Hi Tammy,

You have found just the people to answer those ‘silly questions’ as you put it. They are here on the board and will gladly answer those questions.

In the meantime you may like to read a number of the posts to get a feel for what is right for you and invest some $ and purchase some of the books listed in the ‘Heads Up’ section of this…[Read more]

Hi Tank,

The key issue for you is to identify the ‘no’ messages that you haven’t yet managed to overcome.

There is a great little story (no 36) in Jan Somers Book ‘Story by Story’ that outlines the story of Fred Johnson who continually (since 1954)got messages saying ‘now is not the right time to buy property’ due to a whole range of significant…[Read more]

Hi Rachel,

I am assuming these will be your first IPs – if so I suggest you are on the right track.

Start ‘slow’ (if you can call two properties slow) and build up as you get yourself established.

Buying the property is only one part if the equation – managing and maintaining it with associated changes to cashflow volumes can take some time for…[Read more]

Hi Jarrn,

Certainly speak to a mortgage broker about your borrowing capacity.

I suspect the other issue for you surrounds the issue of ‘cashflow’ – if this is correct then you can purchase a program along the line of PIA http://www.somersoft.com.

Alternatively I can crunch your numbers (no strings attached) just PM/email me and I’ll do them for…[Read more]

Hi Lisa,

I believe the key issue for you is suggested in your comments “so should we leave it till then? Our affordability would be tight otheriwse re: day to day expenses etc? What has anyone else done in this situation? Is it worth the risk if we can get the finance??”

Sure you will be able to purchase positively geared property but the key…[Read more]

Hi Heather,

I noticed there is a slight but significant difference between your two posts.

Is current property negatively or positively geared?

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Hi all,

I suspect that the “5th Spruiker” is every other unnamed spruiker and is Mr J’s way of warning people off all spruikers.

Me just pondering the imponderables.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Hi cvrjcu,

You can always ring the local council – their rates section will give you the answer you are seeking.

As rates are levied on the land value the figures can vary significantly from council to council and also with a local council area depending on when the valuer general’s office (or equivalent in your state) does their…[Read more]

Hi Jobee,

Agreeing with George – certainly a capital cost as deductible repairs are just that ‘repairs’

As an aside – you need to consider more than just the taxation issues when owning and managing property. Your primary consideration is to make money – this is achieved through growth and/or rental income and upgrades of the type you have…[Read more]

Hi Ozboy,

If you can only finance one – then only buy one.

Otherwise you are leaving yourself wide open for all sorts of problems.

If your intention is to flip them you will still need to have a ‘fall back’ position available should you not be able to onsell.

Too risky for this little black duck.

Derek
derekjones1@bigpond.com

Read my…[Read more]

Hi Benno,

A QS report can be arranged at any time but I would recommend you organise one at settlement or as soon as possible thereafter.

This way you can maximise your deductions from day 1 if you want. A QS report, depending upon the building, can realise significant deductions but a qualified QS is best placed to say whether or not they can…[Read more]

Hi all,

FWIW – http://www.jenman.com.au/NewsNews1.php?id=228

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Hi Rugbyfan,

You said “No idea here, but assume $1000 for a basic arsenic treatment.”

I was under the impression that arsenic dust can no longer be used in WA – wondering if this is the same in other states.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Hi Starscream,

One of the critical issues is the banks willingness, or otherwise, to lend on something that small. As Rugbyfan indicated you will need to contribute proportionally more than normal for a deposit.

Often rents are indexed to the pension and as such you may well expect regular rental increases.
Make sure you check out the costs…[Read more]

Hi Breakingout,

A number of newer and larger unit complexes in Queensland do have significant recreational features. While these do have an attractiveness to tenants the downside is the higher body corporate levies imposed to maintain the grounds and facilities. Above $2000/annum would not be unusual based on the description given.

If you are…[Read more]

Hi Nathan,

Well so far it seems as if you have considered all angles and done your research. Well done and hope that the investment is a success.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Hi MArk,

Ultimately it is the basic economic law of supply and demand, and your individual circumstances and beliefs, that determines which property is best.

Most people would argue (and stats tend to agree) that house appreciate more than units because of the increased proportion of the buying costs in land value – subject to location…[Read more]

Hi Nathan,

OK you’ve got a pest inpsection report that isn’t too complimentary by the sounds of it – have you also got a building report with cost estimations to see how much it will cost to complete any essential and not so essential repairs?

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email welcome.

Originally posted by Celivia:

It is true, that if one looses his/her job, or just wants to retire, then they’ll loose all the benefits from depreciation.

Hi Celivia,
Any depreciation claims are offset against your taxable income and while you do not have a ‘job’ you still have your rental income to declare – as such you can still enjoy the…[Read more]

Hi Nathan,

As you are now in a ‘business’ it is essential you have good book keeping habits in place so that you can legally minimise your tax.

Initially you will need to have a good grasp on a list of deductible items so these can be entered into your records as the items are paid out. I also keep a separate list of possible deductions when I…[Read more]