HI Mydral,

Yes – refer to page 60 of the Tax Pack.

As for a trip to inspect an owned property costs would be apportioned in relation to the amount of time spent with the accountant. Eg a 10 day holiday with a morning at the accountant wouldn’t be fully deductible.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi Bennido,

Using a LOC and another loan as you described is the same outcome as total borrowings of 100% for the property.

This strategy suits me and my situation and isn’t, in my opinion, that uncommon.

While a property may have high loan value ratio borrowings – the more important loan value ratio is what gearing level does your portfolio,…[Read more]

Hi Marisa,

The REI seems to think MAy was a little quiet in the FHO neck of the woods – but now the reduced stamp duty has kicked in there is an expectation of a second wind looming. That and the general belief that the economy is chugging along seem to suggest that parts of the market are still going OK.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Mum,

The key point is that a broker has access to a range of lenders and should, if they are any good, be able to extend your borrowing capacity because they are not limited by their employers rules.

Derek
derekjones1@bigpond.com

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

Hi Mathew,

You could do a lot worse than Dale Gatherum-Goss at http://www.gatherumgoss.com – contact details are on the website.

Bear in mind Dale has written two property taxation issues books. Even if he isn’t ‘central’ his expertise negates any inconvenience reulting from his location.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Hi Ausprop,

PS – There is a Strata Management Book available for purchase (~$30) that may be a good investment if they are DIY managing.

The book can be found in good newsagents – the author often has a piece in the RE section of Saturday’s West. Sorry details escape me at the moment.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Hi Ausprop,

Just postulating here but ……..

Given the majority of the owners (and by default – the body corporate) have approved a raise then all owners are responsible for their share of the debt.

If there us no formal decision making process or commmitee strucuture in place then I would suggest that this should also be a priority.

In the…[Read more]

Originally posted by calron:

What is the problem with presenting a proprty investment opportunity so that interested parties may have the chance to check it out??

Hi Calron,

Based on this comment of yours when you refer to the post as being ‘an opportunity’ confirms that it was indeed, as I suspected, an advertisement.

That and reference to…[Read more]

Hi Hot Rod,

Individual property prices can go down as the final sale is dependent upon that seller and buyer at the time.

There was an article in the weekend press (Age(?) Can’t find it now – sorry [dunce]) that listed around half dozen examples of property resales that showed a decline in ‘value’.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Calron,

I have removed some of your posts as they are nothing more than seeking funds from readers of this community.

I have left the edited initial question remain as there may be some people who can direct you to more appropriate places for private investment funds.

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi All,

No question that using your home as security for investments needs to be carefully measured and assessed.

But consider the alternatives – Saving a lump sum using the dollars left over after the ravages of the ATO can create a (sometimes insurmountable) hurdle for would be investors.

An evolving school of thought is the wise investor…[Read more]

Hi Rohan,

I recommend a read of the Foreign Investment Review Board (FIRB) for accurate information.

Web address is http://www.firb.gov.au/content/real_estate.asp

Derek
derekjones1@bigpond.com

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

Hi Hotshot,

Doesn’t really matter whether you use gross or net income the final relational effect (percentage wise) will be largely very similar aprt from some vagaries caused by changing tax threshold levels.

Derek
derekjones1@bigpond.com

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

Originally posted by jamiedellam:
Hi I live in perth w.a . I make money in real estate by building new houses in the first stage of new estates.

Hi Jamie,

I agree with Mel – if it aint broke why fix it.

Cashflow is but one of many ways of making money in real estate – it is not the only way.

It seems to me you are successful at what you are…[Read more]

Originally posted by FALCON:

p.s by the way the propertys in question are in the 100-140 price range with equity of 60k being on a $110000 home

Hi Falcom,

Assuming your property is bank valued at $110K as stated and you currently owe $50K.

An 80% lend will realise $88K less the $50K owing which gives a line of credit of $38K. At 90% (with LMI…[Read more]

Hi Kiwi,

I would not be paying full price for property until it is finished for the very reasons you alluded to.

Check to see the builder is a registered builder – owner builders (in WA) are restricted in the on-selling of property (not sure why as it has never been an issue for me)

Definately find a good solicitor for this one to see what the…[Read more]

Setmefree,

Australian Financial Planners Association surveys show most people want to retire on 75% of their working life incomes.

I would suggest that most people (in general terms) are ‘happy’ with a continuation of their existing lifestyle and this income level seems to sustain it at the level they were used to.

Whether or not this is…[Read more]

Hi Helen,

I suggest you are better off spending your time looking for property so that you can spot a deal when you see one – afterall this is where you will make your money.

At the end of the day a saving of less than $1000 is not a lot in the grand scheme of things. This is especially the case when a settlement mistake could cost thousands.…[Read more]

Originally posted by lifeX:
I’d also like to do credit checks and maybe even police checks on potential tenants.

Hi LifeX,

Don’t forget that little piece of legislation called the Privacy Act will make you job very difficult.

For me a good property manager is a sound expenditure of your money – while the tenant may fall behind in their rent…[Read more]

HI Robert,

In addition to I/O loans I woudl recommend you get a depreciation report completed and then, if appropriate, complete a PAYG Income Tax Variation advice. This way you’ll get your lump sum tax refund during your regular pay periods.

Derek
derekjones1@bigpond.com

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