Kenzel,It may pay to consider Here to Learn's suggestion. If you are in a position to stay with you folks a little longer, you could purchase an IP in an area where you could purchase for $150-200K. This obviously requires a great deal of research on your behalf on the potential IP and its future potential. If the property is never used as your…[Read more]

Hi Recco,I was part of the second RESULTS group and am now part on the graduate programme. You ask what happens if you are in a deficit at the end of the programme, I was in such a position. Due to a construction, I was unable to "do a deal" during the 12 months of the programme, and if you look only at numbers on the page and take travel (from r…[Read more]

I prefeace this response by first saying that I am not an accountant and suggest you ask one. However, my understanding is that if you withdraw equity from an investment and use it for other than investment purposes then the interest for this loan is NOT tax deductible. With regards to the ongoing potential negative income (assuming it is still…[Read more]

I understand where you are coming from with your question. We recently put an offer into a REA for a rural holding based on a 6 month settlement. The REA was most indignant and informed me that "what did he know…I have only run 14000 or so sales and I have never heard of this……Vendor wont like it….Too risky "etc. I ended up suggesting that…[Read more]

Type in DIY conveyencing into Google and you will find several companies with kits and instructions if this is the way you choose to go. I have also had an interfamily sale (I  was the seller) and we used the same conveyencer (just signed a stat dec saying both parties were aware and agreeable to the joint legal representation) and this reduced…[Read more]

if you do, you will have to pay capital gains tax upon the sale (an equal percentage proportion to that rented, ie if you rented out 50% then you will be up for CGT on 50% of the profit).

For example
Total purchase price $300000
interest @ 8% interest only = $24K per annum
If you leased out 50% then 12K would be tax deductabile (plus 50% of all…[Read more]

Congratulations on that Amanda,

Thank you for sharing your numbers.
Cheers
Tammy

Dont confuse a moral issue with a financial one. If this lady is a good tennant and is willing to pay her rent 12 months in advance and has had a good rental record, and you didnt know her occupation – would there be an issue. Perhaps her nondisclosure was due to being rejected by other prospective landlords. Now I am not saying lease it to her,…[Read more]

Hi Amanda,

Your relocation house came up a treat. Would you care to share the costs associated? Do you think the relocation of a house for profit in todays market is a way to go? Just interested in what your thoughts are.
Cheers
Tammy

I am pretty sure I have read a forum thread related to this previously. It went along the lines of this arrangement being called a “pillar and roof” (or similar) where the +ve cashflow properties are the pillars that hold up the -ve cashflow “roof”. Once that is achieved (ie 4 +ve plus 1 -ve), the buyer goes on to reproduce the “building” I think…[Read more]

I have just read through this post and it occurs to me that the eventual accepted margin would be impacted on by the amount allocated for “contingency”. What is the average amount that you have allowed for this?
I am looking at a deal at the moment
Land $120K
Stamp Duty $7K
Demolish $12K
Subdivide $15K
Build $150K each
Sell $250 each
Can…[Read more]

Thank you both for your response.

Another question then, can a trust own a car?

Tammy

Linda,
I appologise if you in any way were offended by the REA ethics comment. It was not intended to do so. Thank you for your info on the 0.25% to secure, that was something I had not heard of before.
Tammy

I too have been asked for an initial deposit prior to exchange of contract (obviously taken off purchase price). The reason given was that it would secure the proerty during the time until exchange of contract ie keep it from being sold to anyone else. It was my first ever purchase and I paid it (only $1000). The reality is that until there is a…[Read more]

I presume that youalready know that it is able to be subdivided. A couple of sugestions.
Is it possible to puchase with a delayed settlement – long enough to get the subdivision approved. If so would it be possible to have a contact ready to go onselling the second block to your brother or whoever? Perhaps this would get around the need for a…[Read more]

Have a look in the yellow pages under House Movers (Removers). They are generally listed with or near House Restumpers. These guys will be able to fill you in on the correct proceedure. Get several quotes and ask to see or speak to previous customers. As for the house, you will quite commonly find them for free or very little money in the Sydney…[Read more]

Sorry, just refreshed and saw condog suggested the same idea.

Hi AJB

A possible suggestion is to keep the rent at your ideal but to offer a rent free period, say a fortnight. On a per annum basis it may work out the same as a lower rent to the tennant, but would allow you to onsell with the higher rental agreement in place.

All the best
T

Hmmm…. It was my understanding that you were able to rent from your trust as long as you could prove that it was at current market rent. The obvious downside being the loss of the CGT exemption, but I guess you do get the tax deductions. Would someone with more experience care to reply?
T

My understanding was that CGT was applied to all property. However, a 100 % exemption applies for PPOR and a 50 % exemption for non PPOR properties if held greater than 12months from the date the contract was signed. Given your property is not your PPOR, I would have thought you were subject to CGT upon the sale. Perhaps if you held the property…[Read more]