QLD 3 years and 3 IPs in Logan. What next?

You can take out equity, for sure. But the question was slightly different. If you were to sell, do you think you would be able to achieve the same valuation that CBA is valuing your property at to give you more loan? Probably not. So, actual profit and equity pull out are not exactly the same, especially in case of desktop valuation.

 

Just curious what were your learning from the US trip? Are you planning to invest there with loans from Aussie banks or US banks?

 

How does it work if houses are in 50%-50% partnership between husband and wife? Is it the land value of $600k in individual ownership that counts or total of both? I mean the land tax will apply as soon as the total value (under combined ownership) is $600k or when it's $1.2m?

 

It is split evenly between ownership - so for example, if you have a property with a land valuation of $200k and both you and your partner are on the contract, it will only account for $100k for each persons threshold

Edit: contract = title

 

Contract is irrelevant it is the legal ownership that counts.

Trusts as assessed as if they were a legal owner separate to the trustee. This is why 2 trustees of separate trusts could own one property, as tenants on common in equal shares, with a land content of $700,000 and no land tax be payable. The trustee may hold up to $600,000 in additional land and not pay land tax as well (if not holding this land as trustee).

 

Just need to be aware of the potential tax implications with this strategy. If one partner is high income earner and other is stay at home or low income earner it can have a big impact on cashflow.

 

1) Yes. I have no doubt if I was to sell that I would get the prices CBA valued at. They were right on my own indicators only about $5k off.

2) None of them were desktop valuations. Not many lenders will purely rely on that these days.

 

I learnt plenty on my US trip. The first thing I learnt was half the sh|t I was reading about Atlanta and Detroit is rubbish. They are good cities with potential if you know what to look for - of course every city has its problems and areas that need attention but my time there was great. I enjoyed myself and had a great time there.

Secondly no loans. All cash. Hard to get loans for US investment unless you have equity there. If you want to invest there go fly there and see for yourself. Like I say a million times before I never rely on 3rd party information and always talk about personal experiences.

 

Agree re the land tax.
Plus those older units in Cooly, Southport and Labbie are definite on the ground lookers. There are plenty of dud units in Southport and Labbie, but there are some great places as well. I don't mind Biggera Waters either, but again, depends on the street and proximity to shops, buses etc.