So if i renovated an IP, i buy it then live in it as my PPOR for 6 months while im reno-ing it(to get FHOG) then i move out after 6 months back into parents then some years later i buy my PPOR and want to sell that first IP, say 5 years, so i lived in it as my PPOR for 6 months. how would the CG work out on that? I'm very confused how the actual…[Read more]

Hmm, that kinda changes things… ok … I could live inthe first reno, but to be able to take advantage of the full 6months i could buy a much more run down house(structurals still fine), and do a much bigger reno, also this will make my initial mortgage for the reno a little smaller as i will be buying a more crappy house and my budget for reno…[Read more]

Steve Generally says that Problem + Solution = Profit. What are you purchasing here is the solution, not a problem. maybe a some sort of renovation is a problem and you solve it somehow. I generally would steer clear of brand new houses they are just solutions. Also would a brand new house be like a brand new car?  The house is all perfect not…[Read more]

So if you write up in the contract at the start that the tenants will be paying for the water on top of their usual weekly rent. Then does that mean your covered, i know they can refuse, but you could take this to the tribunal and win(could you??).

Yes but when you change the IP back to the PPOR you will have a low undeductable loan and a big tax-deductable loan(in the IP that you redrew from). Chris.

Thanks Elkam, also you just mentioned that they assume they have one months worth of rent as a bond. Is it only one months rent as a bond, whats the usual amount($ or time), would the tenant be scared away if the bond was slightly higher as I would like to protect myself as much as I can.

The whole positive cashflow after tax idea many people seem to believe that you are saving tax. YOU ARE NOT SAVING TAX, YOU ARE DEFFERING IT. There is an example in Steve's first book which I am re-reading right now, where you buy a property for 190K and you depriciate it at $6,700 a year for 5 years. This produces +ve CF(turns -ve to +ve). NOw in…[Read more]

Hmm,  I have had this question for a long time but it has never been that important, but seeing as it looks proper in this thread.Ok, so you draw up in the lease, the tenant pays for their water consumption, they have 5hr showers they pay for it. what about electricity, is it the same deal?? they use, they pay??   Also with all the water re…[Read more]

Thanks everyone, that gave me lots of perspectives, I didn't know reno kings had a book, maybe i'll look into it. Thank you everyoneAlso feel free to continue this thread.

Think about the baby boomers in some years time. A two-story house won’t appeal to them as they will not like stairs.
The market is ageing and 2story houses are not very friendly to old people, they tend to steer clear. Thats just a thought for you to ponder over.

I don’t know about equity wise how the reno would perform.

Positive Cashflow, that why the Country.
Thats all…..

Thanks trajik that helped clear it up.

whats a HDT?
Hmm, Im confused here, I know with a refinance you cant use it for private and still obtain tax deductability. But if you are cancelling the class of the property as an IP to a PPOR for a little bit(a week, how ever long) and then changing back to IP, then you get the increased loan. Hmm? is this still wrong. If it is oh well.

Thanks…[Read more]

If this quantity surveyor person will cost you $600(or whatever) can you claim that as a deduction in the next financial year. Like how my parents claim the money they pay the accountant in the next financial year.
So its like a discount.
Hmmm???

whats an OOcc? I have only heard this term here on this thread and have no idea what it is.
Can someone shed some light on this please?

Thanks Christopher Fife.

No, the tenant can’t buy the property in 3 years time. That would come under the lease-option thing, where they have an option. And by the way you would increase the price so that if they did buy you out(somehow?) then you would stand to make a profit and still be CF+.

Having a property that is not CF+ defeats the purpose for investing. I don’t…[Read more]

With a 5% deposit. I have read Steve’s book and have become very attached to wraps and lease-options, but wraps in particular.
If you wrap a property and you get a deposit from your tenant then that can help your deposit, and they pay more interest than you pay as you cahrge a premium. So why can’t it be CF+?
Or is everyon talking about buy-hold,…[Read more]

A large deposit defeats the purpose of the investment as you are trying to get as much back from what you invest.

The real deals are ones which you use low deposit(5-10%) and get +ve. If you have to put in 20% to get positive then you will tie all of your capital up for one positive.

Welcome agaperob.

I don’t know exactly if you are paying extra payments into your existing PPOR loan, but if you are then are you paying them directly into the loan or placing them in a 100% offset account.
If you don’t have one of these 100% offset accounts, try to set one up. They work like a normal savings account, except the money that is in…[Read more]

matthew can you please go into more detail with these resedex reports, this is the first I’ve heard of em.