Hi Knox,

PS do you know somewhere I could find information in “layman’s terms” on depreciation?

Learn it from the man himself – here’s an Article written by Steve :-

https://www.propertyinvesting.com/depreciation/

There are lots of articles on all manner of subjects – great reading for all newcomers,

Benny

Hi Jason,
Is there a “rule of thumb” re how best to develop a smallish block e.g. is it as simple as “jam on the most 2 bedders you can fit” (or even 1 bedders in some areas)? Or can it be financially better to build a smaller number of 3bdrs? Are such decisions “area dependent”?
Pros and cons between townhouse/villa and/or duplex/standalone.

Hi Adam and Brinks,
Seems to be a quiet time the last few days on forum. Hopefully our usual gurus will pop back in and lend their knowledge to your cause.

Meantime, though I CAN’T answer all of those questions, here are a few thoughts that might be useful…..

1) As a first home buyer, if I build do I get the first home owners grant if I…

[Read more]

Hi Wayne,
This is a very good question :-

I don’t mind if the Child Support Agency add any profit I make at the end of the year as taxable income, though my concern is that they might add the weekly rental income into their calculations regardless of the deductions claimed against it.

Things might change from year to year, and it is not a…[Read more]

Hi Euroboy,
Welcome aboard – good to see you have joined us. And what a great opportunity that souns like. I hope you are able to chase it down to a beneficial conclusion. Families though can become a bit fractured, depending on each individual. Still, even if not all “want in”, it may still be worth having a shot at.

Unfortunately, I…[Read more]

Hi Knox,

This may sound like a stupid quetion but, is it wise to outlay more money, to bring the price down and therefore turn it to a positively geared investment?

By adding more deposit you are bringing the Mortgage down, not the price (but then, THERE’s an idea !! Read on…)

Let’s look at “the numbers” in a slightly different way, then…[Read more]

Hi Farhad,
Click on the link below to go straight to his Profile. From there, you can send him a PM (Private Message).
https://www.propertyinvesting.com/members/RPI/

I note he hasn’t logged on for a few weeks, but a Private Message will be waiting for him when he does.

Or, read some of his posts, as he has contact details in his…[Read more]

Hi Rich,
I am happy to recommend Nick from Strategic Wealth Management. I have used him in the past and was very satisfied with his expertise. He’s also a helluva nice bloke. When I was there, about 4 years ago now, his offices were in or around Hurstville.

Benny

Hi Lance,

Question is what should we do with spare cash as I want to get all my deductions back at tax time.

I guess the answer to the question should come from you. You have done really well, but the main question, I believe, is “Are you now finishing with the accumulation phase, and moving into consolidation? Or are you still looking to…[Read more]

Hi westsub,
WHat I think I am hearing (reading) is that you wish to borrow against the IP to provide a deposit for a PPOR.

To many, a redraw means to ADD to an existing loan (i.e. you pay down a loan, then borrow it back via a redraw). In that case, only one loan exists. If that were the case, you would be mixing personal borrowings (for a…[Read more]

Hi Andrew,

in the future I would be moving back to the city, I would like to move to The Vines in Perth, should I buy a million dollar propety now and rent it out or should I invest small in the suburbs and buy my dream house latter?

For CGT benefits alone, I would suggest holding off its purchase until you are ready to move straight into it.…[Read more]

Hi again,
Good point from Terry – having a CGT exemption is a real asset when it comes time to sell your PPOR. So, if selling, do consider buying another, rather than renting, then borrow against the new PPOR for IP’s. Of course, it would make sense to buy low and reno any new PPOR too – cost less to buy, then add Equity to borrow against!!…[Read more]

Hi Terry,

There is no need to move back in or even to have an intention to move back in.

Hmmmm, I’m not sure which part of my thoughts were suspect, Terry, but it was a bit of a muse re how the law might have come about. So, yeah, I could well be quite wrong – point taken.

Anyway, since your answer didn’t seem to answer Adam’s original…[Read more]

I think the answer lies in “other things” not yet mentioned. Like these :-

Are you still working and what date do you have set for retirement?
Do you enjoy living in the PPOR you currently have?
Is your plan to buy Growth properties, or Income? Or a mix of both? In the end, the “numbers” will have a lot to say!!
Expanding on Terry’s answer,…[Read more]

Hi Mike,

The yield ranges between 2.75-2.85% over the 10 year period after taking consideration of risk premiums and outgoings.

We usually work on Gross Yields when checking if a deal is possibly viable (it is a quick rule-of-thumb check). From your words, it appears you may be talking a Nett Yield of <3% So it may not be as bad as it…[Read more]

Hi Adam,
That is a great question !!

Question: How long is an “acceptable period of time” so that my property remains my PPOR when I re-rent it out?

I believe the 6-year rule was brought in to assist where (for example) someone is transferred interstate or overseas, but plans to come back to their home down the track. Given that was the…[Read more]

Hi Brett,
When working out if a H&L sales outfit is “good or bad”, the main thing to know is the values in the area in which they are selling.

So many of the “bad dude marketeers” will be selling in an area foreign to YOU (e.g. they would fly interstate people up to the Gold Coast FOR FREE). Without knowing the “local values”, you could be…[Read more]

Hi Alex,

My hunch however is that we won’t be able to push through the DA and associated paperwork if the title is still in the vendor’s name? Can we get some opinions on this please?

I have heard “There are ways” – these might include taking the vendor into the deal as a JV partner.

Or purchase an option from the vendor with a long eno…[Read more]

Hi Mark,
Welcome aboard !! You have started well with IP’s to have two already. I find it a bit hard to say whether one way is better than another as I don’t know the areas, the rent returns, whether one or both are negative geared, etc.

I’m getting married next year and looking for a PPOR. We don’t wish to live in either IP.

Based on…[Read more]

jmsrachel asked (in another thread)

Steve / admin – Don’t get upset I tried for hours working out how to start a new thread with photos. Ended up pulling my hair out.

Since that comment supports this thread, I wanted to put it here to add to the count !!

Benny

Originating post is htt…[Read more]