Forum Replies Created
The answer is that there is often a withholding tax when selling a property in the United States. Make sure you deal with an American accountant that understands the Australian tax system. I have someone I can refer you to.
If you are buying a house its very hard to get a loan from a normal bank. In most cases you will be dealing with hard money lenders. The exception is if you buy commercial property it is much easier to get non recourse finance but yes you still need to provide financials. I would urge extreme caution when it comes to buying house the results are mixed. The larger the deal the safer it seems to be.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
The main problem with crowdfunding is that in many cases there is little security attached to the loans. If you are thinking of entering into such an agreement I suggest you seek legal advice to make sure your interests are protected.
One way to do this is yes put a group together to purchase but make sure that you are part of the ownership group. In other words if a company or a trust owns the asset make sure that you have a percentage ownership so that you have direct ownership in the asset.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I agree with Richard. At the moment certainly in Melbourne, Sydney and Brisbane the banks are valuing apartments in a fireside sale in other words what is the least amount the banks have to finance to protect there own position. A position to a large extent the banks have created. However when you consider the new stamp duty changes in Victoria together with over supply the apartment markets will continue to fall. So look out for bargains over the next 12 months.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Since there is no election due for two years how do you think these policies can come into effect by the 17 July 2017.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
John
When you purchased the property did you have and or nominees in the contract? If you did it makes it easy. However it is important to seek legal advice to make sure you get this right
-
This reply was modified 7 years, 2 months ago by
Nigel Kibel.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
HI Steven
The banks in Australia are being difficult and in my view short sited. What I suggest is talk to an investment mortgage broker who can assist you. I know a couple of very good brokers who specialise in high level finance. message me and happy to pass on the details.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Stan
I agree with Richard 100% and no chance in Melbourne either. However you may not find that after tax your costs are great. The other thing to consider if you go to an area that does offer you a higher return you also need to research the capital growth in that area.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Elena
Not sure what they do now however Metropole has a property management division and when they buy they insist that they manage the property. Now on the surface that sounds good however if the property is off an agents rent role then the agent would prefer to sell the property to someone who will leave the property on their rent roll. Perhaps this sounds like a small thing however it may well make a big difference on what type of deal you end up with. I am not saying don’t use Metropole but if you speak to them you should ask that question.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Not only that but if you live in a house I think its 24 months out of 5 years then capital gains tax is exempt.
If the government really want to help first home buyers why not allow them to claim a tax break on there interests payments. Unlike a large first home buyers grant it would apply to any first acquisition for a period of say 10 years. just a thought.
I also believe that the market is mainly driven by owner occupiers not investors. By way of example consider Victoria there are around 72,000 people moving to Victoria that’s around 75,000 or 1400 a week. In fact at the end of 2015 that number was well over 90,000. Yet they are only building around 300 homes a week. Why is this the case because there is a shortage of land being released. If you limit supply it increases the cost of land. So the answer is simple. If you want to make first homes more affordable release more land. Most of the developers cannot keep up with demand.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
United States
The United States isn’t quite so generous in its tax inducements to property investors. Investors can, however, deduct rental losses under certain circumstances. Because rental income is considered passive income, losses on rental properties can only be deducted from other forms of passive income such as gains on stocks, interest or other capital gains. Investors can deduct expenses such as depreciation, repair costs and operating expenses from their total rental income.The U.S. tax system does grant some major concessions, however, to owner-occupiers. Owner-occupiers can deduct the interest paid on their mortgage from their income. There are a few stipulations. For instance, the deduction is limited to interest on the mortgages for the taxpayer’s primary place of residence or a second home, and the interest is only deductible on the first $1 million of debt.
American taxpayers also get the benefit of capital gains tax concessions for property sales. Home sellers are exempt from capital gains tax for gains of up to $250,000 for an individual or $500,000 for a married couple if the property was used as the primary place of residence for at least two of the five years preceding the date of sale.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Well in the United States not only can you negative gear investment properties but you can also do the same for your principal residence. So in the USA negative gearing applies across the board.
If negative gearing did not apply in Australia most people would not buy investment properties. The reason is that in most cities we are losing money on investments because the rent in most cases does not cover the borrowing costs. So at least negative gearing allows us to reduce the tax we earn because of the negative loss on the property.
Now my experience is limited to Australia and the United States perhaps some of the other countries have positive cash flow property. I have a friend in the UK I will ask him about there rules.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I am doing a similar thing but in the United States rather than in Australia. We are looking to buy apartment complexes in the Miami and Palm beach areas in Florida. However our aim will be to hold them for 5 years.
In Australia our aim will be to develop townhouses giving investors the opportunity of investing in Wholesale Property
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Mido who knows what the market will be doing in 2019. All I know is that people are defaulting in record numbers on current apartment deals because the valuations are coming in way low. It is important to look at how many people are moving to cities. Now in Melbourne I know that there are around 75,000 people per year moving here and given that mot are families I would suggest that house and land will maybe perform better than some apartments. It is a matter of doing your due diligence carefully and making sure that you have not overpaid for your apartment,
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I think as long as you do your due diligence and are looking to keep the property for around 10 years plus you will not go wrong. Personally you do not need a 40 square house. Something from 22 to 25 squares ideally 4 bedrooms 2 bath double garage. You will not go wrong. If you are buying to hold for 2 or 3 years you are a speculator not an investor. However these are are good 10 years from now people will be looking a look further out than Point Cook.
Couple of interesting facts, 75,000 people a year moving to Melbourne than 1,500 a week. Most are families and they are not building enough houses to keep up with demand.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I have been involved in the American markets for a number of years. I am establishing a new straight forward model of buying large apartment complexes in the 2 to 6 million mark depending on the number of investors we can put together. The benefits are that we can get non recourse finance at around 70%. We have just refinanced a 26 unit complex at 5.3% for 15 years. If you have a few vacancies it does not overly effect your investment.
I am working with a finance specialist who has experience dealing with funding of up to 100 million. I have learnt that to be successful in the states you have to deal with very highly accomplished professionals. I am also working with financial planners in Australia who are experts in dealing with self managed superfunds and making sure that they are compliant with Australian law.
So the concept is simple buy b and a class assets make sure that they cash flow well and hold them for at least 5 years. We are mainly looking at Miami and other parts of Florida I am personally also interested in Texas.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I have been involved in the American markets for a number of years. I am establishing a new straight forward model of buying large apartment complexes in the 2 to 6 million mark depending on the number of investors we can put together. The benefits are that we can get non recourse finance at around 70%. We have just refinanced a 26 unit complex at 5.3% for 15 years. If you have a few vacancies it does not overly effect your investment.
I am working with a finance specialist who has experience dealing with funding of up to 100 million. I have learnt that to be successful in the states you have to deal with very highly accomplished professionals. I am also working with financial planners in Australia who are experts in dealing with self managed superfunds and making sure that they are compliant with Australian law.
So the concept is simple buy b and a class assets make sure that they cash flow well and hope them for at least 5 years. We are mainly looking at Miami and other parts of Florida I am personally also interested in Texas.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Generally around $100,000 and up
The benefit with larger properties is we can borrow around 70% non recourse at a good rate
The problem with single houses is that if you are keeping as an investment the returns are not there. Generally finance is expensive. If you lose your tenant you have a problem. If you are renovating to onsel the risk is too high for the returns. So we look at larger investments that cash flow but the idea is to keep the investment for at least 5 years and you then also get to share in the capital growth.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I am working on a new model of buying from smaller to larger apartment complexes ranging on a value of between 2 and 10 million. I am working with a high level tax Accountant in Australia and a few in the United States including a finance expert who has experience at leading at anything up to 100 million. Now I realize that we are all used to Americans making big promises and not delivering. However a client of mine brought a 26 unit apartment complex for around 1.3 million. Despite promises of finance the best we could do was get emergency funding at around 11%. I have two brokers working on the deal neither could put anything together. Now the guy I am working with went to work and got the deal refinanced for 15 yeas at around 5.3%. He is currently refinancing an office building. We are also looking at another deal up around the 2 million mark.
So what is the secret. Deal with smart people who know what they are doing. Going with someone who appears cheap will cost you a lot. Remember you get what you pay for.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Its not the best area of St kilda but St Kilda is not cheap. What type of properties are you seeing that is sub $200,000
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I cringe when I hear the term student accommodation. Then I hear Noble Park a double cringe. However Student Accommodation in my opinion is bad investment. As Richard has said you will only get a 60% loan that’s if you are lucky and you will then have an investment that will be lucky not to go backwards.
So an ideal investment is one that will have the widest appeal to resell. So a standard apartment could also sell to an owner occupier.However a student apartment will only sell to another investors hence it has limited growth potential.
The best student accommodation are houses where they rent out the bedrooms. You get a great return however if the student market dropped you could always let it to a family or resell it.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
-
This reply was modified 7 years, 2 months ago by
