Thanks Julie.

We’re in Brisbane so the zoning codes may be different. The block is zoned Res A, which doesn’t mean a whole lot to me. I will ring up Bris Council and ask for a town planner. There are other townhouses in similar locations on the same street, though the blocks are slightly larger. The block is larger than the 1200 i mentioned as it…[Read more]

Thanks Julie.

We’re in Brisbane so the zoning codes may be different. The block is zoned Res A, which doesn’t mean a whole lot to me. I will ring up Bris Council and ask for a town planner. There are other townhouses in similar locations on the same street, though the blocks are slightly larger. The block is larger than the 1200 i mentioned as it…[Read more]

I’d see what it looks like on your figures. Though I would be aiming for 18 months.

Given the current rental market I’m curious as to why the 3 x 1 year lease, rather than 6 x 6 month to account for the rising rental investment market. 2 small rises in rent over 12 months is more manageble for a tenant that 1 big one after 12 months, and you have…[Read more]

LW – If you could track down the number for your floor polisher it would be much appreciated.

I’m also trying to find a good painter to paint the outside of the house. The paint is in poor condition and needs to be stripped and redone, though i’d prefer to get someone else to do that than try it myself as a newbie.

I’m also keen to find any good…[Read more]

Thanks LW. I might estimate $30 per m2 into the budget.

Thanks for the suggestions guys.

I subscribed to the email list just to see what’s going and for ideas. I did notice a couple of places advertised that I was already aware of myself. One was a unit on the Gold Coast which had advertised large rental returns, though from my figures was based on the potential holiday letting of the unit with a very high occupancy rate, which just…[Read more]

Put it towards the deposit.

Hi,

We were in a similar position; buying our PPOR in Nov 04 though for slightly less and a slighly smaller loan, we have similar savings, though in shares, and a similar joint salary. We are now also looking for our first IP.

The best advice I can give that has made all the difference for us, is pay as much as you can on your homeloan and,…[Read more]

Hi Tanya,

What state is the property?

You can list it on owner.com.au and sell it privately. I would only do this if you are confident in your sales skills as the money you might save not paying a REA may be lost in not getting as much exposure to the market and getting less for it.

Thanks Richard. I will see what I can find out but it doesn’t sound hopeful.

Well that rules that out. But what is the situation with me going directly to a broker or bank who is based in the UK? Or is it the standard situation with income being in the same currency?

Thanks.

You indicated “(not legal)” which tells me you’d need to do something ‘under the table’ to get the $690 total rent.

Is this one near Brisbane? If so, you’ll find that its leased against Brisbane City Council tenancy laws, which causes insurance issues and other problems.

Great achievement DLPP. We have similar goals re trying to get away from the rat race and are on the hunt for our first IP.

What state was the recent purchase and is it near a capital city or developing town?

Hi Hotshot,

I too have considered looking at the investors club to source property but there are a few things to keep in mind. I haven’t got any first hand experience, only some factual information I’ve been able to gather.

My concern is that they are a club that has a private enterprise at its core. A business which has relationships with…[Read more]

Thanks trajik. That makes sense. The only issue with that is the (200%?) FBT I would get reported at the EOFY. I assume that would then increase the impact on my Medicare levy (haven’t got health insurance for myself only my wife at this stage. Though the plan is to do it June next year.)

Thanks Celeste,

It’s more clear with both your and Bo’s explanation.

I guess my next question is, how do you incorporate stamp duty and other purchasing costs into the equation. Is there a tax benefit on them for the first year or no benefit at all?

I see. So to work out the tax I’d get back, I need to subtract the new tax on $68 199 ($16,943.58 tax) from the original $75000 ($17,850 tax) and I get $906.42 tax back?

I used the ATO basic calc and it said that Tax on $75000 would be $19800? Therefore $2856.42 return.

Thanks for all your help.

Thanks Bo,

So does that mean I can claim back 30% of 50% of the $13602 for my wife, and 42% of 50% of $13602? Alternatively 42% if it was entirely in my name and therefore get back $5712.84?

Sorry for all the questions. I just need to be sure that we can actually afford an IP.

Thanks Simon,

So if my income is $75,000 for the year and my wife’s is $30,000 and our investment property was negatively geared, earning $15072 and interest on the loan was $25374, and costs on the IP was $3300; how do I calculate what can we claim back? All the income minus all the costs, then work out the tax paid, and subtract tax owed?

I’ve…[Read more]