[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

September 5, 2012 - 10:11 am

Just came across this article:

http://www.apimagazine.com.au/api-online/newsletter/12/10/tax-qa-should-i-get-a-depreciation-schedule

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

September 5, 2012 - 9:46 am

I wouldn't self manage any of my properties, just easier to have a REA manage it because should things go wrong they'd handle all the eviction notices, court dealing ect, just another form of insurance in my opinion. But each to their own.

As for depreciation, I get a depreciation report done, there's plenty of companies out there around $500 upwards and most guarantee they'll get you back their fee or double or there's no charge or something like that. I think I remember my accountant saying best to get it done closer to the start of the financial year but I could be wrong. Also get it done when your property is producing income or advertised as available for rent else it won't be a tax deduction.

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

September 5, 2012 - 6:14 am

so how does one change:

What my friends thing I do

TO

What I really do…….

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 27, 2012 - 11:19 am

Hi Sunny,

Welcome and congrats on taking steps to on your investment journey.

Like everyone here has said increasing your own knowledge is most important, there are so many seminars or companies out there that make it seem so easy because they'll do it all for you, just don't get caught out.

Personally I like to know how it all works before I dive in, just like developers make it sound easy and set you up for easy $$ but you're not told about the built in commission they charge you and that you'd be paying above market value, but "you'll get maximum depreciation" they say. Instead you could look for a similar property a year or two old at a better price. Of course this is not always the case just an example.

I think it was actually Steve that I heard this one from and it's stuck with me:

You know what you know,

You know what you don't know,

But the one you got to look out for is, what you don't know, you don't know

Do your research, everything is always so obvious in hindsight

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 26, 2012 - 9:03 am

@ zmagen haha I don't think PNG would be very high on my list of places to invest, I could be wrong I've never looked into it, it may be a gold mine!!

also I checked out your web site, it's very interesting and got me reading into investing in not only AUS or US cheers!

@ Joel – thanks for the advise, I have grained a lot of info from this site, being a lurker for a while before adding my 2c I've only just recently ventured out of my home town of Perth and invested out of state so a big step. Investing in the US is just for me at the moment fraught with danger of the unknown and of course with the countless scammers out there…..

@ M.Investigator – Thanks for the post, I like so many others have been sold on the negative gearing from the start, 3 of my properties have only just started to be positive geared, the main $ drainer being our PPOR of course…

So like many others I want to give up my day job or at least have a choice and work part time doing something I enjoy so positive geared is my next step as I'll have my other properties ticking away for that CG

Like Joel said there's plenty of good free information out there if you search for it, I think reading and finding it out for yourself is all part of the journey… I know some people that have paid thousands in seminars and courses and are no better if not worse then they were before they started…

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 24, 2012 - 9:47 am

@jacm

Yes the minimum is $10K up in $1k increments but Steve has received some cheques for $100K or more, I was just saying I wish I was one of those ppl in a position to be able to drop $100K on the table.

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 24, 2012 - 12:24 am

cheques for $100k plus!!! if only i had that sort of capital to invest, hopefuly get to that stage someday, goals have been set.

As for the fund it sounds great and i’m going to use my super to invest… had a look at my super statements and what a joke!!!

Agreed Steve did a great job!

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 24, 2012 - 12:20 am

just saw on tv that some of the big banks have sneakly lowered fixed rates over the last three weeks.
no big announcement about it so seems to be that the banks think rates will come down.
the reserve bank will release their statment/view on the economy today so might be an idea to watch out for that an wait a bit.
On the other hand if you,re happy with the rate they give you and have budgeted for if, not phased if rates go lower an dont want to refinance within the locked in period then go for it

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 12, 2012 - 6:15 am

We (mrs an i) bought an NRAS property in QLD, only 3kms from the Brissy CBD, had it for about 3 months now, very early days but so far so good, tenanted straight up, because of the 20% discount in rent there was a fair bit of interest.

We couldn't find any good NRAS places in Perth (where we live) at the time that compared to this one in Brissy and the one off $10k QLD bonus at the time tipped me over into buying there so hopefully a good decision for growth.

It is positive geared only after deductions and the NRAS $10k/yr tax credit/rebate whatever you want to call it and of course the $10k once off bonus didn't hurt.

Downsides I found to it are, you're locked in to the NRAS scheme for 10yrs, unless you sell, the new owner can continue or opt out of the scheme.

Unable to refinance that property while in the scheme which would be a down side to trying to draw equity out and go for more properties.

Buying is usually through an investment/property mob so they'll hit you with their commission so you'll be paying $20-$30k above valuation cost which isn't good investing is it

In the end though I thought it was a good addition to our portfolio to sit quietly for its 10yrs hopefully see that capital growth in that area, being positive geared after tax atm then moving to positive cash flow in the next 2yrs. Seemed like the right decision for us.

Hope that helps

[insanoParticipant@insanoJoin Date: 2009Post Count: 34]

August 11, 2012 - 12:31 pm

PG – Positive Geared