why bother wrapping at all? If you wrap you may get short term cashflow, but in the end the wrappees will end up with the property and the capital gains.

In a negative growth market, wraps would work well – for the wrapper that is. This is becasue you would receive a deposit and cashflow, and if the wrappees ened up walking away, you would stil be left with the property. It may have gone down in value, but you would have the deposit and cashflow to offset the ‘loss’ – which wouldn’t really be a loss anyway until you sold.

Terryw
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I can’t see the point in investing in property without capital gains. But whether to sell or not would depend on a lot of things. would you have to pay any taxes, how much money is tied up, could you get a better return elsewhere etc.

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Ty

That sounds correct to me. If you borrow to improve an investment property, then the interest should be dedcutible. The building cost of the room would be claimed as depreciation at 2.5% for 40 years, and any fittings in the room such as carpet etc could also be claimed via depreciation – usually over a much short time such as 5 years.

Terryw
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Hi

You may get some ideas by looking at http://www.lawcentral.com.au

They create various legal documents including joint venture agreements and agreements for buying property together. You have to register, but it is all free to create the documents and view all the tips.

Terryw
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Are these card?

A credit card is where you use the lenders funds to pay for your purchases/withdrawals. You then pay later – usually monthly.

A debit card looks like a credit card, but you are actually using your own funds. ie you must have funds in the account.

Various loans have these sorts of cards attached.

Terryw
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I haven’t read the API article. But, the investor could have paid cash because it would be much easier to get the ball moving without a bank being invloved. He had the cash anyway. They could then contruct, or subdivide or whatever. Then when finished they could get finance on the final product on a much higher amount (hopefully), maybe even releasing all of the money they originally put into the deal.

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I agree with Derek, but would add, one disadvantage may be the fact your old home would be positve geared and so you will be paying extra tax on the rent received. Froma pure tax perspective, you would be better off staying put.

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Pagey

This is a difficlut question to answer. I generally feel it is a shame to sell since prices will rise and then you will have to buy back into the market again when you decide to invest. However if cashflow is hurting, selling and taking a small loss maybe a wise option.

Byronent is correct about transferring between spouses. In NSW this can be done without stamp duty (and without the need for divorce). One of my clients did this last year. If you transfer to your husband, then this may help alleviate some of the interest costs by him claiming it against his other income. CGT didn’t be an issue as it hasn’t increased.

Terryw
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You would have to do the intiall course of approx 2-5 days to qualify as a real estate sales person. These costs up to around $500 usually. Once you get that you should be able to get a job under a licenced agent.

Then while working, it would be worthwhile studying the full licenced real estate agents course. After you complete this you can then go out and open your own agency. This course is about 3 months full time or of 1 day per week for one year. Or you can do the diploma at TAFE which is slower – 4 years.

Terryw
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Sue

In NSW I beleive you must be registered with the office Deparment of Fair trading to be a buyers agent -under the Property, Stock and Business Agents Act (2002).To be registered you will need to have completed a real estate course or a buyers agents course – TAFE NSW now runs one. see:
http://www.oten.edu.au/oten/study/courses/CILS/coursedetails.cfm?CID=17337
cost is $1250

Terryw
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