Home ownership

[runuts]

RE: Hypothetical example. But say you own the place for three years and get out of pocket $24,000 ($8,000 pa). You sell the property for $30,000 more than what you bought it for 3 years earlier. How much will the Government tax you on your profit, and how much will you be better off?

Depends on your earnings that financial year. There are ways to avoid it though.

But seriously, if you are only making 30k after 3 years, you've invested in the wrong area. I turnaround quite a few properties. On average, they generall see an annual growth of 20%/year.

If you are wise, and can hold off. You are best not selling them off.

Another tip, is to always build new homes. You generally make more from that also. Approx 50k extra that way. There are also much better depreciation advantages of building new. Not to mention the savings in stamp duty.

 

[bindolla]

Troy,

http://rapidlend.com.au

have a look here. Chris may be able to provide you with advice :wink:

His a mortgage broker.

downside - his on holidays until end of Jan.

 

[matress]

Another tip, is to always build new homes. You generally make more from that also. Approx 50k extra that way. There are also much better depreciation advantages of building new. Not to mention the savings in stamp duty.

And if you need a design, let me know :lol:

 

[Gav]

RE: Hypothetical example. But say you own the place for three years and get out of pocket $24,000 ($8,000 pa). You sell the property for $30,000 more than what you bought it for 3 years earlier. How much will the Government tax you on your profit, and how much will you be better off?

Depends on your earnings that financial year. There are ways to avoid it though.

But seriously, if you are only making 30k after 3 years, you've invested in the wrong area. I turnaround quite a few properties. On average, they generall see an annual growth of 20%/year.

If you are wise, and can hold off. You are best not selling them off.

Another tip, is to always build new homes. You generally make more from that also. Approx 50k extra that way. There are also much better depreciation advantages of building new. Not to mention the savings in stamp duty.

Agree with runuts .... am i nuts ??? :lol:

But to sort of answer the qn ... if your cap gain is $30k after 3 years then
assuming you are just a normal taxpayer then you are taxed on capital
gains at your marginal tax rate on half the amount gained. SO in my
example, the person's marginal tax rate was 15%, and half of your gain
was $15k so your tax payable on the transaction would be $2250.

 

[i2obert]

WRCVR4 my mate is in the realestate game already owns 6 houses and worth over a mil and his only 23 GRRR guess that is what happens when you give up your life at 15 and start working hard from then on

but he told me if i was to look into getting houses in melb to be worth money in future would be

elwood
seaford (bekoz new eastlink will mean access there is easy and somthing about that will mean more people will look at buying there due to beach location and fact it will mean it is quicker to get to ringwood or city and so on)

and also frankston for the fact there doing it all up with new shopping centers eastlink plays apart once again and some other things to

i belive he has just got a house in ether seaford or frankston have not spoken to him in a about two weeks


but as above buy two houses thats what i plan on doing when i finish with the evo and save a depoist HAHA

 

[rock_it]

Will it cover the loan payments ? or how much extra to i need to put into it ?
I don't have much of a deposit atm (cannot get FHG)

Yep pretty much summed up above...

I was able to do finance on this property at cost rate, with was about 7.4% as interest only ...

100% finance not a prob ... As I am the seller of the apartment, and the finance, there are some things that we can do ...

If you want to know more just let me know .. We will send it to PM's ...

 

[JSTYLE]

I got a low doc 20% loan.. which means you need 20% of the house value.. with only my name on the loan.

Jon

 

[WRCVR4]

Im planning of saving as much as i can over the next 6mths, investing in shares, as i go (i currently have a small portfolio)

Then speaking financial advice, and either selling up, and buying at least something to live in (do not see the point in selling shares, to buy just an investment property - i can watch shares go up and down at least)

 

[bazeng]

For your finance, give Matt from E-choice a phone call.

He is a loan broker, and can find a loan to suit your needs.
He is very very prompt and easy to work with.

0401952938

 

[lefty]

My problem is I get shit pay.

Then, the house prices are ridiculous, my years wage would not even pay off the GST on the house after tax, and I will bet in 5 years time, they will be more expensive, so its ok for you folks who already have a home, because if you sell, you will most likely make double on what you paided it for (and the younger generation suffer/pay you for it), so my conclusion is to live at home forever with dinner made by mum while trying to save something

and to win tattslotto.

Nah, im all serious though, I'll just try save as I go, but I think I need a better paying job. I do know that house prices atm are ridiculously overpriced, and what goes up must come down.

Who do you see when you want to invest in shares and dont know where to start? Im keen on negative gearing (remembered an interview from our super).

 

[WRCVR4]

I spoke to a financial planner (Thanks Charlie)
Basically unless i had $100k in shares to borrow against, i was told to not bother with margin lending

Lefty, if i knew what i do now, back when i started work, i would be in a WHOLE much better place, so i have to try and play catchup.
What ever your line of work is, ALWAYS work on moving up the tree quickly, so you can get better pay 8)

 

[Gav]

My problem is I get shit pay.

Then, the house prices are ridiculous, my years wage would not even pay off the GST on the house after tax, and I will bet in 5 years time, they will be more expensive, so its ok for you folks who already have a home, because if you sell, you will most likely make double on what you paided it for (and the younger generation suffer/pay you for it), so my conclusion is to live at home forever with dinner made by mum while trying to save something

and to win tattslotto.

Nah, im all serious though, I'll just try save as I go, but I think I need a better paying job. I do know that house prices atm are ridiculously overpriced, and what goes up must come down.

Who do you see when you want to invest in shares and dont know where to start? Im keen on negative gearing (remembered an interview from our super).

Lefty, I reckon you need to start learning about investing. Read some
books and magazines so at least you will know when you get some
advice whether it makes sense for you or not. Take control of your own
financial future.

Couple of points you make show me that you would benefit from this
learning - eg you don't pay GST on an established house, did you mean
stamp duty maybe? And your low pay also means that you pay low tax,
so negative gearing would probably be of little benefit.

I don't know whether house prices will come down that much - other than
in some specific areas that may have gone way too far - they may stay
flat for a few years - at the end of the day it is supply and demand and
not everyone has to sell if prices are flat. I still reckon my (totally
amateur) advice to WRCVR4 could apply for you too - live at home so low
rent of your own, buy an investment place and pay it off like a &%&%&^^

You could do something similar in shares ... a margin loan facility to buy
some low fee managed investment (eg an index fund) that you top up
each month. With your tax rate you wouldn't want to gear it too highly
(eg maybe 50%) but you could still benefit from the additional risk of gearing.

As always, general advice from a non-professional, make your own
decision, past performance is no guarantee of future returns etc etc :lol:

Let me know if you have any questions, always happy to talk about this
stuff.

 

[JSTYLE]

I dont think the market is going to stay flat.. supply and demand.. theres another expected boom just around the corner 3-5 years.. so you should see prices from now go up atleast another 50-100k once that boom hits!

Not enough rental properties.. people will always want to buy properties cos they can rent them out for as much as they really want!

You might have to make some big sacrifices to save money such as:

Selling your car (buy a stock car)
Spend on what you need not what you want
Make a budget of where your money is going (so you know whats going on)
Find out how much money you need to purchase a property where you want.
First home owners have the 10k government grant.

The above might seen unrealistic.. but if you can make it happen in 2-3 years time you might be sitting on 100k worth of equity!!! if you buy in the right area. If you also live at this property for 100% of the time it will be tax free when you sell it!!! Which is a big bonus!!!

Jon

 

[JSTYLE]

Just did a serach on seaford..

Wow its really affordable still and look at the growth rate 13.4%
thats massive!!!

12 months to December 2007
HOUSES UNITS
Seaford Region Seaford Region
Median Prices $292,000 $275,000 $240,000 $220,000
Long Term Trend 13.4% 10.2% 13.0% 10.7%
Auction clearance rates 80% 65% SNR 66%
Days on Market 64 74 83 100
Discounting 5% 5% 5% 6%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property Monitors

Jon

 

[JSTYLE]

Frankston North (other side of nepean hwy) is still very 'cheap'.. the growth isnt there.. but yer it should boom soon too.

12 months to December 2007
HOUSES UNITS
Frankston North Region Frankston North Region
Median Prices $195,000 $275,000 SNR $220,000
Long Term Trend 9.2% 10.2% SNR 10.7%
Auction clearance rates SNR 65% SNR 66%
Days on Market 41 74 SNR 100
Discounting 4% 5% SNR 6%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property Monitors

Jon

 

[SIVART]

Frankston North (other side of nepean hwy) is still very 'cheap'.. the growth isnt there.. but yer it should boom soon too.

12 months to December 2007
HOUSES UNITS
Frankston North Region Frankston North Region
Median Prices $195,000 $275,000 SNR $220,000
Long Term Trend 9.2% 10.2% SNR 10.7%
Auction clearance rates SNR 65% SNR 66%
Days on Market 41 74 SNR 100
Discounting 4% 5% SNR 6%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property Monitors

Jon

I would only buy there to rent it out I wouldnt live there though, but when the new freeway opens it will jump up another 15 to 20 % atleast

 

[JSTYLE]

Frankston North (other side of nepean hwy) is still very 'cheap'.. the growth isnt there.. but yer it should boom soon too.

12 months to December 2007
HOUSES UNITS
Frankston North Region Frankston North Region
Median Prices $195,000 $275,000 SNR $220,000
Long Term Trend 9.2% 10.2% SNR 10.7%
Auction clearance rates SNR 65% SNR 66%
Days on Market 41 74 SNR 100
Discounting 4% 5% SNR 6%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property Monitors

Jon

I would only buy there to rent it out I wouldnt live there though, but when the new freeway opens it will jump up another 15 to 20 % atleast

Once house prices jump up it weeds out the ferals...

Jon

 

[i2obert]

yeah seaford is good as i said before also i know a couple people who have just got houses in frankston well two people both got houses both re doing houses to rent it out as frankston is ment to now undergo some re development

as well as the highway could be good and with st kilda or who ever it was building a whole new football thing there may bring some more money to the area who knows

jstyle what website did you look at that infomation on maybe it is time to sell the evo pay off creditcards and get int othe house thing

get house get 100k eq then blow 100k on a very very very very very very very fast evo HAHAHA or just a nice race only one and buy a half decent daylie like a SS for cheap MMM might be the plan

time to get level 3 cams

 

[SIVART]

Frankston North (other side of nepean hwy) is still very 'cheap'.. the growth isnt there.. but yer it should boom soon too.

12 months to December 2007
HOUSES UNITS
Frankston North Region Frankston North Region
Median Prices $195,000 $275,000 SNR $220,000
Long Term Trend 9.2% 10.2% SNR 10.7%
Auction clearance rates SNR 65% SNR 66%
Days on Market 41 74 SNR 100
Discounting 4% 5% SNR 6%
SNR = Statistically Not Reliable.
*Based on sales reported to Australian Property Monitors

Jon

I would only buy there to rent it out I wouldnt live there though, but when the new freeway opens it will jump up another 15 to 20 % atleast

Once house prices jump up it weeds out the ferals...

Jon

there been pushing the ferals down to Hasting way now, Ive noticed alot of change in the last few years, but you still see some getting around

Carrum downs is the place to buy

 

[i2obert]

thats like alot of places

think Springvale use to be full of junkies then they moved down to dandy now there in packie HAHA

same thing will happen with frankston they will push them down to hastings


im not looking at buying a house till im at least 25 turning 23 in three weeks

but also remember when looking at houses think of things like public transport after living in my house in springvale also in cheltenham now i love public transport where as my gf mums house is in cranny south some new estate center of cranny and lang warrin and there is not even a bus line yet and its a good 15min from ether station