Hi Rjk,

Katanning schools have been losing staff numbers steadily for a number of years now as the farming community absorbs neighbouring farms and one family leaves town.

Locals are rubbing their hands with glee at prices investors are paying for a piece Katanning property.

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Elika,

There are depreciation benefits buying new properties as you get full depreciation claims (assuming you held the property for its full depreciable life).

However depreciation benefits should not be the sole reason for buying an investment – potential growth and/or rent returns are the key reasons for buying a…[Read more]

Hi Andrew,

You will need to get a copy of the by-laws that apply to your strata management group. These should clearly spell out all process revolving around your issues.

Derek
derekjones1@bigpond.com

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

Hi Wayne,

Mother in law lives in Ocean Reef and she has a ducted evaporative unit and it seems to manage OK – humid days they are no good but otherwise OK.

The key issue with evaporative units is for the moist air to get out to prevent saturation point being reached – you will need some way of securely allowing this to occur.

On humid nights…[Read more]

Hi Regrow,

Depreciation is a two part deductible expense.

The first part of depreciation is referred to as the capital allowances as is calculated as being 2.5% of the building cost of the building as is deductible over 40 years if the property commenced construction after 16th Sept 1987. If the property commenced in the period 18th July 1985 -…[Read more]

Hi Igolsoft,

Certainly pay off your home first as you are the only one who can do this. Whereas, even with your negatively geared IP, the taxman is still helping you to pay for parts of this debt.

You may also want to consider converting your investment loan to interest only (if you haven’t already), getting a depreciation report done and/or…[Read more]

Hi Cherub,

While there is a degree of attraction in rental guarantees you will need to ensure that the sale prices reflects the wider market. It is not unusual for rental guarantees to be funded by a higher sale price and as such you could well be funding yourself.

You will also need to find out who provides the guarantee – I have seen…[Read more]

Hi Ole,

The your own home V renting debate in many cases comes down to a matter or personal choice.

There are those that will passionately pursue their own home while others preferring to buy an investment property and renting out a property, at a rate much cheaper than they can if they were buying. This way they are in the property market with…[Read more]

Hi Taffy,

Just a quick, but very important add on, you are only entitled to have one PPOR at a time and as such your Cairns plans and longer term do come into play.

A chat with a good accountant would be beneficial so you can determine what is your best course of action.

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Taffy,

Welcome aboard and congratultaioon on your achievements to date.

Any costs associated with your former ppor are now deductible and if you moved into the house without first renting it you also maintain/retain a CGT free period of up to six years.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never…[Read more]

Hi Kieran,

Welcome to the community and I am sure that you will get some conflicting comments. To be of real assistance the community would need some additional information about your long term investment goals, timeframes you are working in and so. The more information you provide the better response you will get.

I just had a scan of the…[Read more]

Hi Bardon,

Do a search for topics posted by ‘Dan Auito’ – he is a US based investor who drops in from time to time. Pne of his posts had a number of US based websites that may be of use to you.

You may even like to PM him.

Derek
derekjones1@bigpond.com

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

Originally posted by Derek:
Hi all,
Yet, research by AMP Henderson chief economist Shane Oliver shows that since 1926, the performance of these two investment asset classes has been almost identical – property has risen at an annual rate of 11.9 per cent, while shares gained on average 11.8 per cent.

Hi Westan,

This was the critical comment…[Read more]

Hi Yack/GMH,

ABS states the following “In 2002-03, 52% of Australia’s population growth was from net overseas migration (NOM). The preliminary estimate of net overseas migration was 125,300, while natural increase was 115,200 and total growth was 240,500.”

Full link…[Read more]

Hi all,

Picked this article up in one of the national papers in January of this year – thought it might add some statistics to the debate.

Cheers

2004: property or shares?

January 25, 2004

Richard Webb looks at whether stocks or housing will come out on top this year.

For the past five years, Australian property has outperformed shares by a…[Read more]

Hi Bennido,

The $100 limit applies to the sum of all costs – and as you can appreciate there would be very few investors who get the immediate write off.

Derek
derekjones1@bigpond.com

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

Hi Malachii,

I am with GMH here – if the tenant had a fixed term lease on your property they are responsible for meeting rent until the lease expires or a new tenant is found (at their expense).

I suggest you get in contact with the Victorian Landlords Association for advice and…[Read more]

Hi All,

Found the draft ruling on the ATO website – may help clarify what the ATO is thinking and also what constitutes ‘incidental advice’

“Draft Taxation Determination
Income tax: does paragraph 251L(1)(b) of the Income Tax Assessment Act 1936 prevent persons other than registered tax agents from giving advice about a taxation…[Read more]

Hi Jl,

Congratulations on your achievements to date.

For me I prefer to use the equity to leverage into other property as it I find is easier to achieve this than to save 30%-40% cash for a deposit each time. This way I can achieve my investment goals a little quicker than would otherwise be possible.

If you prefer to use cash deposits you…[Read more]

Originally posted by Celivia:

The Diminishing Value Method seems more attractive to me, not only because of the higher claims over the first few years, but also because the total amount claimable is a few thousand dollars higher over the 10 years compared to the Prime Cost Method.

Hi Celivia,

I also use the DVM for my depreciation claims as…[Read more]