NikNakPadyWack wrote:
Your last paragraph sounds like it’s gold…and i wish I fully understood what it meant. I will look closely at your suggestion and start to learn more about this exciting prospect.

Yep, it is

Borrowing for the deposit means the funds are deductible (whereas the cash in your offset wouldn’t be). This method also avoids…[Read more]

Hi Padywack

Without any non-deductible debt I think your current IO with an offset structure is fine. If you do have any consumer debt – car loans, credit cards, personal loans, etc than I’d redirect your surplus cash to paying those off first.

Cheers

Jamie

Hi Elisey

Where is it advertised? Is it being professionally managed? If so, what feedback have you received from the PM?

Cheers

Jamie

PaulDobson wrote:
Hi AnthonyGreat advice.  If I was asked to add one more I'd suggest you be very wary of making an investment decision based on the tax benefit you'll receive.Cheers,  Paul

Totally agree. We hear it so often – but the fact is, no investment strategy should be based primarily on receiving taxation benefits.

Good point Paul a…[Read more]

Hi Saqib

Whilst not directly related to the question, the fact that your borrowing capacity is limited to $180k suggests (if you’re a PAYG earner) that things are a little tight in terms of income. For that reason, I’d carefully look at how much you’re willing to put into the deal – $80k is a lot of savings, perhaps putting up a smaller deposit…[Read more]

Things are a little flat in Canberra at the moment and there are certainly some good opportunities for those looking to buy. I don’t believe it’s been a dramatic shift though and we do need to remember that we had a massive spurt of growth in 2009/10 so this flattening out can be expected.

Cheers

Jamie

Hi imaginery number

We used bunnings to carpet an entire 3 bedroom property. All up it was $2,700 – including installation. It looks pretty decent as well – there’s some pics on the reno here http://www.facebook.com/media/set/?set=a.205513116151125.43824.127826280586476 (although it’s a little difficult to see the carpet in the pics).

Ebay is…[Read more]

The major issue with providing your own information is that you may not be able to identify every depreciable item like a QS would. For that reason, a physical inspection from a qualified QS could possibly generate a better report. It costs more up-front but you might be able to claim more long-term.

Cheers

Jamie

Absolutely agree, if you can afford to have an IP, you can afford to have insurance. Now I just sound like a nag

Cheers

Jamie

startxing wrote:
Having need to put in 10% deposit for offplan projects

Hi startxing

It’s too late now but deposit bonds are generally a cheaper option. The calculators on the deposit access and deposit power website quote how much it would cost.

Cheers

Jamie

ccpat wrote:
Hi I have been reading the forums for the last few months now and have found them very helpfulMy husband and I are looking at buying an IP in Logan Central QLD and are quite amazed how much the prices have dropped and how quickly offers are accepted, to the point that I fear we are missing something. Can anyone explain whether it…[Read more]

Hi Diluca

I think your idea has merit.

Have you considered basing your fee on the overall cost of the project (on a percentage basis)? i.e you take 10% of the project costs (so if the job costs $50k you charge $5k).

The reason I ask is because you may be able to negotiate discounts greater than 10% with your providers – that way, your clients…[Read more]

Hi Yabbi

I would take them out. I doubt it adds that much to the premium and it’s a huge peace of mind to have.

Cheers

Jamie

Good luck! Sometimes you’ll see packaged deals where there’s a heap of IP books. A few years ago I picked up 6 or so books for about $20.

Cheers

Jamie

Hi Leehom

I’ve yet to see a depreciation schedule that hasn’t paid for itself in the first year. 13 years old isn’t that old – I’d assume you could still depreciate quite a bit. There are also free online calculators – try the one on the corpred website.

Cheers

Jamie

debbiemc wrote:
And thank you for the recommendation of the book, I'll certainly put that on my shopping list.

Put the $20 into an offset account and borrow the book for free from the library Just joking, you can’t put a dollar figure on the knowledge that the book provides.

Here’s a link to it on ebay if that helps -…[Read more]

Scott No Mates wrote:
why is your $million property returning only 2.4%? Speak to your property manager to get a rent increase. Does it need some minor maintainence to achieve the rent review?

That does seem quite low. We have a $450k IP in Canberra that’s achieving better rent than that.

Also, keep in mind, an increase in the rent will…[Read more]

Thanks Andy, we try to keep it interesting and relevant for property investors.

Cheers

Jamie

Thanks for sharing Andy, it’s a great read. Do you mind if I share it on our our Facebook page?

Cheers

Jamie

Agree with Solomon – it can add quite a bit of value. We’re getting our latest property rendered in a couple of weeks time – I’m confident it will add a fair bit of value.

Ours is being done by a friend so can’t really comment on how much it should cost.

Cheers

Jamie