Hi KSJA,

As has already been said, you're on a high LVR, so it would be best to batten down the hatches and squirrel money into that offset account for a while.  Build yourself a fortress of cash.  The more you have, the less impact bumps in the road can have. 

You'd want an absolute bare minimum of $65k sitting in that offset account before…[Read more]

Nothing like a bit of spam for a Wednesday morning

Local tradies and building inspectors are a great resource for this. The ones that have been around a while can identify a proprty’s age by the materials used, or the style of brick used in their local area. Sometimes they can recall when homes in a street were constructed. I had a building inspector reminisce about having been an apprentice on a…[Read more]

Not such a great idea unless you are planning to acquire negatively geared property

It would cost you a hell of a lot more than $600 to sue.  When you are buying property, it is a good idea to say to yourself "I understand I am buying second-hand property.  Something somewhere will be wrong with it.  I am happy to fix things to the tune of perhaps $2k.".  Keep your eyes peeled for "expensive issues" in the results of the building…[Read more]

As the others have explained, you cannot use SMSF money to pay off your mortgage.

I think the confusion you are experiencing is due to the terminology "beneficial interest".  I'll explain what it means.  I suspect you think that "YOU" are the beneficial interest and thus you get the rent.  This is not the case.

The "legal interest" is the entity…[Read more]

You need to be vary wary of vacancy rates in the Werribee / Tarneit / Hoppers Crossing areas.  There is plenty of property available for rent and sitting empty.

Hi AI

I'm going to assume that not only the building insurance but also the water bills are included in the body corporate fees – because the body corporate fee is very high.  The council rates are also very high (around $500-$600 is what I'd normally expect to see for council rates for a unit).

Remember you will still need landlord insurance,…[Read more]

Hi mattliasiian,

Jamie mentioned going with interest only with offset account, NOT principle and interest.  Instead of "paying off the loan" on a principle and interest, instead just lump all your spare cash in the offset.  In a way it is the same thing as paying off the loan, because the more money in the offset, the less interest you pay.  When…[Read more]

OK let's call your current bank BANK A.  Let's call a different bank BANK B.

Yes you could go to BANK A to release equity.

Or you could go to BANK B who might either take a second mortgage out against your house for the $180k, or alternatively BANK B might pay out the entire loan with BANK A and start the loan all over again. 

Be sure that you…[Read more]

Don't think of it as swallowing your pride Paul – think of it as making a smart decision to surround yourself with seriously clever people who know their stuff.  Leveraging their abilities will take you far

Haha!!  Happy New Year to you Uncle Freckle.

Paul, in all seriousness, Freckle is right.  Have one of the highly-regarded brokers from these forums take care of you.  The difference between having them steer your finances and trying to do it directly with the bank is like being a racehorse compared to a shetland pony.

I don't know … $800 doesn't sound like much of a profit to me

What name is the property held in?  If it's a SMSF you need to check you're not changing the nature of the dwelling while it is under a mortgage.

As per what Catalyst said, you are obligated to provide both heating and cooling.  But this doesn't mean it has to be that old heater.  So long as it is replaced with a suitable equivalent.  I am not a fan of heaters that are close to the ground as there is the risk of the tenant putting the clothing airer a bit to close to it when trying to dry…[Read more]

jfk_o wrote:
Hi Jacqui  –  Paul's question is about off the plan apartments in Brizzy, as to whether that is a good idea or not is not his question.

Hi Paul – a book called the of Australian Taxpayers Handbook is well worth picking up 

Hi jfk

Yep, well aware that is the question.  Can anyone answer it?  Maybe, maybe not.  What I do know is…[Read more]

Hi CanD

You don't need to be present in Australia for the mortgage process.  You do however have to sign mortgage documents, have them witnessed, and post them back to the lender.  So you do need to be somewhere sensible that can receive and send post in a reasonably efficient manner.

You also do not have to be "present" to purchase a property. …[Read more]

Hi Paul

I'd be wary of having tax minimization as a plan … better to look at whether the property stacks up by itself or not.  Tax breaks are a bonus – not the reason for buying.

You're probably going to need to speak to a financial advisor and/or accountant regarding what is best to do with your salary (ie put it into an offset account or…[Read more]

jfk_o wrote:
Buy unit – most tax effective plan next 10 years …

Based on what??

Hi Paul

It might be less confusing if you first define your end goal.  Then work out what needs to happen in order to achieve it.  For instance, if the end goal is to have enough assets to generate an annual income of $50k in today's terms, you then ask yourself "does this unit achieve that, with what is left of the rent after paying the bills…[Read more]