Forum Replies Created
Thanks Scotty,
That is great advice. Will definitely ensure we put the interest offset account into place.
Hi Terryw and Scotty,
with regard to the offset account, does that enable you to claim deductions on your taxable income, or is it merely a saving on the interest you are paying on the loan and therefore increasing cash flow to the property?
Cheers fudge
Hi Jamie,
I am based in Melbourne…
Hi Richard,
Does this reduction in the cost base also include depreciation on all the fixtures/fittings/carpet or just the depreciation on the building as a whole?
Cheers
fudge111
Thanks Mark,
That really does answer my questions well…
I will definitely use a quantity surveyor to maximise the amount of depreciation expenses, but just wanted to get a general idea about how the system works.
Regards
fudge111
Great thanks for the understanding Corey,
I now understand depreciation a lot better. I was under the impression that it was all about predominantly how new the house was. It is good to know that the amount that you can claim can potentially be more on an older property than a newer one.
Cheers
fudge111
Here is the updated list with all previous posts included.
I have also added QS = Quantity Surveyor
BA = Buyer’s Agent
CC = Cross Collateralisation
CF+ = cash flow positive
CF- = cash Flow negative
CG = Capital Gains
CGT = Capital Gains Tax
DS = Depreciation Schedule
IO = Interest only loan
IP = Investment property
LMI = Lenders mortgage insurance
LOC = Line of Credit
LVR = Loan to value ratio
MB = Mortgage Broker
NCCP = National consumer credit protection (act)
NG = negatively geared
NODOC = no document loan
NRAS = National Rental Affordability Scheme
OA = Offset account
OO = owner occupied
OTP = Off the plan
P+I = Principal and interest loan
PG = positively geared
PM = Property Manager
POA = Partial offset account
PPOR = Principal place of residency
QS – Quantity Surveyor
RBA = Reserve Bank of Australia
SMSF = Self Managed Super Fund
VF = Vendor Financefudge111
Thanks Corey,
I am just in the preparation stages and am yet to buy my first investment property.
Thanks for the advice on who to use for a depreciation schedule.
Would it be fair to say though that if the house is built before 1985 you would not get the same depreciation benefits as properties post 1985?
If so, that would be a huge factor in whether or not you would purchase the property I would think…
Fudge111
NCCP = National consumer credit protection (act)
OTP = Off the plan
So would I be able to use the equity in my parents home (1.2 million) if they gave me permission to help me launch my property investing portfolio?
What options do I have if this is possible?
Thanks everyone,
fudge111
Hi property investors,
This may be a stupid question but I am yet to start my property investing portfolio and am new to bank finance…
Will the banks let you access the equity in your parent’s home if they have not used accessed it for any other assets, or do they only let you access your own equity to refinance?
I think what I am trying to ask is ‘Is there any difference between them being the security as a guarantor and accessing equity to refinance, or is it basically the same thing?
Thanks all
fudge111
I think I have successfully incorporated an offset facility into my spreadsheet for both IO loans and also P+I loans.
I am not 100% sure if my maths are correct but I think they will be pretty close…
fudge111
Hi there craig,
I have a detailed spreadsheet that I am working on at the moment but I am yet to add the option of the offset account into the calculations.
I will attempt to add an offset facility to the spreadsheet for IO loans and see how I go. I will have to do my research first and hopefully I’ll be able to pull it off, but I can’t guarantee anything,
worth a try though…
Cheers,
fudge111
Thanks Albert for your advice…
It’s good to know what the different options are.
Cheers
fudge111
