I call bullsh*t on the whole show, and vote Terryw for emperor! haha

If you are borrowing 550k for your new house and you have 550k equity in the investment property, then you may not be getting the best tax advantage.

There have been numerous threads on this topic also, so recommend you do a search on that topic.

As with anything though, you…[Read more]

So, Sam, looks like your folks have an out if they want it. Will still cost them a bit I am sure, but gives you something to talk to the solicitor…

Maybe talk to a property valuer, and see if you can get them to do a retrospective desktop valuation based on comparable sales, using data from 10 years ago.

It may be a long shot, but If yes then you'll get your valuation. If no, then you've only lost some time and the cost of a phone call.

Communication is key.

It doesn't really matter where your solicitor is, provided they are communicating effectively with yourself and other parties and can make themselves available for face to face meetings if/when required at the location required. 

Even face to face meetings though don't always need to be held in your home town…[Read more]

http://www.macquarie.com.au/mgl/au/advisers/keep-up-to-date/oxygen/may-2011/interest-in-advance

Looks to me like the only real benefits in paying in advance is being able to claim this year instead of next year, as terry has mentioned above, and that you can lock in a…[Read more]

My understanding is:

Depreciation applies to things that are installed but can be picked up and removed or replaced, such as air conditioners, kitchens, hot water systems… etc.

Capital allowance relates to fixed items like a carport, window, or the whole shell of the property.

As Richard mentions above, 'depreciation' can be…[Read more]

i guess what I am looking at here would be if you wanted to secure a deal outside…[Read more]

If an IP you may be able to submit a PAYG tax variation so that you get that part of your tax return related to the property back in your pocket each week, rather than at tax time. Something like that would improve your weekly cashflow without actually changing your mortgage repayment.

Accountant types on here will be able…[Read more]

I set a target 4 months ago to pay off my car loan by christmas. I Bought a camping trailer, and had someone run up the back of my parked car without leaving a note… but still managed to pull it off a fortnight earlier than my initial target. And a full 4 years ahead of the…[Read more]

Richard, I'll do exactly that  – I'll be well below 80%. The rest (about 100K) I'll set aside for getting the DA and some more in reserve for the next stages.

Hi Aloha,

Just reading into your statement.  I think what Richard mentioned was borrowing 80% of the land value (400,000), using only a 20% deposit (100,000). Then put…[Read more]

… Not that I can talk, got married this year. Lol

For a bit of background on my specific situation: 

My PPOR was a bit of a rundown Queenslander in Ipswich QLD (about 40 mins west of…[Read more]

And good advice for anyone looking to find out about an area, by the way.

In…[Read more]

The tenants didn't pay rent for a few months, then did a midnight flit. After we eventually got up there to check it out, there was several thousand dollars worth of damage done.

The bloke used to run stock cars, and drained the sump oil directly onto the garage floor… it was all pooled up…[Read more]

Also, do…[Read more]

But as you say, a budget tighter than a ducks bunghole is no fun (nor smart).

Can you get a housemate (or two) under those arrangements? or does them 'paying rent' affect the FHOG or other grants?

I guess from my recent experience, there are two questions that I would ask myself if going into the same situation again.

1. How quickly can you get it done and access the equity for other profitable…[Read more]

I am in a similar position to yourself. So far, we have just used cash for everything we have done to our PPOR (which will eventually become an IP). But living in the house rather than relying on getting it rented out ASAP makes a big difference to how you approach it.

For us, it doesn't matter if it takes a few years to finish (3 so…[Read more]

For question 3 the idea would be to sell houses that the business/trust/individual owns, as opposed to assisting others sell through VF (at least initially).

Would a credit license be required for this?

Again, thanks for your help.

What about putting the extra cash into some bonds with a yield over or on the interest rate of the home loan. That way the borrowings are all still ‘borrowings for investment’ and you can claim tax. Also, if interest rates go down you could make more cash (which you would pay tax on) that could be used for some of your…[Read more]

I suppose another thing in our favor is that the properties, along with house on my other side were previously approved for 16 units a few years back.

Thanks menunes for your feedback also, initially I think we would want to keep it pretty simple. I can see higher risk if…[Read more]

Will definitely have to get a solicitor to handle contracts then.

any potential problems for the buyer on that??? I mean if they are dependent on finance than would there be issues with valuation as the properties independently would likely not be worth as much…

That is certainly true for the subdivision option. Selling the original house would likely provide a significant amount of equity in the remaining dwelling. However, on my initial tyre kicking estimates the cost of doing the subdivision versus just selling our place as-is left me with around the same amount of cash but exposed to a…[Read more]

Dan42 wrote:

ummester wrote:
say a 500k car = a 10mil house, where are the houses that equal 5k and under cars?Oh, and BTW, the difference between a 500k and 5k is proved by the qulaity of the vehicle. How does that work with housing? You can get a 5k car within 30km of a city:) And cars depreciate with age – as houses…[Read more]