And another thing to remember about negative gearing.  If you are negative gearing, it means you are making a LOSS.  A loss is a loss, doesn't matter which way you look at it.  It'd be much nicer to have a neutrally geared property, or positively if at all possible.  Loss – yuk. 

Think of it like this.  Let's say the loan is for $400k.  If you were on an interest only, you'd have to pay say, $554.61 in interest for week 1 (I've based it on an interest rate of approx 7.21% per annum (my rough calc is $400,000*0.0721/52 = $554.61).  Conversely, if you were on principal and interest, you would have to pay the interest plus ex…[Read more]

Remember – get a solicitor to look over the contract of sale for you.

Hi JoeHere is how it works:You can claim, as a deduction, costs of holding the property such as insurance, property management, gardening, etc etc.  You can also claim the INTEREST the bank charged you on your loan.  So.  If you take out a loan for say, $400k, the bank will require about $554 per week in interest from you.  Now.  Let's say your…[Read more]

IsabellaKilmore wrote:
Thank you JacM, http://www.outdoordesignershade.com.au/ solved my problem, i ask them as your suggested and they came to my home end of the last month and they made to measure our old window blinds. Now it looks cool. As you suggested JacM my venetian blind are now white colour from inside but outside is dark wooden…[Read more]

Just on the uni topic…Whether you like it or not, and whether the subject matter taught in courses at uni is relevant or not, quite often, having "a degree" is the required entry ticket to a lot of high-paying jobs.  High paying jobs means income which means servicability for lots of property loans.  It's kinda hard to get ahead in property w…[Read more]

Steer well clear of the Fairbairn Drive area.  You'll see why if you google it.  Seems to get a lot of shootings, break-ins and so on.  You want to attract a tenant that considers this kind of surrounding to be undesirable.  Attract a tenant that feels perfectly happy in such an environment and I'd imagine they wouldn't treat your property too wel…[Read more]

You would get paid more to work in McDonalds.  That says it all, I think.

You will not get a loan with zero income.  It's that simple.  It's a great deal for them – free staff and no commitment.  It's a crap deal for you. 

You're probably right Terry, you know your stuff!  I have to admit though, I'd be so annoyed about the principal of the thing, I'd try and find a way!!!! 

Cheers to that.Seriously I think people need to realise this:Property goes up on average 10% a year.  So on a low-end property worth say, $300k, it goes up $30k in one year, while you sit wondering if the boom will come soon.  Get in the market, and stay in it for many years, and you will make money.  Hedging your bets on jumping in and out re…[Read more]

I take it they've moved to a fancy new place?  Get your solicitor to slap a caveat on the house so they can never sell it without your involvement.  Damn I'd do such a thing, just out of spite, to teach them a lesson.  What has happened to integrity, jeez.

Thankyou heaps for sharing Kris !!!

Great post kris07!  Would you consider letting us know the reasons to steer clear of Radan and Sebastopol?  And of course the reasons why you'd recommend Soldiers Hill etc.  It's also be super handy to know what kind of demographic is attracted to each area?  (eg students tend to live in suburb X, nursing staff in suburb Y….)

Give this company a call and they'll tell you how much you'd be looking at getting back on a depreciation schedule; http://www.corpred.com.auAs a rough guide, someone once gave me an example that a house worth about $400k would have a tax writeoff of about $8k in the first year.  If you are in a  high  tax bracket, this could equate to a refund of ab…[Read more]

Give this mob a call.  They'll soon tell you whether it is worth the bother;  http://www.corpred.com.au

See if you can get a really long settlement!  That way you will not have to come up with the cash till later.  Wink wink.

One explanation as to why they've not developed is……If the property has been bought in a SMSF (self managed superannuation fund) you're not allowed to change the purpose of the property (eg subdivide, build, develop) while there is a debt in place.  So at best, all a SMSF could do is get "permission" to do such things, and onsell with the…[Read more]

Something that is important to remember is that you don't have to invest in the major cities if you don't want to.  It's not the only way to wealth creation.  Don't let anyone tell you any differently.  As you point out, if you can't afford to make up the difference between the rent and the mortgage, the plan ain't going to work anyway.I will ho…[Read more]

Great it's been helpful Finden.  Indeed the finance and structure side can be so much better for you financially if done "the best way".  Why not have the best – you've worked hard for your cash, you deserve to hang onto it.  Good luck!