Hi Wezwaz,

a block of land that has a land valuation (according to rates notice) around $120,000.

UCV’s are notoriously low, and have been ever since I can recall. The UCV (Unimproved Capital Value – i.e. supposed “land value”) is used to determine Rates, so this maybe keeps the number artificially low (???).

Don’t use a Rates Notice to…[Read more]

Hi Viz,

1. I have been told buying in partnership is a BIG no no by my mortgage broker, exception if its your spouse, not even your parents and reason being, the bank will look at the total loan owning not my portion and my equity will be only my portion. Would love to hear from anyone who bought in partnership other than your spouse and some…

[Read more]

hi James,

All I just want to terminate the contract as the house have active White ants. What to do to terminate the contract? If they say I can’t dispute the contract I am legally obligated to buy this house?

I hope you have had a solicitor helping you through with your purchase. If you have, then they should have advised you to formulate t…[Read more]

Hi Cattleya,

“how does scrapped negative gearing present great opportunity? Is that because prices are expected to fall?”

Since it is a poll, it is up to you to choose if you think it might benefit you.

One possibility I can see is if it is to be scrapped by some date in the future (July 2017?) then there is going to be a scramble to buy so…[Read more]

Hi RYF,

Use the Search button – on the Home page, look right and down – below Training Centre and Register your book.

Benny

Hi Deedee,
Just a thought out of left field – I think I have heard of some groups that can help you clear your credit file. Maybe worth checking (googling?) to find one of these? Sorry I can’t add more – but I thought I recalled reading of such firms a few years back….

Since the debt has been repaid without discounting (assumedly) you…[Read more]

Hi RYF,

You have lots of questions – and that is a good thing when starting out. It is far better to ask than to assume.

Anyway, my best advice right now would be to take a look all through this thread:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

There will be answers there to some of the…[Read more]

Hi Nan,
I believe it is a good idea – mainly for asset protection. Imagine if you had a loan for your home for some years and you suddenly wanted to go buy an IP – AND got finance from your current Bank.

First, they OFTEN set things up so that the two loans are “crossed”. I have found you need to nip that in the bud when first seeking a…[Read more]

Hi Cris,
PPOR = Principal Place of Residence = their own home (or once was – conditions apply).

and Cris, I am not sure how you got this :-

and initial CGT is 25% of capital gain

…so let me give you an example of CGT that I am reasonably sure will be somewhat correct (as I am unfamiliar with Lease/Options and payments being Rent, or…[Read more]

Hi Cris,
Keep in mind that many times the seller may not need to pay ANY CGT. Main one is if they are selling you their PPOR. It is probably important that you know just how a sale affects the seller, so you can create a deal that they can say “Yes” to, eh?

Then, as you say, there may be other ways to assist – e.g. if you are paying Rent…[Read more]

Hi Barlow,
You haven’t shared too much in the way of details, so I will answer generically. First off, you are right in that you need some amount saved to kick off. That can come in many forms, depending on your starting point:-
e.g. if you are fresh out of school, I would think other matters are way more important than property investing.…[Read more]

Hi Ben,

say you’ve claimed depreciation each year, and it was a new house, so there was $5k worth of dep. each year that you claimed in each tax return. This gets taken off your cost base.

Just one further question if I may (as this is an area I am quite unsure of) – you mentioned Depreciation needs to be taken off your cost base. Richard m…[Read more]

Hi Macc,

l’m desperately needing and wanting to get resettled for me and my daughter. l like the town, like the house , love the spot and it is a buy and a half, it’s just that l would be going out on it for awhile at first.

Sounds good to me, even if a bit tough…. but hey, I have found your gut is the one that will tell you for sure. Lis…[Read more]

Hi Jaish,
Those building their own homes (subdivision and developing) can make great capital growth. If you are not building your own, your chances of buying a bargain “new” are quite limited (although the last blocks or H&L packages in a subdivision can sometimes be bought cheaply as the developer wants to close out the development and move on…[Read more]

Hi Raftim,

Welcome aboard and great to see you posting a question right away!!

That confliction you feel is quite common – maybe because we are not exposed to “alternatives” when growing up in the average household.

Should I buy a house to live in first and then look at investing?

Both ways have benefits and the decision should not be…[Read more]

Hi Sha,
Yes, a big welcome to you and hubby. You will have already seen from Richard that there can be “lots of different ways” to do things. Some work better than others of course, and some work for one couple, but may not work so well for another. The whole subject is quite complex – and there is where we need the knowledge of people like…[Read more]

Hi Dean,

As far as the ATO is concerned the date of purchase then becomes the first date of the deposit right?

As far as I know, the Contract Date is the date that is used by the ATO. This has likely “caught” many people in the past (e.g. the seller wanting to sell a property in a new FY for CGT purposes – they are expecting a lower income in…[Read more]

The Theory can improve over time but scientists are scientists because of their actions of “experimentation and observation” & not because they are experienced or not.

Another “takeaway” I got from you right there, Pimobpi.

I once heard it as – When does a child ‘learning to play piano’ graduate to ‘PLAYING the piano’?

As you say…[Read more]

Hi Brett,

The only point I would challenge is that negative gearing increases housing supply,

I agree with you – negative gearing on its own does nothing to the housing supply. But it does affect the ratio of available rental properties from that total supply. Many have been lured into investing in rental properties BECAUSE of the promise of…[Read more]

Hi Macc,
Depends where you are… If in Qld, perhaps a long-dated contract with $20 down and a few extra weeks than usual for finance would allow you to make it happen – if accepted by the seller.

If in NSW, I wouldn’t know for sure, but I believe it might still be possible to get gazumped in that situation.

Of course, options are an…[Read more]