Hi Jate,
  As a "broad brush" approach, anything to do with the having a lender issue you a Mortgage(s) are a Borrowing Cost (which are usually claimed back at 20% per year over 5 years).  So these would include things like (from your example):-

Property / Title Searches   (could be – if the search was requested by your lender)
Stamp…[Read more]

Link broken????

Broken link ????

Hi R.M.

Quote:
So here is my question, should I let the $45,000 stay in the offset account or should I utilise this money in another way?

BTW: my mortgage on the PPoR is $420k or 40% LVR

I'm with Johnny A (the second part – "putting it in a offset account on my home loan"). 

While ever you have non-deductible payments to be made, make them…[Read more]

Welcome aboard Tom,
  Hey good for you to be considering these things at an early age.  I can only think your parents have been doing a fine job !! 

  Your question led to a recollection of one of my earlier property investing "self-help" books.   Check out "Real Estate Riches" by Dolf de Roos.  Within the first five pages (I think, but REAL…[Read more]

Quote:
Benny, would you say Kingston or Woodridge will be more likable than Eagleby?

  Two things – when we were looking (about 30 years ago) Woodridge had a "name", and Kingston is right next door, so wore a bit of the name too.  Then the "toxic sludge" thing in Kingston (actually localised to less than one block, but the news made it sound…[Read more]

Hi Mattsta and SSM,
  Thanks – they do take time to find.  Problem is, once found, HOW do we remember where to find them again? 

  Hence this thread. 

  I hope to keep adding to it… and I will endeavour to find the very best of posts so it might become a useful reference thread for new players.  Of course, it is open to others to add THEIR…[Read more]

Hi Muddle,
  Well, these extra words tell me that you may have indeed stumbled across a "bargain"…..  

Quote:
There is a discussion of a possible price tag of 300 – 320k. Which would give it a yield of (where's my calculator?) let's say, over 8%. This leaves us to think it has been under valued or we are missing something…[Read more]

Nice post, Shape !!!   

*applause*

Benny

Hi Muddle,
   … and a big welcome to you too.   Good to see a new member "jumping right in the deep end and posting"    

  I believe that in the Commercial Investment arena that is exactly how one determines value – all based on yield.   But hey, that also might fall over in a similar way to Shape's comment re "location" – I don't know.  The…[Read more]

Hi smartcube,
  I think Jamie has nailed it :-

Quote:
If there's a chance that the property may become an IP down the track then it might be best to pay a bit of LMI and borrow more from the bank.

  As Jamie also said, you would need to provide more detailed information to get any more detailed answers.  Re all of the other "ins and outs" of…[Read more]

Hi Dreaming,
  Can you provide more detail here?  e.g. did you buy it as an IP?  Was it ever your PPOR?   What is current value, and current mortgage?   etc.   

  Of course, if you ARE one of Jamie's clients, you probably have all of this at your fingertips.   And anyway, Jamie may well have already answered a lot of what I was thinking.  

  My…[Read more]

Hi Tracy,
  Welcome to another new member.  And "Well done!!" to you and your family for setting yourselves up so well.   Approach IP investing slowly and thoughtfully, and i have no doubt you will do well. 

  I mentioned in another post somewhere that I spent almost a year – reading books, going to (usually free) seminars, meeting with others,…[Read more]

Hi Draytone,

Quote:
I was under the impression that even if I do rent the property out for more than 6 years, pushing me out of the CGT exemption category, that a CGT event won't happen until if and when I sell the property?

  As Jamie said, you are quite correct.  However, what WOULD change after 6 years is the CGT-exempt status.   i.e. this…[Read more]

Hi Rob,
  Well done – you and your family sound like you are in great shape, and your "trawling" on here has obviously paid off.   Your ideas sound pretty good to me. 

  The only extra thought I had was "Do you think you might return to this home at some time in the future?"   The answer to that will determine what else you need to do.  

  I am…[Read more]

Quote:
Am I doing it wrong?  Surely you guys look at this information when looking at the cashflow of  property.  It can take a negatively geared property into being a cash flow positive property with good depreciation can't it?

  Yes it can !!   Many would say though "Tax relief is more a bonus than a reason to buy" and would crunch the…[Read more]

Hi Patterson,
 

Quote:
Wow cash flow positive properties really must be hard to find.

   One of the points often overlooked is that a negative-geared property can give a +ve cashflow – for that very reason (depreciation, borrowing costs, etc leading to Tax Relief). 

   The other thing (again often overlooked) is that fluctuations of Interest…[Read more]

Hi Patterson,
  Well that second attempt was a lot more readable !!  Re "What have you missed", I can say that the "Outgoing with IO Mortgage" seems to have a +ve value, while the "Outgoing with Repayment Mortgage" has a -ve value.  Based on the figures, they should be be one or the other.  

  Also, I see Depreciation showing as $3071 per year -…[Read more]

Hi Patterson,
  Most RE agents can give you "an idea" based on the look of the place (e.g. "Looks like 80's style") or, if they have been in that area a while, will know when certain pockets were built.  

  As Freckle said, this kind of detail usually comes later.  

 Once you decide you want to "go for it", then your DD can include finding this…[Read more]

Hi Patterson,
  I clicked on your link and saw mostly green dots.   Most of the green confidence levels were up to +/- 10%.  In one case though, even with a green dot, it should a conf level of +/- 14%, so not quite so confident about their estimate with that one.   And there was one Red dot, with a conf level of +/- 23%…….

  Guessing, I…[Read more]