buying property for rental income

[Lacessit]

4 minutes ago, 4MyEgo said:

I don't know where you are getting your information from but hopefully this will clear things up, in particular the bottom line that I have copied and pasted for you from within the link, see below the link the copy and pasted wording which hits the nail on the head, e.g. 'taxable Australian Property', which shares are not:

https://www.ato.gov.au/General/Capital-gains-tax/

 

If you’re an Australian resident, CGT applies to your assets anywhere in the world. For Norfolk Island residents, CGT applies to assets acquired from 23 October 2015. Foreign residents make a capital gain or loss if a CGT event happens to an asset that is 'taxable Australian property'.

 

If you need more convincing, let me know...

The link you provided contains an example which I think confirms my contention that to be a capital gain, the shares have to be held for at least one year. If you are buying and selling shares in a shorter time frame, you would be classed as a share trader. As I have, and have been taxed accordingly on profits as an Australian resident. As you do, I use a tax accountant. So it looks like either my accountant or yours is wrong.

[Pravda]

I don't live in Pattaya, but Bangkok market is even less saturated.

 

Just 2 weeks ago I rented a place at The Base 33sqm, brand new, just built 31st floor for 11,000 baht.

 

The place is also nicely decorated. Yes, cheap furniture, but with fridge tv, bed, nice sofa, washing machine, curtains, closet.... it was minimum 100,000 baht plus 3.1 million for the actual condo.

 

I take care of the place like my own, but already some stuff like stove top is getting scratched. 

 

Can you imagine what dirty sexpats in pattaya will do to your property?

 

The only way to make money would be on AirBnB. 

 

 

[4MyEgo]

12 minutes ago, Lacessit said:

The link you provided contains an example which I think confirms my contention that to be a capital gain, the shares have to be held for at least one year. If you are buying and selling shares in a shorter time frame, you would be classed as a share trader. As I have, and have been taxed accordingly on profits as an Australian resident. As you do, I use a tax accountant. So it looks like either my accountant or yours is wrong.

The key word here is resident, you are an Australian tax resident for tax purposes, I am a non resident for tax purposes.

 

You have a tax threshold of $18,200 before you start paying tax, I do not as a non resident.

 

The tax accountant I use, is the same one I have used for over 3 decades who knows his stuff, suffice to say, it's not stuff that goes against the grain, it's straight down the line, and every year he asks me if I have purchased and sold any stock that is not fully franked or part franked so that he can have me pay the tax on it, everything else is non taxable, apart from the money I have in the bank back in Oz which the withholding tax gets taken out automatically by the banks, the accountant also asks how much withholding tax I have paid, don't know why, but I give him the figures.

 

The above said, any income I make back in Oz from occasional contract work that I do for some clients, I pay 32.5c in the $ and I claim some expenses which I can.

 

But shares are not taxable if you are a non resident, and no capital gains tax applies either, it's only on property in Oz, or unfranked dividends.

 

Check it out with your accountant, and don't forget to mention the difference is non resident as opposed to resident, I have a mate who lives in Oz as a resident and trades with his wife and they gets away with not paying tax and capital gains tax by some loophole, not sure how its done.  

Edited June 14, 2019 by 4MyEgo

[newnative]

15 hours ago, Pravda said:

I don't live in Pattaya, but Bangkok market is even less saturated.

 

Just 2 weeks ago I rented a place at The Base 33sqm, brand new, just built 31st floor for 11,000 baht.

 

The place is also nicely decorated. Yes, cheap furniture, but with fridge tv, bed, nice sofa, washing machine, curtains, closet.... it was minimum 100,000 baht plus 3.1 million for the actual condo.

 

I take care of the place like my own, but already some stuff like stove top is getting scratched. 

 

Can you imagine what dirty sexpats in pattaya will do to your property?

 

The only way to make money would be on AirBnB. 

 

 

   Not really.  The only way to make any real money on Airbnb is if you have multiple condos and run what amounts to a small illegal hotel within a condo. That way you can afford to pay a staff to do the cleaning, the laundry, check in and out guests, etc.   If you have just one condo, you're probably better off with a long-term tenant unless you want to do all that nasty donkey work yourself.

[Toosetinmyways]

Read an article in the South China Morning Post regarding property rentals. Obviously it was targeting rich Chinese or Hong Kongers, as it was mostly about property in USA UK Hong Kong etc etc.

There was a small section about Thailand.

The reason the Chinese are deserting the Thai market was that three years ago the average rental return for the whole of Thailand was 5% to 7%. Last year after all rental costs the average return was 2%.

[ThomasThBKK]

1 hour ago, Toosetinmyways said:

Read an article in the South China Morning Post regarding property rentals. Obviously it was targeting rich Chinese or Hong Kongers, as it was mostly about property in USA UK Hong Kong etc etc.

There was a small section about Thailand.

The reason the Chinese are deserting the Thai market was that three years ago the average rental return for the whole of Thailand was 5% to 7%. Last year after all rental costs the average return was 2%.

And that likely includes not paying taxes, renovations and co in thailand.

 

 

Example property in BKK near Emquartier: 

 

Buying price: 40 MIO THB

Rental income: 120 000 per month

Common fees: 25 000 per month

 

 

40 000 000 / (120 000 - 25 000) = 35 years it would take to get your money back at current rental value

 

Not including repair costs, renovation, not 100% occupation, taxes, mortage % to bank, transfer fees etc.

 

Most here gamble to sell for a higher price and don't care about rental income, a dangerous game to play. Often the bank ends up owning the house/condo.