Our loyal listeners would have noticed by now that every single time a tax related question pops up on the podcast, Bryce and Ben will try and answer it in a general sense (sometimes, probably too general). So, this time on The Property Couch, we have invited Frank Azzopardi from YK Partners to help give a clearer definition when it comes to questions related to tax and property.
Sit tight and be prepared because this episode can be very technical. Some of the issues that they’ve touched on in this episode are:
Investing under trust ie: family trust – what it involves and the tax implications
Investing under a company structure – why people do it and areas to be cautious about
Partnership in property investing – what to expect, difference between partnership with family and friends and types of partnership
Capital gain tax (Capital Gains Tax) and the 6-year rule
Now, please remember that this podcast is general information only and is intended to assist you in understanding the different investment structures and some tax regulations related to Australian property. It is by no means a full representation of all aspects of the property tax and listeners/viewers should not rely on the information provided in this podcast when making their investment decisions. The Property Couch and our guests strongly recommend that listeners/viewers first seek qualified and professional advice to assess their individual and unique circumstances before making any decisions. For more disclaimer, please click here.
Peter Koulizos is back on The Property Couch podcast! The last time Peter joined our podcast, Bryce and Ben couldn’t stop discussing about his thesis on Gentrification. This time, with his thesis almost at its completion stage we are more than keen to invite him over and discuss in detail the findings his thesis has uncovered.
On top of that, as a bonus, they will also be revealing their 2016 Property Outlook for the Australian Market. With the dropping auction clearance rates in Sydney and Melbourne market, the increasing high density apartments in the Gold Coast area and the up and coming investment spots in Brisbane, this segment is a must-hear for all those who are serious about property investing. Some of the issues that they’ve touched on in this episode are:
Which part of the cycle is each state currently in
We are back on with the Questions and Answer time for our Summer Series. This week, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!
Question from Alex: Aside from getting into property earlier or not selling… knowing what you know now, what 5 things would you both have done differently?
Buying sight unseen questions from Lewis : We are currently living overseas and want to want to move back to Australia in a number of years. Late 20s and want to start buying investment properties in 2016, we have two questions.
1. Best advice for buying property without being able to walk through the property.
2. Best area to buy in Australia if you don’t know where in Oz you want to move back too!
Question on tax implications on property from Chris : A question relating to turning an investment property into a PPR. My partner and I just completed construction of a home which was intended to be an investment property for 5-7 years after which time we were going to move in and make our family home. Situations have changed and we will be able to completely pay off and move into the new house within the next 12 months. Will there be any issues arising from all the tax deductions (ie interest during the build, deprecation etc) Since we will be changing the purpose of the house?
Investment grade for regional properties question from Lou: Loving the podcasts – succinct and very informative so thank you! I’m currently saving for my first investment property and I have a couple of questions. I am considering regional Victoria (as I grew up there) and was wondering how ‘Investment Grade‘ the properties are, particularly along the Vic/NSW border. Should I be looking here or become more ‘borderless’ in my approach? I am looking to purchase in 2016 however I’m concerned with the property cycle, should I hold off another year until the market drops or is it likely to only increase in the short/medium term? I understand you can only give general advice, but I would like to know what the generally suspected trends are.
Joint venture question from Christopher: I am a first time investor and am looking at buying an older federation era home. For a 3 bedroom home of this style you are looking at a purchase price of around the $550,000 mark. Due to an over inflation of new homes, I can see these are the only worthwhile investments for the future as they have generally around the 1000 sq m block at less than a km from the CBD and are rising in value at around 2-3% per year depending on what renovations are performed where they can be anywhere up to 10%. To find these funds I am looking at doing a joint venture with a good mate of mine who is a builder, do the minor renovations without overcapitalising, hold it for maybe 5 years rented out for that period and then sell it for hopefully a decent capital gain. Are joint ventures worth it and will this be a silly strategy for such an old house as depreciation will have been used up already and these older houses can be a pandora’s box once opened up and end up costing way over budget?
As mentioned in Episode 22 and Bryce’s video on “When to conduct a building and pest inspection“, pre-purchase building inspections are non-negotiable for us. We cannot emphasize it enough the consequences of buying a property only to discover later on that a lot more money has to put in to ensure its livability. Not only will this impact the investor’s cash flow but it will also affect any property plans that has been put in place. Leveraging from Paul’s background as a building inspector and also a builder, Bryce and Ben will chatting about:
Why is a pre-purchase building inspection so important
What are the obvious tell-tale signs for water damages, footing and stumping issues
How much should a buyer expect to spend on an inspection
When should an inspection be conducted
Best way to decipher a building report
and a few horror stories from IPI’s Book of Horror!