Hi Zeeke,

Yes you can use the security provided by your existing property to buy another home – be aware that any redraw or equity loan would not be deductible under the circumstances you have outlined.

I would suggest that in the main you are better off remaining in your existing home (if that is possible) and buying another IP as this will…[Read more]

Hi D,

Woodsman has it correct – the offset account is free to be used as you see fit, the only ‘downside’ is that any withdrawals will see the balance diminish and the next months interest bill increase.

Extending upon this – if you got ‘ahead’ of your IP repayments and then took some money from the loan account to buy something personal then…[Read more]

Hi Andy,

Not trying to rain on your parade but I question the long term wisdom of buying something for $500K with a limited deposit.

Having a debt of $450K+ in a single property puts you at some degree of risk should you find yourself without a tenant.

Just a different thought for you to consider.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Bang,

Investing for gains with such a short time frame is a little optimistic in my opinion.

Certainly the fundamentals in SEQ are there but not for the timeframe you are seeking.

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Asia,

If the repairs are ‘repairs’ they will be deductible in the year in which the expense is incurred. If, however they are considered improvements the costs (levies) will be taken into consideration when determining CGT liabilities down the track.

This issue is similar to strata/bbody corporates that also include a ‘sinking fund’ within…[Read more]

And,

http://www.victorialaw.org.au/Body_Corporate.htm

and

http://www.mckeanpark.com.au/newsite/faq/default.asp?ID=49

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Woodsman,

It seems google is not quite up to it but

http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Buying+%26+Selling+Property-Apartments+%26+Units?OpenDocument&1=50-Buying+%26+Selling+Property~&2=40-Apartments+%26+Units~&3=~

There are soome links and pages on the website listed above.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Woodsman,

Found NSW
http://www.fairtrading.nsw.gov.au/pdfs/corporate/stratancpreport.pdf

Still looking for Vic

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Woodsman,

Which state?

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Jemm,

Our body corporate (Brisbane) doesn’t allow dogs. It is part of the bylaws.

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Sang,

Picking up from Woodsman.

I would suggest that you do some more reading and educate yourself in some of the many and wonderous ways that people can invest in property.

Duck into the ‘heads up’ forum on this board and see what book/reference recommendations people make. A coouple of these will help you further your investment knowledge…[Read more]

Hi Skolka,

As you are transferring an asset from one person to another within a single relationship it is important that the transaction is very legitimate as such transactions will raise an ATO flag and they may come to audit your books.

By the way this was an option that we (the wife and I were exploring some years ago).

I would also suggest…[Read more]

Hi Andrew,

As Steven said it does like you are allowing interest to capitalise (interest on interest) on/in your second LOC and as such there may be issues with the ATO.

So – in a nutshell it would pay to get a second opinion.

Derek
derekjones1@bigpond.com

Property investment advice and researched property in quality locations available.

Hi Melb,

As the property was built before 17th July 1985 then there will be no building depreciation left for you to claim apart from any renovations that are considered to be part of the building.

Aside from the building depreciation you also have available to you plant depreciation which has a start up and depreciable life value at time of…[Read more]

Hi Melb,

Land Tax is a state levied tax and as such the best place for information is the OSR (or whatever it is called by the state in which the property is located).

There are various rules for the different states and as such they are in the best position to answer the query.

For example – simple adjustments of tenants in common arrangements…[Read more]

Hi Collie,

Check your CGT calaculations. As Westan said the net gain is added to your other income and assessed in accordance with the various income tax scales.

I have issues with your projected sale price. Turning $160K into $240K in 6 months sounds attractive (and it is) but the better question is – is it achievable? Where did the sale price…[Read more]

Hi Brad,

Before you go jumping at shadows – do the maths.

Calculate the effect of an interest rate rise – 0.25% on every $100K is only $250/annum or $4.80/week.

Of these increased costs there are increased deductions of $117.50 (assuming top tax rate) meaning that your net shortfall is only $2.54/week per $100K.

This can easily be covered by…[Read more]

Originally posted by bnag1:
Because they are also doing renovations they make money from the reno also. They are very up front and say if you can find a cheaper way to do the reno then go for it. The key to them doing the reno is a fast turn around of 4 – 6 weeks.

Hi Brett,

Further to Tony’s comments – it pays to remember there are Renos and…[Read more]

Originally posted by terryw:

There is also a possiblity of a 95% LVR Low Doc loan coming onto the market in the very near future. Details are sketchy, but I expect a high interest rate for this one.

That is an interesting piece of information and especially considering the RBA was, not long ago, encouraging lenders to be diligent with the…[Read more]

Hi Iris,

I am with Brahms here – interest only and make additional repayments. If you want the property paid off before you retire then make sure you make the repayments necessary to pay out the loan as you retire.

As an aside have you considered the possibility of doing a ‘Jan Somers’ and leveraging off your existing property for growth and…[Read more]