Hi Geo,

GM is a former associate of HK.

Some articles that may be of…[Read more]

Hi Act and Dorky,

Looks like I was fortunate when I moved my property at the end of January when Kelly found me a tenant first.

Derek
derekjones1@bigpond.com

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

Hi Adrian,

‘Borrowing costs’ are spread over five years or the life of the loan, whichever is less. Borrowing costs include loan establishment fees, title search, fees and costs for preparing and filing mortgage documents including broker fees (where applied) and mortgage stamp duty. Valuations and lenders mortgage insurance are also included as…[Read more]

HI Tass,

Set yourself up with a line of credit/equity loan secured against your existing home and then borrow the remaining funds.

Bear in mind that the funds drawn from your line of credit/equity loan will not be tax deductible as the purpose of the loan is to buy a PPOR.

You will also be able to repeat the same process and buy IPs if that is…[Read more]

Hi Qld,

Congratulations on your successes to date – a millionaire after 6 years of investing is not to be sneezed at.

I prefer to use equity in preference to saving a deposit primarlily because savings are made in after tax dollars and the time taken to save the deposit saw some investors miss out on some growth. Whether this is an issue in the…[Read more]

Hi Kid,

Congratulations on your achievements – I for one would be interested in hearing a summary of the key points such as what got you started, what strategies did you use to discipline yourself into a savings routine, did you have mentors/supporters who helped you along the way and equally as important what’s next?

I am sure your story would…[Read more]

Hi Geo,

Calculated as follows:

First $21600 = $2652 Tax
Next $18400 @ 30% = $5520 Tax
Total $40000 = $8172 Tax payable exc Medicare levy.

The first $6K is reflected in the various thresholds.

Derek
derekjones1@bigpond.com

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

Hi Geo,

The first $6,000, nil tax then 17% marginal.
At $21,600, $2,652 tax then 30% marginal.
At $58,000, $13,572 tax then 42% marginal.
At $70,000, $18,612 tax then 47.0% marginal.

Derek
derekjones1@bigpond.com

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

Hi Allan,

The tax is commonly called an ‘exit tax’ but is more correctly referred to as ‘vendor duty’

http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/vendor_duty_factsheet.pdf

Derek
derekjones1@bigpond.com

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

Hi Ronulas,

If it is investors (particularly out of towners) who were buying in the town and drove up prices – then I fully agree with Mortgage Hunter – from your comments about increased numbers of properties for sale it sounds as if buyers will now have the upper hand and the prices are unsustainable.

As such your money may well be at…[Read more]

Hi Wayne,

I would argue that mainstream tenants want a safe, well kept property with a landlord/PM who attend to maintenance problems in a timely manner.

After attending to heating/cooling, security and safety issues I don’t believe the ‘little things’ add much in the way of value to a property or to the rent returns. Why spend $1500 on…[Read more]

Hi Ali,

Ultimately only you can decide if the extra $15 is worth it.

To a certain degree the willingness of the landlord to reduce the rent will be determined by the length of time the property has been vacant and by the number of vacancies in the area – do you know these answers?

Given we are in winter when properties are historically harder…[Read more]

Hi Fitz,

I tend to agree with your position – the courts have ruled against the tenant and as such it would appear (to my sense of fairness anyway) that your insurance company is ducking and weaving.

Suggest a call to your Ministry of Fair Trading (or similar in your state) and talk to them. You may also find some answers at the following…[Read more]

Hi Redwing,

Absolutely – but keep some claims up my sleeve for the end of the financial year so that I don’t upset the ATO.

Staying very busy at the moment – which the wife thinks is a good thing. Just got back from a SMSF workshop that may interest you – check out http://www.onlinesuper.com.au – there is an office in…[Read more]

Hi Leigh,

If you have bought an IP after 13th May 1997 the ATO will deduct any eligible depreciation claims/costs from the cost price of the property when calculating CGT irrespective of whether or not you claim them.

Might as well get today’s dollars today rather than waiting to get them tomorrow when they are worth…[Read more]

Hi Karyn,

You are better off talkign to a broker who has a good understanding of the needs of a property investor. A bank manager is restricted by his/her lender’s lending policies rather than having the flexibility afforded by having access to a number of different lending institutions.

To give you a rough idea of where you stand – your…[Read more]

Hi Elika,

If you are wanting the quick gains of the last couple of years then don’t invest now – if however you are a long term investor, don’t overgear, research your market and have the capacity to ride a couple of small interest rate rises then a quality investment purchase should be considered.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Kay,

Its like most ‘legal crackdowns’ from any law enforcement agency – the only ones who somethign to fear are those who are operating outside the law. Unfortunately in some cases the ‘law is an ass’ – in this case methinks not – if someone is doing as you explain then they are clearly not playing by the at least one set of…[Read more]

Hi Wayne,

Government Policy has a lot to do with it – they are concerned with the exploding infrastructure costs associated with urban sprawl and as such have adopted such strategies as smaller blocks, new building legislations allowing houses to built closer to the boundary line, narrow streets, and so…[Read more]

Hi Cafall,

The best source of information is at the following website.

http://www.firb.gov.au/content/real_estate.asp

As Castledreamer said you will also need to look at the ATO website for tax related matters.

Derek
derekjones1@bigpond.com

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