Forum Replies Created
Hi Samson
We have recently sold our PPoR (property A) which was rented out (for about 4 years) when we moved interstate and purchased another house (property B). In line with ATO ruling, we chose to nominate property A as PPoR since it has a much larger equity and as result we will not be up for CGT. Property B will be subject to CGT when we sell it, which is fine by us.
Property A will be only partially exempt from CGT since it was rented out for 4 years. A property is only fully CGT exempt if it is your PPOR for the whole duration of your ownership.
I received an advice recently that, ATO ruling allows us to nominate property C as our PPoR (following the sale of property A) even though it is currently rented out, providing that we construct a new property within 4 years of purchase. As a result, property C will not ever be subject to CGT when we sell it in future. Is this true? Does anyone know?
This is not correct. If you rent out property C then it will be subject to CGT.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auI will reply to this post as I feel it was directed my way but I refuse to get into any Argy Bargy with you.
I’m not trying to get into any Argy Bargy with you. It’s none of my business what you do. I am just pointing out something that people who are getting into investing should be aware of.
As for the time factor. If you “like” Trumps page on Facebook you will find the odd video even from him. In his book “The Art of the Deal” it outlines his daily schedule and its crazy busy yet he still has time to do a video.
Do you know how many times Trump has gone bankrupt? He has to do those video, write the books etc to build up and maintain his image so people can continue lending to him. That’s where his value lies: his image and name.
When he files for bankruptcy he doesn’t loose any of his wealth that is protected through his legal structures. But someone is losing in the process.
He said one time: “Many “great entrepreneurs” have used bankruptcy to restructure debt, free up capital and improve their businesses.” (Btw I wouldn’t call him an entrepreneur)
Sometimes the best option is to file for bankruptcy but making it part of your business model and using it as an exit strategy is a different thing.
This seems to be his business: Start a project, inflate it in value, file for bankruptcy, move to next project.
However people continue to do business with him because of the value of his name and brand.
Just as an FYI our group does not sell to Australian’s and I wish more would jump on board instead of buying overpriced Australian properties. Its sad as most did get heavily screwed over by shady US turnkey operators.
Why don’t you sell to Australians? Also why does it matter who you sell to?
There you have it. I am trying to prove to you that I am successful and still have time to do a video and post a blog hahaha
You have to do it mate. It’s part of your business. You need to market your business, your image and brand otherwise no one will know about you or trust you. Like you mentioned in your previous post. There is nothing wrong with that.
People who really really want to learn should go out and do it themselves lollol
That’s the best way to learn. Make mistakes and learn from them.
That is a good way to learn. The best way to learn is to learn from mistakes of others first then go out there and try not to repeat those mistakes at least.
FYI on your website you have this written:
“A successful property investor that quit school at the age of 14 and built a property portfolio valued at over $1,000.000 in 6 months.”
Is that supposed to be $1,000 or $1,000,000?
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auTechnically you do charge a fee then.. The list price never equates to the ‘real’ price unless buying in heated markets.
Yes of course I charge a fee but my goal is to get the lowest price possible for the buyer. Fee is capped at 5-10k depending on the property price. The rest is passed on to the buyer. Profit is made when you buy so it’s important to get the best price possible.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auThe exit strategy doesn’t need to involve selling. Personally I would never sell unless I had to.
Would need to know your financial situation in detail to comment. How do you operate as a contractor? Sole trader/company/trust?
It would be best to discuss this with an accountant. One that also knows about property. Most of them don’t.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auI invest and can tell you what to do if you want to get into investing for free. It’s not rocket science. It just takes time.
I have purchased properties for others before and still do but don’t call myself a buyer agents since I don’t charge a fee to the buyer but earn my commission by negotiating a lower price which is what a buyer agent should do.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auToo many property gurus targeting everyday Australians who want to get into property investing.
Most of them don’t make money from investing but from “teaching” or selling their overpriced/turnkey investment properties. They spend too much time on their image and their brand.
I mentioned this on another forum.
Successful investors don’t have time to teach. They spend their time investing, buying, selling and managing their properties.
As the saying goes: Those who can do, those who can’t teach.
No offense to real teachers.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auOK got you. I can only comment on Brisbane figures since I haven’t been involved in any developments in NSW.
In Brisbane it can take 2 weeks to 6 months. RiskSmart approved town planners can get you an approval within 2 weeks if it’s a straight forward development.
For a multi unit development, DA fees range from $5,500 to +$10,000. There is also the cost of the town planner (around $3000), architect and traffic engineer if they are needed. Their cost depends on the development. Total cost could easy go over $30,000 or more.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auCheers, Andrew. so you don’t have to write your offer on the contract of sale?
No. You don’t have to. Once the offer/counter offer has been accepted you will sign the contract.
Also if there was a scenario where i wanted a 12 month delayed settlement but there are tenants living in the property and i wanted to be able to have the rent paid to me instead of the home owner for the 12 months. how would i go about wording that?
would that just be me having equitable title on the property and the owner still having legal title?
I shouldn’t tell you exactly how “I” would word it. You should consult a lawyer about this.
Personally I would just negotiate on price instead of organizing this agreement.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auI was just pointing out the different learning styles.
I was probably being biased towards the way that I learn though.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auI completely disagree. Do you honestly think people want to stare at white walls?? What makes property investing so interesting is the human component. Real people making real money. Nathan gets so many ‘likes’ because people find him engaging. Without him on the screen the true value would be lost – and no-one would bother watching. I can imagine how my students would react if I stood at the back of the classroom, while they looked forward, and I clicked away at a Powerpoint and spoke. Poor teaching. Learning occurs through connection. Engelo, I think you’ve done a great job at achieving that in the vid.
People who really want to learn want to see the progress.
The rest just want to be entertained and want to feel the speakers excitement and energy and immerse themselves emotionally. Which is fine too if that is what you want and that’s how you can learn.
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auYes an email is fine.
If they insist on a signature you will need to scan it or take a pic with your phone.
It’s easier if you just save a pic of your signature on your computer so you can always just paste it in your offers.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi tom123
Maybe it might be too risky for you to purchase this property at this stage.
You will need to do some more learning about development before.
There are a lot of risks that can’t just be summed up with a %.
From the agents point of view they can because:
1. Agent wants to sell the property so they’ll throw anything that looks good in there
2. Agent doesn’t know anything about development
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi Poombar
When was the valuation on your PPOR done? Sydney market moved up quite a lot in the last 12 months.
Are there any reasons why you would want to sell your PPOR? Why not keep it and rent it out?
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auFor Gods sake find a videographer who can teach you some basic video compilation skills because the ones you make suck! I absolutely hate the slit type view. They invented panorama for a reason!! Everything I and others view on these days is 16:9. Why oh why would I want to waste 2/3 of my screen view to blur and its ten times worse on a phone screen…doh!
I think he is using a phone to film it Catinthehat.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi Tom
Most likely the DA will increase the value of the land but make sure that you don’t over pay for the property.
You’d get more accurate answers about the costs of a DA and the restrictions on the land if you just ring the council, ask to speak to one of the town planners and provide them with the address.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auUnfortunately you won’t be able to claim any of the expenses. If it was an investment property then you would have been able to claim some of them.
If you do purchase a new investment property in the future make sure that you claim your deductions in the year they occur.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auIs it an empty block of land / your home / investment property?
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi Kateodon
Welcome to the forum.
This form is quite a good place to learn. Have you already read a few property investing/developing books?
If you’re serious about it then you could do a Master in Property Investment/Development at a university.
I ended up doing that a few years ago :)
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auPrice: $499,000
Rent: $815 pwsuperAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auPrice: $642,000
Rent: $930 pwsuperAndrew | Property Analyser and Finder Tool
https://property-analyser.com.au
