tigermiger wrote:
Any chance the article can be posted on here?

I'm not sure if it would breach some sort of copyright law if we posted it on here.  If you drop me a PM or email with your email address I will be happy to send you a copy.

And fair enough too Lallibella!

I had a particular tenant who asked if it was OK if he installed Foxtel at his own expense, and then didn't want to pay the normal annual rent increase to keep my expense coverage in line with CPI.  The response to the question of would I leave the rent as it was was a definite NO.  If you can afford Foxtel, why…[Read more]

Cotton On head office shifted to Geelong recently, so it's not just warehousing and distribution any more.  As luck would have it Uncle Freckle, I only just threw out the newspaper that had an article on this very topic.  I could have emailed it to you as a Christmas present!

Hi Gizzy,

Like any other place, businesses come and go, or adapt to a changing market-place.

There are more than 88,000 jobs in Geelong, spanning multiple industry sectors.  300 jobs is a drop in the ocean.  Simultaneously, other companies are moving into Geelong, creating more jobs.  One such example is the clothing giant "Cotton On" who…[Read more]

Hi Thomas

With a budget of 350k-400k, you would be talking apartment if in the CBD or really close to it, or a unit if on the fringe.  In order to get a townhouse you would need to be a few train stops fro the CBD, or further for a house.

Hi Harry,

Depreciation is an amount by which you are permitted to reduce your taxable income. Let’s say your salary is $80k and you have a $10k depreciation deduction. You do not get the whole $10k back from the taxman. Instead, your taxable income becomes $70k. Make sense?

If your salary was annoyingly just inside a particular bracket, and you…[Read more]

Hi rc388,

Be very careful how you get that equity released. You want to ensure maximum interest deductibility and that you do not cross-collateralized (ie offer both your home and the new IP as “security” for the one loan). You would be surprised how many people get it wrong. Consider using one of the knowledgeable brokers that have responded to…[Read more]

You are correct Catalyst – you don't have to stipulate why you are putting the rent up – but it is certainly the case in VIC that if the tenant so desires, they can take you to VCAT on the basis of rent rise that is not in line with market rent for similar dwellings in the area.

I would be very interested to hear if anyone has opted to put the rent up to cover excessive water consumption and been taken to VCAT (or equivalent) and had the rent rise over-ruled on the basis that the rent is above market rent in the area?

Hi Mat,

As has been mentioned, there is no minimum amount required in super before you can set up your own SMSF.  However if your SMSF aspires to acquire property, there isn't a great deal of sense in setting up the SMSF until the balance is $70k+, because it would otherwise be a little while before it could afford to buy the first…[Read more]

A big mistake is to pay off a property loan (as opposed to just pile spare money into an offset account).

As Terry said.  Bad idea paying off an investment loan.  A redraw is not the same as storing money in an offset account.  Withdrawing money from an offset account is just a withdrawl transaction.  However a redraw is a borrowing event.  In your case, borrowing money to buy a non-investment product ( a house for you to live in ) so the interest on…[Read more]

Generally you are required to store it for a period of time, and the tenant can make an appointment to get it back.  Have a chat to Consumer Affairs QLD to cover off your obligations.  They may show up and declare the stuff is all rubbish and permit you to get rid of it straight away.

If you purchased something for $400k and the rent was only $400 per week, the rent wouldn't be sufficient to cover the mortgage interest and the bills. 

Gross yield is annual rent as a percentage of property price.

Net yield is (annual rent minus bills) as a percentage of property price.

If you have to top up the mortgage yes, that is cashflow negative.

If there is surplus, yes, it is cashflow positive.

Hi Munmum5

Not all listings get advertised – some are sold "off the agency database".  In other words, agents will contact people they know that have a criteria that matches the property being listed.  Be aware that multiple people will be given the heads up on such properties – not just yourself.

Some listing agents don't care if other agents…[Read more]

If your dad sells the lots, there is of course Capital Gains Tax that will be payable on his gain.  Then whatever is leftover is eligible for gifting.

Hi Ryan – the title of the thread is "Property Spruikers" and post #1 goes on to name a particular individual. 

You won't be able to use borrowed money to do improvements on a property in a SMSF… so your SMSF would need to have additional funds sitting in a bank account to cover this.

Not quite accurate DaOne… there are some brokers (and a couple on these forums in fact) that hold additional qualifications (financial advisor/accountant/lawyer) and can therefore discsuss those very things.  These chaps are very valuable individuals indeed because they understand the whole picture.