It wasn't a typo, but I've just learned something, so thanks Richard. Can I clarify why you'd put it on the PPoR? Is it because the interest on that one isn't tax deductible?

IMO you should start by getting the current IP to CF+ status – set up an offset account linked to the IP and dump everything in that. THEN start looking at your next one.

How does this sound… DON'T redraw on Property A at all – leave it as is. Refinance property B once it's become your PPoR and use the cash to pay Property A off completely, therefore making it for investment purposes and tax deductible. Property A will then (presumably) be CF+, contributing positively to your income and helping with your own…[Read more]

Thanks Kyla. Everyone here was new at some stage (I still am) – it's all good A couple of tips you'll see around here are Read book after book after book on the subject and learn different people's strategies and how they implement them. I also read up a lot on structures (trusts, tax etc) so that when I speak to my accountant, we're on the sa…[Read more]

See, I had your situation wrong all over  and mine is completely different Kyla, care to divulge any further re your situation, stragey etc?

I actually agree with you JRr, but we're obviously in the CF+, debt is only good if someone else is paying it group  Different mindsets and different situations, neither being incorrect, just different. What IS kyla's financial situation and what strategy has she decided upon? Without knowing this I thought it best to put as many cards on the tab…[Read more]

JRr wrote:
i'd pay off the loan if interest earned in a bank desposit is going to be taxable at resident's tax rate.  why pay bank mortgage interest when you don't have to?   Set aside some emergency funds (in a high interest bank account like BankWest Telenet) to last you 3-6 months, but anything over and above that, you should try to pay of…[Read more]

kyla wrote:
thanks Imugli, I realise now that we should have chosen a loan with the option of an off set account but unfortunetly it doesnt come with the fixed rate loan so until it changes to a variable rate in 2 years time, what should we do with the extra funds?? I also realise that we should have gone with a variable rate from the start…[Read more]

Put the money in the offset account and leave it there. If you pay it off the loan, then redraw it for personal gain (i.e your PPOR) you lose the tax deductibility of that amount on the loan. Example… You loan is $100,000 and it's an investment property, so the interest is tax deductible. Put the cash in the offset account and you only pay…[Read more]

Spicy wrote:
Also, I didn't say that she was breaking any privacy practices, I just said I wasn't happy that she posted that information and I thought is was very un-professional.

Spicy, National Privacy Principles are laws that have been put in place for a reason. Whilst I'm glad (for Premium's sake) you haven't taken it as a breach, the fact…[Read more]

Ummester, please don't take this the wrong way, because it's a serious question… Why do you post here? Property investment, heck investment full stop, is a CAPITALIST pasttime. We (with perhaps the exception of (seemingly) yourself and Scamp) are here because we wish to partake in the capitalist, money making venture of property investment.I'm…[Read more]

Thanks John – appreciate the info. Are there any other fees or charges associated with the services they provide? Commissions, spotters fees etc?

Spicy wrote:
Kylie71,   I hope your company is a bit more professional than you are, as your approach at disclosing MY personal infomation on this forum is very un-professional.   I suppose you thought it would be funny to post my name to inform me that you knew who I was.  Well, I was not for one minute trying to hid who I was.  As I am sure…[Read more]

I saw this and was interested myself… They say the site finds properties that are paying 6 – 10%… I would think this is a pretty broad margin to be painting as CF+ (depending on deposit, structure of course), but am interested in finding out if anyone has registered…

Here goes with my crystal balling… I'm 28 now, wife is 36… Next ten years I'd like at least 1 property every year (1 in Fiji) with one or 2 paid off completely in that time. I'd like to be in a position whereby my wife can scale back her work commitments should she want to. I'd like an island in the Bahama's by the time I'm 55. I've got my…[Read more]

CF+ do still exist but you need to look hard, put a higher deposit up and structure it correctly. Patience, preparation and cash.

I believe the interest needs to be have been incurred in order to make an income to make it deductible. i.e invested. I also bleieve that the capital part of the increased payment would not be deductible, as capital is not considered an expense for tax purposes.  

The first one is the hardest Marl Ask questions, research research research, and use brokers and accountants for all you can get from them. You may have to pay for their services, but they'll save you more than they'll cost you in the long run. Good luck!

ummester wrote:
BTW – I am over 30 and am well funded enough to enter the housing market. However, I refuse to buy something for more than I think it is worth. I also believe that by not buying I am doing a small bit to assist with a needed market correction, if I did buy I would be adding to the problem. I will buy when I believe the market h…[Read more]

I think this one should be in the creative investing section – the VERY creative investing section