Don't forget Council and Water rates, Owners Corporation ,...

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mayafushi

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29/09/18

09:34

Post #: 35925788
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Originally posted by BarnArse ↑

HI, Yes I agree with everything you said but there are a few issues missing. If you have a SMSF with $500k you could conceivable borrow another $500k-$1m and buy something worth $1m-$1.5m.
Second major point is that most people make money out of property via the cheap debt, not the revenues from property. Property is also hugely attractive because of negative gearing and taxation advantages rather than it's performance as a growth asset.
Third, the PDS says Domacom trust charges .88% on the value of the assets and only allows debt over the subject property of up to 50%. This debt is loaned at around 5% p.a. as I am told.
In summary if I buy a property worth $1m @ 50% LVR and that property yields 4% p.a. then I get;
$40kpa income/rent
($2kpa) in agents fees
($25kpa) interest costs
($8800) p.a in trust costs
$0 negative gearing or taxation deductions
Net yield of $4200 on my $500,000 being 0.84% p.a

In order for the investment to yield me 10% the property would have to grow at 4.58% per year in capital value (net of increasing asset based fees)
Any taxation benefits are probably tied up within the trust and as the trust does not generate enough income to pay any tax, any tax benefits are accumulated within the trust reducing much benefit to the unit holder.
CGT discounting may be limited as the owner is a trust and not a natural person.

Given above can you give me any facts based example of how this trust would help me ?

Please also forgive me if I am wrong. I am just a simple man with a calculator.

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Don't forget Council and Water rates, Owners Corporation , insurance and repairs and maintenance. That should wipe out your 0.84 return and chew into the capital growth. If you look at the Domacom Fund Unit prices hardly any have yet to achieve positive returns.

Hey who calculated the High Court appeall cut off date. Thought their would be mountains of precedent on this stuff. You know the High Court considers scores of application for special leave every month.

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Don't forget Council and Water rates, Owners Corporation ,...

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Don't forget Council and Water rates, Owners Corporation ,...

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Biome reaches intellectual property milestone in strain development program

Recce scores $6.75M R&D rebate

Yangibana 33% complete says Hastings, as it provides clarification on funding

HotCopper reacts as Resolute Mining told to pay US$160M if it wants its CEO back

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

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