when you mentioned extra repayments were you referring to the actual amount you pay? Because if you are paying monthly you can save heaps by paying weekly as the interest is calculated on a daily basis.
It may seem like you will never pay off the loan but even an extra amount paid into a loan will make a difference over time due to…[Read more]

My advice is to watch the superman original movie 1978 where lex luther plans to drop the coast into the sea and has purchased the property that is going to be left ie above the sea level. Hence instantly increasing his newly created coastal property values overnight. Imagine th insurance clause to get out of this scenario. Not only will Thermal…[Read more]

do the tenants pay their rent each week and what happens when the lease runs out. Are the tenants connected to a major employer in the town like say Bananas or mining . That could mean many people suddenly become unemployed and finding a tenant becomes impossible. These are factors to think about …

Comments may not be relevant to individual…[Read more]

it may sound trivial but when you check out this house turn on all taps and check toilet by flushing it. Check how water drains away from sinks ie slowly or reasonably. If possible check hot water works.
This was discussed in API magazine as good checks to also do .

Comments may not be relevant to individual circumstances. If you intend making…[Read more]

Check for termites, check stumps under house, check age of electrical wiring as insurance companies do not like very old wiring . May need a rewire worth checking out.

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

be aware that if you were to do what DraconisV5 stated
if you can live at home a few more years. I would suggest this, buy 2 IPs before your PPOR.
You will have to weigh up missing out on the first home buyers grant into your figures.

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or…[Read more]

Just an idea .
Maybe you could build an outside pergola with a table and chairs and maybe an ashtray. Or maybe an outside temporary marque with a table and chairs. I discovered one of my tenants had been a smoker and had set up a chair and table under one of my trees as an outside smoking area.
This way it is a sort of win win compromise for both…[Read more]

I do not know how good they are but
http://www.cameronbird.com.au is another web site that sells properties that are new developments.

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Joel, You need to look at what you are trying to achieve. It sounds like you want to live in the house you are planning on buying. In this case you are right that the interest paid is money lost. The upside is that this would be a`PPOR (Primary place of residence) which allows an exemption from capital gains tax if you managed to acheive a…[Read more]

Another point to consider is that the net rental loss is considered as income by centrelink and may affect your family entitlements..

In rich dad poor dad he is referring to formal education rather than Investor education in the I quadrant he is referring to Quadrant E education. If you want to learn this approach to property investing look for a book called wealth magic written by Peter Spann. If you wish to do seminars check out http://www.freemanfox.com.au.
Steve uses a…[Read more]

a pest inspection would be good also

You need to work out what your end goal is. If you live in the house you will get a capital gains exemption as a PPOR where as a rental property investment will incur capital gains tax.
( when will you be selling it in the future)
An investment property can be paid off a lot quicker than a PPOR home and expenses incurred are tax deductible where…[Read more]

go straight to the source
I recommend that you phone up the tax department and ask them for some help as they are quite helpful check out
http://www.ato.gov.au

Your current agent may not have any success in getting the lost rent and you may only get the bond back. You should look at taking out landlords insurance (CGU) to cover lost rent and malicious damage.
I would physically go and check the property is in good condition as tenants will not rent a place that has a worn out look , bad colour scheme,…[Read more]

Opening value cannot be written off immediately if it has declined to $300 from a previous year of depreciation. . If it cost less than $300 to purchase item then yes it can be written off immediately.

Also prime cost items can’t be added to a low value pool

No if item has depreciated down to $300. only if original cost is <$300 .
Taxpayer cannot acquire one or more assets identical in the same income year if the total cost is over $300 like two lamp shades at $290 as an example.
exception to this is Software it cannot be written off straight away even if under $300…

Private use has to be…[Read more]

jec I am in the same predicament as you in that I worked my guts out doing a degree 2001 – 2004 and then haven’t found anyone willing to employ me. This was when the property market was really booming. In hind site I should have done an apprenticeship and I would not now have a 17000 hecs debt and would have been paid for 3 to 4 years.
Neil Jenman…[Read more]

effective life after 1 july 2006
http://law.ato.gov.au/pdf/tr06-005.pdf
effective life item purchased before
1 july 2006
http://law.ato.gov.au/pbrdocs/tr200018_cv.htm

prime life depreciation is the cost of the item / the effective years of life. it has the advantage of being fairly simple to work out its draw back is that the depreciation is the same over the life of the item for each year.
Diminishing depreciation is calculated by dividing 150% by the number of years of life to give you a yearly depreciation…[Read more]