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  • chew
    replied
    Ooops double post.

    Leave a comment:


  • chew
    replied
    Originally posted by Halo_2 View Post
    The latest craze for renting a property is use a fake name and turn it into a drug manufacturer house, they bypass the elec meter (bullshit easy to do) and the owner is slapped with a bill from synergy estimating non metered use.
    This was happening 20 years ago. You will find the big boys have an agent in the loop so if someone is going away for a year or more, they set it up, make some dollars, then repaint, new floor coverings, blinds etc.

    Originally posted by SomeBloke View Post


    Food for thought...
    Is that borrowing for residential?

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  • SomeBloke
    replied


    Food for thought...

    Leave a comment:


  • Halo_2
    replied
    The latest craze for renting a property is use a fake name and turn it into a drug manufacturer house, they bypass the elec meter (bullshit easy to do) and the owner is slapped with a bill from synergy estimating non metered use.
    Last edited by Halo_2; 26-04-2017, 02:04 PM.

    Leave a comment:


  • INTJ
    replied
    I got landlord insurance which covers non-payment and malicious damage etc. but I thought it was a bit of overkill. Having read through this shit... I'm just amazed...

    Leave a comment:


  • sixofthebest
    replied
    Absolutely. While you're at it, read the Residential Tenancy Act. It's chock full of rights for the tenants and obligations for the landlord. As a landlord, if you end up with a "professional tenant", who knows their rights under the Act, you had better be on the absolute top of your game if you're not going to lose your shirt. Whether it's pure non payment, malicious damage or worse... read this stuff and issue the required notices as soon as you are able. If you show any mercy outside of the Act, it's like blood in the water for some of these people.

    There are lots of tenant's advocates but no landlord advocates hanging around when these laws get drafted - and the result is predictable in today's society. If only banks were equally soft about non payment of mortgages, everything would be OK! Unfortunately it's the landlord stuck in the middle who gets spit roasted...

    Leave a comment:


  • INTJ
    replied
    I'm reading through this - http://www.tenancywa.org.au/sites/de...%20Tenancy.pdf

    Document about how to evict someone...

    I'm absolutely mortified...

    All the time I spent renting (OK OK it was only 5 months) I could have just... not paid?


    The way the document is written... holy shit. It's like they actively encourage you to be an absolute pig filthy cunt.

    My place is vacant and currently up for rent and it's giving me 2nd thoughts

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  • sixofthebest
    replied
    Originally posted by INTJ View Post
    Yes so I've figured out in theory I can redraw the equity in the existing house to put down a 20% deposit on another property and the remaining 80% of THAT new loan's interest would be deductible.
    Not correct. The ATO will always ask "what was the purpose of the loan?". It's actually a really simple question / answer so it's best to try to keep it that way. In your previous question you were going to take out the loan and put the funds in a personal account to do whatever / buy motorbikes. This would not be an investment purpose so therefore the interest on the loan is not deductible.

    In this case you are taking out a new loan which will be used to fund the 20% deposit on an IP, aw well as the remaining 80% loan on that IP. As long as you can show the funds going from the loan account directly into the purchase of the IP, without getting contaminated in a personal account along the way, then the purchase is entirely tax deductible.

    It is a lot cleaner if you can make this redraw a separate loan account though. If you are just redrawing on an existing PPOR line of credit or similar account, the mathematics of accounting for what was personal and what was investment get really complicated and your accountant will hate you. Keep things simple by keeping loan accounts for investment purposes separate from loan accounts for personal purposes...

    Leave a comment:


  • XSorXpire
    replied
    Originally posted by boeman View Post
    Welcome back.

    Public question that may affect others.

    I am looking at subdividing and selling off my rear block. Anticipate costs of around $30k.

    Do I need to fund this 100%? Without borrowing against my current property, can I borrow any or all of said $30k?

    Also, will the bank do a valuation on the proposed end value and lend according to this, or do I need to give them a quote of works?
    Thanks. It was a great trip.

    I asked James for his opinion.

    Easiest way to solve the problem is to value the property as is, if there is enough equity do a cash release of $30,000 and let the client complete the subdivision essentially with cash.


    If there is not enough equity, there is still a lender that depending upon end valuation will assess the property if it is subdivided.

    Leave a comment:


  • boeman
    replied
    Originally posted by XSorXpire View Post
    I just got back from riding scooters across Vietnam.

    Yay me.


    If you are worried about the interest rates on your current property let me know.
    I'll tell you if we can get you a better deal. Or in some cases how to get a better deal where you are.


    It will cost you nothing and you have no obligations to change anything.

    www.letschatfinance.com.au
    Welcome back.

    Public question that may affect others.

    I am looking at subdividing and selling off my rear block. Anticipate costs of around $30k.

    Do I need to fund this 100%? Without borrowing against my current property, can I borrow any or all of said $30k?

    Also, will the bank do a valuation on the proposed end value and lend according to this, or do I need to give them a quote of works?

    Leave a comment:


  • boeman
    replied
    Originally posted by deeman111 View Post
    Are there people out there who can give advice on what would be worth doing to the place and what wouldnt? Obviously we just want advice now, and not a builder who just wants the contract and will promise us the world

    Any tips or contacts would be awesome!
    Thanks
    Not really, no.

    Easiest way is to look at what sells in your area under the sold part of realestate.com.au

    For example, a 4x2 in my area sells for about $50k more than a 3x1. $50k is not enough to convert mine, so not worth it.

    A valuer friend of mine (not real estate valuations, but the ones who determine if you can borrow your moneys from the bank for your house) says the best return is landscaping. So perhaps look at the front elevation and backyard? Most can be done yourself.

    Leave a comment:


  • Taylor
    replied
    Originally posted by peter600 View Post
    Try asking the ATO :-)

    You can get a private ruling which is binding.
    Otherwise you might be on the receiving end of tax reg. Part IVA. I can tell you from personal experience Part IVA is worse than a pineapple.

    https://www.ato.gov.au/General/ATO-a...ivate-rulings/
    Just noting here that a binding ruling is only binding on you, they can change their mind on it after giving it to you and you will go to gaol for attempting to defraud the commonwealth. I have seen this happen.

    Leave a comment:


  • INTJ
    replied
    Originally posted by peter600 View Post
    Try asking the ATO :-)

    You can get a private ruling which is binding.
    Otherwise you might be on the receiving end of tax reg. Part IVA. I can tell you from personal experience Part IVA is worse than a pineapple.

    https://www.ato.gov.au/General/ATO-a...ivate-rulings/
    lol the 'Hart case' (p. 3 of the Part IVA document) is almost exactly what I needed to see.

    Leave a comment:


  • peter600
    replied
    Originally posted by INTJ View Post
    Can I refinance 80% of my current home's market value, shift that money into a personal account (to do whatever I please with it) and then move out and re-brand the house (and it's newly refinanced mortgage) as an investment and benefit from the perks of an investment property (deducting mortgage interest, rates, insurance, depreciation etc.)? What do I need to be wary of? My bank says no worries...
    Try asking the ATO :-)

    You can get a private ruling which is binding.
    Otherwise you might be on the receiving end of tax reg. Part IVA. I can tell you from personal experience Part IVA is worse than a pineapple.

    https://www.ato.gov.au/General/ATO-a...ivate-rulings/

    Leave a comment:


  • deeman111
    replied
    Ive been looking for some advice regarding our house, and a motorbike forum on the internet seems like a good place to start!!

    In short, we live in a 4x1 in Clarkson, and we have worked out that 2020 is when our other financial commitments will be paid off and we will be in a good position to sell our house and move into something bigger. So now we have a date to work to and are wondering what we should do to our place in the meantime to make it get a better price when it comes to selling (For example, is having 4 bedrooms and 1 bath better than 3 bedroom and 2 bath, or do we just reno the current bath, or work on the backyard etc etc).

    Are there people out there who can give advice on what would be worth doing to the place and what wouldnt? Obviously we just want advice now, and not a builder who just wants the contract and will promise us the world

    Any tips or contacts would be awesome!
    Thanks

    Leave a comment:

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