Not usually.

Cheers

Jamie

No worries at all – they're a friendly bunch as well.

Cheers

Jamie

Hi Katee

Speak with a good accountant about your options and seek some professional advice. It needs to be an accountant that has a good understanding of IP related matters.

Where are you based? 

Cheers

Jamie

Now my weekends over – thanks Scott.

RIP Jasper.

Cheers

Jamie

Shouldn't be an issue. Just choose one – and sign the one lot of paper work.

Might be an idea to not withdraw the other application from the other lender just yet (just in case). Their approval should be valid for 90 days.

Cheers

Jamie

Hi Mel

There's always going to be a motive behind seminars – it's not necessarily a bad thing, but it's a reality.

If you're looking to touch base with other investors in your area, I know there's a regular get together in Melb that's broadcasted on the somersoft forum.

Cheers

Jamie

In that case – I wouldn't worry about whether it's CF + or CF – 

I'd be more concerned about it being vacant for so long!

Is the asking price in line with similar rentals on the market? 

What's the PM's feedback been?

Cheers

Jamie

Scott No Mates wrote:
But if the only two real beneficiaries are Mrs & Mr No Mates who are both in the top tax bracket how do I save tax? It's fine when there are other beneficiaries (ie low income earners over the age of 18) but what if there aren't)?

Trusts aren't exempt from land tax from $1 (generally)

It costs $ to have the books…[Read more]

A discretionary (family) trust will allow you disperse funds to the beneficiaries at your discretion.

Therefore, it makes sense to distribute profit to the beneficiaries who earn less – hence the tax benefit.

A trust won't help with serviceability.

Cheers

Jamie

Freckle wrote:
AP is a mapping problem. No map!!

The term doesn't define the problem because paralysis isn't the issue rather a continuing effort to either analyse or a fear of acting because you have no template that tells you when you have completed the analysis.

People get stuck with AP because they have a haphazard ad hoc approach to…[Read more]

It's probably prudent to include a couple of weeks without rent….and also a weeks rent letting fee to the PM.

Cheers

Jamie

Shell H wrote:

Oh & no Terry I am not an engineer or IT worker?  do they tend to over analyse?

Yep, it's often a trait.

Sounds like you've got the knowledge – now you just need to act on it…..it will get easier after the first purchase

Cheers

Jamie

JacM wrote:
Sometimes people are so deadset on finding "the best deal" available that they cannot commit to any deal for fear that a better one will come along tomorrow.  All the while property values go up and opportunities are missed.

Spot on – that's the main cause of it.

It's impossible to find the "best" IP or the best PPOR – there are…[Read more]

adam.p wrote:
Thanks for the comment. I now understand. 

Basically there is no way to increase current loan and claim tax deductible on full new loan amount. The tax deductible part pretty much stuck with existing loan amount.

Correct.

For instance – you have a $500k PPOR and you've paid $400k off……loan is now down to $100k.

You then…[Read more]

Yep, looks like it – but when you add back depreciation it will probably tip into positive territory.

Cheers

Jamie

There's a few ways to think about it.

Firstly, all that knowledge is worthless if you don't act on it.

Secondly, if you've determined that property investing is right for you and you believe that you'll generate wealth from it over time, then there's an opportunity cost involved when you don't do anything.

Cheers

Jamie

N@than wrote:
Hi Cha,

If you had interest only on your PPOR with an offset account than you would be able to avoid the situation you have found yourself in now (as discussed on another post), and you would be able to claim the full amount on your current PPOR when you move out and turn it into an IP, because you are not re-borrowing any money…[Read more]

Hi there

I'd also factor in a budget for maintenance.

You've also got depreciation to include as well.

Interest on $212k @ 5.7% should be $12,084

Did you use borrowed funds to cover the deposit/costs? If so, the interest on that loan should also be included in your sums.

Cheers

Jamie

Tax deductibility is determined by purpose.

You're redrawing $200k for a PPOR purchase – this isn't a deductible expense.

This is why your loan should have been set up as IO with an offset from the start.

cheers

Jamie

In the example above, you could only claim interest on the remaining $50k balance when that property becomes an IP.

Cheers

Jamie