Thanks Michael I'll check it out!D

Thanks Chris!Yeah I'm bout a 3rd the way through it so hopefully it can clear up the total haze I'm in. I think I've found some other good ref thanks to Scott but I'll have to see if I can get my hands on them.Thanks allD

Definitely! This is a system I have used in the past. I guess I'm thinking along the lines of when you have a P&I loan and smaller dollar amounts go into this say every fortnight for instance. So where you would pay $600 a month for IO you would then pay $650 for P&I. Is this money better in the offset even though it is smaller $$ amounts?I guess…[Read more]

Yeah I'm with that but I don't live in a mortgage. All the properties I own are rented. I would still rather pay more tax and have more equity to use and own more of the property. Am I completely off base here? Am I better of to save tax and keep my cash under my bed? D

But isn't this a way to eventually turn a neg geared ip into + geared? (If you should by any chance have such an evil creature in your portfolio ) Also a dollar in a mortgage now means u save 10 later on and can access more equity too meaning you can use your money twice. Hey feel free to correct me if I'm wrong here D

Thanks Scott! I've got my legal guy in place, Will hopefully have a QS for my current project (hopefully can use for commercial as well as residential) soonish, will go on the hunt for REA's who can give me help and info. Only just started reading the book so still have stacks of Q's but they can wait!That's interesting about the depreciation, so…[Read more]

Yeah, I'm looking at doing a straight backyard split (maybe) next to get some cash in. Even a cheap property requires 70k worth of cash even before you get into the subdiv  which is really annoying. Good luck with finding something, it takes a while to find something that's right!D

You need to be able to borrow money to make money!We had existing equity which we used as the deposit to obtain the original residential finance. The cash portions were for planning, architects costs and for 5% builders deposit.We also used cash for the mortgage repayments along the way.There will be cash spent on fences, blinds landscaping. The…[Read more]

Yet to have valuation done but looking like 300k-350 hard to compare since there isnt much that is exactly the same in the area. $1.3ish Cost (at this stage) $1.6 (conservative valuation)Then will be enjoying hopefully quite a lot of depreciation on top of the equity.300-350? They should be finished in Jan. The builder is pulling out all the stops…[Read more]

Hey guys found a book (Roth and Lang) so I'll read that and then hopefull only have smart questions!D

Hi,So for demo costs allow about $6k just in case. For all the subdivision costs = plans, council, working drawings, etc allow up to 30-40k if you get the architect to do all of it, Which i would go with if it is your first one. You might be able to squish it into 12 mths depending on the council but don't believe them when they say 3 mths for…[Read more]

Thanks thecrest,I will have a look at what you have suggested to see what the go is. That is good info about the lease expiry too!Thanks again everyone for all the really great info!D

Wow! Thanks Scott. Righhhhhht! So yield is not the only thing to look at. You can cover the empty periods as long as you have either cash flow from other sources or part put away from rent, which you would be doing for gst/tax purposes so you would just put more away if you could.(hope that makes sense) So calculate total annual costs and start…[Read more]

Hi,This is how I understand it to be. You buy something new for instance and as the building, kitchen, bathrooms, paint, carpet whatever ages the value drops. As this value drops you offset this loss of value by claiming depreciation. You depreciate this amount say over 5 years for instance. So ie $1000 first year, then the amount is lower every…[Read more]

Ok heres one,Box Hill warehouse, new and reasonably located, 315sqm, Price is excluding GST so yes this might be a really dumb question but I add the 10% to get the right asking price? 713,750ex (785,125inc) the lease amount is $49,962. So if you wanted to lease it not buy it would be that amount but if you wanted to lease it out after purchase it…[Read more]

Thanks YI,I'm done with it! It took a lot of effort but I am done……I will waste no more time with my b%$^tard whoops I meant bank . Have a great day all!D

Hi Crest,I guess I was thinking Kosciusko rather than Everest but hey…How bout a scenario,Price under $500k (for this exercise)MelbourneFactory, office or shopMin 8%residential equitydo you buy and hold commercial? or do u sell after x amount of time? Do I just go on commercial real estate sites and go purely on return or are their other factors…[Read more]

Thanks Mattnz! The LVR is about 65% as far as I understand, does a commercial property generally return enough that it can cover those empty times? I understand there is higher risk but is there a lot higher return? I feel like I am wading around in my lack of knowledge but hey if you don't ask some dumb questions you don't find out what questions…[Read more]

Thanks Scott,I guess I'm thinking along the lines of shops or warehouses when I say commercial. But I think that is a pretty limited view. I don't think I'm interested in hotel rooms or car spaces. But I don't know what there is out there. I'm based in Melbourne but not really worried where I buy as long as the return is there. If purchasing…[Read more]

See it is at this  point I would probably start thinking about when I would pull the plug. (Yes I know you have spent money and time and effort) The vendor and agent have a vested interest in getting it sold. You offered asking price so they are going to be reluctant to let you get away and have to explain why the sale fell through and get…[Read more]