Watch out for these small loans. Nearly all are mortgage insured no matter what the LVR is. This could severely restrict your ability to keep borrowing for multiple properties

Terryw
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Stamp duty is tax deductible too, but only taken into account when the property is sold – except in the ACT where it can be claimed straight away apparently.

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Transferring titles means selling the property at market rates, so stamp duty will be payable at market rates. If it is not her main residence, then your mum may have to pay CGT.

After death, I think there are concessions, though I am not sure.

You had better speak to a solicitor (specialising in estate planning) about planning strategies. Getting your mum to set up a testamentary trust in her will may offer large tax savings, depending on the situation. Spending a few dollars now getting good advice could save you thousands later.

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Hi

Are you saying you have $2000 which you wish to invest into shares? If so, you will need to speak to a stock broker. I don’t think there are any hanging around this forum as it is mainly property here.

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And how long is the agreement, you don’t want it to drag on too long – one of mine is dragging into its 5th year.

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Valuations are done by independent valuation companies, so I cannot see how banks are being more conservative. It is the valuers. Banks don’t lean on the valuers and say, “look, we want lower valuations”, the valuers are worried about being sued if the banks have to foreclose and the sale price is under what they have estimated.

Some valuation firms may be more conservative than others, and some staff in the same firm may be more conservative than other firms.

Banks use a variety of firms, so changing banks or en asking the bank to use a different firm may solve the problem.

Breakeven, I am not a valuer, but don;t think rents influence valuations – especially on residential property. The only thing they go on is comparable sales.

Any valuers out there?

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What can you do? Find another property or make an offer taking this into account.

If you are suggesting you have some recourse against the agent, then I am not sure you do. ‘new’ is subjective, maybe the kitchen is not brand new but could still be classed as new. Polish on the floor boards, maybe they are polished in some rooms? No door, did the agent state there was a door? etc. Talk to the agent and ask some questions. Maybe talk to the owner and bypass the agent, ask if they approved the advertisement.

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Strange. Maybe he is a graduate of one of those property guru course where they tell people to make multiple offers??

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Valuers are independent of banks, so there should be no ulterior motives, but some valuers do tend to be conservative.
If you want to argue the valuer is out or range, you should put together evidence of recent sales of similar properties and present this to the bank or the valuer.

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Hi groages

I am not sure that I follow you now!

Just think of depreciation as an expense that you can claim, but without spending any money. If you don’t claim it, then you are paying more tax.

eg.
Rent $20,000
Interest, Council rates, etc $15,000

In this situation, income is $20,000, but you have to spend $15,000 to make that income, so the profit is $5,000.

If this was in a trust, the $5000 could then be distributed and the beneficiaries pay tax on this amount.

eg 2. Claiming Depreciation
Rent $20,000
Interest, Council rates etc. $15,000
Depreciation $5,000

In this situation you get an income of $20,000 but need to spend $15,000, but you can also claim depreciation (without increasing your expenditure) so your total claimable costs = $20,000.

Net profit = $0, so nothing to distribute, and no tax to pay.

But you have still really made a $5000 profit as you have an income of $20,000 but have only actually spent $15,000.

Does that make sense?

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