Hi Voytek,

Ultimately the best solution is for to identify the causes of the ‘jitters’ – believe me you are not the first person to experience them and you certainly won’t be the last.

My advice is to sit down and write down all the things that are making you nervous. When you have finished see what strategies you can put into place to avoid (or…[Read more]

Hi Yarwood,

Hmmmmmm – gets out the crystal ball, starts rubbing and rubbing and rubbing. Gets it up to full glaze and presto………………………..

Developable blocks are the way to go and I would phone the water authority to see if there are any plans to roll out sewerage connections in the near future, then ring some of the city…[Read more]

Hi Acey,

Had a go at writing down goals at one stage in my life and realised very quickly I didn’t need to write them down.

Call me fortunate or committed (as one of my staff members told me I get what I want[biggrin]) but I have found that over the last 20 years I have managed to achieve most of my work, investment, sporting and life goals…[Read more]

Hmmmmmmmm – two similar messages on another forum and this one here – they are either really good or ……..you work for them.

Derek
derekjones1@bigpond.com

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

Hi Gina,

And your 20% trade dollars will enable you to leverage into ???????????????????

Money talks when investing.

Derek
derekjones1@bigpond.com

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

Hi Robo,

Building something for $180K will not always return you $400/week. If I built a property to that value in Perth my rent would be in the $160-$180 range depending upon the area.

If I built the same property in my local area I would get $140-$150/week.

If I built that same property in Brisbane I would get around $180-$200.

If I built…[Read more]

Hi Marc,

Definitely one for a property savvy accountant but the issue is the collection of rent which classifies the property as a passive asset and as such makes it ineligible for CGT exemptions.

If however you were to build/buy and sell without receiving rent from a tenant then the property could be considered as an active asset and then would…[Read more]

Originally posted by Samwise:

Derek, Is there an advantage in doing this? Most of my tenants are on expired leases and going along fine.

Yo Ho Samwise

A personal preference so that I can manage my properties possible vacancy dates to conincide with the better times of the year.

To give an example of this one of our properties serves Perth…[Read more]

Hi Robo,

That is a very dangerous assumption to make – while those figures may apply in your local area – they will not apply to everywhere.

Certinaly agree with the 12 months and 1 day issue as that potentially will save Sue some CGT liabilities – although based on her comment about being on a low income the ‘bill’ may not be that high…[Read more]

Hi Robo,

If I was in your shoes I would certainly be paying I/O this new property and would continue to do so while your PPOR has a debt attached to it.

I don’t know how much faith you have in your accountant but if he is wanting you to reduce your debt levels you will be able to point out that you can direct the extra repayments that were…[Read more]

Hi Monopoly,

I believe the more important issue is how much is value of the assets compared to the debt.

For example I would argue, all things being equal, that someone with $2m debt on a portfolio worth $5m is better placed than someone with a debt of $400K on assets to the value of $450K.

Now whether or not you can sustain either level of…[Read more]

Hi Alias,

You could only depreciate the work you could not claim an outright deduction.

Repairs are precisely that repairs – any improvements move the work into renovations sphere and make them eligible for depreciation only.

You would howver be eligible to claim a proportion of the other costs – the proportion being determined in relation to…[Read more]

Hi Purse,

I can email you a copy of the contents pages (4) so you can see the depth of the information.

Email me your address and I send the details through.

Renton also wrote a book on trusts – bit heavy for this little black duck.

Derek
derekjones1@bigpond.com

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

Hi Shushar,

Can’t pull the wool over that duck’s eyes.

It’ll never be ripped off by a scamster.

Derek
derekjones1@bigpond.com

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

Hi Lucifer,

Using 5% extends your leveraging capcity even further.

At 5% you could (simplistically) buy 20 properties – LMI may be a problem depending on where you bought and how much they were each worth.

Derek
derekjones1@bigpond.com

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

Hi Geo,

If buying a property with a rental guarantee you need to check who is providing the guarantee. How secure are they and what is the extent of the guarantee?

A $2 shelf company or HIH (I have seen them) isn’t much of a guarantee.

Derek
derekjones1@bigpond.com

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

Hi Marisa,

Suggestion number 1: Drown your other tenant and PM in it.

Is the swimming pool making a positive impact in your rental returns. Ask your PM what woul dhappne to your rent if you removed the pool.

Could the area be reused and retain the rental returns – gazebo, extra room, an outdoor entertaining area etc – all ideas that have less…[Read more]

Hi Native Metal,

The key advantage of using a 20% deposit is that you do not have to pay mortgage insurance which is adds an extra 1-2% to purchasing, stamp duty and mortgage costs.

The disadvantage is that you use up more of your available equity with each purchase – whereas a 10% (or less) deposit maximises your leveraging capacity.

Consider…[Read more]

Originally posted by pete3980:
I ask have do you have a property their? and the answer was no, old saying It’s a bad cook who doesn’t eat their own cooking

Hi Pete,

Failed test number one – what about test number two – have you bought any of CWB’s property?

Derek
derekjones1@bigpond.com

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

Hi Bid,

It is also available at http://www.businessmall.com.au as is Dale’s other book Tax Battles.

Product code for TM is GAT-2
Product code for TB is GAT-1

Both $99

Derek
derekjones1@bigpond.com

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