Dean;First of all; you need to get a tan, buddy! Second, after you move out, I'll come and stay for a month free to help you get sorted out.But seriously –  you are in a very good position and it was very lucky for you to have met that lady when you did.I don't have a clue what a Euro is worth in Aus or US dollars, so I will call it a…[Read more]

If you need to sell it to finance the new purchase, and can't face the thought of a make-over, you could;a) hire tradesmen to do it for you and supervise the project.b) sell it as is for whatever it will fetch and walk away.My immediate thought was that you could turn it into an I.P and have it managed. Wipe your hands to a degree. The Property…[Read more]

Retiredone wrote:
Has anyone got investments in Moree? Is 12% return for the Moree area a good return (this is a block of 8 villas for sale)?I have spoken to the agent there and he said it wasn't in the worst part of town, but it wasn't in the best part of town either. The villas are half empty but that is because the owner hasn't put any time…[Read more]

There are two other ways you can have cash in reserve, and minimise your expenses and maximise your returns on the investments your parents left you:1. Structure the existing loans so that you have the $600k in an offset account against the loans. The offset means you have the cash available to use if you want, but while it is in the offset it…[Read more]

Thanks for all that!

If your loan is set up as an interest only loan with the ability to pay off pricipal as you want (most are) then you only pay interest on what you still owe of the principal.So, the answer to both questions is; 1. you pay interest on $105k,2. yes.

So how can they still keep posting?

If your property is negatively geared, which means that your rent doesn't cover all the expenses related to the property, then there is no tax to be paid, and in fact you should get a tax refund againsyt your personal income tax.Your accountant will work out the tax owing for you.Have you had a Depreciation Schedule prepared for the property? This…[Read more]

I had a quick look at that site Andrew, and of course; you can't use it unless you subscribe, but It seems to have all the info you will need. Certainly better than nothing at all, and way cheaper than your account by the looks of it.You will still need him (or another one) to do your tax returns though.Another thing to do is read all of Margaret…[Read more]

Tysonboss1 wrote:

shane.barry28876 wrote:
I think oil has been over rated lately – wind power is the way!

Wind will be a valuable part of the energy mix,…. But will never provide large scale base load power,Our best bet for this is Geothermal and Clean coal and possibly nuclear,….. But I think if there is going to be the predicted massive…[Read more]

If the areas you are looking at have gone up by 20% recently, then either they are booming now or have almost run out of steam.It's your call, but you might want to look at other areas that haven't boomed and are showing good signs that they might.The strategy that you are wanting to do can work in virtually any suburb, so don't limit your…

Well, guess the news Richard;He's at it again.The block didn't work.

bicky wrote:
hi  LA Aussie,to your reply back on april 19 -2007if you borrow $139k (for a $150k property)  @ 7.5% interest.how do you get  $10 per week positive cash flow, after tax, with rent at $170 per week.?considering a building depreciation claim (off set) of $3750.have you included holding costs and have i understood the depreciation cl…[Read more]

The upside is that in a rising market you may be able to onsell the property before settlement and make a profit without outlaying too much money.This is one of the sales pitches used by these companies, and they make it sound very good.But keep your eyes open;what if the market doesn't keep going up?Will you be able to onsell the property before…[Read more]

You can access up to around 90% of the value of the property which is $207,000, minus any outstanding loans ($115k).So, you could theoretically access $92k; depending on loan serviceability.However, in view of your current financial position, you wouldn't want to buy anything negatively geared just now.maybe an established and profitable business,…[Read more]

At the end of the day the tenant qualifying process is pretty much a waste of time.Here's proof;Property 1, tenant 1; Brand new townhouse, rent – $350 per week in a blue-chip suburb.Single, middle-aged nurse with 2 almost teenage boys in a townhouse complex of 4. Good income, past tenant history supplied; good payer. Tenancy database check is…[Read more]

nvme8 wrote:
Thanks Stumunro & L.A Aussie,The information you posted helps me to join the dots but I still have 1 question remaining.Tax deductions on redrawn interest. . . If I decide to draw down 50k from one of my IP's equity, can I still get a tax deduction on the additional interest that is attracted? If not my positive cash flow position…[Read more]

Stumunro wrote:
Does that count as a form of income Marc? Is there a need to pay tax on this draw down? Also  keeping in mind that any equity you draw against will incur extra interest so if you are using that strategy to get out of working then you would need to be in a better position then cashflow neutral ? Sorry if I'm confusing the…[Read more]

Unless there are checks and rules put in place to ensure the developer's do actually pass on the discount, then I reckon the developers will simply make $25k more per house.The other scenario will be similar to what happened with the FHOG; more people suddenly came into the market than there were previously, driving up the prices to cancel ou the…[Read more]

regina wrote:
I was very fortunate to buy into safety beach a few months ago and prices are continuing to increase.See my development post contribution.I have looked at Frankston but continue to be put off by the poor standard of the houses on offer.I t still gives me the impression of little wealth and/ or ability to maintain a home.Theres is…[Read more]