How many IPs do you have

We have a spreadsheet supplied by our accountant and we complete forward it and any associated items along with any questions that we have.

Takes a week for him to reply and finalise our statements.

 

How are you counting house + granny flat on 2 x separate leases but only on one title?
How are you counting a block of units with individual units all leased to different people but on one title?

 

I would count individual leases as an IP

 

6

 

This is always a hard one. For instance, I have a block of 4 strata units (I own the lot, but they are rented to the one entity via a head lease). Some would count that as one IP (one tenant), some would say 4 (four titles).

I also have a block of three units on one title, plus a shed. All on separate leases. Some would call that one IP (one title), others would say 3 (three tenants, don't count the shed) and then still others would say it is 4.

I also have a block with 2 x 3 bedroom houses leased to two tenants. This is not a GF situation, and the block is subdividable. So.... Is this one IP, or two?

Another one is one house but has two addresses listed on the title. We haven't looked into this one yet. If we can subdivide, we might do that. If not, it will end up with a GF.

There's many more, but they are all easy. One house/unit with one tenant.

 

Agree and also further to Alan's comments on title above. Also what about those investors who hold % shares of resi or commercial property (as in syndicates)?

 

Can you imagine the land tax on that!

 

My second IP will hopefully be subdivided into 7 lots. Hoping to jump from 2 to 8 in the next two years.

 

4 titles now.
If counting number of leases, two more = 6 leases. (There are two properties with rented granny flats).
If taking sub-divisibility into account, four more = 10. (There is a property that can be sub-divided to 5)

 

For those with 8+, how does your land tax liability look like?
If little/none land tax liability, how did you do it? (trust? buy interstate? buy units?)

 

All of the above.

 

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If I asked how many rentals do you control, would that make your answer more straightforward?

 

Buy in multiple states and in individual and joint names but the early purchases still catch up with you as the land tax thresholds rarely move.
Some people are fans of trusts in this situation which can work for cheaper properties or those with a lower land content.
In Qld a house purchase near the BN median price with an average land content will put you over the trust land tax threshold anyway.

 

Buy with 2+ trusts as tenant in common?

 

Still no, then I would have asked, "if I rented out my balcony, does that count as one rental?"

 

Would be great to get some healthy discussion going on those of you with 7+ properties (Think someone mentionedt hey have 30+) as I'm sure we're all keen to talk strategy and hear stories of old

Would also be curious to see the mix of houses vs apartments vs units vs townhouses for these IP numbers - perhaps if you vote, drop it in your reply?

On the paper efficiency side- embarking on my first IP but curious as to how you manage keeping synch'ed if you have both your offline computer and online cloud solutions i.e. dropbox, onedrive etc?

I am a fan of saving to the cloud and being able to access it anywhere on the go, but also being able to offline work on things when I actually am at my laptop? Yet to find some sort of filing system or efficient process to ensure whatever medium i work on - offline on the laptop, remotely from a non-standard computer or mobile by using dropbox and other cloud etc, that you only work on one live version that stays synched?

Would be curious to see how you all manage this side! Or if you just login and only work from the cloud version to ensure this?

 

Not to go off topic but how do you all protect your electronic statements and documents? With postal theft less of an issue as we go electronic the biggest worry would be a laptop stolen, dropbox hacked, or something else going astray electronically. Do you use or recommend any software that can 1) password protect documents (maybe even alert you to attempts to access?) or otherwise easily encrypt files without compromising too much on time/effort side of things?

Just something that's been bugging me lately, even as a Gen Y as I want to start saving all my bank statements electronically, but almost feels like i'm handing all my personal details plump for identity theft to anyone who can get ahold of it electronically... which I think is more likely than a physical file system in your home?

 

PM's pay my bills and send me a statement monthly. I enter statement into my portfolio accountancy program along with bank interest. EOFY I generate a pdf report and email it to accountant.

 

@Rixter, which portfolio accountancy program do you use? Thanks.

 

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