Well I am with a new agent now, so I am just waiting to see if the tenants pay the full rent plus the $93 in arrears on time, this month. If they play the game right, I will be happy to put it down as experience and review at years end. I would prefer to aviod the red tape if possible. I think I have been sold a lemon on…[Read more]

To make matters worse, I have just found out from the first agent that the body corporate is trying to contact me, about noise complaints made about the tenants that moved in, who this second agent recommended with glowing praise about their…[Read more]

There are certain obligations and expectations I believe exist between landlord, agent and tenant. This is outlined in the Residential Tenancy Act. This act has been formulated over many…[Read more]

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I just need one more positive cash flow one worth under $200K to balance my 3 negative ones and I…[Read more]

It’s a 4.97% return. But I would probably stay clear of it. Also the return can be missleading and you would want to know exactly what formula they are using to calculate this and whether they have excluded other critical costs such as body corps and management fees etc…

The problem is when the 5 years is up…[Read more]

The I think speculators have pushed up Tassie prices, but I recon Tassie will be the first to crash when things go…[Read more]

Dale thinks at least the following can be deducted over 5 years.

3. Registration Chanrges Account $ 315.00
4. Stamping Chanrges Account $ 932.40
8. Office Of State Revenue $ 955.85

The others, particularly item 6 we were uncertain about.

On another note, if I am charged panaly interest by the vendor…[Read more]

I admit this says nothing about growth, as it is only a snap shot in time. But, the correlation between good areas or high in demand areas…[Read more]

All I can say is that over the last 10 years I’m told that varaible rates on average did better than fixed.

They promote their properties as offering high returns, but that only applies to a some of them in reality,…[Read more]

Another example; I have emailed AON Insurance about this and await their response. I presume its plant & equip but not sure if its covered by Landlords Insurance.

Are…[Read more]

but of ocurse you can get more accurate results by then adding cost and tax effects

It only appears to make reference to coverage from willfull or accidental damage. This is a concern I do need to clarify with the company, and also with WESTPAC with…[Read more]

How much I can borrow as at 1 August 2003

Assuming Estimated Bank Market Values;

PPOR $250K

IP 1 $280K

IP 2 $240K

Total Assets $770K

80% Asset Value $616K

Loan Debt $554K

Equity $62K representing your 20% holding of the loan.

Borrowing Capacity = 62K*5 =…[Read more]

Perhaps I could have used more appropriate words, but the bottom line is that even with adeqtate equity, serviceability and other issues, obviously the banks also consider the estimated value of the property in determining the eligability of the loan request.

I would firstly set up a trust in your name as guarantor. Then you have the option of either buying your own property and renting it to yourself as an IP and claiming interest and expenses as tax deductions and using it to fund other IPs the same way.

Although you may then have to pay capital gains tax if you sell it, If you never sell it…[Read more]

cheers.

1. Accidental Fire ?

2. Deleberate Fire ? NO

3. Act of Nature resulting in Fire ?

The banks must also look at the assets true market value

Thankyou all for your contributions.

Magnet, I resent your assertions. I’m just asking questions so I know what is legal, so I can steer a clear path and not rip anyone off. I think people like me are trying to gain knowledge by asking questions. I’m afraid I have not studied tax law, but there is nothing wrong with exploring the boundries of legality, so you can…[Read more]

What ever you decide to buy, get it valued first by an independant qualified property valuer. It may set you back $400, but it could save you major headaches and worry and money. If they pick up problems that need repair, you may gain greater power in negotiating the purchase price. I expect you will also have piece of mind and fewer…[Read more]

Thus for a gain of $20K, 50% or $10K would be added to your gross income.

Your income tax would then be recalculated, which you would be liable to pay I presume at next tax time ?

But you best wait for other…[Read more]

Now re; item 2. I thought I heard that when buying a property, so long as your intention is to rent it out, you could claim expenses before you actually get the tenant. i.e. if you showed proof that you intent the property to be available for rent, such as by placing an add in the paper etc…

That said I do see your point, which…[Read more]

Say I am close to the lower tax bracket limit after claiming my IP loss. Say after IP effects my new taxable income is 50,500 which puts my in the 42c tax bracket for tax re-calculation.

I have…[Read more]

0 – $6,000

Nil

$6,001 – $20,000
17c for each $1 over $6,000

$20,001 – $50,000
$2,380 plus 30c for each $1 over $20,000

$50,001 – $60,000
$11,380 plus 42c for each $1 over $50,000

Over $60,000
$15,580 plus 47c for each $1 over $60,000

Getting back to the main item $68K gross income with IP. So the 8K is taxed at 47c thus when you claim deductions they are ofsett at that higher rate. That’s what I meant in my query. I admit it aint much i.e 8000*.05 difference in the tax rates from 47c to 42c but its $400 or $7.69 per week in extra refund.

I’m a…[Read more]

My bank says loan servicing is not the problem. I’m on 59K salary

So I can only borrow $80K ? or that’s my equity ? and I can borrow 4 times $80K = $320K

OK So if I plug in more optimistic figures I get this.

Value 750K owe 550K Thus 750K *.80 = 600K

600K – 550K leaves LVR at 50K so 90% loan would be 400K ? that I…[Read more]

The total combined gross income, I understand could push you into a higher tax bracket, giving you a better tax break when you claim your property deductions…[Read more]

I can sort of understand the publishers view here. Compared to the ” 0 to 130 properties in 3.5 years ” , the first title seems a little ambiguous at a glance. The second title, although a little cumbersome in expression, seems to more evidently convey the subject matter in the main heading,…[Read more]

If not, then of what interest does the media have in…[Read more]

cheers,
007