The banks will look at what you earn from a wage,  you may be able to project what the likely rent from your prospective property will be after you purchase it and rent it out. It would also be good to show the expenses likely to be incurred like Council Rates, Insurance, Water rates and property manager fees or provide a guess of between $2000 -…[Read more]

have a look at a line of credit loan against the first property to fund deposit for next property with a different  bank loanThis makes sure that security is not tied together — avoid it – known as colaterisation across two properties so you lose both houses if things go wrong.

You really need a have a joint agreement through a solicitor to cover every situation and set up a trust account. Then you need to save the money to build up the collateral. Probably then buy a property through the trust or as tenants in common.You may need to look at a hybrid unit trust so that if someone pulls out you just pay them out by…[Read more]

ItalianDragon wrote:
An example were the nuclear tests of the 1960s in Maralinga (SA) by the British, where the radioactive clouds reached Sydney.

Correction The Tests that reached Sydney were in fact on an island off the coast of Western Australia on the other side of Australia and the radiation was only discovered by a person in Sydney…[Read more]

Go onto http://www.realestate.com.au and put the price range as $0 to $150,000 and you will find out that it is really hard to find a property in this price range.

Companies do not get a 50% discount on capital gains tax after 12 months of ownershipfrom ATO web siteGenerally, the discount method does not apply to companies, although it can apply in relation to a limited number of capital gains made by life insurance…[Read more]

it is not the mortgage but rather the interest charged. The net rental income or net loss is placed in your tax return.So net loss = rental income – (interest charged + council rates paid + water rates + insurance paid + repairs + property manager fees+ borrowing costs over five years + depreciation)Then if it is a net lossyour tax return is…[Read more]

Also if you pay interest only you may be trying to increase your cash flow for some other investment or other reason.If you are paying off the loan the repayment is higher where as on a interest only loan will be a bit lower in repayment.From a taxation view point – making repayments of principal reduces the interest charge and on an income…[Read more]

Just an idea – maybe a valuer can help you see http://www.nationalpropertyvaluers.com.au/services.asp for an example.Some valuers have really good data bases that have the records of what a house in your area sold for. I am not sure if a valuer has past sales prices but it wouldn't hurt to ask them if they can help you.Check your Rates notices…[Read more]

It really depends on how much work is required.An auction would involve a lot more work than a private sale.You could ring up a buyers agent and ask them what their services cost.

Neil,I think another interesting aspect you could present at some time in the future isHow do you get finance when you have a low income and a lack of income from employment.This has been my hardest brick wall to face . I have good equity but a low income and this limits the loan amount.P.S I attended the last meeting in June and found your…[Read more]

http://www.businessmall.com.au/store/listCategoriesAndProducts.shop?idCategory=2http://www.businessmall.com.au/store/viewItem.shop?idProduct=40(Be aware tax laws change every 6 months)books are a cheaper way of learning the business mall has heaps of books of this genderhttp://www.financeinstitute.com.au/mortgageconsultant.html (I have done this…[Read more]

You may have to check with your accountant on what is a reasonable accommodation expense. For example if the whole family went and the house has only one owner then the ATO would probably question the accommodation for the other 3 people. Also the time you spent in the accommodation has to be reasonable as deemed by the ATO otherwise they will see…[Read more]

Unexpected repairs/ maintenance, emergency repairs that need immediate action like burst plumbing and wear and tear over time.

Also as your LVR decreases over time you can borrow more funds if needed.I have thought about this previously and I will be aiming myself to have any future property loan I take out to be paid down as quickly as possible to a point where it doesn't cost me money to own the investment. (cash flow neutral)

From the ATO Web SiteAvoid making common mistakes incorrectly claiming the full cost of an inspection visit when combined with a private purpose, like a holiday. In this case deduction claims can only be made for the portion of travel directly related to the property inspection.…[Read more]

Welcome to the forum.Steps to achieving property investment.(1) Pay off all debt that is on assets that do not increase in value over time.(credit cards, personal loans)(2) Do not use credit cards (2A) Cars be careful of buying depreciating vehicles as a $32,000 car becomes a $2000 car over time.       What could you do with $30,000 that would be…[Read more]

If you charge $27,040 more for the property than it cost to build a developer can guarantee $520 a week for 12 months.How long is the guarantee for and what does the rent go down to at the end of this time period ?$27300 for 6%

If the settlement doesn't finally occur the vendor could get a free renovation from Michael. You need to talk with your lawyer about a clause that covers the cost of your completed or part completed renovations being re-embursed from the vendor should the settlement not occur.Or think about holding off the renovations until the settlement day occurs.

See http://www.ato.gov.au/content/downloads/NAT4151_07.pdf    page 31 for the records you require very close to the bottom of the page it states needing the valuation of the house and that the change to income production is a CGT event similair to acquiring a property and this is why a valuation is required.$275,000 at 10% interest is $27,500 mi…[Read more]