|Posted on 3 July, 2015 at 1:55||comments (2)|
Usually this blog is used for Real Estate associated matters but today it would be remiss of me to not acknowledge the loss of the Adelaide Crows head coach Phil Walsh.
It shows how fragile our life is and how we need to live each day as it is our last.
Having been affected by depression I ask you all to speak to your friends and family and offer help if they need it and who knows we may stop the stupid loss of life that seems to go on.
|Posted on 30 June, 2015 at 5:30||comments (0)|
1. You pay CGT on sale of the property
You pay capital gains tax when you sell your rental property, although if you have held the property for longer than 12 months you will get a 50% concession. The capital gain amount is added to your other assessable income and taxed at your highest marginal tax rate.
2. You have no access to federal and state government grants
Buying an investment property makes you ineligible for the assistance provided by the federal and state governments for first home buyers.
Best of both worlds
The good news is you can have the benefit of owning both a home and a rental property.
Here are a couple options you may want to consider:
Buy a smaller, less expensive property in your chosen area and live in this property for at least 12 months.
You can then look at turning this into rental property, meaning you move out and either rent or buy another property.
If you sell down the line, provided it’s within six years, which is the allowable time you can be away from your home, and provided that you haven’t declared a new main residence, you may still get the full capital gain exemption. You need to speak to an accountant for advice.
The thing to remember is that buying and selling a property costs a lot of money. It’s something you need to consider carefully. Property is a long-term play, and you get the most benefit by holding over the long term. You should only consider selling if you think this property has achieved maximum growth and you could use your funds elsewhere.
While there are advantages to buying your first property as your home, many of these are one-off benefits. If you want to build your personal wealth, buying a rental property, ideally, should result in greater financial gain.
|Posted on 29 June, 2015 at 0:50||comments (0)|
Can’t decide whether to buy your first property as your home or as an investment property? Here are some issues that may help you make up your mind.
With property prices soaring in Australia’s biggest capital cities, the urge to buy a property is stronger than ever.
If you’re buying your first property, the first thing you need to do is decide whether to buy it as a home or a rental property. This decision will impact on everything else you do down the line.
It can be a difficult decision to make. On the one hand, you want that security of living in your own home without the hassles of dealing with a landlord. On the other hand, you want to start building your property portfolio to secure your retirement.
There are upsides and downsides to each option. The best way is to assess all of these and see what works best for you over the short and longer term.
1. You may be able to access the First Home Owner Grant
While there are more restrictions and it is less generous now, the First Home Owner Grant is still available to first home buyers and could help you in a big way if you qualify. This assistance is only given to first-time buyers purchasing their homes.
2. You don’t have to pay tax when you sell
If you buy your first property as a home and live there for at least 12 months, you won’t have to pay capital gains tax when you sell, no matter how much the value has grown during that time. There are certain taxation rules that you need to meet, but essentially, as long as you’ve lived in this property for the whole time and haven’t earned any income from it, you’re entitled to full exemption. In contrast, you’ll have to pay capital gains tax on your investment property when you sell.
3. Potentially easier to get a mortgage
The recent crackdown on investment lending will likely make it more difficult for investors to get a loan, especially those who are just starting out. In contrast, lenders are often more willing to lend to borrowers who are buying their homes. There also could be scope to get a lower interest rate as a first home buyer, depending on your lender.
|Posted on 26 June, 2015 at 22:40||comments (0)|
Richmond says hiccups rarely occur but when they do it is usually be resolved on the same day.
“There have been instances of clerks turning up at settlement missing a document. If those things happen everyone scrambles together to try and solve the problem as soon as possible.
“Sometimes settlement is pushed back to allow the offending parties to rectify the problem. We always work to settle it on the same day that it has been scheduled because we know that most of the time people need to move into the property.”
After settlement your lender will draw down your loan – debiting the amount they’ve paid at settlement from your loan account.
Richmond says she sends a final reporting letter to her clients after settlement, informing them that settlement was completed and the money was received on their behalf. “We will also write to the authorities advising them of the change in ownership. Where there is a bank involved, the bank will report a breakdown of the loan distributions.
“There’s not much to do for them except enjoy the home.”
Hodges says aside from a couple of minor things like nominating a bank account for the sale proceeds, there was nothing left to do except celebrate.
“Once you’ve got the keys, you’re in, can unpack and enjoy your new home.”
|Posted on 25 June, 2015 at 20:30||comments (0)|
According to Richmond, the hardest part of settlement day for her clients is packing up and cleaning the home and disconnecting and connecting the utilities. “We take care of the paperwork so they can get on with the cleaning.”
“Probably two weeks out from settlement we’re trying to finalise our figures in relation to council and water rates.
“We write to the council and water authorities advising them of a change of ownership, but they will have to ring up and get their gas and power connected,” Richmond says.
You’ll also have the opportunity to do one final inspection of the property before settlement day. If you can’t do it yourself, or don’t feel confident that you’ll know what to look for, you can hire a professional to conduct the inspection for you. The point of the final inspection is to ensure the house is in the same condition as it was when sold.
You don’t actually need to be present on settlement day if you don’t want to as your representatives can take care of all documentation and financials. However, you will be needed to oversee the removals process.
“We let clients know 7-14 days beforehand when the settlement times are scheduled so their can organise their moving company,” Richmond says.
“I let our removalists know that they’d have a couple of hours rest in between loading our truck from our old place, and delivering it to our new place (pending settlement),” Hodges says. “They were fine with that and had done it before.”
Hodges says her best preparation was making sure her conveyancer and mortgage broker had absolutely everything they needed.
“You really need to do everything they say, and give them everything they need. Then it’s out of your control.”
Hodges was notified no more than ten minutes after both scheduled appointments and told everything had gone through.
“What a relief. The best bit was being told, ‘congratulations – go and get your keys!’”
|Posted on 25 June, 2015 at 1:25||comments (0)|
Settlement is the official process conducted between the legal and financial representatives of both you and the seller.
Settlement day happens on a time and place agreed upon by both parties. Your settlement agent (solicitor or conveyancer) and your lender meet the seller’s representatives. Once all documents are signed by both parties, they are sent to the titles office to register you as the new owner of the property.
|Posted on 24 June, 2015 at 1:20||comments (0)|
You’ve been looking for months, attended open after open and finally secured your dream property.
Between the celebrations you try to wrap your head around everything you need to organise – insurance, removalists, conveyancing – the list seems endless.
Before you’ve had a chance to catch your breath it’s settlement day.
If you’re feeling less than settled at this point, you’re not alone. Home buyers can be prone to assume the worst until the keys are securely in their hands.
Don’t let settlement day send you into a spin. With a little understanding, and some preparation, you’ll be unpacking boxes and feng shui-ing your lounge room in no time.
|Posted on 2 June, 2015 at 20:25||comments (0)|
Did you know there are 3 Prices in Real Estate
1. Your Wish Price
2. Market Price
3. What the Buyer will pay.
Many agents will accept a price between Market Price and Buyer Price just to make a sale.
Here at KG Real Estate we will work for a price between Market and your wish Price therefore giveing you a larger price and hopefully profit.
|Posted on 6 April, 2015 at 21:05||comments (0)|
At KG Real Estate we are always looking for new properties I am looking after the Hills and surrounds while Lisa looks after the city.
As an independent agency and propud of it we dont have the overheads that franchised offices do and so we can give you the same service for less cost. In fact we can give you more service for less cost.
So give us a try and see.