Hi MA,

I suspect that many will (me certainly) tire of reading a disjointed seried of answers and as such will have a little interest in this ‘thread’ despite there being some little gems contained herein.

Derek
derekjones1@bigpond.com

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

Hi Mitzu,

Certainly a question I would be firing off to the solicitor/conveyancer who handled the transaction.

If it is any consolation – consider one weeks rent in the context of what you are trying to do and it doesn’t amount to much – sure it is good to have but……….

Derek
derekjones1@bigpond.com

Property Investment Support Available.…[Read more]

Hi Marty and Misty,

Not an accountant so disclaimers apply.

Assume $100K property and with $20K building claims and selling for $200K and $5K capital costs incurred in buying the property.

Effective purchase price is $100K + $5K – $20K = $85K (and not $100K as many think)

CG is therefore $200K – $85K = $115K (I have ignored selling costs).

CG…[Read more]

Hi Rob,

Without wanting to enter into the debate of ‘who said what to whom’ I will say that at the moment your current approach to posting responses will get lost in the ‘hurly burly’ of the forum. As such the very people you are aiming to assist will probably gain little from them.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Hi Dan,

At the end of the day you need to go with your beliefs – however you need to consider the first priority when investing in property is to make money, either through growth or income – saving tax is a secondary consideration for me.

On a related matter access to FHOG should also be seen as a bonus and not the main reason for investing in…[Read more]

Hi SIS,

Landlords insurance for your own sleep at night and also contents insurance for yoru carpets, blinds etc. Public liability for the inside of your unit is also an essential commodity.

Do not neglect to check that your strata manager has paid the building insurance (I have arranged the sacking of a strata manager who let building insurance…[Read more]

Hi Marisa,

Spent some of the afternoon playing with some numbers with a broker and you would be surprised how differently lenders treat the same set of circumstances.

At the end of the day you need to meet a particular lenders service and security checks – once these are met to the lenders satisfaction then it is largely full steam ahead.

Most…[Read more]

Hi Rusty,

As Mini said you need to consider the total fees payable when comparing REA. There are some who have lower management fees but make up for it with higher inspection etc. fees.

I have seen management fees vary from 7% – 10%.

Derek
derekjones1@bigpond.com

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

Hi John,

ATO website link that discusses subdivision and CGT issues

http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&page=10#H4_6_1_6

Derek
derekjones1@bigpond.com

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

Hi SIS,

I’d suggest I am about a considered 6/7 – still looking to buy but with ’emergency’ funds available.

Derek
derekjones1@bigpond.com

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

Hi Skellies,

Or you could use a loan repayment calculator found on all good bank website.

I like the ones on http://www.realestate.com.au

Derek
derekjones1@bigpond.com

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

Hi Marisa,

That is correct. You are allowed to claim all costs associated with a property for the period that is was rented or available for rent.

As indicated copies of advertisements, property management contracts, phone call and postage records could all be useful if you were audited by the ATO.

If you happen to holiday in that property for…[Read more]

Hi Devo,

I wasn’t sure whether or not your LOC already has some investment debt in it so this response may be unnecessary – but just in case.

If you have some investment related debt on your LOC and then add some non-deductible debt to your LOC you create a mixed purpose LOC.

Any repayments made are, as far as the ATO is concerned, apportioned…[Read more]

Hi all,

And just in case you missed the 20mil Euro here is a second chance to a share of US$10m – but do not tell anyone – read the confidentiallity clause in the last paragraph.

DR. BELLO OSAGE
CONTRACT AWARD CHAIRMAN
NIGERIAN NATIONAL PETROLEUM CORPORATION
LAGOS – NIGERIA
Tel:234-80-33724364

Dear Sir,

REQUEST FOR URGENT CONFIDENTIAL…[Read more]

Hi Kylie,

Shares and property are both valid investment vehicles and it appears as if you are more comfortable with shares at the moment.

The issue you need to consider is why are you more comfortable with shares over property? If you can resolve these questions you may well be in a position to purchase an investment property.

Each investment…[Read more]

Originally posted by kcc:

I have just bought a property in the small West coast town of Queenstown.
Let me know your thoughts?[baaa]

Hi kcc,

Without seeming to be harsh it would appear as if you are having doubts about your purchase. The doubts needed to be resolved before you made the purchase and not after – this is an essential part of a…[Read more]

Hi Mydral,

Easier way is to add around 5% to the purchase price and you’ll cover all purchase and borrowing costs.

Why worry about the small stuff?

Derek
derekjones1@bigpond.com

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

Hi Sweetie,

(geez – I don’t even talk to wife like that)

But the short answer is yep – you have got it.

Derek
derekjones1@bigpond.com

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

Hi Linda,

It would appear as if you are confusing two tax regimes.

CGT is a federally levied tax and is based (in loose terms) on the profit you make. Anything purchased before 17th July 1985 (? check this date) is capital gain tax exempt.

The NSW ‘tax’ is a stamp duty levied on the sale price of the property. As I understand it (I’m not from…[Read more]

Hi LifeX,

The stats in recent years indicate that variable rate investors have come out in front.

But (FWIW) (isn’t there always a but) we have largely been in a downward trending cycle since the late eighties so I wonder if we will be saying the same thing in 20 years time.

For me I have a mixture of fixed and variable loans and with different…[Read more]