johnmina

johnmina

Thanks again
John

after much reading and looking through your example I think I understand.

basically
Rent – Cost – Depreciation = (taxable income)

then
(taxable income) – (depreciation) two wrong make a right
therefore
(taxable income) + depreciation = (profit)LOSS

So this is what you mean when you say depreciation isn’t coming out of my pocket.
Now do I…[Read more]

Thats much easier to understand so this will continue and when it does finally make a profit it will just reduce the accumulated net loss carried over from the years before. so even if it made a profit that year on paper it still looks like its just starting to break even due to the previous losses. Is this correct?
Now in…[Read more]

thank you
john

I understand what you mean by paying minimum and save the deposit. This has helped me realize that I…[Read more]

Well I know now that using an interest only loan with a 100% offset is best but is it worth lowering the the principal of the loan to ensure it is positively geared. Because if I put all the money in an offset account to reduce the interest therefore making it cash flow positive and then later on use the money in the offset…[Read more]

Thanks for that and thanks for the email again.
in regards to 2. so the best way to reduce debts in negatively geared property is making lump sums of cash from other properties ie selling, so besides the obvious are there any other ways I should know about?

Also with 3 as long as I a secondary loan is taken out the original loan is…[Read more]

Thanks for that Terry that clears some things up. I’m just waiting for my accountant to come back from holiday and I’ll be speaking to him in a lot more detail, till then I’m trying to learn as much as possible.

I have a few questions about the equity of a property and if anyone can help it would be greatly appreciated.
1 In a trust structure…[Read more]

I have taken your advice about doing more research about trust and I wanted to ask two of many questions.
1. After 80 years the trust must distribute all assets, so my question is what is the solution to keeping these assets to pass down them down to my children in the future?
2. If a property is negatively geared the losses stay in…[Read more]

So what do you recommend I do before my next purchase to set things up right? That is if there is anything else I should do.

Thank you
John

So would it be worth setting up the trust even if I only have one property at the moment or should I get a couple more under my belt before I set up a trust? Also how easy will it be later on to transfer property in my name to a family trust or a corporate trust?

I just want to be able to build a firm foundation by…[Read more]