Property Digest

Building an Investment Property – Make Sure you get the Right Advice!

2011-09-13T22:55:00.000+10:00

Deciding to build an investment property or to purchase off the plan is a choice many Australians are making. There are government incentives in most states in the form of reduced stamp duty and bonuses available for qualifying new homes.

The depreciation situation changes when dealing with a brand new property, compared to an older property. There are often benefits gained from obtaining advice from a property depreciation specialist during the early planning stage, especially when considering a brand new investment property.

Increase deductions when deciding on finishes
BMT Tax Depreciation will help you obtain long term value from the money you are outlaying. Construction is expensive, so it makes financial sense to obtain the maximum depreciation benefit where possible.

When a property is being built, thinking about the types of fittings and fixtures before installing them can generate extra dollars in depreciation deductions. BMT Tax Depreciation can advise you how to maximise the cash flow potential of a new investment property.

For example, which new floor covering should you install to increase your depreciation potential - carpet, floating timber floorboards or tiles? The depreciation available on these items differs due to their varying effective lives.

If you spend $2000 on floor coverings, for example:

Item Effective Life Depreciation 1st Year
Carpet 10 years $400
Floating Timber Floorboards 15 years $267
Tiles 40 years $50

Considering ornamental light fittings or down lights?
If you spend $2000 on lighting, for example:

Item Effective Life Depreciation 1st Year
Ornamental Light Fittings 5 years $800
Down Lights 40 years $50

Deciding between an air conditioning unit and ducted air conditioning?
If you spend $5000 on cooling, for example:

Item Effective Life Depreciation 1st Year
Air Conditioner-Split System 10 years $1000
Ducted Air Conditioning Unit 15 years $667

(Figures based on Diminishing Value method using current legislation)

As shown in the above examples, installing assets for their depreciation potential is certainly worthwhile.

STOP: Knock down and rebuild – write the old house off!
When building a new investment property and knocking down the old house, you must consider the concept of scrapping. Property investors can claim a deduction for the existing house. If you ‘scrap’ (or remove) items such as carpet, stoves, hot water services or air conditioning units from your old house, you may be able to claim their left over value as a 100% tax deduction in the year of removal. The same applies to the qualifying structural element of the property. Obtaining a Tax Depreciation Report pre-demolition can save you thousands at tax time.

WAIT: You know the construction cost? BMT can still help!
When depreciating a new property, establishing the total cost of construction is an important part of the process. However, it is critical that individual fixtures and fittings within the property that depreciate faster than the building are identified and the claim maximised. Most of the building is claimed at 2.5% per year for 40 years, however the qualifying fixtures and fittings (up to 25% of the total construction cost) can be written off much faster. It is our aim to depreciate the building at the highest rate. The greater the ratio of fixtures and fittings that depreciate over a shorter effective life, the higher the deductions will be in the first 5 years.

It is also important to note that when valuing fixtures and fittings for depreciation purposes, a specialist needs to consider and include associated costs like installation, consultant fees and preliminary costs.

source: http://www.bmtqs.com.au/Email/mav-30/InvestmentProperty.aspx?utm_source=Maverick-30&utm_medium=Email&utm_campaign=Maverick-30

Resident minors' effective 2010/11 tax-free threshold

2010-09-10T13:12:00.000+10:00

The increase in the low-income tax offset to $1,500 for 2010/11 (from $1,350 in 2009/10) effectively means that $3,333 can be distributed to minors tax-free in the 2010/11 year.
Ordinarily, and excluding the offset, once a minor's income exceeds $1,307, the entire amount is taxed at 45%.
However, applying the low-income tax offset of $1,500 means that no income tax will be payable until the minor's taxable income exceeds $3,333, i.e., $1,500 divided by 0.45 = $3,333.

Source: AFA Wealth; www.afawealth.com.au

Hazards of property for SMSFs'

2010-09-10T13:01:00.001+10:00

The ATO has warned that an SMSF holding property could be sued if someone is injured or dies because of faults in that property.The ATO provided a recent example of a property owner being held liable for the death of an electrician on their premises when replacing an old solar hot water system with a new one.
Therefore, if trustees own property in their SMSF, they should make sure they are aware, to the best of their ability, of any hazards on their property and, if any hazards do exist, they should have them fixed.
They should also consider having an insurance policy in the SMSF to cover the property and public liability.
Where the property was acquired with a limited recourse borrowing under with new borrowing laws, the ATO recommends that the trustees speak with their advisors on requirements for holding any insurance.

Source: AFA Wealth; www.afawealth.com.au

Development basics

2010-05-24T14:21:00.000+10:00

Not a promotion for Metricon, but their Q&A answers a lot of basic development questions.

http://www.metricon.com.au/victoria/multi-dwelling-developments/dual-occupancy/buying-guide/3/default.aspx#q35

Mortgage Ezy promotes broker-only product

2010-05-01T12:08:00.002+10:00

Mortgage Ezy has released its broker-only 6.19% uQUIT Variable Term Loan that features a 0.20% rate reduction off the standard wholesale pricing.

The uQUIT Variable is available as either a professional pack which features no application or valuation fees or a zero ongoing fee option at the same rate.

“This is one for the true believers and even hard core mortgage manager sceptics would find it difficult not to see the value this solution enables them today," CEO Garry Driscoll said.

After providing a pre-brief to selected distribution partners Driscoll expressed high confidence that the uQUIT variable program would fit well with traditional bank-aligned brokers “particularly because of the amount of control Mortgage Ezy has in the lending process with our inhouse delegated lending authority supporting a very attractive mum and dad type facility at a sharp rate”.

The uQUIT Variable release ties in with Mortgage Ezy’s aggressive uQUIT “bank replacement treatment” marketing campaign which specifically challenges brokers to take control of their own business and look for viable lending alternatives to the majors.

Head of sales and marketing Chris Wisbey said “the uQUIT Variable is aimed directly at benefiting Mortgage Ezy business partners because it’s a damn good, low cost quality solution that ticks all the important boxes for a borrower and enables our partners to maintain a level of control unheard of with a major bank”.

To find out if you are eligible for the 6.19% uQUIT Variable Term Loan, email your enquiry to tripleearthloans@gmail.com or dial(03) 8080 5901 today.

Should I register for GST for a once-off development?

2010-04-21T13:20:00.002+10:00

It is important in determining whether an entity is an entity making taxable supplies and has to register for GST purposes. Note the Commissioner takes the view in GSTR 2001/7 that a taxpayer who is not otherwise registered for GST but undertakes a one off property development will be required to register and pay GST on the proceeds of that transaction - where an entity engages in acquiring a single asset for resale at a profit the activity, for GST purposes, is considered an "enterprise" as an activity in the form of an adventure in the nature of trade. The issue of Mum and Dad owning a farm or a second property long term and then deciding to sub divide and whether this requires GST registration and accounting is one which is ripe for litigation.

source:
Peter Gell (28 October, 2006)
http://www.rockliffs.com.au/article.asp?ID=7148

Who can be trustee of an SMSF?

2010-04-16T01:31:00.001+10:00

Humans are Trustees

If you want a human Trustee, all members of the SMSF must also be Trustees. You can't pick and choose between members - it's all or nothing.

A company is Trustee (a Corporate Trustee)

If you have a Corporate Trustee, all of the members must be the Directors of the Company and all of the Directors must be members of the Fund. The Corporate Trustee carries out its role as a Trustee of your superannuation fund just the same as you as individuals do.

If you are the only member of your SMSF, special rules apply.

What if I am the only member of my SMSF?

If you are the only member of your SMSF, you need a company as your Trustee. If not, then you need another unrelated person to act as your second Trustee. You can't be the only member and only Trustee.

The company acting as Trustee abides by special rules. You must:

· Be the sole director of the Trustee Company; or
· Be related to the other director of the Trustee Company (where there are only two directors of that Company); or

· not be an employee of the other director of the Trustee Company (where there are only two directors of that Company).

Therefore, there are limited circumstances for a sole member with a Company as the Trustee to have a second director. This is the case even though that second director is not a member.

Source: law central

Interest deduction allowed on loan for units in a hybrid trust

2010-04-10T00:41:00.003+10:00

The Full Federal Court has held that a taxpayer was entitled to a deduction for interest incurred on a loan taken out to acquire units in a hybrid trust.

It's an interesting case because the taxpayer's units entitled him to ordinary income of the trust, but capital gains could be distributed to other beneficiaries on a discretionary basis.

The technical details related to certain standard clauses in the deed (and in most hybrid trust deeds) granting the trustee the power to decide whether amounts received should be considered to be derived on income or capital account.

The Tax Office alleged that power made the deed a discretionary trust, meaning that the taxpayer would not be able to claim interest on the loan he took out to buy the units.

The Court rejected the ATO's assertions and allowed the taxpayer to claim the interest as the power in the deed merely allowed the trustee to allocate amounts between income and capital.

Source: AFA (www.activefa.com)

Implication of Bamford case on Trust capital gain

2010-04-08T22:19:00.002+10:00

March 30 2010 is a landmark day for trusts in Australia. The High Court released its decision for Bamford v FCT [2010] HCA 10.

Why is Bamford so important anyway?

This is the first time the High Court has considered two of the most important concepts in trust law:
1. A 'share' (the Bamfords appealed this); and
2. The definition of 'net income' (the ATO appealed this).
These concepts are central to lodging trust tax returns and making trust distributions.

What did the High Court say?
The High Court upheld the Federal Court's decision Bamford v FCT [2009] FCAFC 66 in its entirety. The ATO lost their appeal about the definition of 'net income', and the Bamfords lost their appeal about how to calculate a 'share'.
Just for our beloved Platinum Members who have paid their $99 subscription, we decipher what you need to know after Bamford.

What does this mean for my Trust?
If you use a deed that is drafted with Bamford in mind, capital gains are taxed in the hands of the beneficiary. The Trustee is no longer taxed at penalty rates where there is no other income.
Bamford means that the beneficiary's liability is proportionate to either their fixed dollar or variable percentage of their interest in the income. If you don't have a Bamford complying deed, your beneficiaries may be taxed on income that is higher than what they actually receive.

source: law central

ATO comes down hard on monies owed to 'bucket' companies

2010-03-01T19:52:00.001+11:00

By way of background, for many years now the Tax Office has accepted that trusts could make distributions to private companies but not actually have to pay the amount. These were called unpaid present entitlements.
These amounts were taxed in the hands of the company and the trustee was able to continue to use the funds for the benefit of all the beneficiaries.
The Tax Office has now reversed that longstanding view and issued a draft ruling that many see, at the very least, as contentious.
New draft rulingThe new draft ruling means that, generally speaking, where a trust does not physically pay out a distribution to a private company, the Tax Office will deem that a loan has been provided by the private company to the trust.Where that occurs, the amount owing under the 'newly created loan' may be treated as a dividend to the shareholders of the company.
"Carve-out" for existing unpaid distributionsHowever, distributions made before 16 December 2009 are not affected by the ATO's new interpretation, and will therefore not generally be treated as loans (or dividends).
Editor: We have not gone into the technical side of this issue which is quite complicated to the uninitiated. However, while we will be in contact with clients over the next short while, we recommend that any clients who may be concerned with how this draft ruling could affect them should contact our office.For what it's worth, this is a draft ruling and it is possible, but not likely, that the ATO will change its view. In addition, the Tax Office's position has yet to be tested in Court.

Source: AFA
www.activefa.com

tranfer assets into SMSF - to look into further

2010-02-21T14:54:00.002+11:00

Land Tax - I note in passing that you are probably in Victoria or Western Australia. Both have a progressive land tax system - the more you have the higher the rate you pay. Therefore, it is worthwhile to move the assets out of mum and dad's names into a company as trustee. There is no transfer duty or Capital Gains Tax if Brett Davies Lawyers attends to the transfer for your Self Managed Super Fund.

Brett Davies Brett@taxlawyers.com.au Brett Davies Lawyers, 201 Adelaide Terrace, Perth WA 6000Direct (08) 9325 8033 Mobile 0419 980 972 General (08) 9325 7999 Fax (08) 9325 5999

Note: Reference only for further investigation. This is not an endorsement.

Invest in US

2009-12-16T23:22:00.000+11:00

You need to commit to the process
Buying 1 cf+ over there will not be enough to change your life. Accumulation will change your life.
Yield > 20% is very common if you know what kind of property you are looking for
Australian tax resident can claim tax credit for tax paid in the other country under double tax agreement, but with broad tax country like US, we can quarantine the income in US and only pay us tax rate.
You can have several LLC under 50k income, and always pay 15% tax only.
Capital gain can be quarantined in US. You can pay only 15% CGT in US, or roll it over into the next purchase.
NZ is not a broad tax country.
Dymphla focused on multi-family properties over there
Properties Dymphla bought, cheapest 23k, mostly 35-40k without the need for reno
Only 1 property she had vacancy that she bought for life style.
Condo conversion = strata title
Single family home yield was 15% a few yrs ago, now with the price coming down, they can be 20-30% yield
People over there have corporate mentality, particularly in manufacturing industry.
Normal foreclosure rate was 4% GCC, (0.4% in Au), now 8% there, and .6% in au
No FIRB equivalent regulation for foreigners over there
Each state is different.
Over there institutions can clean your credit in 6 months if you know how to do it. Here it’s 3 years from bankruptcy + another 7 years before the record is cleared.

Structure
It’s crazy to buy anything under your name over there.
S corp not available to foreigners. C corp is similar to company here, but it’s a stronger entity, unless. To go after director, you have to prove fraud.
LLC can be like a company or act as a pass through company to pass the profit to its members, or you can pass the profit to the member being a Australian entity such as a piggy bank trust.
Trust law differs from state to state, and it’s more difficult. LLC is just as good for Australian.
Some state you pay both federal and state tax on your rental income. Some state has no state tax at all.
If you buy properties in a few different states, you can start with LLC, as you accumulate more, it’s worth set up a c-corp in state w/o state tax.
Navada and wyoming don’t have state tax.
You can set up LLC here, difficulty is setting up bank account for LLC.
Three is a process to set up bank account and structures.
When you have your personal bank account, it’s easier to have LLC bank account set up （can I do it offshore then?）. Then you have your EIN (entity identification no) for your LLC.
Once they get you identified, it’s easy to add another one.

Finance:
Hard money: a private lender who lends at very high rate. E.g. 16% for 6 months with balloon payment in the end. 1 day late, they take the property.
In the last 3 months, hard money dries up. You couldn’t get bank finance unless you are prime premium American, but the bank has eased. Private money prefers to lend 50-70% LVR to a foreigner, at around 6.5-8.5% （2% normal finance over there）.
A little bit of bank finance is coming back.
A lot of brokers will not touch a deal <$120k, so you group a number of properties together for financing, but it’s a slow process.
You are better taking the line of credit here and pay cash over there.
Quick plan D: taking over someone else’s mortgage

Team required:

Sec1031 for CGT roll over
It’s tough to have property managed over there. They are starting to have property management in some areas. That’s one of the biggest obstacle is to find good managing agent you can trust.

Renovation = rehab; You’ll be astounded how little it costs. One tradie will have a team of people working under him that’s lowly paid. Au price is sometimes 3-4 times higher.
Going to home Depot site (Bunnings equivalent), you can set up a Depo account once you have a credit rating. You can cost a whole project on their website. Dymphla had a whole kitchen done <$800 which would cost $8000.

Insurance
It’s similar to Australia. $300-$800.

Research
Without going there talking to people, you are going there blind.
When you target varing areas. You are never going to invest in ever state, if you are looking for uplifting area, you look for where the price really dropped. If you are buying for cashflow, it’s a completely different type of property.

Tax deeds and tax leans?
Council has the right to sell property if someone doesn’t pay their rate (property tax they call it there). Tax leans can be bid online over the internet. Selecting state is important. Some state has claw back period of 4 years. There is a guaranteed return on the tax lean.

Say $8000 tax lean, you get 18% yield + penalty and your $8000 at the end of 2 years. If they don’t pay, then you get the property at the end of 2 years. You might bid $10000 say and still get good return, but if you end up with the property, you can’t reno or do anything until the claw back period is over.
Missisipy is 4 years.
Don’t buy property with existing deed or leen which becomes your liability when you buy the property.

Status of market
The market has continue to fall through this year. We have just starting to see the market turn in some sector.
Financing market has just started to turn.
There will be a 2nd tier fall out in the commercial industry. It won’t affect the yield of the high cash flow residential property Dymphla is talking about. People still have to live somewhere. The vacancy rate in a lot of these places are very very low. The only thing it will do is the growth might be slow.

Caution about buying commercial at this time, maybe end of 2010.
The seminar

Feb 6-7
Novotel Sydney brighton beach, Brighton Le Sands 2216
Preforeclosure, foreclosure and post foreclosure propertyis
PT: not having to pay tax ever

To Dos:
1. Ring citi bank to apply for credit card.
2. set up an LLC
3. secure good management agent
4. to buy, check the property doesn’t need reno, doesn’t carry a deed or leen,
5. follow Dymphla’s system to get a credit rating in their system

fibro and asbestos checklist

2009-12-13T13:25:00.000+11:00

http://more.nsw.gov.au/fibro-and-asbestos-first-steps-checklist

building surveyor

2009-12-04T13:14:00.001+11:00

Trevor in Berick 97072179; building surveyor who might do inspection

A building permit cannot be issued after it's built.

Mildura college lease

2009-11-25T21:30:00.002+11:00

http://www.abc.net.au/news/stories/2008/10/24/2400015.htm
Posted Fri Oct 24, 2008 9:50am AEDT
Map: Mildura 3500
The Mildura Rural City Council will push for an overhaul of the city's college lease scheme.
The scheme was set up by the region's founders, the Chaffeys, 100 years ago, and consists of 184 commercial and residential properties that are subject to college lease fees.
A review has found it is showing a return of only 2 per cent a year to assist the region's schools.
An assessment by a Sydney consultant commissioned by the Mildura Rural City Council has found returns averaging 6 per cent could be achieved if the land was sold and the proceeds reinvested.

http://www.mildura.vic.gov.au/page/PagePrint.asp?Page_Id=2581
Community Loses On College Lease: Report - 23/10/2008

A Mildura Rural City Council-commissioned report has found the region’s college lease land is returning only 2.1% per annum to local schools.
There are 184 properties in Mildura Rural City that are subject to college lease and an independent assessment conducted by Sydney firm AG Private Advisory has found that higher returns on this level of investment could be brought forward to local schools through more conventional financial means.Upon receiving the report at its October meeting, Council has committed itself to proactively facilitate a change to the Mildura College Lands Act (1916) enabling the College Lease Trust to sell leased land and reinvest proceeds in secure investments, generating improved returns and opening up leased land for development.A 2004 Ernst and Young report found the value of College Lease holdings was $39,338,000.Councillor for Community and Economic Development Vernon Knight said College Lease agreements were causing financial hardships to many leaseholders.“The financial imposts imposed by increasing college lease rentals are significant for many families who lease land from the College Lease Trustees,” Councillor Knight said.“The report shows that a conservative cash investment strategy implemented since 1990 would have earned an average of 6.6% annually. It is thus clear that there are potentially many more effective investment options that could deliver great benefits to the region’s schools while relieving land owners, many of them families, of the financial impost imposed by college lease agreements.“This report confirms that current college lease arrangements are an anachronism that is holding our community back and not delivering true value for our education sector.”

http://www.mildura.vic.gov.au/page/page.asp?page_id=2031

Council Campaigns On College Lease - 27/7/2007
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Mildura Rural City Council will be lobbying the Victorian Government to help ease the squeeze on some owners of land covered by College Lease.The move follows a recommendation Councillor Vernon Knight put to the July Ordinary Council meeting held yesterday.
Current Victorian legislation requires Council’s valuers to consider College Lease property to be sub-divisible land in the event that its zoning would make this possible as if the property was unencumbered freehold.This is in spite of the fact that subdividing College Lease land is generally unprofitable.This discrepancy can have significant effects on the rates some college lease holders are required to pay. In line with college lease rental land owners pay to the College Lease trust annually, the requirement that college lease restrictions are not considered in the valuation of properties can have significant financial implications.While adopting its Hardship Policy which aims to assist people who are experiencing difficulty paying Council rates at its Ordinary July meeting on Thursday, Council also adopted the following:“Council make representations to the Planning Minister in relation to the provisions of the Valuation of Land Act which requires Council Valuers to consider College Lease property to be sub-divisible land in the event that its zoning would enable sub-division were it not College Lease.”Following the adoption of the recommendation, Council will be seeking to amend the Valuation of Land Act (1960) to ensure the definition of Capital Improved Value takes into account the fact that College Lease land cannot be subdivided profitably and should be valued on that basis.The act states:"Capital Improved Value means the sum which land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might be expected to realise at the time of valuation if offered for sale on any reasonable terms and conditions which a genuine seller might in ordinary circumstances be expected to require." Councillor Knight said he understood there is a situation which has affected a number of people in Mildura. “It’s clear that the whole concept of College Lease would not have been considered when the Valuation of Land Act (1960) was framed,” Councillor Knight said.“Given the residential development that often adjoins such properties, Council valuers are required to consider the capital improved value on the basis of its potential value for subdivision in spite of the restrictions on subdivision that College Lease places.“Anomalies such as this again raise questions about the appropriateness of College Lease in its present form and the need to review the nature of the trust.”

Better building price

2009-11-19T22:10:00.002+11:00

betterbuildingprices.com.au
1800833956

Process:

pay 50% Design report, bal. 50% on completion of the report. The report needs to comply to council regulations. BBC then find the best builder tender, Design report fee is then refunded. Builder pays BBC fee.

single story design $4500; double story $6000
check with Archicenter what their design concept costs.

Reno tips

2009-11-14T20:25:00.002+11:00

to paint bathtub and bathroom tile: use white knight tub-tile paint
to paint cupboard doors and benchtop: use white knight laminate paint
to paint splash b ack: use white knight tile paint

use new chrome handles
use heavy duty cleaner for stove and rangehood

2009-11-05T23:44:00.001+11:00

Port Hedland: major mining town. building cost at premium if you hire local builders as the mines pay overprice.

shop online at harvey normal commercial arm and have a/c etc delivered to hedland, then pay a Sunshine coast builder to go to Port Hedland to build it. Total cost is 60% of hiring port hedland local builders.

Ecobuilding systems - cheaper building and energy efficient, std 3 br house can be erected in a week,

Moree, an agricultural town in northen NSW, cotton brings in lots money - it's got a good foundation. It's never going to be a ghost town, and never going to be a huge flyer. It brings cashflow but not to get excited over units - sb. else already made money. Towns like Moree are generally pretty good with dividing up. A typical little chunkers, they will become more and more positive as the years go on, so you can have more growth properties elsewhere. There are a lot of termites there, do the building and pest, make sure the building is low maint.

Ballarat is another nice chunker town. It's a number of rural industry around it. Look for value adding oppurtunities.

Deed vs Agreement

2009-11-04T17:31:00.001+11:00

1. there is no need for consideration for a Deed to be a binding contract.

2. Deeds have a number of execution requirements. The term "signed, sealed and delivered" is a requirement for a Deed.

3. Limitation period for which a claim can be brought for breaching an obligation is different for Deed and Agreement. In Queensland, a claim for a breach of an Agreement must be commenced within six (6) years. However, with a Deed, the period is twelve (12) years.

ripple effect

2009-10-29T23:36:00.001+11:00

Nov 07: Middle Park and Port Melb had 50% and 30% growth in the previous 12 months to Nov 06?

Nov 08: The adjoing suburbs on the bay Elwood, St Kilda and Elsternwick had 18.2%, 35.3%, and 24.2% growth in the 12 months to Nov 08. All 2 suburbs's 10 year growth rate lie between 10-12%.

Sought after public school:

McKinon secondary college

Frankston high school

Reno value add tips:

1. Extra storage space: BIR (double height hanging space and to get as compartmentalised as possible), vanity with cupboard, drawers into bathroom, cupboards under stairs, storage in attics, loft in garages,

2. put laundry in cupboard or under bench, and convert existing laundries into bathrooms with all the plumbing in place

3. substitue or create a wall with shelving to separate two spaces

4 Shed: blend the shed in with the home and create a concrete based floor while installing suspended platforms in the ceiling for better storage and to keep as much off the floor as possible

5. The lighter the house feels, the more spacious and applealing it will seem to prospective buyers and renters (add skylight, or open up the back of the propert on the backyard with French or Sliding doors)

Room by room rental agent for Croydon

2009-10-29T12:02:00.000+11:00

Benchmark Real Estate
03 9877 0555

I found a rental ad from them for a room by room leasing in Croydon.

sound proof walls

2009-10-29T11:54:00.002+11:00

We are looking at a property that backs into a railway line. Apart from the concern for noise, everything else looks perfect.

I looked up online for a cheap and effective sound proof wall. Here is the search result:

http://www.modularwalls.com.au/

They don't just do sound proof walls, the Ali wood fence makes the outside of the house so much better looking, and masonry looking "garden wall" certainly make the backyard with swimming pool now look million doors. Hm, fencing is a great cosmetic reno item - so, buy house with ugly front fences! (with a discount of course).

It says the garden wall is ideal for noise reduction from a main road too - must check it out!

Their victorian agents are:

* MelbourneModular Walls - Victoria Ph: 1300 556 957 Mobile: 0434 218 801 Email: gardenwallsvic@optusnet.com.au
* BendigoHeuron Screenline Pty Ltd Ph: 1800 001 653Email: sales@heuron.com.au

contacts

2009-10-14T23:41:00.001+11:00

Insurance broker (commercial, business, residential) - James Germantis 03 94694673

international investing- US

2009-09-23T23:30:00.000+10:00

If you invest in America, there are 2 structures available: LLC (limited liability company) or C-Corp, the shares of the company is owned by the trust in Australia.

Because US is a broad tax country, you can quarantine the income in US. If it's not a broad tax country, you have to pay tax there as well as in Australia, no credit for the tax you paid over there.

How to bring back money:

1. money initially sent over for investment can be brought back tax free

2. I can charge a consultancy fee to the LLC there, so the LLC get a tax deduction there but I'll have consultancy income in Australia

3. Different to Australia, the cost to go over there for inspecting future purchase is deductible under US tax law.

4. LLC lend money back to Australia

The US insurance companies don't normally have landlord insurace equivalent. Only normal building and content insurance is available.

To get a credit rating with the banks in US, apply for a credit card and start using it. Generally >4 units are regarded as commercial over there.

Same as any investing, sensibility analysis and opputunity cost analysis should be performed. For the additional risk investing overseas, you need higher return (for yield or growth) to compensate it.

house relocation

2009-09-21T23:24:00.001+10:00

1. rule of thumb - it cost about $40k to relocate and reconnect a house

2. make sure the relocater has adequate insurance - say if the house got damaged during transportation

3. finance - banks usually only lend on the land. After the house is relocated and reconnected, and got the permit from the council, then the house&land could be refinanced as a package

4. permit - check with council and town planner before relocation whether the house would ok to put on the land. - We don't want neighbour objected after relocation!