Hi Daltoid,

The repayments on an interest only loan are less than the repayments for the same size P & I loan. This enables I/O disciples to generally hold more property than if they were making P & I repayments.

Bear in mind it is only the interest component that is deductible – the principle component isn’t deductible. As such you do not gain…[Read more]

Originally posted by AusProp:
Las Vegas… someone was talking about this a couple of days ago saying there was a huge scam and US people were moving in on Aussies as prime targets (being property obsessed as we are). wish I could remember where I heard it….

Hi John,

You probably heard John Kobelke – WA Minister for Consumer Affairs sepakign…[Read more]

Hi Eenypl,

Recommend you do a search on Broken Hill – according to API there were 545 sales in BH last year – seems lots of cashflow investors have collared the market there.

Derek
derekjones1@bigpond.com

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

Hi Jo,

In short – no, if it is good buy then it is a good buy irrespective of its age, apart from any maintenance and inspection issues.

All purchases need to be evaluated on the fundamentals and any depreciation ‘benefits’ should be considered as being the icing on the cake, and not a part of the cake.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Andrew,

Provided it was available for market rate rent all year you can claim all expenses.

Don’t forget you will need to be able to substantiate the claim if the ATO comes knocking – advertisements, advertising bills, records of phone calls to managing agent etc.

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Dragons,

I/O loans do have a limited life (used to be typically up to 5 years – though this is/has changed with the ongoing deregulation of the market) after which banks ‘expected’ you to convert to principle and interest repayments.

At the end of the I/O period go and see your broker and get the I/O period extended with your initial lender…[Read more]

Hi Alf,

One thing valuers really detest is when the ‘comparable sales’ you have identified are not that comparable. In essence make sure your information is fair, valid, reliable and up to date.

I have had success in the past by ringing local agents in the area to find out some details about recent comparable sales that haven’t yet reached the…[Read more]

Hi tcarrisk,

Welcome to the forum – depedning upon which state you are in you may find other sources of information – as a rule of thumb somresearch bodies are starting to charge for their information.

Try http://www.domain.com.au/UserServices/searchAPM.aspx?mode=subsell

as they have a suburb snapshot section that is freely available. You can…[Read more]

Hi all,

The form you require for PAYE tax payers is available from the ATO at http://www.ato.gov.au/corporate/content.asp?doc=/content/43572.htm

As others have said the commissioner is not obliged to allow the payroll deductions and as such it is in your interest to ensure you do not crib your tax responsibilities. I prefer to leave some…[Read more]

HI Mike,

Anb offset account can allow you to own your own home faster – the speed at which you achieve this is relative to the amount in your offset account and the size of the loan.

We deposit all of our income into an account offset against our home, pay everything by credit card, our various loan interest bills are paid electronically when…[Read more]

Hi Jo,

New stove would be classified as replacement and would be depreciated – (well it was 8 years ago when our hot water system died) – if however repairs could be effected then the repair bill and parts would be deductible.

Derek
derekjones1@bigpond.com

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

Hi all,

Just made the last payment on youngest daughters braces so that the total bill fell inside one financial year – takes us over the $1500 medical expenses threshold and provides a 20% rebate after the threshold is reached.

Have also paid a few bills (body corporate, phone bills etc) in this financial year as the new tax scales come into…[Read more]

Hi Shane,

No problems – pleased to be of assistance.

Derek
derekjones1@bigpond.com

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

Hi Mike,

An offset account structure keeps things a little cleaner for everyone. Lines of credit as promoted by Westpoint are for the more disciplined spenders /budgetters and provide few (if any advantages over an offset account).

As others have said stick with your current structure.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Originally posted by The Mortgage Adviser:
They sound like developers to me.

Not developers.

Derek
derekjones1@bigpond.com

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

Hi Shane,

All our IP loans are I/O while we have some non-deductible debt on our home. When we get to the position of owning our home outright then we will review the state of play.

All income is deposited into an account offset against our home loan – this way the ‘income’ helps reduce the interest for the period that it remains in the offset…[Read more]

Hi Elika,

There are a couple key pieces of information missing from your post that could significantly alter the suitability of your investment.

Lenders get very wary about lending at 80% on small holiday letting units. Anything under 50 sqm (?) will see them expecting you to put in more than the usual 20% (or less with LMI). In effect an excess…[Read more]

Hi all,

Bear in mind a number of state governments have adjusted stamp duty rates, thresholds and allowances for FHO in their recent budgets with a number of the changes to come into effect on July 1 2004.

Derek
derekjones1@bigpond.com

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

Hi Marisa,

I would suugest you do not transfer a ‘Perth’ idea into the investment property as the climate differences are significant both in winter and summer – and while you will pay a little more I would invest my hard earned in the local nursery so that you buy plants appropriate to the area.

Steer clear of large trees as they will create…[Read more]

Hi All,

Not sure if this was the development David was referring to but it makes for an interesting read anyway.

http://www.theaustralian.news.com.au/common/story_page/0,5744,9955343%255E25658,00.html

Derek
derekjones1@bigpond.com

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