Originally posted by Noob:

I just found out yesterday that when the insurance was up for renewal, he decided not to renew it. I’m nervous about the possibility of him losing it all in a freak accident but he’s happy with the risk.

Hi Noob,

Agreeing with the previous comments and I would never be without insurance on my assets.

But at the end…[Read more]

Hi All,

Update – Tonight’s local regional news reported regional WA as still experiencing good growth and that Kalgoorlie’s name was mentioned first when the regional high achievers were discussed. No stats given but……….remember it is a regional mining city and will largely have its own cycle.

Derek
derekjones1@bigpond.com

Property…[Read more]

No!

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Kwaidan,

Look at the size of my non-deductible debt/s and clear as much/all of that as possible and then set up/increase line/s of credit and invest again.

Any left overs would be offset against one of the remaining IP loans to reduce monthly interest bills and/or explore the holiday (celebration) option…[Read more]

Hi Francois,

As Kalgoorlie is a miningtown it has it’s own cycle which is largely related to the level of activity in the mineral of concern at the time.

In the last 6 years or so gold prices and other incentives to explore new territories were on the wrong side of zero hence the ‘flat spot’ of recent years. In more recent times Nickel is having…[Read more]

Hi Geo,

According to the linked first article in The Age

Property adviser Henry Kaye settled out of court yesterday after an earlier County Court determination that found his company, Investmentsource Corporation, had breached contracts with a former business partner.

Associate does give the wrong impression so I’ll withdraw that but the…[Read more]

Hi Leoni,

Not nan accountant but as the purpose of loan has now changed from IP to PPOR related that portion is not tax deductible.

You would be well advised to talk about this with your accountant and broker and splitting the loan portions into separate loan/s as mixing investment and non-investment loans is paramount to a financial headache…[Read more]

Hi Cade,

If I was buying in Perth at the moment I would get as close as possible to the city or the satellite centres. Focus on areas with easy access to and in close proximity to the water, rail and freeways.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Dangermouse,

While you have equity of $110K you need to be aware that only 80% (higher if you pay LMI) of the total value of the property (less existing debt) is recognisable security. As such you really have $32K available as deposits (@80%) or $72K if you go to 90%.

For me I would be reluctant to incur break costs unless I knew I was going…[Read more]

Originally posted by bobfromtassie3:

I have been told that I can nominate one home throughout my lifetime and claim it as my PPOR therefore paying no tax when selling???

Hi Bob,

Just a clarifying point – you can have more than one PPOR in your lifetime – you are not allowed to have more than one PPOR at any one time, apart from the 6 month…[Read more]

Originally posted by arborphile:

You say that repayments on a P&I loan are not tax deductible. Can you claim the interest component as a deduction?

Hi Arb,

Only the interest component of a loan is a deductible expense.

As such if you make repayments of $1000/month of which $800 is the interest component then you are only entitled to claim the…[Read more]

Hmmmmm – 1st Post and a commendation about a ‘guru’ to boot.

Methinks a little spamming is present.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Kristine,

Not sure which qualifying criteria you are using so you may have a few ‘gate crashers’ to your party.

Not saying I qualify but for me; my greatest asset is my mindset and knowledge (and that’s not a blow your own trumpet statement either) and the capacity to know what I want and what steps I needed to take to achieve my…[Read more]

Originally posted by Ricardo B.:
Hi! I’m thinking of ways to cut down on spending to continue building my hard-earned savings (a bit more than 100k)which I want to use for investing.

Hi Ricardo,

Not able to comment on the ‘house sitting’ question but I noticed you have savings of $100K.

If you are wanting to invest then you should be able to…[Read more]

Hi Bernie,

The situation you describe is often described as being how people ‘accidentally’ start out as property investors.

Your PPOR will remain CGT free for a further 6 years provided you do not buy/build another PPOR so there is no need to hurry and sell your property. If you do hang onto the property for more than an additional 6 years then…[Read more]

Originally posted by MortgageHunter:

To achieve this you need to make all IP loans IO and pay all the principal payments into the PPOR.

And establish an offset account linked to your PPOR account into which you deposit all income (wages and rent) so that the balance helps to reduce the monthly interest bill.

And if you are very disciplined…[Read more]

Hi Zig,

Agreeing with Simon – deposit funds and expenses are deductible. Interest on interest no.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

HI Regrow,

Just a quick note – capital depreciation is claimed as a percentage of the building cost of the property and as such I would argue that if you are buying this property at $195K then you will not get a depreciation claim of 2.5% X $195K as there is no allowance for land content nor any for plant and equipment.

As a rule of thumb you…[Read more]

Hi Helen,

The ATO website Rental Guide 03/04 does have a guide which explains depreciable items on page 20. There is also some clarification of repairs V improvements on page 9 and again on page 18.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Bennido,

‘potential’ is much better than ‘no potential'[biggrin]

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.