Nerfonomics

rowdyflat

rowdyflat

chez le médecin
beeb said:
I will be seeking the advice of a financial advisor/accountant before actually proceeding,
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Definitely an idea a good accountant will set you straight.
I did that ages ago and SMSF but it can be a bit restrictive and it has to be audited yearly..
Investment properties are great but
1. You dont want them too far away ,being rural you should find something and its easy to fix things.
One time some children put this expanding pink jelly down the bathroom sink and blocked it up I just opened the S bend and pulled out hair ,hair clips , wire from a hair straightener and pink jelly.
2. be an understanding landlord, get things fixed reasonably quickly but they must pay the rent.
3. If it has a garden, tennants dont do gardening.
4. It doesnt have to be too flash to make money i have a guy living in a run down house with lots of land I paid $40 K for it and he only pays $210 per week.
5 Units are simpler except for the body corporate.
 
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Dales Cannon

Dales Cannon

lightbrain about 4pm
Staff member
Storage lockers or commercial sheds are a good bet but I got theimpression the idea was for a holiday home in Bourke.
 
Nambra

Nambra

Definitely should have gone to specsavers
beeb said:
Can someone tell me about novated leases and potential FBT implications (for me as an employee)?

I am in a weird/good situation financially currently. My house is paid off (but it is small/cheap), and I have a decent (maybe just six figures) income this year.

I currently have very low living expenses (single bloke living in a small house in regional Vic. Lowish house rates, minimal gas & electric, reasonable insurance costs, car paid off, etc... and I have two financial goals I'd like to tackle going forward in the 1-2 year range.

Firstly, I'd like to buy a new car. I understand this is a "poor"/illogical decision financially, but my current is 8 years old and is holding more value than it should thanks to COVID pumping up used car prices but it's value will drop rapidly over the next year (two at most IMO).

Secondly, I'd like to add a lot of money into my superannuation with a view to swapping it to a SMSF and taking out a moderate loan and buying a rental property with it in future. I figure the smaller a mortgage I can take on with the SMSF the sooner I can have the investment paid off and have the rental income start adding to my super payments going forward. (Assuming a loan of 100-150k) I think in about 10 years I'd have more than I have now in super, plus the value of the property.

Given I've never put any extra money into super before, I believe I might be to catch up on about 5 prior years worth of unused salary sacrifice super contributions which means I could divert the majority of my wage to super for one financial year and pay basically no tax on the remainder. But given I want to buy a new car (ideally to acquire it this year), I was thinking about diverting some of that money toward a novated lease - probably on an EV, on a short lease (probably two years) - to get me towards a low/no tax situation for one financial year while still acquiring a new car and adding a chunk of money into my super.

If I was to save up to buy an EV outright, having to pay the GST means (in theory) the overall cost of the car would be similar to the novated lease overall, but I could have the car now rather than later, still have it cost the same, and add money to my super, while not having to lose ~$30K to tax for the first 12 month financial year of the lease.

What am I missing? Surely the government's got some way to fuck me over out of doing this!

(Note: I will be seeking the advice of a financial advisor/accountant before actually proceeding, so will consider all advice given here as suggestions to investigate rather than legally binding financial advice!)
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SMSF's are more effort and the annual compliance costs can be high ($1k-2k pa) so you need to factor that against the gross returns to see if it's worth your while. I don't know that setting one up simply to purchase property is worth it, but by all means do your own research and do what's best for your circumstances. Some funds are also offering more SMSF like flexibility to members but without the hassle - check out https://hostplus.com.au/smsfs. I have no affiliation with Hostplus, I just came across this doing research of my own recently.

The thing with super is that it's only your money when (and if!) you get old enough. If you own an IP in a SMSF rather than through the traditional way, all the returns, capital gains etc. stay in the super fund. If you do go with an SMSF, make sure the trust deed provides maximum flexibility around what you can do with that poperty when you retire (in-specie transfer etc.).

Owning an investment property in your own name offers the flexibility of selling it should your life circumstances warrant it, or drawing on equity for discretionary use before retirement. Own two or three properties that become positively geared over time, there's some passive income that allows you to potentially take it a bit easier later in life, but well before retirement age.

Any financial advice you get needs to align with your own personal life goals - how you see yourself in 5, 10, 20 years, and work a plan to make that happen. Be warned too, many financial advisors get kickbacks from the industry so find someone you can trust to do what's right for you, rather than what gives them the best commissions. Financial advisors < real estate agents < pond slime.
 
Flow-Rider

Flow-Rider

Burner
Nambra said:
SMSF's are more effort and the annual compliance costs can be high ($1k-2k pa) so you need to factor that against the gross returns to see if it's worth your while. I don't know that setting one up simply to purchase property is worth it, but by all means do your own research and do what's best for your circumstances. Some funds are also offering more SMSF like flexibility to members but without the hassle - check out https://hostplus.com.au/smsfs. I have no affiliation with Hostplus, I just came across this doing research of my own recently.

The thing with super is that it's only your money when (and if!) you get old enough. If you own an IP in a SMSF rather than through the traditional way, all the returns, capital gains etc. stay in the super fund. If you do go with an SMSF, make sure the trust deed provides maximum flexibility around what you can do with that poperty when you retire (in-specie transfer etc.).

Owning an investment property in your own name offers the flexibility of selling it should your life circumstances warrant it, or drawing on equity for discretionary use before retirement. Own two or three properties that become positively geared over time, there's some passive income that allows you to potentially take it a bit easier later in life, but well before retirement age.

Any financial advice you get needs to align with your own personal life goals - how you see yourself in 5, 10, 20 years, and work a plan to make that happen. Be warned too, many financial advisors get kickbacks from the industry so find someone you can trust to do what's right for you, rather than what gives them the best commissions. Financial advisors < real estate agents < pond slime.
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Investment properties are very difficult to manage these days and it's getting worse by the day. The real estate industry can only do so much to protect your assets as the laws are pretty much in favour of the tenants these days, most of them put themselves first in any case so you still have to waste your own time micromanaging them. They can be rewarding but something you're not going to jump in overnight and master without making plenty of mistakes and or losses.
 
pink poodle

pink poodle

気が狂っている男
Set up a complex network of trusts...then lease your investment property to yourself. Don't you guys know anything about tax effective living?
 
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