Ask your accountant but I think its capital improvement as the fact that the roof leaks would have decreased the purchase price of the property and you are now just bringing it up to an acceptable standard.
There should be enough upside to R/E investing that you do not not need to get into any grey areas regarding tax. Watch out for tax audits.
We are from Adelaide and have just done a Lease Option deal in the Northern suburbs (Paralowie).
The area is not too far from home so that may have helped choose the area. Also there has been some good growth lately so I hope it continues for a bit longer at least. Houses in the area can still be purchased for a reasonable price compared…[Read more]
Some agents we have found have been reluctant to allow us to add clauses like “subject to acceptable finance” and “subject to acceptable building inspection” as they realise that this can be a huge cop out for us (who gets to define accepatble). Another way around this, provided provisional finance is approved, is to sign the contract…[Read more]
I am also from SA and are still trying to work out how best to create the contracts for L/O’s witout spending a fortune.
I agree with Tim that in court there is no substitute for a watertight contract and as such all money spent is worthwile. But out of court I think that spending the time with the purchasing tennant to make sure that…[Read more]
I attended WB’s course last year. The course was informative but follow up help and replies to requests for further information was non-existant. Be carefull and get all questions answered on the day.