Add to that low rental yield, stamp duty, rates, etc, low income (which greatly limits benefits of neg. gearing) and quite possibly low potential for capital growth…. property at this stage would not be a good idea for 12-18mth.

Go the ING acct. Shop around, most of the big banks…[Read more]

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Now, if you continued this way unchanged, for the full duration of the loan – say 25 years – would that mean your total loan repayments will have only been $150,000 – that is, the same as your initial purchase price because the tax dept. effectively paid your interest?

No. Your tax deduction will only be at most 47c for every dollar…[Read more]

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I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.

I hope none of them were friends… that’s a low thing to do.

I’d be pissed if I had a tennant that sub-letted… kind of negates the whole tennant screening process.

I would never want a loan term to go any longer than necessary. While you may be able to claim interest, it still costs you more than paying a loan off quicker.

A dollar as a deduction is at best 47c. A dollar saved is a dollar.

I do agree that it is not too dissimilar to loan sharking. To those that say they do it out of the goodness out of their hearts, I assume your wraps are purely non-profit? Or are profits…[Read more]

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Would anyone provide me the best strategy because I was told that the TAX office would give me a hugh tax bill when I change my PPOR.

The only way the ATO could give you a huge tax bill is if your PPOR-turned-IP produced a huge income.

You’ll only incur CGT (AFAIK) from the point in time when the PPOR becomes an IP, should you sell…[Read more]

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I’m not so sure why you feel “investors” should be penalised for setting up their own retirement fund ?? Or do you expect everyone to live on the joke that they call the old age pension ??

The major problem is that it heavily favours those with equity (ie. older people generally) who havce benifited heavily from the capital growth in the…[Read more]

I wouldn’t worry. With the massive growth in property values, average mortages are quite high, and v. high rates (ie. over 10%) would have the potential to drive…[Read more]

The difficulty is also the timing. A rate rise before xmas…[Read more]

Not everyone is intelligent/educated enough to know when they’re being conned. Not everyone realises there is no simple formula for success as some of these seminar gurus…[Read more]

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Also do you know the trick about the 55 day inteterest free credit cards and having it lincked to a LOC account?

What trick is that?

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Hi

This is an intro from tonight’s ch 9 news in Sydney…

“A radical plan is being proposed by the NSW State Government .. to HELP people buy their FIRST home.

The idea is to let potential homebuyers “unlock” their superannuation .. in order to get that massive deposit.”

Don’t the federal government control super legislation?…[Read more]

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It is not breaking any copyright laws to make a copy of something that you own! That is why CD burners, tape recorders, video recorders exist.

WRONG! It is copyright violation to make an unauthorised reproduction of *any* copyrighted material.

Like it or not, even copying a CD you own to tape to listen on a walkman is copyright…[Read more]

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I guess I’m just wondering what the problem is that people forsee. After all – if a property is +ve cashflow today (that is, rent coming in is greater than expenses going out), then it will still be +ve cashflow tomorrow.

Depends on how far rates go, and how close to -ve cashflow some peoples +ve cashflow IPs are. Rents eventually go up,…[Read more]

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lets look at the fundamentles good economy and growth since 98 to 2003 has only made up for a lack of growth in 1993 1996 averaged out growth has been steady since 1993 until 2003.Since jobs are secure im sure we all can pay our mortgages and avoid hype created by the media regarding henri kaye,lets face it he was always going to go down my…

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this is off the topic, but i also have to challenge kkowalsk with the idea you only make the killing when you sell.
if the assett has gone up in value then you have in effect made the money the value is added to your net worth so your net worth has gone up.
if i bought shares that went from $1 to 10cents i have to say i’ve lost this money…

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I don’t think it’s only a killing when you sell. I refinance to grab that equity for other investments, and can ‘effectively’ have just got a property for ‘free'[]

In theory, yes. However, whether that investment makes you any money or not is a different story. Certainly, many investors (and I use the term loosely) recently have misused…[Read more]

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kkowalsk I disagree. What if the market is over supplied?

It was your choice to invest in real estate, that is one of the risks you bear.

It’s not really any different than someone that moves into a flightpath, then complains about the noise.

The system is designed largely to protect the tennant, because from my own experience, the…[Read more]

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Well done on a great buy, $47,000 equity straight away fantastic[], and some negative people are talking doom and gloom and other are out there making a killing well done.

It’s only a killing *when* you sell

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They only have to give us the 21 days, but it’s a heck of a lot harder for us to get them out that quickly.

And with good reason… it’s typically harder (and takes longer) to find a new place to move into than it does for the landlord to find a tenant.

Whether you buy a house as your investment vehicle, or shares, the price is governed by what people are willing to pay.

If you make the mistake of hanging onto shares too long and they dip, you either wait it out (if they dip so low there’s no point selling or theres reason to think they’ll recover), or cut your…[Read more]

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b) Use Equity to start share portfolio and to fund financial education i.e. course in share trading and investing.

This is the one I’d go with. Simple reason, this is where the activity is and therefore growth.

Finding a +cashflow property will be tough now, and if you’re having to neg gear, you want to maximise your potential for…[Read more]

Given that almost every man and his dog with a large block is trying to subdivide and build townhouses etc nowadays, councils are not always keen to accept such proposals, or place major encumberances on…[Read more]

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“I worked hard at school, so I deserve to earn more money than some one who didn’t”

What a load of crap!

How so? The whole point of doing well in school is to give yourself options. One of those options is to be able to do a course that will lead to higher pay. The other option of course is not to go to uni, to get into a trade for examp…[Read more]

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Interesting!
Well Fudge111, as they say “It’s not how much you earn but how much you save!”

We are trying to close the gap between the rich and poor and make this country a more equal society. I agree that that’s how it should be and people are still rewarded for wise saving plans. (INTEREST). So save, save, save!!!

Realistically, saving…[Read more]

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The point I’m trying to make is that stereotypes of whatever section of society do not work. I don’t like lines being drawn in the sand that pretty much set an “us” and “them” theme to a debate (ie rich and poor)… The gap in the divide between rich and poor is getting bigger all the time in this country, but I’d like to think people still…

[Read more]

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hey, kkowalsk – “many at the really low end of the wage spectrum, any little extra goes into cigarettes/alcohol/gambling. Certainly, it’s a very generalistic statement, but probably not far off the mark for a broad cross-section of people of that socio-economic background.” – what section of the socio-economic landscape do you sit in to…

[Read more]

Those goods contribute little to the economy, but are nice little…[Read more]

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Hi fellow taxpayers,

What are your thoughts on an even simpler tax system?

Double the tax free threshold to $12,000 and pay a flat rate of tax after that amount regardless of personal income. No claimables, no rebates, income derivation is up to the individual.

I agree in principal, I’d rather have the option of hanging onto my money…[Read more]

IMO, if you’re not going after capital growth, but want the rental income, who cares what the market is doing? Shrewd property…[Read more]

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Well, i give in except to say that if people all struggle on 70k every person at the supermarket where i work must be bankrupt!!

And how can you explain Broz’s family, 5 kids and annual income 25,000, they manage it, so that is all i will say about that issue.

They manage it with a lot of help from the government. My dad used to have a…[Read more]

quote:I think the rich should just be happy they are well off and not be greedy

People in the top bracket aren’t rich!!!! $62k, if your wife is at home taking care of kids, and you’re paying a mortgage, is not much money at all.

The other thing you’ve neglected to consider is the very reason why you’re here (in this forum)… to find a means of…[Read more]

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You make some great points domdom, but i am going to stick with my theory.

EVERYONE gets their first $6000 tax free
EVERYONE gets their next $15600 at 17%
EVERYONE gets their next $30,400 at 30%
EVERYONE gets their next $12,500 at 42%

and therafter they are taxed at 47%, i mean, everyone gets a fair go, and 47% is high but it is still low…

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So seems to me the RBA is caught between upping rates to cool the housing sector but by doing so decreasing exports and so on. In short I dont think rates are likely to rise as you suggest –

One also has to consider that it isn’t the RBA’s concern what may be going on in specific sectors. As long as inflation stays in check, there should…[Read more]

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The average homeowner would screamn and the it would spell death to the Govt at the next election.
Also payclaims and inflation would go thru the roof.
No
unless something really really drastic happens then i think 8 – 8.5 would be max for 2-3 years.
any one comment on this.
any other thoughts?

I’m inclined to agree. I have read that…[Read more]

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Being a renter is actually a cheaper option financially. This way you can put your money into investment properties and get some tax advantages which you wouldn’t get if you were owner occupier

Short-term, yes. Long-term, no way (IMO). Look at the cost of housing relative to salary, it’s been going up steadily for many years. The longer…[Read more]

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2758

Some say *no* claims allowable at all if the PPOR is converted to an IP (as told to them by accountants), others say no problems at all. What is the story? Are *all* the same deductions allowable (ie. rental costs,…[Read more]