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Also from a paycheck to paycheck family. The first unit we purchased was our PPOR when the FHOG came in and why?……because the repayments were less than the rent we were paying an an adjoining unit (+ve cash flow…..whats that?!?!?!). The second, purchased 6 months later and in the same complex, was because my younger sister was coming to uni and it was up to me to "keep an eye on her" and when she got 2 friends, again the rent more than covered the repayments. I recall thinking wow, we have an investment property. Did not know anyone in the family, either side, who had done same so were a bit smug, and I actually recall thinking "dont be greedy…that will do" and went off and bought a car, holidayed etc. Then came the boom (laughed everytime someone purchased in the complex for more than we paid….little did we know!), and then value of our properties more than doubled.
Now with some education about property, I think back to all the places we looked at when we bought the first one, all were +ve cash flow, as my criteria was simple, repayments had to be cheaper then rent. I wish in hindsight to have had some advice hat would have guided us. My mission now is to ensure the next generation in the family at least knows this is a possibility.
Gee, you know……if only I had bought them all.(all now more than double, some 3 times their original price)….I think there could be a story in there somewhere!!!!……..LOL
Cheers
TammyHi Xenia,
I also have noticed that there is often an attitude that if you are working you are doing it all wrong. Interestingly, I have observed this attitude most in the "almost there Investor". I am sure you know the one, lots of information, all gunho, results just starting to be observed, stars in their eyes where it will all lead to. I do find it insulting and condescending that in their "arrogance of potential sucess" that anyone not doing the same is a sucker.
I believe we all make choices in this world fo all kinds of reasons and a measure of someones sucess in life is not based on wealth alone. There is no denying that money certainly makes life easier but it does not guarentee you will be happy. If you are truley happy with your point in life, what does it matter if you are working, investing or otherwise. I know this is simplistic, but I am finding that there is too much keeping up with the Jones and the desire to make more money for the sake of it.
And yes, I think at one stage, I too fell into that catagory, at least to a degree. Having my little ones has changed my view on a lot of things. Ahhhhh Yoda…….perhaps we really do get wiser with age!!!!
T
Hi JL,
Yes, unless something has changed in the last few years, you pay within 3 months of exchange, and yes I was on an extended settlement and paid it at the 3 month mark, the property settling 4 months after that. I cannot answer what the outcome is should you not settle. Perhaps there are those with more experiecnce on this forum that can answer that.
Cheers
TammyHi Familyman,
Duckster is correct. I dont think anyone would wish to steer you in the wrong direction based on what we ourselves think. Each persons situation is different and so are the outcomes they wish to achieve. My suggestion to you before handing over any money, is for you and your family to sit down and clearly define what you wish to achieve. I am not meaning to sound trite and give you a brush off, it is an invaluable exercise to do. If you have no clear outcome, how can you possibly work out the best path? It is very easy and simplistic to sit down and say "we want to be debt free in 2 years with an passive income stream as well", but what does that really mean in terms of time, work (both paid and in your own time), family, lifestyle, actual cost amounts etc.
What is achievable for one person may not be for another (think 80 hr work week for a single vs a young family with a stay at home mum). If you apply someone else's plan based on their expectations and goals, you may find yourself disappointed and regretful.
I think if you can get your goals sorted out, and you can define your questions a bit better, you will find many people able to offer you an opinion (always remember – IT IS JUST AN OPINION), based on their own experiences. If you need help defining you goals, post away and ask how others have done this and I am sure the floodgates will open.
Cheers and all the best
TammyHi Simez,
By all means feel free to share these loopholes, or point me in the right direction. I am very happy to do my own reading, I just didnt realise there may have been loopholes.
Thank you in advance
TammyHi all,
I also have 2 tickets available as a family wedding has popped up. I am open to offers for these tickets. Please PM me.
Cheers
TammyAs per above except if it is a delayed settlement. Stamp duty (NSW anyway) needs to be paid within 3 months of the contract being signed, and on one occasion, I did it myself as I was able to get to the Office easier and quicker than the solicitor. BUt as a general rul, I would think that it is easier for the solicitor/agent to do this for you.
Tammy
I guess it all depends an where you are looking. Here in regional NSW where summer temps can be over 40 deg with long hot dry spells, a stunning new home with no trees and a westerly aspect (ie patio in blaring sun) to me would not be as appealing as a bit older house with trees and an easterly or northerly aspect. But that is because my current home IS westerly facing, lacks trees and my babies are now growing there is no play outside during the day, so my preference has changed. I guess what I am trying to say is that it depends on the location and the person who is going to occupy. Prior to having my children, it didnt fuss me as I wasnt home all that much.
No it doesnt sound stupid, just consider it as you would when looking for parks, schools, shops etc.
Tammy
I guess it depends on what you are trying to change. I recently negotiated to alter the penalty for the construction going over the contract period. Not that it is easy to determine as all building supply delays and days "where precipitation occurs in the area" are added to the contract. It was more of an aknowledgement of my desire to have the job completed as promptly as possible, and that said it only changed the penalty rate from $10 per week to $100.
What is it that you are wishing to negotiate?
Tammy
And today I am hearing that irrespective of the RB's possible hold on interest rates, with the US situation becoming more of a concern, the big 4 are likely to increase the interest rate anyway. Any thoughts on if this is the case (RB holds but banks independantly increase), just how far the banks are likely to push it?
Tammy
Can someone please advise if there is a way of claiming a land tax refund as indicated above. I sold a property in March last year and have just recieved a land tax bill for that property for the whole year. My solicitor never mentioned anything about land tax, should they?
Cheers
TammyUnfortunately, if the vendor doesnt want to settle on time, apart from recinding the contract I am not sure there is anyway to "make" them settle. I recently had a vendor just not be available to sign the transfer for 10 days and apart from threatening to walk away, my solicitor said I just had to wear it. In that light, it may be reasonable to complete the settlement and allow them to rent from you. Maybe you could do a deal with the selling agent to organise the lease for you in order to complete the settlement on time.
Good luck
TammyThe idea behind the JV in your instance (besides others) is a way for the transaction to be transparent to the ATO. That is, prior to any taxing and after costs are deducted, the profit is distributed 50/50 and then you each pay tax according to you particular situation. Obviously you would be best to seek appropriate professional advice, as I am only offering an opinion based on something I have done.
Cheers
TammyAnd yet, if you choose not to use a PM then you have access to all the private information anyway!!!! Go figure.
A possible option would be a JV agreement where she is the finance partner and you are the time/project management partner where the agreement splits the proifts (or losses) 50/50. In this scenario, she secures the property and pays all outgoings whilst you put in the time. If you wanted to, you could always put a caveat over the property to secure your interest. You would need a solicitor to draft up the agreement. I guess it is up to you both to decide how simple or complex you wish to make it.
As with any reno, I would check with the level of work that you are able to do independant of the appropriate tradespeople.All the best.
Cheers
TammyWow, I too am impressed that it occured in such a tight timeframe. Congratulations!!!!!!
Here's a toast to onwards and upwards.
Tammy
Hi McNorman,
Out of curiosity, where was the source of the jobs info?
Cheers
T
Hi Scott,
In my case the boot is on the other foot. I sold 2 properties, one in March 07 the other in July 07. I just recieved a land tax bill for $1700. When I called the number on the bill to say I no longer owned them I was advised that it is ownership as at the 31st Dec. I was also advised that it is not possible to pass on this tax to the new owner, either during contract or retrospectively. So I find it interesting that you have been asked to contribute to this. I was told in no uncertain terms that I have to wear the bill
. She then cheerfully informed me that I would not get a bill in Jan of 2008!!!!Ahhh such is the life of those that invest in property!!!!
Cheers
Tammyfrom a laymans point of view,
My understanding is that the rent has to be set at market value and you would lose your CGT discount.
Just a note, my accountacnt advised of the "toothbrush test". That is to say, if you have spent enough time there to hang a toothbrush your fine. He said if audited and you have proof of address change (ie licence & rego sent to that address), power and phone connection in your name, and at least 1 bill to show domestic power and water consumption then there is no issue.
Hope that helps.
Tammy
. She then cheerfully informed me that I would not get a bill in Jan of 2008!!!!
