Loving your eagerness fxdaemon.

The course being recorded is being held on Saturday. It will take a couple of weeks to edit it up, hence why I said on the webpage that it would be ready in April 2018.

Sincerely,

– Steve

Sure. Trading is when you buy with an intention to sell. Investing is when you buy with the intention of holding. That’s not to say you won’t sell, but rather you are not buying with the intention of fixing then selling in a short or medium time frame.

– Steve

G’day team, and especially Clyde.

Clyde – I’m coming late into the discussion here, but am I right in believing you own two properties with negative equity and negative cashflow?

If so, are you in a position to absorb the loss of selling either (or both) of them? Or are you no longer able to afford the cost of owning the properties and can’t afford to fund the negative equity on sale?

Sincerely,

– Steve

• This reply was modified 7 years, 10 months ago by  Steve McKnight.

Hi Ben,

It’s not how many properties you own that matters, rather the financial consequences of owning them.

1, 2, 5, 10, 100… it’s just a number.

What’s more important, at least the way I roll, is the cash flow you derive, and therefore the freedom from work obtained, that is key.

I’m not on the same page with your thinking about the properties though. Economics works to explain that markets find an equilibrium at the price point where supply meets demand. There are enough houses for enough people who want them (can afford them?) at that price point, all the time.

Whether that price is affordable, reasonable, sustainable, etc. is another conversation.

Bye,

– Steve

Hello Ajay,

Yes, you are correct. Many State governments have introduced additional stamp duty for foreign buyers (note that there is no discrimination against Asians as such). Some State governments have also introduced an additional land tax component.

http://www.sro.vic.gov.au/foreignpurchaser
http://www.revenue.nsw.gov.au/taxes/spd
https://www.business.qld.gov.au/industries/service-industries-professionals/professional-financial-services/transfer-duty/investors/afad

The Federal government is also in on the act by phasing out access to the CGT discount while also increasing withholding on sales by foreign property owners and somehow charging foreign owners who leave their properties vacant.

http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_16.htm

We’ll have to wait and see how effective these new measures will be.

On one hand the additional taxes may strangle the foreign golden goose buying up (mainly) off-the-plan properties – which in turn supports construction, jobs and GDP. On the other hand, if their aim is capital preservation (as is the case for some Chinese investors who just want their money out of China), then a little extra cost is unlikely to worry them if the bulk of their capital is safe.

Keep an eye on the movement in property prices. As we come into Spring, and with a spike in off the plan properties due to hit the market soon, if the additional demand for housing does not match the increased supply then prices should fall.

All the best,

– Steve

How does that compare against what you might pay a developer under the basis you mention above?

Which State is your project located in?

Regards,

-Steve

Hey Greg,

Couldn’t you just engage a skilled town planner to run the project for you? Why does it need to be an investor?

Regards,

– Steve

Might be a good time to try out commercial property. Growth is usually lower, but income is better and aggravation is, on the whole, better too.

Well done on your success. I am proud of you, and for you.

– Steve

Hi there and welcome to the community.

I’m a little confused by the question, but here’s a stab at an answer:

1. Buying a business

This is not a tax deduction, but instead is the acquisition of an asset. The income from the business is assessable, and the costs of running the business would be a tax deduction.

2. Buying an investment

Same as #1 above. The purchase price paid is the cost of the asset. Rent would be the income, and interest and running costs would be the tax deduction.

3. On disposal

On disposal of the asset, the surplus of sale less cost is a capital gain. If the sale proceeds are less than the cost then there is a capital loss.

4. Annual Operating

In regards to operations, if there is more income (assessable income) than expenses (allowable deductions) then you will pay income tax at your marginal tax rate. If there is a loss (expenses > income) then that loss can be carried forward. You can only get a tax refund if you have paid tax in the first place.

Regards,

– Steve

Hi,

Just letting you know a small number of tickets have been released for Conference. Details here:
https://www.propertyinvesting.com/topic/5025119-millionaire-mega-conference-limited-tickets-left-get-yours-here/

– Steve