I am not sure Steve suggested selling. I know from various seminars etc, then he has suggested paying down loans, even on investment properties, so as to reduce risk.

Some of my clients have made spectacular gains in WA, with a few selling and paying the proceeds off their home loans. The market over there may keep rising for a while. Afterall,…[Read more]

Depends on if you have other debts, and also if you think your funds can be invested for a higher return elsewhere.

If you have other debts then you should probably pay the non deductible ones first, then the ones with the highest interest.

Terryw
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Parramatta
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On the other hand, I may have to disagree with myself.

First you would have to determine if the real estate agent owes a duty of care to you the tenant. Is this established in law? If it is not established then there is no duty of care.

It is like someone saying it is safe to cross the road, you cross and get hit by a bus. You cannot sue them as…[Read more]

Hi Bear

In the end, it doesn’t really matter where you put expenses as long as it all adds up. A few years ago one of the property accountants told me that having 4 properties would have made me able to claim that I was a professional investor. Don’t take this as advice, just as a guide.

Terryw
Discover Home…[Read more]

Originally posted by michelle34:
Hi There

Just wondering if anyone has any suggestions on how to avoid having to pay stamp duty on the buyout of a joint venture property? seems ridiculous to have to pay stamp duty twice on the same property? (this is in victoria).
many thanks
M.

Roodog has pointed out you would not be paying stamp duty twice,…[Read more]

They probably won’t notice for a long while and there are so many lenders out there it probably won’t be an issue as you can spread your loans around.

Terryw
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The cashflow people tend to dislike negative gearing as they say you are making a loss in the hope of making a capital gain later. There is no guarrantee the gain will come (just as there is no guarrantee the sun will come up tomorrow morning )

Ideally it would be great to have positive gearing and high growth, but unfortunately it doesn’t always…[Read more]

Whether you could claim to be in the business of property investing would probably depend on how many properties you own. my guess would be 4+, but it would depend on the values etc.

Why not give the ATO a call.

Terryw
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I just claim against self education – think that is the correct section.

Terryw
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Very good reply Derek.

There are some new No Doc lenders out that do not need a ABN. RAMS can even go up to 80% if you can get a letter from your accountant stating you have been self employed for more than 2 years. OR it may be possible to argue that you are a professional investor (no ABN needed) by the number of properties you own.

If you…[Read more]

Originally posted by mitzvah:
Hi Tony.
Why bother with a Tenancy Agreement at all? Can’t both parties sign a lease-option agreement whereby all expenses are shifted over to leasee?
Cheers,

Hi Mitzvah

A tenancy agreement is just another name for a lease?? The option is a separate contract.

In some states, such as NSW, apparently you can pass…[Read more]

Cata

Hopefully Jules was considering a unit trust with the units owned by a discretionary trust. This used to be popular in NSW before the Land Tax rules (or interpretations of the rules) changed.

But it still may be a good structure as it may be possible to transfer you property into your SMSF later on without stamp duty.

Terryw
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Originally posted by DanielCummins:
I assume though, that the cost out of your own pocket to finance the loan throughout that settlement period should be factored into profits?

Daniel

The loan only starts at settlement. So if you can on sell before hand you will just be up for the interest on the 10% (or lower) deposit – if you borrowed…[Read more]

If you rent part of your house while living in it, then you will lose the capital gain exemption. You will have able to claim a bit more, but it could cost you dearly in the end.

However, if you were renting out your whole property while not living in it, you could still claim everything and get the CGT exemption as well if you go about it the…[Read more]

My non legal opinion is that agents have a duty of care, and this cannot be contracted out. So if something happens that is their fault, then they could be sued.

I suppose it is like a doctor doing an operation. They may get you to sign all sorts of documents, but if they do not take adequate precautions etc they can be sued.

Better ran this by…[Read more]

I am not qualified to answer either, but that has never stopped me before.

I beleive that since the offset is a completely different account, then it has no bearing on tax deductibility. It is just a savings account. So moving money in and out will save interest, but since the money is not coming from the loan account, it should not affect…[Read more]

Hi Arthur

Richard has given a good reply to your first posts.

Having a company or a trust will not help with making finance easier. Lenders will look at the individuals behind these entities.

If you wish to keep going on forever, then it is possible if you have either income or equity. You may just have to try a few differennt lenders.

Having…[Read more]

Ihad a client that purchased approx 15 blocks off the plan for around $40,000. before settlement they were selling for around $160,000!!!! However, this was during the boom time a few years ago.

Terryw
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I beleive in NSW stamp duty is payable within 3 months of exchange of contracts for wraps.

With Lease options there is no exchange yet, so no stamp duty issues until down the track – as Craig has written.

Terryw
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Seems like you owe more than it is worth. That will make it impossible to refinance. You will have to wait for the market to pick up a bit and/or add value.

Terryw
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