If it is going to be your PPOR, I agree with J900 and Ynotnow that you should buy now because it is always difficult to pick the bottom market. You are going to live in it and your intention would be to hold it for a very long time, so what little difference is it going to make? My only advice is BARGAIN BARGAIN and low ball the vendor.…[Read more]

Thanks a lot for the info you have given me, sincerely appreciated. I have bought a unit off the plan in the Dee Why Grand development but it would not be ready until around May 2010. Yes, I’m aware the median is around $415k. It was about $405k when I exchanged in July. A local agent has estimated a rental yield of 5.7% for my particular…[Read more]

From my own experience, I didnt need the flexibility and found the fastest way to pay off PPOR is with P & I whilst buying other IPs.

I have IPs in Kuala Lumpur and Singapore. The average yield for KL is 12% whilst Singapore is around 8%. This really beat Aussie yields and I wonder why I still look around Sydney and Melbourne.

The problem with KL is that you need to get a reliable property manager and there are not many…[Read more]

1. I also happen to be an accountant and I can surely say that accountants may not be the best business people contrary to popular belief. I have known many accountants who are very good at keeping score but are very myopic in their views about the world.

2. OK, I misunderstood and thought you meant buying unit trusts in a financial…[Read more]

1. Think about it – the fastest way to wealth creation is to pay off your PPOR ASAP, therefore always P & I. There are no 2 ways to it. Why pay interest only on PPOR when there is absolutely no tax benefit. You are only making your bank richer. The only time I would do that is to get a family member to buy the property and you rent it from…[Read more]

The IP with fixed rate and principal and interest – OUCH OUCH!! I would try and change this to interest only as long as your bank dont penalise you hard, they shouldnt anyway. I guess there is nothing you can do with the fixed rate except ride it out…[Read more]

There will be widespread mayhem and you will hear in all over the news if that happened. My understand of the 6 year rule is that you can keep on doing it indefinitely as long as it’s within the guidelines.

http://www.ato.gov.au/corporate/content.asp?doc=/content/86191.htm

I’m saying that for certain developments, don’t just take the developer’s price and exchange terms as they are but negotiate hard with them. I just posted a thread on how I drove a really hard bargain for 4 weeks with AV Jennings and they eventually gave in which resulted in huge savings. I came across a few projects in Brunswick and…[Read more]

Proasset is correct in saying it’s better to find somewhere that is cheaper to own and I think there is definitely pockets like that. I might even consider leveraging with a rental in a high rent suburb…[Read more]

You can use the negative gear to offset your $80k income but I would make a conscious effort to eventually get them positive either by increasing…[Read more]

My general advice is don’t think about selling Carlton at all. Selling has all the CGT and transaction costs associated with it and besides, you have only…[Read more]

Calculate your equity in all your investments and the % exposure to the banks first and make sure you…[Read more]

Country House

If you only have $60k mortgage left on the country house, I would definitely not sell it. The objective is always to hold on to your properties. Furthermore, if you rent out the country house, I’m sure it’s going to be cashflow positive as well.

Perth

I would suggest finding a good investment unit in Perth which is also…[Read more]

Depreciation allowance on the building has nothing to do with your income. Generally, capital allowance on building is 2.5% per annum. Furnishings are calculated separately depending on the items. Here’s a guide from the tax office which I have found to be very useful and ATO allows self-calculation per the…[Read more]