[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

July 30, 2008 - 11:59 am

Short answer is no.

Business related travel is generally deductible but not private travel. Although you are moving to improve your employment, this relocation is not a requirement of you current position nor an expense in deriving your existing income – i.e. you're basically moving to take up a better offer of employment.

As a result the move is private in nature and not deductible.

You could try and ask your employer to subsidise your move however….

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

July 27, 2008 - 8:44 am

Thanks for the post Chris.

A good starting point for people like me with no experience or exposure to commercial property but who maintain an interest and intention to make the move to commercial investment in the future.

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

July 26, 2008 - 11:34 pm

What about the property trust structures espoused by Ed Chan?

I only have an basic understanding of what he promotes but it's where you loan the purchase price to the trust & the trust buys the property. As the $ you have loaned are for investment purposes the interest component is deductible. Other expenses (i.e. rates, maintenance, etc.) remain within the trust helping to offset the income received via rent.

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

July 17, 2008 - 12:51 pm

Get it.

For the price of landlords insurance premiums it's well worth it. If you tenant skips even 1 week's rent you'll likely recover your annual premium in that single claim.

And that's not even considering that the premium is deductible.

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

May 10, 2008 - 11:07 pm

blaze wrote:

Since I use 50% property as my home and the other 50% as an investment, can I claim a deduction of 16K/2 = 8K.

Although this sounds like the logical approach, my understanding is you can only claim the part of the property that is rented exclusively for the use of your tenant (i.e. their bedroom).

As you yourself use the bathroom, kitchen, etc. you are unable to claim for these areas. So if the room you rent is 10sqm of a 100sqm flat you can claim 10% of your interest payments, however you must also declare all the income you receive from letting the room. Also, you can only claim repairs for damage to that one room only, not to areas shared by both of you.

Although, I'm sure someone else on the forum can give you a much better explanation than I have!

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

May 7, 2008 - 11:56 am

Thanks guys, appreciate the guidance.

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

April 22, 2008 - 11:28 am

Hi guys,

I'm also interested in any recommendations – either lawyer or conveyancey.

Additionally, can anyone give an indication of the approximate fees of either a conveyancer or lawyer in Sydney?

DJ

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

April 19, 2008 - 11:59 pm

I might just add a quick thought….

Can you capitalise the interest on the LOC and place any cash flow into an offset account rather than paying the interest on the LOC itself?

For example:

• Mortgage: $100K
• LOC: $40K debt, $20K available
• Use $20K to make repayments on mortgage
• Capitalise the interest from the LOC
• Have any salary/rental income/etc. paid into an offset account against either the LOC or the mortgage (whichever has the highest interest rate)

So although the LOC is decreasing, you are maximising the use of your income channels by offsetting against the highest interest rate while also ensuring it isn't tied up & can be used for future purchases (both IP & personal).

Does this sound right?

[DexterJamblesMember@dexterjamblesJoin Date: 2008Post Count: 12]

April 16, 2008 - 8:21 am

Thanks heaps Scott.

I'm also looking for a property manager in the Campbelltown region if anyone can recommend on also.

Cheers,
DJ