Thanks for your input Freckle – I never really looked at this from a business perspective.
If I were to setup a business it’d probably have to be a Property Management Business that focuses on maximizing landlord’s rent, and then getting a commission from that rather than renting it myself first, and then sub-leasing. However, before setting up a…[Read more]
Thanks for the input
So the best way to deal with this is to have a clause in the contract that states that the landlord will pay up to 137KL per year, and any excess is to be paid by the tenant?
Main issue with lowering rent is it will lower the value of the property
This is the formula provided in some of Steve's seminars:
Price = Annual Rent / Yield
Instead of offering a lower rent, it was suggested to offer a rent free period
Residential Tenancies Act 1997 – SECT 64
Tenant must not install fixtures etc. without consent
64. Tenant must not install fixtures etc. without consent
(1) A tenant must not, without the landlord's consent-
(a) install any fixtures on the rented premises; or
(b) make any alteration, renovation or addition to the rented…[Read more]
Main issue I can see is how 'Capital Gains Tax' will be calculated when it comes time to selling
Usually with PPR you can claim 50% CGT if you have held the property for at least 1 year
However, renting out spare bedrooms, may mean that the property is no longer considered 100% PPR
And this could mean you may not be able to claim 50% CGT on the…[Read more]
I'm salary sacrificing into my super right now; 15% tax is much better than paying 37% tax
No lost opportunity cost either as SMSF provides the freedom for me to invest in Steve's USA Commercial Property Fund as well as in Silver
Probably just need to setup my account to allow purchase of global shares and I'll be very happy
When it comes to renting out a property it is essential to get it right from the start
Once a tenant moves into a property it can be quite difficult to evict them as the Residential Tenancy Act works more in the favor of tenants
Do I need to get a contract/agreement done up to cover myself?
Definitely! Without…[Read more]
I recall Steve mentioning he was able to market blocks of land in Blackburn prior to subdivision being complete in the past
I think he had some sort of 'subject to' clause
Maybe you could discuss this with a real estate agent?
It depends on what property you are looking at buying.
Residential properties usually require you to be able to service the loan, and thus will place more emphasis on your income and expenses. Some things to note:
If the entity you are purchasing it is not making sufficient income, you may be able to go as guarantor
Some lenders will consider…[Read more]
Agree with Perry there
The AUS$ is not increasing in value or purchasing power, but relative to the US$ appears to be strengthening due to the US$ weakening
I believe the concept many need to grasp is that all fiat currencies are designed to lose purchasing power over time, but the rate at which these currencies depreciate will vary
Have recently setup a SMSF, and received ATO document NAT 11032 'Running a Self-Managed Super Fund' and it clearly outlines what the role and responsibilities are as a trustee. Here are some of the warnings mentioned on Page 15, which I found funny
If your SMS buys art, generally you cannot use it privately
Don't Buy Wine as an SMSF investment…[Read more]
From what I've read so far on these forums, you should be able to continue to claim the usual deductions associated with owning an Investment Property, provided you charge yourself market rent for use of the property and declare this as income.
This is the email I received on 27/11/12
Thanks again for your interest in the Passive Income (USA Commercial Property) Fund.
I'm writing with a quick reminder about this Friday's (30th November) 5pm cut off. This is the deadline you need to meet to completed your Fund paperwork and / or payment and still receive the 50% contribution…[Read more]
Cut off date for 50% contribution discount was yesterday.
At this stage you should still be able to invest in the USA Commercial Property Fund but probably won't get the contribution discount.
Probably don't want to charge too low, but also don't want to charge too high .
Need to find some middle ground
Ballarat Share Accommodation are charging $190-$250 per week for each room, and it looks like they are in fairly high demand, so I'm thinking maybe $150 per week.
Just have a few questions:
Would it be OK for me to use…[Read more]
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