To be clear, even older style properties can have some depreciation worth, depending on level of renovations and how recently they were done. A full re-wire of a property, even through it does not serve to make the property “visibly prettier”, has worth on a depreciation schedule. New kitchen and appliances, there’s some depreciation. Some new…[Read more]

Lots of relevant points have already been raised.

As Redwood has mentioned, some folks have fallen prey to overpriced off the plan stock.

It is important to have some visibility on running costs of an SMSF, rather than dismissing the idea just because someone said to, without factual and numerical reasons provided.

Annual accounting fees of an…[Read more]

You have the bulk of your assets controlled by the on bank? Eek. If they ever need to liquidate due to non-payment of loans or othe reason, then they will decide order of liquidation, not you.

There is not much point making threats of moving your SMSF loans as it is pricey to do so. However don’t mistake the relationship for some lovely thing…[Read more]

In this regard, it is interesting to note that a person can have more than one SMSF.

CGT (Capital gains tax).

Look into the “Margin Scheme” with respect to GST.

I’ve asked Richard to comment as he is very knowledgeable on the topic. No doubt he’ll jump on tomorrow and comment.

As a separate issue, if you are planning to buy a block of units in your SMSF (and I assume you mean an unstrata’d block), expect the LVR to be low if you will be needing a loan for it. Also remember you will not be able to…[Read more]

You don’t need to unstrata. Just check the management contract, and vote them out at the end of it and hire a different strata manager.

re the SMSF, I will assume your smsf has a corporate trustee.

Land tax rates for companies and trustees are published on the tab with same name here:
https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

The land is not exempt unless the land qualifies under exemptions (eg if it is being used as an aged care…[Read more]

Check with council to determine whether you will need a permit.

You could also consider separate water meters, which you will probably be forced to do as a requirement of subdivision anyway. Check with council.

Installation will generally be cheaper if the unit is going on an external wall. This is because on the inside side of the wall you have the split system itself, and the exterior unit can go on the other side of the same wall. As mentioned by blackhotel, if pipes/conduits have to be run from the interior unit, along walls to eventually meet a…[Read more]

AMP was falling all over themselves a week ago calling loan customers encouraging fixing. One must ask oneself why the enthusiasm to do so. Perhaps someone at AMP knew that rate drop was coming.

NAB for 20 basis points, effective next Wednesday (13th May)

http://www.skynews.com.au/business/business/market/2015/05/06/nab-fails-to-pass-on-full-rba-rate-cut.html

As a silent investor nobody with any brains would touch it with a barge pole. You would probably have better luck convincing someone of the merits of your business plan, and convince them to come in as a business partner that will share profits.

The summary of the deal is : hand over $300k or a property with $300k equity in it to you, for just 5-8% return on the $300k. I can’t understand why you think that is a fair rate of return that will attract a “smart investor”.

ANZ offering a reduction of 25 basis points, effective 8th May

http://www.theaustralian.com.au/business/financial-services/anz-passes-on-full-rate-cut-to-home-loan-borrowers/story-fn91wd6x-1227337471075

Incorrect. I made no mention of bank involvement. Investors will sometimes do the loan by themselves. As I said, on loan where the investor is lending against a security asset (ie property) you would expect to pay a bare minimum of 1% per month, payable to the investor. This has nothing to do with a bank.

You may think it sounds steep but it…[Read more]

As Corey mentioned, securing a loan at the rate you are hoping for is unrealistic. Even with a secured loan where property is offered as security (which you are not offering), the absolute best you could hope for is more like 1% per month.

Not necessarily. In a complex of 60, you won’t be the only one with a newer kitchen. Also sometimes tenants prefer a lower priced rent even if it means a brown kitchen. In this regard some times it is harder to rent out shiny new things.

It depends on your local tenant market and what it wants.

You can never get out of paying solicitors…[Read more]

I agree with Terry.

As a general rule, I find that properties with the least management hassle are the properties with the least facilities provided. eg If there is no dishwasher, then the dishwasher can’t break. So no complaints requiring you to pay for repair of the dishwasher, or do dishwasher servicing. Same applies to internet. The likes of Telstra is…[Read more]