2018. Who is buying?

Discussion in 'Where to Buy' started by Noobieboy, 8th Jan, 2018.

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I’m buying in 2018

  1. No way. Reducing portfolio

  2. Yeah if something good comes up

  3. Nothing changed. Same as 2017

  4. Going all in buying way more than 2017

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  1. datto

    datto Well-Known Member

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    Not right in LTP but not too far away. I saw it today while researching. When I get home I'll give more info.
     

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  2. Lawrence Mayne

    Lawrence Mayne Member

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    Playford
    Now you are talking my language!!!!
     
    datto likes this.
  3. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    I will be trying to buy 3 more in Brisbane in 2018. Lets see what happens.

    2017 was a very very good year for me in terms of property acquisition.
     
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  4. Blueskies

    Blueskies Well-Known Member

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    Can I ask your approach to land tax? Must be well over the QLD threshold by now unless you are buying in other entities? Or just a cost of doing business?
     
  5. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    What are you going to do regarding land tax? Cant hide any properties from the government.

    My accountant said that because I make a relatively large income its not so bad as its a tax offset however if you have any suggestions on how to minimize it at all please share.
     
  6. MTR

    MTR Well-Known Member

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    Well prices continue to rise so I need to continue jumping in, this is the US market.

    MTR:)
     
  7. datto

    datto Well-Known Member

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  8. Tifoso

    Tifoso Well-Known Member

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    I won’t go into gory detail but buy in different entities. In Qld each different entity you buy in offers separate 350k thresholds. Of course this is after your 600k personal is used up. We use separate trusts with different trustees. Ie coy 1 atf trust 1, then coy 2 atf trust 2. This has worked for us for years.

    Lots of different reasons for using trusts etc for planning and asset protection but this is certainly one of the good ones from a tax structuring point of view. Depending on your strategy there are some cons too such as being not as easy to claim losses against your personal income but I think TerryW mentioned a strategy that allowed this in a separate post.

    But from a land tax perspective, this is one way to reduce.

    Cheers

     
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  9. Journeyman

    Journeyman Well-Known Member

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    I am looking for multiple income property with commercial and residential components.
     
  10. JesseT

    JesseT Well-Known Member

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    Good to see.
    Tea gardens really is quite isolated from Newcastle, didn’t hear of anyone commuting that far and there’s not many other jobs around there.
    A few commute from Nelson bay, LTP.

    Medowie feels like a RAAF base, definitely #1 employer in the area so if you want Management with defence housing, set and forget, could work out well for you if building a new home.

    I’ve seen some great renovators slip through lemon tree/tanilba bay. Potential to make money there with a little bit of work, lots of Sydney retirees moving up that want to move straight in, vacancy rate, days on market are reducing, median has moved 30% in the last 3 years.
     
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  11. Blueskies

    Blueskies Well-Known Member

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    Good suggestions from @WilliamB , for me a combination of:
    1. Significant investment in PPOR (land and CG tax exempt)
    2. Buying in both mine and wifes names
    3. Buying interstate
    4. Improving buildings and yield on same piece of land (currently building GF)
    5. Trusts down the track, also for estate planning

    Main thing I am struggling with at the moment is where to buy interstate. I am at land tax threshold through investments in QLD, would like to increase diversification interstate but struggling to find a good investment location nationally. Heading over the border to Tweed Heads this weekend, maybe I will get some inspiration there!
     
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  12. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    1. Significant investment in PPOR (land and CG tax exempt) - already done. PPOR is already paid off.

    2. Buying in both mine and wifes names - not possible.

    3. Buying interstate - already done. Sydney/Brisbane. Might look at other states but for now its these 2.

    4. Improving buildings and yield on same piece of land (currently building GF) - How does this help land tax?

    5. Trusts down the track, also for estate planning - Already looked at this. Its not as easy as people suggest. When you got trusts and companies involved the lending criteria is different from financial institutions. Also it removes all my tax offset like I said above I make very good money every year so reducing my taxable income is top priority.

    I will probably start looking at other states once I'm done in Brisbane. Then the question comes how many is enough? Honestly all I want is 10 fully paid off and I could just sit back and relax on the rental. That is going to be a very real possibility in the not too distant future.

    The greed is indeed real. Not to mention my cryptos are skyrocketing. So need to reduce tax even more.
     
    Last edited: 9th Jan, 2018
  13. Sackie

    Sackie Well-Known Member

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    Vaucluse, Sydney.
    No buying IPs for me this year, only lots of building materials.
     
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  14. Blueskies

    Blueskies Well-Known Member

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    Fair enough re the difficulty of financing through a different entity but paying land tax to get an income tax deduction doesn't make sense to me?

    Sounds like a decent potion of your income is on the top marginal rate so would think a company structure/trust would be a good fit, especially for your positively geared properties in Logan etc?
     
  15. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    No argument from me. I'm not purposing paying land tax to reduce my income. LOL - I dont think any sane person would be doing that.

    Believe me I've been in contact with many accountants and I have access to numerous lawyers (my friend I grew up with and also my brother are both lawyers) to go through my situation. Its not that easy. I have 4 streams of income now on top of my 9-5 job so my finances and getting advice is quite difficult. Any person, accountant and lawyer seems to have different views.
     
    Last edited: 9th Jan, 2018
  16. Noobieboy

    Noobieboy Well-Known Member

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    Interesting that the sentiment is to buy or renovate. Wonder if the decreasing investor and IO rates will further fuel growth.
     
  17. Big Will

    Big Will Well-Known Member

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    Don’t have option of do nothing.

    Not looking at buying or selling or developing or renovating just collect income and pray for sweet sweet gains haha.
     
    D.T. likes this.
  18. fols

    fols Well-Known Member

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    Sydney
    No further acquisitions for me. Happy with my holdings for now. Diversified across Sydney, Melbourne and Brisbane. So I guess you could say I’m in the hold phase.

    First year since 2013 that I haven’t added IP’s.

    Will be doing a PPOR extension/ reno though, plus looking at some business opportunities.
     
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  19. Blueskies

    Blueskies Well-Known Member

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    Finish granny flat construction and two more purchases is the goal for me in 2018.

    Where to buy is the question, I am really keen to purchase outside QLD but struggling to find somewhere that is not either near the top of the market or still trending down towards bottom.

    Perth market probably looks most enticing at current prices but prices still seem to be flat or falling with rising vacancies and falling yields. Only positive is stock on market seems to be coming down a bit but recovery still seems a way off...
     
  20. Sackie

    Sackie Well-Known Member

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    Vaucluse, Sydney.
    Then why not purchase another good value deal in Qld? :)
     
    Booming Sunnyvale likes this.