It will also be slightly higher next year as it is a leap year (one extra day to take into account). You need to work off the daily rate that the bank uses.

Well I bought the property (settled 2 weeks ago) and got the depreciation schedule back. The building cost came in at $83K, and this year I get a $4K depreciation allowance (not bad for having only had it for 3 weeks before the end of financial year), next year it is close to $10K and goes down from there each year onwards.

After tax, this will…[Read more]

My experience in Brisbane has been at least 7%, but more likely 7.5% or 8% plus GST, so up to 8.8%. On top of this, they may also charge postage and petties, which can be another $5.00 per month, plus GST. Some property managers will not charge this, other will charge more. Check that you don’t have to pay for advertising as well (internet,…[Read more]

Hi Rissa,

This is how we started. We had no mortgage on our PPOR and wanted to get into property investing. As we could secure the purchase of an investment property against our PPOR, we could borrow 105% and not have to pay mortgage insurance.

I would suggest setting up a Line of Credit against your PPOR as this will give you a working account…[Read more]

Harryson,

I am led to believe this is open to anyone. But again, not everyone is going to be able to have finanance pre-approved, have 10% deposit and be able to settle in 2 days, so it will limit who turns up.

Personally, I am going to look out for them, and go along to see what happens – all part of the education.

Cheers

Hi

After a little more research, apparently there are occassional adds in the papers, but in the Business sections under General Auctions or Bailiff Notes, not the realestate section.

The Auctions happen at a local magistrates court, and you need to ensure that you have finance approved. You are required to pay 10% at the Auction and there is a…[Read more]

Hi Ursh,

I use EBM’s RentCover Plus. It is $245 per year, but gets cheaper with more than 4 properties. Personally, they all seem pretty similar.

Hi Keith,

Sounds about right, they would have also had to buy the land, do all the water works, electricity to each site, subdivisions, etc and landscaping and recover costs for the common areas (e.g. pool, driveways, paths, stairwells, etc). This is probably another $10K to $20K across each apartment without taking the land component into account.

Hi David,

I have to agree with AD, you need to be able to sleep at night and be comfortable with what you are doing.

For us, we went down the interest only route. If we elect to pre-pay the interest, we get a cheaper interest rate and the added tax benefit for the current financial year. We also chose properties that would have excellent capital…[Read more]

Thanks Marie

Hi,

I would suggest working with someone who has done Development Applications to the council in the past – there are lots of hoops to jump through in order to get the approval to do this. You will also need plans for what you propose to build on the land and ensure that they comply with all of the regulations set by the council. Some DA guys…[Read more]

Hi,

The property.com.au website has a search category which is “Mortgagee Auction”, this is the closest I have found for this, but often there is nothing listed here anyway. Some newspaper adds will also indicate that the house has been re-posessed. The other avenue to look at is the Public Trustee. Again, this will typically be an auction as…[Read more]

Hi Learner,

I am also based in Brisbane, but have not used a Mortgage Broker. All of our deals are done through the Commonwealth Bank and we tend to borrow about 105-110% of the property price (still managing to keep them cashflow positive). The bank secures the loan against the equity across all of the properties we have. I suspect that provided…[Read more]

Hi Trying,

Not sure. Should check the implications with an accountant.

All the best

Hi Trying,

If you hold an investment for more than 12 months, then on the sale of the investment you would be subject to CGT. As you held the investment for more than 12 months the rate of CGT that you will pay is 1/2 of your nominal tax rate at the time. The 50% reduction will not change if you hold it for longer. I believe the rules are also…[Read more]

Hi Dottie,

I would suggest the following steps:

1. Decide to be an investor
2. Determine what you want to achieve by investing in property
3. Choose an area that you would like to invest in
4. Start small and look at the deals
5. Continue to invest in your education
6. Build relationships with your accountant (find one who also invests in…[Read more]