HI Redwing,

Those numbers look like Rockingham area – certainly on the high side – as Mel says shop around.

Derek
derekjones1@bigpond.com

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

Hi Marisa,

While the town serves 15 000 the town itself is only ~3800 – this may be the essence of your problem.

Derek
derekjones1@bigpond.com

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

Hi Perry,

See https://www.propertyinvesting.com/forum/topic/9554

Derek
derekjones1@bigpond.com

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

Hi All,

I have edited a number of posts that included personal attacks – by all means debate the topic – or in sporting parlance play the ball not the player.

Derek
derekjones1@bigpond.com

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

Originally posted by CornelBasson:
it’s just the receipts and stuff from when I did my renovations that I can’t find half of…

Hi Cornel,

Just remember renovations are not claimable – they are depreciable – but not claimable.

Repairs are claimable – with the essence being repairing said item to workable…[Read more]

Originally posted by GreatPig:

Hmmm… perhaps I should just get my wife to follow me round with a super-8 movie camera [rolleyesanim]

If it doesn’t impress the tax office, I might at least be able to release it as a movie…

GP

Just keep your clothes on[biggrin]

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi Tony,

The general thrust of most comments on the forum are that positive cashflow properties (as per McKnight definition) are generally located in country areas and looking for such a property in a city such as Brisbane (even in outer suburbs) is a little like looking for a needle in a haystack.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Greatpig,

Not an accountant so disclaimers apply.

You can claim costs associated with the acquisition of a property such as travel and accomodation – these are not deductible but rather they are used to offset the cost base of the property and reduce any capital gains liability.

As to whether or not this equally applies to the general…[Read more]

Hi Cornel,

One of the keys to successful property investment is to maintain good records including matters related to tax. You need to develop a ‘business mentality’ so that deadlines and records and met and maintained throughout all aspects of your ‘business’.

I suggest at the very least you buy yourself a lever arch file and create a number of…[Read more]

Hi Richard,

I am not a wrapper and I was just curious for my own knowledge and was wondering whether or not the increased difficulty was related to some of the negative (and loud) media hype or just a change in policy or a reflection on changing bank policies or …………

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Shane,

One of the myths of property investing is that you need a cash deposit to start investing.

In reality if you have sufficient equity in your own home and income to service additional loans then you can start as soon as you want.

Typically lenders will recognise 80% of the value of your property as suitable security. If your loan is…[Read more]

HI Cornel,

Like Yack I too use an accountant as the world of tax is too complicated for many of us – I also subscribe to the theory that use the experts for specialist jobs where trained expertise is required – my time is valuable.

In essence keep all pieces of paper that relate to either income or expenses associated with the property and…[Read more]

Originally posted by Qlds007:
Del
I think starting out and disclosing that the property is to be wrapped in this day and age is a lot harder than it was.

Cheers Richard

Hi Richard,

Just curious – what makes you say this and why?

Derek
derekjones1@bigpond.com

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

Hi Gail,

PMs are the best source of information about rental market conditions in the area of your research. They know the market in detail and will, when you develop a relationship with them, let you know exactly what is happening and what local needs are etc.

If you are unsure about the validity of their comments you can always cross reference…[Read more]

Hi Jay,

As a broadbrushed statement yes – property more likely to meet the 11 sec solution tends be located at the lower end of the scale and in country/regional areas – having said that I am sure some of the passionate and learned cashflow investors will come along and give examples outside the range you indicated.

Bear in mind median prices in…[Read more]

Hi MJJ,

To mortgage insurance or not – that is the question.

For us we initially used mortgage insurance so that we could stretch our available equity (the same issue applies with deposit savings) as far as we felt comfortable doing so.

This allowed us to buy additional properties ahead of time and as such was particularly beneficial for…[Read more]

Hey MM,

Way to go – enjoy your posts and may you stay awake endlessly keeping watch.

Derek

Derek
derekjones1@bigpond.com

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

Hi Seachange,

As Mel said it is considered a capital cost and will be offset against capital gains.

The exit tax starts phasing in when profits exceed 12% and are fully (2.25%) implemented once the profit exceeds 15%.

While no-one likes to pay such an impost do not neglect the bigger picture.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Rip,

Found this on the ATO website.

http://www.ato.gov.au/large/content.asp?doc=/content/42604.htm

Derek
derekjones1@bigpond.com

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

Hi Jo,

My reasoning (and it is only my reasoning) is based on the tax departments definition of initial repairs as being ‘remedying defects, damage or deterioration that existed at the date you acquired the property’ which are classified as being capital expenses.

Cleaning as a deductible expense more typically applies to a change of tenants…[Read more]