If you're renting you may need to inform your landlord because the nature of the business may impact on their insurance policy.CheersJamie

Would be nice though – I'd be taking a few more holidays each year on behalf of my good friend VISA.CheersJamie

Hi smart cube

Welcome aboard.

You mention “saving on tax” a couple of times.

I think you need to change your mindset here.

Some of the tax benefits associated with property investing a great – but investing in property primary to reduce your tax bill is flawed because it involves losing money to get back a litte bit.

In terms of the type of…[Read more]

Hi Rick

Congrats on the purchase.

Some banks wont allow an internal refi for a number of months while some might look at it straight away. It depends on the lenders policy.

Cheers

Jamie

Hi WCGood result – just goes to show that persistence can pay off.CheersJamie

thebigo wrote:

nguli wrote:
Your deductions will be any income made from the property minus any expenses like loan repayments. If you expenses are more then your income then this is negative gearing and reduces your taxable income. Shoot Jamie an email and he will help you out. Doesn't matter where you live. I made the mistake of not…[Read more]

Is your accountant able to provide credit advice? Based on your goal, I'd look to spread that $160k over as many deposits as possible and probably consider 90% LVR loans early on.Neutral/positive geared properties will help prevent you hitting a serviceability wall early on.It's important that your finances are structured correctly from the start…[Read more]

Nathans' spot on.You don't want to pay down future deductible debt.Have a read of this article I wrote for API magazine on the subject.CheersJamie

I've had 5 schedules done up and have used a few different companies.Personally I wouldn't stress too much about the immediate saving and rather focus on getting a good QS onto the job. CheersJamie

No wasn't BMT – I can't remember who it was, would need to check. Possibly corpred.$2k deduction – which is still a greater saving than $500 (and that's only one year of deductions – it will continue for a little while yet).Why don't you use one of the online depreciation calcs to get an idea of what you can claim.CheersJamie

Depends on your individual risk profile, investing strategy and serviceability.What are you aiming to acheive out of property investing? Do you have some sort of plan in place?CheersJamie

Besser blocks are quite cheap and sturdy. You can render and paint – I've done it and it looks good.CheersJamie

propertyboy wrote:
What about for a property that is older than 40 years old? Where effectively I can only depreciate the renovations?

I claimed over $2k on a 40 year old property last FY….report cost me $500.CheersJamie

I've never seen a depreciation schedule that hasn't paid for itself within the first year or two – even on older properties. CheersJamie

Markyinvest wrote:
thanks Richard, I am looking to stay with the one lender but someone who is generally cheaper. Perhaps im a little naive but a friend said that they are with NAB and find that they have been cheaper than the majors?

No – it's a general statement.It all depends on the total borrowings, LVR, what you (or your broker) are able…[Read more]

Like Richard said  – there's too many unanswered questions to provide an accurate response. It might be worthwhile contacting a decent broker to explore your options.CheersJamie

Well done guys! I'll have to check it out.CheersJamie

Terryw wrote:
Avoid cross securitising at all costs. It is not necessary and can be avoided.

Agreed – it's a nightmare.If the bank will do the deal via cross coll – than there's no reason why it can't be done as stand alone. It requires a bit of extra work – but it's worth it in the long run.CheersJamie

Hi MarkFixed rates are good for those that need certainty in their repayments – from that perspective, they can be great for budgeting.On the flipside, fixed rate loans are usually inflexible. There aren't many that allow for a 100% offset to be attached and if you need to exit the loan during the fixed period you'll probably be hit up for large…[Read more]

Hi MarkWelcome aboard.Is there anything specifically wrong with your CBA loan apart from the rate?If it's the cheapest rate that you're after, you'll find the cheapest rates provided by online companies. Having said that – cheap doesn't (and rarely) equates to best and the company with the cheapest rate can become quite expensive in a short period…[Read more]