It has been hard for me as I haven't had a job for 7 years after going back to university after leaving a nice secure job. I have this bug you are mentioning but not having income has put me in a holding position at the moment. When I get a job again it will be full steam ahead but when that is I don't know. I have been a house dad to two…[Read more]

This sort of investment relies on having either a retirement demographic for the area or a just starting out young people type demographic. These types of people generate demand.You have to decide are you after capital gain or cash flow in your investment strategy.$130 a week = 6760probably you will incur expenses like insurance, council rates,…[Read more]

Its hard to predict where the bottom or top is, I had in my opinion a bottom level close to 3200 on the all ordinaries index.My opinion is based on the long term average bottom support level of the all ordinaries over the last 10 years ignoring the crazy upwards surge that happened before the collapse.However some of my shares are climbing back…[Read more]

Just because it may be legal doesn't make it legal at all.  (laws are interpreted by the tax office and courts)If you redraw the money and then try to claim it as a tax deductible loan you will most likely have to explain at your requested tax audit as to why your investment loan has suddenly increasedandhow the purpose of the funds have not been…[Read more]

Dolphn Girl,Depends on what the purpose of the other debts are for.  Investment debts or Private use debt.(there has to be a direct nexus between the loan and the income producing purpose- tax law wording in ITAA1936) Nexus means connection or tie  Section 8-1 Tax assessment Act 1…[Read more]

not so lucky, What the tax loss means isTotal net property loss = total property claimable expenses – property income (being rent)Total expenses = $23k to $28k. Your property income based on rent of $350 pw = $18,200. per annumTotal net property loss= ($23k to 28k) – 18200Total net property loss= $5k to $10k. This amount goes into your tax return…[Read more]

I was watching a business program on ABC last Sunday morning and the discussion of concern was that an extended FHOG would create an explosion in inflation once the world wide down turn ceases. One suggestion was rather than a free handout of tax payers money it could be a loan scheme similar to the HELP used for university students fees.

Make sure you have adequate insurance like a landlords insuranceIf you owned the property as your main residence and you plan on getting another place as your main residence then a valuation may be required to create a cost base for your investment property for capital gains calculations in the future.

is 5.8% the cash rate given by RBA because if it is the bank doesn't lend money at this rate but adds a profit margin to it to come up with lending interest rate. Check with lender before borrowing and also what the fixed interest rate is.

Haven't done it my self but read about it in a book called unlimited cash flow.Usually the vendor is compensated for this finance they are providing you. Maybe you offer to pay the full asking price for the benefit of a finance. Or you offer to pay interest on the amount you have borrowed from the vendor when you pay the balance off in 12 months time.

Contact the real estate agent and explain the situation you are in. Not sure what the go is in SA but you could be hit with lost rent, advertising costs and the lease re-letting fee

shel25 wrote:
Also, I am very close to becoming positive geared > is this a good thing considering I would need to pay tax rather than receive it?

Would you rather on a marginal tax rate of 30% lose 70% but get a tax refund for the 30% for expenses paid- negative gearingormake a small income and get taxed on 30% and keep  70% of the income-…[Read more]

Line of credit is a facility you set up. So that when you need access to the cash you already have the loan approved and the cash available. You are not being charged interest until you take the cash out of the facility you have previously set up.Not sure of equity loan but it sounds like you would be paying interest but the offset account would…[Read more]

Have you approached non-bank lendersgo to google and type in the search box the following bad credit rating refinanceorbad credit debt consolidation this web site looked interestinghttp://www.fundsnational.com.au/You may need to use a mortgage broker that specialises in bad credit loans . It saves you time searching all he banksgoogle search for…[Read more]

do a search on the internetsee http://www.baselesshappiness.com/blessings/about.htmas an example

It is not related to how much you spend on your property rather what you need to look at is what do similar properties in similar condition rent for in the location your house is in. This is called market rent a similar process occurs for the actual market prices for houses that are sold. If you already have a tenant then you have to be careful…[Read more]

If you rip down the cover and have it rebuilt you can claim it as an improvement and claim depreciation on it. It might be deemed an improvement as it is being improved beyond the state it was in when you purchased it and you are not repairing it as you are replacing it entirely. This is a grey area of tax law and it most likely will be deemed an…[Read more]

I have a friend who owned a house with a mortgage and her defacto partner came home on day and said I am leaving you. She had to find somewhere else to live. This requires her to pay rent which she cannot afford as she was re-trenched from her job and has a young boy under 4 years of age. So she goes to centrelink and says she needs assistance.…[Read more]

This is how the system works!The welfare system is designed to keep you in a welfare dependent state.As soon as your step daughter tries to get back into the work force by working part time as required by new rules when the youngest child gets to school age. The Welfare payments will be reduced while at the same time your step daughter will have…[Read more]

Callum,With interest only and an offset account you can save money in the offset account that can be used later for any purpose or as a deposit for your next property while at the same time reducing the interest charged on your loan via the offset account.Your loan principle doesn't alter if you use the offset money for some other purpose.If you…[Read more]