SA Investments

It was bought less than an year ago. There are plenty of recent comparable sales. Nothing major happened to the property or area. So desktop val can't be that off.
It was bought for 235K about 10 months ago.

 

Ha! It isnt me you need to satisfy; merely highlighting that onthehouse data isn't always so accurate. Can be +/-

 

The accuracy indicators are also a good sign of how confident they are of their "guesstimates"

 

Well,this has to be the Yeah.Full Valuation,not a desktop,not a kerbside, a Full Val.Came back at $280,000.Bought in at $245,000 K 3 years ago.Good news being valuers are usually 10% plus out of touch,if not more, being very conservative for their masters.

 

What's it rent of for now Jim? Has it always been this figure or rental increases?

 

Started at $310 1st year,$320 2nd year, now $325.

 

Nice one @jim1964 looks like it's ticking along nicely. Good cash flow to start with combined with rental increase and some CG - happy days.

 

It is now thanks to @Xenia

 

Nice one mate, looking for reval mine as well. Got a few cheapie $220k - 4-5 years ago. Start counting the money

 

Great going!

 

Personally would love to invest in SA, have some local properties for diversity. However a good friend of mine with several IP's has mentioned SA has the highest land tax?

 

No, not really.

It's in steps, similar to income tax as you have more you enter higher brackets which have a higher rate associated with them.

Despite our double figure portfolio we pay none. You can stay below the tax free threshold by having different properties as different owners, ie yourself, partner, trust, dog (jk), etc.

 

Ahhh that makes sense. Maybe I should get a few dogs?? I have been reading about the single name strategy that @Terry_w suggested and I am thinking that is a good idea for my wife and I to take turns purchasing properties under each of our names.

Although I would also like to possible have a 'family trust' that we can purchase properties under as well. All depends on the tax benefits of each I suppose

 

Yep, having properties in 1 name is smart from a land tax perspective.

Lets say you have 2 x 400k land valued properties (remember it only goes on the land value, not the house value).

Option 1
You and your partner own them both 50/50 , so you have $800k
Landtax on $800k is $4536 of which you pay half each $2268 per year to pay.

Option 2
You and your partner own one of them each.
So you have $100k over the threshold each, so you pay $340 each. So $680 per year to pay.

 

Wow that makes a HUGE difference in the tax. Makes more sense then for the single name or at least until that threshold is near.

 

That's usually the plan for people in SA, consistently have the same conversation with clients when they hit x number of properties about how they can finance trusts from there. There's some very considerable savings over the long term.

Always have to be careful of value creep too, you don't want to put it right on the edge and still end up paying 10's of thousands as your portfolio expands faster than the government feels generous in raising the land tax threshold.

 

Thanks @D.T. that's really useful to know. I want my parents to consider buying 2 IPs in Adelaide, which they would want to buy 50/50 TIC. It would make a lot more sense for them to buy 1 each.