Hi Lee,

cannot comment upon the group in question but here are some question you may like to fire at them.

How long have they been finding investment property for their clients?

What methodology do they have for researching the market to find value for you?

Can they support you with other services such as finance, strategic advice on your…[Read more]

Originally posted by zuluwarriordog:
Hello,
banks do not want to lend for remote properties in rural areas as they do not think they can recover their money if necessary.

Hi Zulu,

You also need to be certain you’ll be able to recover your funds within a reasonable timeframe if the ‘manure hits the…[Read more]

Hi Ezt,

Ring the Queensland Building Regulatory Authority (or whatever it is called in Q) and/or MOFT to see where you stand.

In my experience of building houses in Queensland and also in WA the first payment for building costs takes place with the completion of the slab.

All the best with the matter – I trust it is resolved to your son’s…[Read more]

Hi Scott,

Would love a copy please.

Derek
derekjones1@bigpond.com

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

Hi all,

Ibuy’s comments are spot on – was talking to an accountant on the weekend who indicated an audit is relatively straightforward for those investors who maintain a good paper trail and comply with the various legislation.

There is nothing to fear if you follow the rules.

Bend the rules and enjoy your ill gotten gains at your own…[Read more]

Hi MA,

Such between tenancy cover was uniquely available, as Gatsby indicated, for Investors Club members for Club purchased property.

The rental coverage program, called No Tenant No Problem, had previously been approved by APRA (Australian Prudential Regulatory Authority) and was entirely optional. Fees were proportional to the expected rent…[Read more]

Hi David,

All things being equal I would do as Cremin has suggested and use the spare $200K elsewhere.

However things are not always that straightforward – you may find one has greater potential for increased growth with refurbishment or there is better demand for a 1 or 2 bedroom property in the area, or one is undervalued in comparison to like…[Read more]

Hi Kay,

I believe Gatsby was asking about rental insurance between tenancies as distinct from broken leases, damage making the property uninhabitable and so on.

Rentcover doesn’t cover the between tenant vacancy – from their website

“RentCover Plus is not a general rental guarantee. The first criteria for a claim is that the tenant must have…[Read more]

Originally posted by depreciator:

a holiday unit on the NSW coast.

And on the place I bought they used the wrong percentage for the building write-off. They had it at 4% instead of 2.5%.
Scott

Hi Scott,

I was under the impression that property classified as ‘traveller accommodation’ and built after 27/2/92 is eligible for a 4% buidling write…[Read more]

Hi Ritchie,

As MB has indicated you have a big bucket load of equity available to use and depending upon your serviceability capacity you have the ability to leverage these funds even further.

My counsel would be for you both (wife and you) to sit down and work out what you want to achieve and then seek the advice of a good accountant and broker…[Read more]

Hi Scott,

Didn’t realise you had a ‘branch’ in Perth – I’ll adjust my comments accordingly.

Derek
derekjones1@bigpond.com

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

Originally posted by kay henry:
How can you tell if someone is checking your profile?

kay henry

Hi Kay,

Click on ‘more’ in the whos online section and you’ll see what people are doing (figuratively speaking only – for those of you who browse in the buff) if their settings show when they are logged on.

It was interesting seeing which threads…[Read more]

Hi Marc,

Go to the ATO website and do a search in the legal database under ‘Harts’.

At the heart of the case is whether or not investors should be able to allow their investment property loans to ‘capitalise’.

Harts are arguing they had a finance structure that legitimised the concept and are fighting tooth and nail to get a ruling in their…[Read more]

Hi Dandan,

It is all relative and depends on a whole range of factors such as area you are buying in, the reason for buying, your investment beliefs, your portfolio needs, your income levels, capacity to negative gear, depreciation claims and so on.

Derek
derekjones1@bigpond.com

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

Hi Karl and Rita,

Running the ’11 sec rule’ over the property is but one part of the checking process you will need to employ to see whether or not this is a good price.

Check out business, infrastructure, schools, planning intentions, population movements etc and above all check out recent comparable sales.

There is little to be gained if you…[Read more]

Hi Dandan,

Yep!! Wouldn’t buy there if it was the last property on earth.

Derek
derekjones1@bigpond.com

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

Hi Misty,

Valuations are capital costs and as such are used to offset any capital gains liabilities. Pest inspections fall into the same category too from memory.

I recommend you visit the ATO website and download a copy of their rental property tax guide.

Derek
derekjones1@bigpond.com

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

Hi Misty,

A) This trip is considered a capital expense and will be used to offset any capital gains you may incur on this property. It is not a deductible expense.

Any subsequent genuine trip to undergo maintenance or inspections would be fully deductible. Be aware that an inspection necessitates more than just a ‘drive by’.

You are also able…[Read more]

Hi Misty,

Provided you declare the income too.

Derek
derekjones1@bigpond.com

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

Hi Misty,

You can amend the last four returns and as we are drawing to the end of this financial year you are running out of time for the oldest eligible return.

I don’t believe it will possible to ‘transfer’ deductible expenses across to capital expenses.

You only need worry about being auditted by the ATO if you push the envelope too far – if…[Read more]