I'm basically wanting to establish if your business has surplus money that could be used to service another property loan. 

OK so what do you expect the net position to be on your company's next tax return?  Pop down the true net figure and then a separate figure minus any depreciation deductions.

Hi there, how much surplus income is left in the business after it pays the bills on these villas, your wages and so on?  Basically what is the net position of the business at tax year end?  This will help us understand your ability to service further mortgages, whether it be through the business or outside of it.

Don't know… it's a piece of analysis I've not delved into before.  However you can force your own capital growth with renovation, thereby manufacturing immediate equity…

Hi Lukey

A good mortgage broker will be able to look at the numbers and determine what the bank would say, even before you submit an application.  That's one of the very nice things about brokers

I agree with what Jamie said… if you can hold onto them without causing yourself grief, that'd be the go.

Why not give Jamie a buzz and ask him to crunch the numbers for you.

Hi Terry,

Yep I knew all applications were recorded. In Mikko’s case I was wanting to highlight avoid getting an application rejected. I didn’t know about the credit card lumpsum payment thing though. Very interesting. Cheers for sharing!

No worries.  Remember that when you buy an investment property, you'll be needing a mortgage… and part of the mortgage application process is that the bank will look at your credit file.  A credit file is held on everyone, and things like credit card debt or faliure to pay a telephone bill will show up as "bad events" on your credit file. …[Read more]

ps I personally think you would be better off getting your financials in your own names in order before you embark on running your own super fund.  Those things need to be squeaky clean.  I have a self managed super fund and I feel great comfort in knowing that if my little super fund needed some cash, I could find that cash outside of super and…[Read more]

Hi Mikko

Any professionals you decide to recruit, be sure you are comfortable in their street cred, or because someone whose opinion you hold in high regard has referred you to them.  Beware of folks that lurk on forums adding no value by sharing knowledge, but trying to drag in your business (looking after themselves but nobody else). An example…[Read more]

No you do not need to scan your receipts and provide them to your accountant… unless he/she prefers to see them.  If you are getting the accountant to do a tax return & audit for a company or self managed super fund however, yes, you'll have to provide evidence of everything.

Terry has answered most of your questions superbly so I won't reiterate.

In terms of whether you should go for the higher yielding property or not is a decision for you.  Capital Growth can be anticipated based on past performance of similar assets, but not guaranteed.  In this regard, I prefer assets that are in sensible towns that will rise in…[Read more]

ps if you know you are going to convert it to a PPOR, probably I would opt to put as little deposit down as possible (eg 5%) and whack all the spare money in the offset account.  That way you can pull that offset account money out in a few years and buy your new PPOR with it.

Hi there,

Have you taken a look at what the demand is like in those areas for small units versus decent sized houses?  And what the rental yield would be?  These things are factors that will come into play also. 

Other thing to remember, you don't have to "pay off" an investment property.  Just cover the holding costs (interest only mortgage…[Read more]

Yes, though I think it would be necessary to search either by an individual property manager's name OR by agency.  Within an agency you can get one great manager amongst a bunch of crappy ones.  And then the great manager moves to a different agency.  You want to be able to track the performance of that individual, regardless of their movements…[Read more]

It's like any other suburb.  There are streets that are more desirable than others.  There are a lot of houses in commission areas and it takes a long time before all the owners of them get around to prettying up their houses.  You can only control how nice your house looks… not the rest of the street owned by other houses.  This is not to say…[Read more]

Hi Tambo

I do all my contact with my accountant via email and phone.  No need to go into his office.  In that regard, you can pick someone anywhere in Australia.  Pick someone good, not necessarily someone local.

Yes I presumed there was a bit more too it than met the eye.  Heritage listing hurdles.  Tiggar I have responded to your PM – I'll give you a call tomorrow and give you a hand with how to navigate your way through to the light at the end of the tunnel

Perhaps people are just a bit fed up with having been on standby for so long, waiting for the promised doom and gloom, that they got bored of waiting, and decided to get on with their lives.

Hi Tiggar

Feel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box.  Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction.  Remember to include a contact phone number in the PM if you would like to do that.