Forum Replies Created
Hi Everyone,
27th and Petersham RSL is good for me – are we going to start at 3pm instead of 4pm – I know it was mentioned by someone that we should start a bit earlier ? See you there
Cheers
MIKALA
Ausprop,
I was thinking of both scenarios – I suppose we have already been developing to hold – we have only bought land, built then rented so I guess I was wondering about the differences if you were developing to sell (is it really called property trading ??)
Doesn’t the CGT 50% after 12 months still apply?Dazzling,
Thanks for your reply…I suppose there are pros and cons to both investing strategies….we have been very fortunate with our tenants (touch wood – I do not want to jinx ourselves at this stage of things)Anyone else have another viewpoint on these scenarios ??
Cheers
MIKALA
Dreamer1,
If the Investment was putting $$$’s in your pocket every week why did you sell ?.
Cheers
MIKALA
Hi there,
You most certainly can – the whole essence is whether the interest repayments are for a loan which is for the sole purpose of investing – it is the intention which is important.
If you intend to build and rent you can claim the interest repayments on the loan for the block of land providing both properties on the subdivided blocks are rented (or going to be)
I checked this with the Ato myself as I had a block of land I was going to build on and I claimed all the interest repayments last year.
If you are still unsure ring the ato for confirmation on your situation but please make sure you talk to a IP specialist when you ring.Cheers
MIKALA
Thanks for your reply Hellman…
Cheers
MIKALA
I’m with Toni.
I want to learn more and I think over the last 2 meetings I have picked up information that I might not have found otherwise – hopefully others who attended have found the same – most of all I enjoy getting together with like minded people interested in sharing views and ideas in a forum which is not overtly formal.
I think the venue was great and Len did a terrific job in guiding the meeting – we got some ideas about what people want to know about and all we need to do is find the right people with the knowledge to come along and chat.
Unfortunately I do not have the contacts but if we persist surely some forumites have this knowledge or know someone who does that we can ask to come along for a hour or so ?
How about it – would someone be willing to come along and share their knowledge and experience with Trusts and structures ?Lou,
I would be interested specifically in information relating to Qld and WA.Cheers
MIKALA
Hi there,
Is there any possibility of the 2 accountants having a phone conversation to discuss – maybe one can convince the other of the correct position and then you can both lodge the same claims
Cheers
MIKALA
Dr.X,
I really enjoy getting together with everyone – it is a great opportunity to hear what others are doing and catch up.
We are planning on next meeting mid November hopefully at Petersham RSL, 7 Regent street, Petersham. It was a great venue – thanks to Toni.
All are very welcome.Can I propose 3pm 20th Nov – would this date and time suit everyone or shall we wait and see if someone can find a Trust specialist and see when they are available and go from there ???
Cheers
MIKALA
Hi there,
We bought in Kirwan last year (got lots of equity straight up) and this year we were going to buy land in Condon and build but it would have been much more expensive than we wanted to outlay so backed out. Having said this though we believe it is a good area for an IP.
Kirwan property seems to rent fairly easily.when you mention outlying areas Kirwan and Condon are only a short 15 mins drive to the centre of town.
We are in a different situation as we buy land and build our IP’s. so cannot really assist with buying a older house.
However regarding our Kirwan property it rented immediately and getting $320 rent – property cost $295,000. Equity is already around $65,000. We should get further good capital growth in the area.
I know that should you build in Condon, land should be no more than around $105,000 for a 700 or larger block however building costs have skyrocketed for a decent 4 bed 2 bthroom house and may cost anything from $190,000 and up.Kirwan land a bit more expensive. Glenwood homes wanted $215,000 for a nice 4 bed/ 2 bath house.
All building materials come from either Brisbane, Sudney or even Melbourne so the freight really kills the house prices.
Sorry cannot assist with the older home scenario but why don’t you get to know a couple of real estates up there and get them to look out for what you are after.Cheers
MIKALA
Hi,
Terry is absolutely right in that if you bought the land for investment purposes that is you were going to build an investment house on it to earn an income at some point then the interest payments are tax deductable – I have checked this with the taxation department – the important issue is that you demonstrate that it was purchased as an investment…Cheers
MIKALA
Hi there,
Yes I bought ticket some time ago and am looking forward to it…
Cheers
MIKALA
Hi GR,
Great idea.
I for one would be willing to chip in to buy the book – I really need to learn a lot about trusts as I don’t understand them and wanted to know if they would suit our investment strategy. This is despite the fact that I have read Wealth Guardian – this seemed to create as many questions for me as answers so was not comprehensive enough.
Anyone else coming to the Sydney meeting interested in chipping in ?Cheers
MIKALA
Hello GR,
Have been busy but am keeping an eye on the forum.
I’ll definitely be attending – has anyone been able to invite any specialists along ?
Toni are you out there ?
How’s your development going ?Cheers
MIKALA
Hi Camder,
That’s great – will see you all there – shall we bring some food?
We may get a bigger hungrier crowd this time ! Are we still going to have specific topics or shall we play it by ear ?
If specific topic may I suggest the following –
How to borrow for another IP when your borrowings are at 80% lvr (not there yet personally but it will come ) eg. can you use trust structures to do this ?
Aside from asset protection what are the tax advantages to buying in a trust over individual or company name ? etc
We may need a mortgage broker and a IP structure specialist to attend. Any takers guys ?…Cheers
MIKALA
Hi Toni,
Newtown sounds good and Sunday afternoons are fine
except I’m interstate on the weekend of 1st/2nd Oct – can we make it a different weekend to this ?Cheers
MIKALA
Hi there,
Redwing is right – I checked this with the ATO..
Cheers
MIKALA
Hi ,
Thought I should clarify part of what I said in my reply in case you misunderstood – your rental income is taxable so you don’t actually get the $3264.75 back (as in your hand)- it will just reduce your tax due or increase your refund by that amount depending on your income situation.
Hope this makes sense…good luck..
MIKALA
Hi Clueless,
I think everyone would like to know what their property would be worth in 32 years time – the mind boggles !
7th year $1.3 mill
14th year $2.6 mill etc etc etc
I’ll be looking at my teeth on the bedside by that time however back to your question – if you look at property in the UK (property ownership has been going on for a much longer time than in Australia) then you would have to say that property doubles in value every 7 to 10 years. That is what history would tells us however pigs might fly !
But seriously, I personally feel that economies around the world are changing in this respect and we would all like to have a crystal ball so your question is really impossible to answer.
Something else you should be asking is what income do I want in 32 years ?? Super is great – if you can afford to add a bit extra each pay (do it by salary sacrifice to get the tax advantage) and it will all help. It is good to diversify your investments anyway.
It is great to have goals and if I were you I would be thinking about and working towards finding your next IP.
Hope I have been of some small assistance.MIKALA
Hi there,
From your info it is not positively geared (but very close) unless you have any other tax deductions (any depreciation?)
On 6.95% with a loan of $135,000 (cost plus reno cost , no borrowing or purchasing costs were included I am assuming and which you should allow for) you would be paying $9382.50 in interest, $1300.00 in rates (have you included water rates ?) and you didn’t mention it but you would have to pay for insurance (I have allowed $200).Total expenses $10882.50.
Your gross income would be $10,400 at full occupancy at $200pw.
However as you can claim the expenses as tax deductions this will give you a positive cashflow. The amount of this will vary according to your tax bracket for the year but at 30% you would receive $3264.75 back.
Sounds good to me.
Out of interest what state do you live in and in what state is the property ?Cheers
MIKALA
Hi GR,
I agree – I was so glad that I attended and it was great to meet and put faces to the names.
As I said last night I still have a lot to learn and I was able to pick up a couple of ideas from the meeting for which I am grateful.
It was also interesting to hear what others are up to and I will definitely be attending the next group meeting.Cheers
MIKALA
