[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

August 6, 2007 - 5:30 am

As  a Landlord i would hate to have a tenant skip out on a lease, and not pay their contractual obligations. 
but as a reasonable person I would most likely come to some agreement with them  i.e forfeit the bond as compensation etc
At least  with land lords insurance I would be covered and I always keep 3 months interest payments for any emergency.
I also agree 5 months to find a tenant is outrageous and seems like a nasty tactic by the Agent to screw you for the entire lease  payment.  about a week is the longest vacancy period I have ever had so FIVE months !!!!! no way I'd be looking for a new agent !
Put it behind you learn from it and take time to think if you were on the other side of the coin as an invester  how would you feel to loose your loan  payments or have the bank on your back for non payment ETC  no one like to loose money they desperately need, be used or get ripped off..
tenant or land lord…
Lets hope the tribunal gives a balanced judgement and raps the agent on the knuckles for taking 5 months to re let the unit !
Seems some agents don't give a damn…

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August 5, 2007 - 4:56 pm

Thanks Marc

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August 5, 2007 - 8:46 am

jonglenn
Welcome to the forum !
Good advice to open the interest off set account, and save your I.P deposit there.
You said your going to rent a room for 2 years and your Partner (are you married ?) is going to pay you rent as well to live in your PPoR.
You  also mention your partner will buy their own I.P and you will not contribute financially to their  I.P. 
I don't know the legal issues with this set up but I would be concerned with asset protection if any thing ever goes wrong.
You may find your partner has claim over your PPoR and any investments you acquire, but you will not have rights to hers leaving you open to an unequal distribution of assets  if things go pear shaped in your relationship. I hope they never do , but since you obviously have the intentions to separate your investments from your partners and Visa versa then it makes sense to protect your investments in the most advantageous manner possible.
  Maybe think about setting up a trust and company structure and use this structure to hold your PPoR and any future I.P's and paper investments you acquire.
Also use it to bill the tenant of the room you intend to rent and also the rent you receive from your partner. You will need to consult an accountant  about this, me I would get my PPoR changed to an I.P as soon as was practical( if at all possible ) so you can take advantage of  the rent received and the deductions allowed , again consult an accountant to investigate all your options.
Make sure you have proper lease agreements written up and have them signed by your two tenants (partner and who rents the room) so that you have proof  for tax purposes and any contingency that may come up in the future.
I know it sound very  negative to consider things going pear shaped in a relationship and I hope it never does  and you have many happy years together, but since you are keeping assets separate its best to do it with in a structure that gives you the most protection and not leave it to faith alone in believing whats yours is yours and whats mine is mine ….and the other person will share your belief. with money it always pays to have things in writing.
good luck and again welcome to the forum !
cheers . 

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August 1, 2007 - 5:23 pm

Boshy
Dont be discouraged  lots of people have fear of things they dont understand thats natural and the more you get upset by her negative  reactions to your excitement  the more you will fuel her fears.
Take a step back from the whole situation and remember if she has a lack of confidence in you and your investment stratagy  then you need to think act  and implement   a very calm and gentle plan to reassure her and build her confidence in what your doing , create an atmosphere of trust so she feels secure in the things your doing . Be patient and understanding of her fear and lack of confidence because every one reacts to debt in different ways, maybe her freaking out is just her way of dealing with her fear of debt.
 One suggestion I can give is to have some one she respects and trusts  talk to her about your present situation, some one she admires for their achievements and  success.  If they reinforce your  position on investing ,then maybe  she will see things from a different perspective and see you in a different light as well.  

Cheers
nucopia
  

  

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 31, 2007 - 2:23 pm

Hi  Elka
 Ok now I see what you mean,
 its 50% of the total gain (20 / 2= $10,000) 
its paid at tax time when I submit my company return  and
  if in the mean time  I  re invest the capital gain into  a deposit  on another i.p  and the company has any tax credits franking credits etc and  deductable losses. Then  in theory at tax time ,  I will not  be liable to pay any cg tax on the imaginary  capital gain…
very nice ..
thanks again !
 sorry i have taken this thread off Topic

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July 31, 2007 - 1:01 pm

Hi Elka
I have no taxable income at all, but I do have i.p's in the name of a company/trust.
if I was to sell an i.p the company has owned longer then 12 months for  say $20,000 capital gain, what would I be liable to pay in CGTax  ?
company tax rate is 30% so  half is 15% is that correct ?  if I have past tax credits  and franking credits from shares can I write some of this off on my over all taxable income of the company ?  and lower the amount of CGtax I pay on the $20,000 ?
Also when is the CgTax removed  at settlement , so the amount received is less the cgt or is it done on the next tax return ?

 thanks for  any info appreciate it !
    
    tnx.
 

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July 31, 2007 - 12:01 pm

thanks Guys..
another question ..how much do you pay in CGT  % wise ?
1 if you have no taxable income …
2 if you own the i.p in a trust/company name ..?
just wondering 
cheers
 

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July 31, 2007 - 11:10 am

Im sorry, but I was under the impression that a Ppor could be cgt defered by taking the money from the sale , pay off  any mortgage you have  then  buying the new Ppor and defere the Cgt  all together ? or some thing like this…
is this correct ? 
 

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July 31, 2007 - 10:46 am

an off set account 
its an account you link to your loan, were  you do not receive any interest for money you keep in there.
 but the amount  kept in the  account  lowers the total of the loan amount  you are charged interest on.
 basic example might look like this:
you have an interest only loan of 80K @8.07%  and $500 monthly repayments

with an off set account
you have 10K in your off set  account so…. 80K – 10K = 70K @ 8.07 = 470  monthly repayments .. with an offset you lower your interset repayments by $30.  

 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 31, 2007 - 10:04 am

Hi Veeedka
begin looking in regional centers that you perceive, have some potential for growth NSW VIC WA ETC
begin with an I.p of 100K or less, that’s already rented or one you can do a cosmetic Reno on. Clean.. Paint   and general low cost tidy up…  then move in a tenant.
 this is just an example:
Lets say you can locate an Ip in a good size regional center at or under 100K  less 20% deposit and $2500 for costs
gives you  an 80K  interest only loan @ 8.07 
  maybe you have repayments of about < $500 monthly
If rent 130 x 52 = 6,760 less  6,000K yearly interest payments(500 x 12)   have an  off set account  connected to the loan so it reduces the Monthly payments then just save every $ you can for a deposit for your next I.p.
 

Get a good accountant so you can  claim interest and management fee's and other investment expences against your tax and
you may well find  that you have a positively geared i.p 
As I said this is just an example of 1 strategy to get into the property market …there are probably other  more appropriate stratagies that some of the more experienced  members of the forum can suggest you look at..

cheers Veeedka and welcome to the forum.

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 31, 2007 - 8:13 am

 emotional vote catcher
its not about helping any one but the poly's to get some votes from the gulable

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 30, 2007 - 3:40 pm

Great work kate ! 
 you found an under valued property with problems that were  solved with a little effort and for thought
is'nt it a good feeling to actualy see the results of your long efforts and labor finaly pay off.. in $$$ value added to your i.p and valuble experience gained
 
Glad you found the silver lining to the dark cloud you were under..
 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 30, 2007 - 2:57 pm

Hi Matt
At the moment what you lack the most is , knowledge and practical experience !
At 19 you seem to be  a very fortunate young man, and weather you inherited  the hard work of some one else or just chose the correct numbers in tats lotto  is not  important . Whats important is that you realise that you need to develop the correct  attitudes and charecter traits  of a mature minded investor.  While you may not have a silver spoon stuck in your mouth , the chip on your shoulder is self evident.  .If you want  to be taken seriously here on the forum then cut out the vailed threats…
Children often react and are controled by impulses that more mature minds will not be influenced by, and most succesful invester do not operate on impulse but on clear  well thought out and logical reasoning  they would assess the circumstances of any given situation and then determine the appropriate response.There is very little room for emotional responce in investing.
  If you learn to control the impulse to act based on emotional responce, then you will more likely  then not, make better (investment )choices..
Read, ask and learn all you can from the forums, the experiences of the members and from books, articles and web sites that are dedicated to property investing.
Investing is a life long journey worth the effort so Invest in your self and good luck on the learning curve!

P.S
Welcome to the Forum….

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 26, 2007 - 7:21 am

Cath
Im glad your now taking the more conventional route to fund this deal,
the $100 from 27,000 people giving a  gift idea made you seem a bit out there.
and the way it was portrayed  by 2day 2night  was not to your advantage, to be honest with you
 I remember thinking It would be a good plot for a movie Lol
Any way I wish you luck  and  if you pull this off it will be a dream come true.
if not never mind keep dreaming and doing and eventually you will get there.
At least you will have learned a whole lot of leasons  from this experience that will be invaluable for  future investments.
Dream  Believe ..and Achieve !

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July 25, 2007 - 2:04 pm

I love reading posts like this !
just to know some one is out there finding the  deals with potential  and  then getting help advice and support from the members of the forum  to  solving the problems.
 fuels the desire !
 

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July 25, 2007 - 1:41 pm

 tylon020
What if he was to purchase the 20 year old house as that has the best potential for appreciation over time with land  value increases and  with the house improvements if its renivated  improving its perceived worth, claims the first home owners grant and then rents out each spare room for X amount per week while he renevaites it  a room at a time…
it would be considered  his PPoR  to get the FHoG so I guese he wont be able to claim interest as an I.P but at least he could receive some cash in hand income renting out the  spare rooms whilst fixing the place up… I mean as long as he stays for the first 6 months in residence ( on paper) and adds value is'nt it possible to later approach his lender and seek to have it revalued and hopfully unlock some equity  for his next Ip or reno project etc
would this be ok and  worth considering ?

what would be the pro's and con's ?

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July 25, 2007 - 12:59 pm

Cath
were you featured on a Current affiars a few weeks back ?
Looking for people to buy your dream land in W.A
and build a circus training camp or some such thing ?
 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 25, 2007 - 5:23 am

Hi Matt
(BDM)
just wanted to say, I  took a peek at your  web sites and thought they were…….  " Excelent "   

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 24, 2007 - 1:32 pm

now with the inter net its easier to set up a web site and create a direct virtual sales platform and on sell for a commissions from established network marketing companies from all over the world 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 23, 2007 - 11:10 pm

Hi hfat
it’s great you want to start investing now while you’re still in your early 20’s… smart thinking!
There are a lot of good books base on investing in Australian residential property.
Visit your local Library borrow some books and start from there. Just make sure they were written recently so they are still relevant.
Don't get over excited, you want to learn as much as you can before you put any money down ,
take your time ask lots of questions and don’t try to sprint before you learn to crawl…
Like a lot of things in life you first gain knowledge and understanding THEN you go out use what you've learned gain some experience…. And then keep learning and doing.

Good luck and welcome to the site !!!