Hi mcubed,

I would be inclined to wait until that piece of paper arrived.

As you expect to have this confirmed in the near future there is no need to rush. While this particular deal may not be there when/if you are appointed there will always be another and another and so on.

You do not indicated how old you are but I would suggest that you…[Read more]

Hi Kay,

Go and buy the book.

Nah – the comment arises from comments that have come back to us from varous sources.

In short pursuit of cashflow+ property without other due checks and balances can be dangerous – a bit like all property investing really – and can result in an investor failing to see the long term costs that may be incurred which…[Read more]

Hi Jen,

There are two aspects to depreciation.

Plant and equipment (all the goodies inside the building) – some of these may be 100% depreciable if they fall into the low asset pool. Others will have a depreciable life that extends beyond the 6 month period – I assume these will be apportioned too.

Capital depreciation (the buildings) will be…[Read more]

Hi Jen,

The FHOG passed me by many years ago so please take what I say with a grain of salt.

As the property will still qualify as an IP for the 6 months or so that it is rented you will be able to claim the costs outlined in your initial question.

Be aware that expenses such as rates, body corporate fees, insurance etc will be apportioned over…[Read more]

There are a few possibilities that you could consider.

1) Convert your loan to I/O. This will save some of the outgoings.

2) Check you current rent to ensure it is at market rate. Some PMs and/or owners lose touch with what the rest of the market is doing and this could be costing you money.

3) Is it possible to add value to the property while…[Read more]

Hi K & R,

It is possible that the people that regularly referred here are swamped with would be clients and/or they have a full book and may not be in position to take on new clients.

I have a couple of other names I can throw your way if you wish. PM me for their details.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Chris,

Not an accountant so disclaimer applies.

As far as I know you will cop the lot; stamp duty, vendor duty and there will be no exemption from CGT as the property is held in a company name.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi all,

There was some discussion about effect of migration on house prices within this thread (thought there was more – maybe confusing threads [exhappy])

Caught this paragraph (or 2) in this morning’s Australian and thought it may be of interest.

Simon Tennent, the Housing Industry Association’s chief economist, said demand for housing,…[Read more]

Hi Wilko,

Food for thought?

http://www.lifestyleonline.com.au/pdfs/Matters%20August%2003.pdf

Cheers

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Risha,

We need more information before we can be of assistance.

Are you wanting a REA to buy, sell or manage a property?

Cheers

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Hutch,

Listen well to Michael’s comments.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Please note I am assuming your are considering buying as tenants in common.

Before even considering what sort of property it would be advisable for you and your partner to sit down and work out what your individual and collective goals are. If they are out of sync then there maybe some difficulties doen the track – having said that as you are…[Read more]

Originally posted by raficwww:
WHERE ARE THESE POSITIVE CASHFLOW PROPERTIES? I HAVE BEEN LOOKING AS CLOSE TO MELBOURNE CITY AS POSSIBLE. ALTHOUGH I UNDERSTAND THAT MOST OF THESE PROPERTIES ARE USUALLY WAY OUT OF CITY AREAS. CAN ANYONE GIVE ANY IDEAS? MAYBE WE COULD EVEN CHAT IN PRIVATE & POSSIBLE A SPOTTERS FEE FOR THE RIGHT SORT OF PROPERTY.…[Read more]

Suggest you use the search facility as there have been previous comments about hunterhousehunters in various forums in the past.

Search can be accessed top left under forum boards.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi TBS,

The advent of technology is giving the ATO greater capacity to ‘red flag’ people and transactions. Whether or not they could identify the scenario being discussed as being outside the tax act I don’t know.

However, I will say that for the sake of a $1400/annum ($20K @ 7%) deduction – is it worth…[Read more]

Hi all,

Retracing old ground and getting nowhere. FFComm has directed Learningtoinvest to a lengthy discussion which canvasses the many and varied responses.

As the matter is now in legal hands – lets leave the discussion there.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Originally posted by theBuildingSurveyor:
If additional payments are made of the pricipal on an IP Loan such as a Lump sum payment of 20K etc, to reduce interest etc, then this money is redrawn for non-investment purposes, (such as a car) will the interest amount after the money being taken out again be tax-deductable, or before the money has…[Read more]

Originally posted by Dazzling:
Plenty of props out there off the shelf that are +CF with 100% finance plus all acquisition costs.

Hi Dazzling,

You confuse me. [biggrin]Commercial or residential?

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi Bachu,

I would recommend that you do not over extend yourself. Buying a PPOR can be a costly and long event and if you bite off too much then the pain can be significant.

Derek
derekjones1@bigpond.com
0409 882 958
Property investment advice and researched property in quality locations available.

Hi Francis,

Assume you own a house worth $300K with a current mortgage of $100K.

A lender will recognise 80% of the value of the property = $240K.

As you already have a mortgage debt of $100K the bank will allow you to set up a line of credit/equity loan etc for $240K – $100K = $140K

In this scenario both the mortgage and equity loan are…[Read more]