50With $80,000.00 Gross Income Jack is in the 47% tax bracket therefore
$28025.50 x 47% = $13,172 CGT
As usual it is simpler then I thought.
Hi Robert,
I believe that there is a little mistake in your results in regards to the capital gains calculation.
-$6,796.18 Capital Gains Tax (25%)
I got a different result and to confirm that my calculation is not to far off I searched for a calculator on the Internet and found one here http://www.cch.com.au/cgi-bin/cgt00isapi.dll/
which calculates $13,172 CGT, based on your figures.I worked it out that way but not sure if it is correct:
Capital Gain $28,025.5 (50% of $56,051.00)
Total Income $80,000+$28,025.5 = $108,025.50
Tax on $108,025.50 = $38,104.37
Tax on $80,000 = $19,662.00
Difference (CGT) = $18,442.37Could someone please explain the correct way to work out the CGT?
Robert could you please explain how you got this figures?
Effect of Inflation
-$1,370.64 Income Year 1
-$1,336.37 Income Year 2
-$1,302.96 Income Year 3
-$1,270.39 Income Year 4
-$1,238.63 Income Year 5Hi wendyb,
use the search function under Forum Boards / Search,
there were a few recommendations for WA accountants.jsandso
I get following figures:
the property is negativly geared $29/week or $1500/annum
value of property after 5 years= $161,051
rental yeild = 7.8%
IRR (5 Years) = 76.58%
Gross profit after 5 years = $47,690
less $11,351 CGT = $36,339
less 3% ($4831) selling agent commission = $31,508 net Profit (Not including depreciation)I think for some people this is better than nothing, but with an income of $80000 I probably would go for better quality homes near the coast.
jsandso
Western Power told me that I need to have an account with them for that house in order to get that info even if I’m the owner. I would need to get my tenants to ring western power and they can pass the info on to me.
But I also rang the council and they were very helpful and it took only 2 minutes to find out the construction date after answering a few questions.
jsandso
Today he closed down his Statesman Homes Building Company and another division will follow.
From The West
http://www.thewest.com.au/20050427/news/general/tw-news-general-home-sto131035.htmlThanks guy’s
you are right it is the medicare levy what I was missing. I should have taken the time to read it properly.
Thanks again
jsandso
Hi Marisa,
yes it is Landlords responsibility, as it is your house you don’t want it eaten away alive by white ants.
It cost us about $130/year per property here in Perth.
That pest control guy just found termites in a piece of timber I put in the ground 4 years ago to seperate the vegie patch from the garden beds. Millions of them, that whole timber was alive.[crying]
jsandso
I just looked at Vale last weekend. It is Multiplexes first residential project and they are trying to get it right the first time. Lots of recreation facilities like parks, lakes, playgrounds, sports oval, tennis, outdoor theatres, hike and bike trails.
The expected completion is 2016, No. of homes 4500, No. residents 12000
Blocks from 300-2000sqm but at the moment only a handful available between 600 and 700sqm from $119500-$132000. Titles are available in about 9-12 month.
One of the Special Condition is that the buyer must construct a single dwelling house and construction must be completed 18month after settlement. Another condition is that a buyer must not sell before building completion. They don’t want to see empty and weeds overgrown investor blocks. So I guess it is more for owner occupier.
I think it will be upmarket from Ellenbrook close to the Swan Valley Winery’s, The Vines Golf Resort and hills. It will be a nice area to live if you don’t care about the distance to city and the beaches. Not to far from Midland also not to far to Landsdale and the Wangara industrial areas. Don’t know about availability of public transport but if there is any then it is only a bus service.
jsandso
Yes I can confirm that, same thing here
Thanks Salacious
but I don’t want to change my screen resolution. It would not help anyway as ID is always taking up the whole screen. No matter if you use 800×600 or 1900×1600. All I want is the possibility to change the size of the ID window like in any other program.jsandso
LizardKing
congratulation to your new purchase.
I know the cardinal rule in property investing – don’t buy with your heart, buy with your head – but I do believe if you liked it, so will a prospective tenant.I agree but everything else should be considered as well like transport, shops, schools, kindergarten and so on. I believe you have made a good choice with Mindarie WA as I have two IP’s there myself.
$285/week is a good rent for 4×2 on a cottage block, I think I have to up my rent when the next lease is due. Unfortunately another landlord a couple houses from my IP is trying to rent for only $240. He could easily get $260 at the moment.
We are managing our self’s and so far no problems.
We had one tenant, he was a crayfisher, and he paid us rent upfront for 9 month. He said he only has money after the crayfish season and wants to pay us while he still has money left.In our other IP we have a young girl on career leave from England with her parents. She wants to save bank fees and paid us 6 month upfront. I think they are very kind to us.[biggrin]
I’m not sure if a property manager would tell you that they have received so much money upfront.Not so sure with growth, the population seems to decline from 2011 on. Check this out:
http://www.id.com.au/wanneroo/forecastid/Default.asp?MnID=4&PgID=1&WebID=230&SVG=1
I don’t know how they coming up with this predictions.jsandso
agree 100% with Derek
Hi Marisa,
we have pool maintenance and lawn mowing included in the rent with $15. The pool guy charges $37 + chemicals which brings it to about $42-45/month all year around. Lawn mowing is only for 6-7 month a year at $25.We supplied our tenants with a Kreepy Crawly and a pool brush. I want there kids to be as save as possible when using the pool. It is just like an insurance.
Also if the chemical level is maintained your chlorinater cell may last a bit longer, that is if you have a saltwater pool.
jsandso
I was in the same situation once and I just rang the shire. They were very help full and gave us all names addresses and even phone numbers. They did not charge anything for it.
When I then rang one of the numbers the person who answered was very upset that the shire gave me the addresses and numbers.
Needless to say they did not want to sell even if the house is empty since two years. What a waste.
