Hi Matt,
Welcome aboard !! That is a bit of a different scenario, for sure. I don’t know the answer to your question. I do know that if you sell the old one, there should be NO CGT payable. But if selling the new one – ????? Hmmmm.

Hopefully one of our more experienced members can shed some light. To that end, my reply will bring your…[Read more]

Hi FLW,
Welcome aboard !! Wow, no replies in a week? I can only think it got missed by most. Let me start by saying “I don’t KNOW Perth”, so my thoughts are more general. In the end, you will know more than I do, but maybe my thoughts might help focus you on the right choice for you.

Re the three choices you mentioned :-
1. “Rent out…[Read more]

Hi Colagirl,
The major four are – Rates, Insurance, RE fees, and Maintenance – and, if a unit, add in Body Corp!!

Sounds like you have thought through most of them – re Maintenance, do you need to consider lawns, gardening, or is the tenant taking care of those?

Benny

Hi Ross,
Do you know of any other useful treads that might be of interest to me as I’m only starting my investment journey.
I plan to add them to that same thread as I find them.

Can you think of things that could/should be added? After that, it is a matter of FINDING (or creating) good answers for the thread. What of your early q…[Read more]

Hi Giles,
Congratulations on your first IP purchase !! Well done. *applause*

Doing some calculations, its set to be negative geared signifcantly.

Have you taken all calculations into account (Tax deductions, capital allowance, etc) in saying that? If not, do try it.

In fact, do you want to share (broadly) the income/costs that you are…[Read more]

Hi Ronnie,

I enjoy reading it and wanted to ask if jwareham1985 converts his loan to interest only loan and rents it out as an IP how will he ever get to pay the loan off?

Well, that depends on many things. Your overall question seems to infer that JW should pay it off. And you might be right – but each investor’s situation is likely to be…[Read more]

Hi Theresa,
I haven’t done this – but, going by the tile, it sounds like you are effectively gifting the land to a builder in return for having them build two properties. There may be negotiated “give and take” $$-wise, but is that roughly what you are thinking of?

If so, the thought that struck me would be that YOUR house should be…[Read more]

Hi Brizza,
Re your question” – “do the beneficiaries have to be named when the trust is drawn up?” – I have had a Trust set up for me some years back. I recall that beneficiaries can be included without names where they are actually “unknown” (e.g. children of a beneficiary who are as yet unborn).

We have Primary beneficiaries, and there…[Read more]

Hi Shank,
Not sure of the answer to your question – it is quite beyond me…..

BUT, for a time that I worked in Sydney, I was able to claim LAHA. My accountant had said “NO, it doesn’t apply to you – it is only for politicians” but a colleague pointed me to an agency that DID provide this for me (I became an employee of theirs). They quoted…[Read more]

Hi Ronnie,

Would we be treated taxable income together since the property is under both names eg 50k + 50k = 100k salary minus the $5000?

I believe you would do separate Tax Returns (thus your Tax benefits will be lower than if one of you earned $100k). That’s simply because those on lower wages pay less Tax, so any refund will be less too.…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

One of the common areas providing confusion for new investors is the “gearing” of property (i.e. Positive or Negative Geared). In short, if a loan is positive geared, it means the loan is small enough (or the returns high enough) so that it requires none of your own money to keep it running – it puts money in your pocket each month.

Negative…[Read more]

Hi Ronnie,

To be honest I don’t know much about property investing, just read an article on the train one time about brief explanation on positive gearing and negative gearing.

Have a quick look at the link following – it will answer a lot of early questions to get you up-to-speed and warn of d…[Read more]

Hi Ronnie,
Did I make sense or is he on the right track?

You made sense…. He was just wanting to make a commission. I would think his “not understanding” was selective amnesia on his part !! I’m sure he knew EXACTLY what you meant.

Next time, if it is such a good deal, ask him how many of these great deals that he owns !! :p

Benny

Hi Anthony,
Welcome aboard !! :) I just wanted to post a few thoughts that might not answer the NRAS question, but will hopefully be of some benefit to you :-

1. Being “in a complex of 104” this sounds like an apartment – is it??
2. If yes, then a rent of $375/wk for a $385k property sounds quite restrictive. Are you sure you will only be…[Read more]

Hi Ross,
Welcome – you’ve come to a good place (well places really – Australia, and PI.com !!)

In reference to your question “What are the advantages of renting and buying IP’s?” take a look at this link :-

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

The third post points to a very…[Read more]