How many "loans" are to be set up to achieve this?  My preferred way would be "one small loan" (known as a second mortgage, I believe) against the equity of your home to cover deposit, stamp duty and legals.  Then a separate loan for the remaining portion of the property purchase.  This means that you'll be able to clear the smaller loan ea…[Read more]

Maybe you guys should open your own SMSF, buy a commercial property with it, and lease it to your wife's business.

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Remember to pop back in and let us know what you bought !Also remember once you have bought, get a Quantity Surveyor to do a depreciation schedule for you which you can then give to your accountant.  It will result in tax refunds for the next few years if you've bought something pretty new!

You know…. this year is not the only year left in your lifetime that you will be able to move residence and/or invest.  I agree with Angelina.  Sometimes you need to ponder whether you really want to add extra stress onto yourself.  An upgraded house or an extra investment property will be of no use to you if you kill yourself from stress.  Als…[Read more]

Hi ZaulSounds like you don't have much cash to pitch into your first deal… so try looking at towns that you can buy into relatively cheaply and quickly add value to beef up the value of your asset.  Then you'll be away.  For the purpose of the exercise, start looking at Blacktown, NSW.  For example, you could buy a house on a large block, add a…[Read more]

And here is my 10c worth… WHEN are they going to invent pvc slat venetians that present a different colour from the outside than the inside?  Generally from the inside, you want white.  Makes the place brighter and seem bigger.  But from the outside, you often want the light-coloured timber look.

Precisely what is your question?  Are you asking us if Blacktown is a good idea?  Or are you happy with your decision on Blacktown and just want our opinion on which property to go with?If you want my own personal opinion, I personally have a preference to buy property that I can, if necessary, drive to on short notice (eg after work if there is s…[Read more]

Go for the venetians with 50mm slats.  I think they look much nicer.  You could go timber or pvc.  Pvc are much cheaper and will not warp if they get wet.  So excellent for bathrooms and so forth.  Bunnings sells both, and you can install them yourself.

Personally I have an aversion to apartments.  Apartment means low land allocation – and it is the land that goes up in value – not the structure.  Personally I would steer well clear of the cbd.  Too much stock that is all same same.  Too much competition.  I view Carlton apartments in the same light.  Massive buildings full of student accom…[Read more]

ps, please tell me you intend to take out public liability insurance etc for this sole tradership?

At the very least, you'd be up for stamp duty – which is always payable when a property transfers to a new name.  It's about 5% of the property value, so it'll be about $20k. I think your logic of transferring it to your parents name for asset protection is weird.  They are then just going to leave the place to you in their will anyway.  Why do…[Read more]

In general it would be handy to know why the owners are selling, so you can find out if they are in a hurry to sell (eg have already bought their replacement house and need the cash), need to sell (little old lady needs cash to buy into a nursing home unit), hate the house and just want to be rid of it (divorce – don't want the memories associated…[Read more]

According to the VIC land tax rules, my earlier comment as per below is inaccurate:"Look at all the respective unimproved land values for the current financial year.  "It actually goes by calendar year. http://www.sro.vic.gov.au/sro/SROnav.nsf/LinkView/DF4424845447E2EDCA2575A1004453B6A6FAB6BE64979127CA2575A100441FA4Check other state revenue…[Read more]

I hear ya sister!  I'm surprised the police haven't turned up to arrest me for the verbal abuse I've been provoked into hurling at Telstra.  Don't worry about the not knowing about the offset account thing.  I didn't know either!  Took reading about 30 books and millions of forum threads for the penny to drop.  Damn, I wish I had originally put…[Read more]

ps it is quite possible the same chap that does the building inspection can note any obvious asbestos and its associated risks (often fine if left undisturbed), and to note anywhere it could be lurking that is not visible (eg hessian underlay beneath old carpet, under floor tiles / lino……)

Yes I mean building insurance.  It actually needs to be house and contents insurance of course…. with enough contents cover to insure not only your furniture, clothes, personal effects etc, but also things like the carpets and curtains.  They are contents, apparently… not part of the building.  Ask the insurance company to explain what th…[Read more]

Yes I mean building insurance.  It actually needs to be house and contents insurance of course…. with enough contents cover to insure not only your furniture, clothes, personal effects etc, but also things like the carpets and curtains.  They are contents, apparently… not part of the building.  Ask the insurance company to explain what th…[Read more]

If the prices of the unit versus the brand new townhouse are the same, and the rents are the same, the demand for them on the rental market is the same, and the locations are similar, absolutely go for the brand new townhouse.  It will not be subject to body corporate fees, and also you'll be able to claim depreciation your tax return

Why would you want to pay extra on an interest only loan?  Simply put any extra money in the offset account, which reduces the amount on which interest is paid, and therefore achieves the same thing.