Hi Nathan,

In addition to Mel’s suggestion about a Depreciation report have you considered completing a PAYG Income TAx Variation (if appropriate) as a means of reducing the impact of the cashflow situation?

Derek
derekjones1@bigpond.com

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

Hi Mike,

As George and Simon have said we really need some more information to give you a reasonable answer. There are all sorts of issues associated with student accommodation some of them negative and many of them positive. I suggest you provide a little more information and you’ll get better answers.

How big is the property? How many…[Read more]

Hi Marisa,

I would ask some of the local long time shop keepers/business owners. They will be able to give you an indication of who many houses are empty if it is a ‘smallish town’ – they would also in all likelihhod be able to tell you about length of vacancies and the numbers fo rentals in the area.

You will probably find they may be able to…[Read more]

HI Daaussie,

This month’s API has an article (pg 32) on Commercial Property Investment which may prove useful as a starting point.

Derek
derekjones1@bigpond.com

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

Hi MArc,

Take Two – the names on the title will determine who gets to claim and declare how much in accordance with proportional ownership as identified on the title.

As such shifting the loan into the higher income earners name will not affect the tax situation.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and…[Read more]

Hi Elika,

A partial list from one of Margaret Lomas’ books you may find of use.
1. What is the cashflow?
2. What is the vacancy rate for the area?
3. What improvements are planned for the area?
4. What is the population growth like in the area?
5. Why do people live in the area?
6. Is the property ‘tenant friendly’?
7. Is there transport…[Read more]

Hi Marc,

Mot sure but I understand there are some states (Vic?) that allow such a transfer under some circumstances. Not sure how restrictive the conditions are and I am sure some ‘locals’ may be able to help.

Any thoughts about the higher income person buying out the lower income person’s share?

Sure the lower income person will incur CGT but…[Read more]

Hi Phillip,

Not being familiar with Kiyosaki’s six steps I am wondering if you are after information about ‘selecting a property’ or are you after information ‘about becoming a property investor’

Derek
derekjones1@bigpond.com

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

Hi Huey,

As Marc said get a building inspection done. Sure things may be OK but the cracks could be the early signs to something more sinister. The cost of a building inspection is cheap insurance for mine.

Just remember the REA is representing the vendor and not you, they are not qualified to give that advice and the responsibility for due…[Read more]

Hi George,

Steve Navra uses a cashbond approach to provide the additional income for increased serviceability.

Recommend a contact with http://www.navra.com.au/ and/or even attendance at one of his workshops (~$190) to get more of an undertsnading of the approach.

In simple terms use equity to purchase a cashbonded ‘annuity (?)’ when then…[Read more]

Hi Jon,

The Councils will be able to give you the rates figure and also (which is what you are after) the unimproved value of the land.

Once you have the unimproved value of the land then you can apply a unimproved value/land area = $ sm formula. Eg $50K / 775 sqm = $64.50sqm

Do this with a couple of blocks and you will have a ball park figure…[Read more]

Aside from a swag of performance management agreements, systemic strategic plans and some critical reading of job applications for colleagues I am also trying to get my head around Quicken 2004 Personal Plus User Guide – courtesy of ‘Money Mag’ recent competition.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing…[Read more]

Hi Spam AKA Jon,

You can contact the local council – they should be able to give you a rateable value of the land. This figure is determined by the Valuer General’s Office (or equivalent in your state) and is generally considered to the unimproved value of the land.

Bear in mind in some states these figures are only reviewed on a triennial basis…[Read more]

Hi Hudson,

I am in agreement with Celivia – yes you pay for the PM services but for me that is ‘cheap’ compared to the costs involved should something go awry.

I tend to suggest you are better off using your energy on researching the market and looking for the next property.

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Avranjes,

Recommend a chat to some of the other would be neighbours to see what their experience is – a good indicator is the presence, or otherwise, of graffiti.

The Council may have installed large lights which may serve as a deterent for would be pests.

Like Steve I believe that a park could become an extension of a unit, villa, townhouse…[Read more]

Hi Avranjes,

I recommend a look at the Asbestos Diseases Society Website to see what they say.

Anecdotally it would seem to me that there are growing concerns about the validity of Steve’s comments above – which were the generally accepted ‘guidelines’ for a number of years.

Ultimately your call – just be aware that if you do proceed any lter…[Read more]

Hi Stuart,

Thanks for the clarifying comment.

According to some press on the weekend (from reputable journos) the ATO has a second wind in it’s ‘track down dodgy arrangements’ sails and I wonder if these financial structures would be in the firing line?

Derek
derekjones1@bigpond.com

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

Hi Marisa,

As others have said I recommend a lengthy talk to your PM about ways you can legitimately increase your rent. A discussion with your tenant, either directly or through PM, may also reveal that ‘something extra’ the tenant would be prepared to subsidise.

I also suggest a talk to other PMs to see what they think the going rate should be…[Read more]

Hi Karl and Rita,

Tis all signals ‘go’ then.[biggrin]

Derek
derekjones1@bigpond.com

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

Hi Ray,

As Steven has indicated I would also suggest taking your LVR out as far as possible on the proviso you are comfortable with this and the extra LOC doesn’t overly limit other borrowings.

It may even be worth going above 80% LVR as you may find the additional funds could be put to use in an investment program somewhere.

For example in the…[Read more]