Most people aren’t anywhere near as bad as the doom sayers seem to think. I could say that 9 out of 10 people are ok and generally honest and giving in one way or another.

It’s all a matter of degrees and throwing around numbers and percentages doesn’t mean much to me. If only 1% of the population was “decent” the world would be completely…[Read more]

I’m just wondering whether you could take your mother on as a boarder and then claim the extra building cost as depreciation ? ie.e not part of your own residental property ? or at least claim the interest on the loan ? You would then be reporting her $100 / week as income.

dunno for sure, you need tax advice.

Yea I would need to do my own calcs. I guess the point is that even if its neutral, the income is income you would otherwise not have access to.

Say you had two properties worth $100K both cash flow negative and owed 70K on each.

The you redraw 20K on property B to put against property A

Thus now

Property A owes 50K and goes cash…[Read more]

Yeah I sort of see your point. Let me re-think it

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OK it seems to me that this is a way of getting some income. I see to some extent the tax neutralization argument, but the point is that you get income to live on by making some properties positive cash flow, whilst carrying a large debt on another. I mean you cant actually use…[Read more]

Here Here. In fact I’m not only learning from other peoples posts, but also learning from my own posts when trying to help others, as in doing so, I am refining my own thoughts on such matters, by having to think about the issues involved. So to me we gain both ways. We win when we receive and we win when we give. Though the 99% rule concerns…[Read more]

Mikhaila,

I see your point and agree with it on the basis you have indicated. ( i.e. 1 investor to 1 IP in the syndicate would produce the same effect as a single lone investor in terms of negative cash flow funding ability )

Please note the example figures used are only to demonstrate the hypothesis and not based on real data.

I also was…[Read more]

Hi, I’m putting in some magic number here as I obviously don’t have all the facts. Obviously you would have to work your own real numbers into such a strategy.

Hmm good question. I suspect your net super income is low possibly about $22,000 and thus low tax. I’m a newbie, but I can only think of one strategy at present, all be it risky and…[Read more]

If the govt could be bothered, they could provide incentives for more investment in affordable housing, but I think that if this means a compromise in quality of building infrastructure then it could eventually prove more costly that we imagine longer term.

The main thing driving housing costs is not the housing construction cost, but the land…[Read more]

If investors pull out due to negative gearing changes, they may dump property stock, but demand for new investment development will also fall so initially yes prices may fall as a flow on effect in the rental market. But longer term when stock becomes consumed at lower prices and less new stock available due to lack of investors interest, prices…[Read more]

Drewboy, my comments were more hypothetical. Circumstance is a major factor. Harder than it looks. If you realistically have $1000 per month left over after expenses with 2 kids, your doing well and I would suggest are well positioned to invest.

You have $200K equity it seems. And with $1000 a month savings you could afford to invest. OK well it…[Read more]

Oh I see. thanx.

You have made a good point there above.

Why I suggest is for reasons of debt gearing opportunity that may otherwise not be available as a single investor. i.e how many brand new quality investments are positive cash flow ?

Generally you either get old properties in rural areas that are cash positive, but land values fluctuate more and are at…[Read more]

Thanks OK thats not my problem. What I want to do is claim it against last financial years income. So I guess I should have bought it last year before June 30 ?

time is now buddy !

I think you have to have lived in it for 12 months before you can rent it out to tenants.

But which decision to make, depends on your cash flow and gearing of mortgage debt.

The grant looks attractive but if you do the numbers on it you may be worse off with it. Say the interest is $15,000 for an average scenario.

a) live in year 1
well net…[Read more]

just stay away from high rise

hmm u see it depends on what you want out of it all. Well I think if you are serious about property investment and growing a property portfolio, you will rent and invest, otherwise you will miss out on the tax benefits of property investment. If you are not seriously concerned about investment performance and protfolio growth rates, then buy…[Read more]

4. Well if your own house is brand new, move out of it and find a nice house to rent ( long term lease if possible ) and then rent out your house. Gear it neutrally or slightly positive if possible. Then buy a second brand new residental, gear it negatively to get max tax benefit. in 6 months buy another brand new and neg gear. CG will take…[Read more]

are you doing this for investment or to live in ? the advice would depend on this. firstly I suggest if you earn a reasonable wage, i.e. over 40K then you consider the investment approach and then just rent a nice house or flat with long term lease if possible. This is a more tax effective way to get started.

up to you but i hate em cause i think its a passing fad and a niche market and thus more risky