L.A Aussie wrote:
Good advice from Richard as usual.Just a small tip; I wouldn't refer to $100k income as 'modest' and 'we've only managed to save $90-100k'.There are many people who are not as well off as you and might take offense to that. You are actually in a very good financial position for your ages.

Ah; sorry folks; this should say "Good…[Read more]

Don't forget;I.P – Investment PropertyP.M – Property ManagerI.M.H.O – In MY Humble OpinionW.T.F – What The Fu*k?

I would be doing some of my own research on this. Don't rely on opinions either; look for the facts.- Look at the demographics of the area; who is moving in, who is moving out, is the population increasing?- Are there lots of younger people moving in and renovating existing homes – gentrification is a good sign for cap growth.- Are there any/many…[Read more]

You would probably do better by getting a job with one of the bigger development companies for a year or two to learn the ropes, then give it a go on your own.

You can pay any expense for your I.P's out of a line of credit.Repairs are a tax deductible expense for the current financial year, while expenses such as the finance costs and purchase costs I believe are depreciable over the 1st five years (check with accountant on that one – my memory is a bit dim).All the interest on the Line of Credit is tax…[Read more]

"I did have a laugh yesterday actually. I started to think about this thread after I called my local GP. they were closed and the after hrs call out fee if I wanted him to come here was $150. I then looked at my work phone and though funny if he wanted me to go to his house today it would cost him $300. Ah well, glad im just  tradesmen "Oh, for…[Read more]

Good advice from Richard as usual.Just a small tip; I wouldn't refer to $100k income as 'modest' and 'we've only managed to save $90-100k'.There are many people who are not as well off as you and might take offense to that. You are actually in a very good financial position for your ages.

Yes Paul,It's a pity there are not more tv shows which focus on the success stories of wraps. I guess there are no ratings in that.

Hey Bronte,if the travel time and distance isn't too far (less than 2 hours) then I would keep the property (especially if rentals are in short supply) and commit to no social life for the next 3 or 4 months and do the renos yourself on w'ends and days off.For the sake of about 30 or so days of work, you will produce an asset that will  make you…[Read more]

dwv wrote:
Hi everyone,I'm all newbie to this forum so please be gentle… I've been reading posts for several weeks now and this has lead me to decide on finally taking the plunge (well not yet, technically, as I can still back out).Let me give you a bit of a background… My friend and I migrated from the Philippines nearly 3 years ago and…[Read more]

I agree with Bardon,and further to that post, It wasn't  mentioned about the Depreciation you would get on the new house (maybe it was included in the "$110 per week to hold with negative gearing").If not; the Depreciation is on the building, and all the fixtures and fittings and is depreciated at you marginal tax rate. You would need to get…[Read more]

"Thank you LA AussieGolf a sport that destroys the environment, gets land for peanuts in 3rd world countries and redevelops it and flogs it off for a motza!"Sorry OnePlumber,I enjoy your posts, but you are totally off base there. Look at almost all land where golf courses are built and you will see mostly useless land that is not being used for…[Read more]

oneplumber wrote:
NEWSFLASH for Tradies:1 – Read E-Myth Contractor – Yellow pocket book about $20 bucks.2 – Understand the cheaper your service the more complaints you get. I worked in Property Management, in a Banks doing Home Loans and I learnt something valuable about price and service.The best outcome for a client to tradesman partnerhip is…[Read more]

Yes.We did that with our PPoR before we moved over here.We simply had an automatic opening mechanism to the existing door, with remotes.Cost was $495 and is tax deductible.Tenants are happy.

DraconisV wrote:
Thanks for your help Marc, greatly appreciated,Ok I have now crunched the those numbers, and re-crunched em. Here they are;Purchase price: $200,000Closing costs(6%): $12,000Deposit: $32,000Renovation costs added to loan: $20,000Loan amount: $200,000LVR 100LMI(2.5%): $5,000New Loan amount: $205,000Holding costs for 6 m…[Read more]

Is the property an I.P that needs to have other criteria that hasn't been mentioned, such as a certain rent return, land size etc, or is it a PPoR?The criteria you mentioned seems basic enough, and I am surprised you would need to engage a B.A at all based on that.I realise you are time poor, but at 2% of purchase price, isn't saving $10k worth…[Read more]

The reno costs can simply be part of the loan the Bank gives you, but the critical factor will be the LVR and the servicability of the loan.With the reno costs, plus the LMI, the interst bill goes up, which affects your servicability.Also; depreciation was mentioned somewhere (by Draconis I think). Any depreciation you claim over the period you…[Read more]

me wrote:
i am certain your a knob

Oh dear; need I say any more?

The problem is what you will ultimately make out of the deal for all the work you put in.After cap gains tax is factored in, it may be a very low hourly rate; maybe even less than your day job, and you have taken lots of rosk and sacrificed a lot of hours. If you are doing it more for the fun than the money (or a bit of both) then it's not hard to…[Read more]

oneplumber wrote:
L.A. Aussie – would you stay on the back foot if you were passionate about your profession?

Maybe not, but my profession doesn't have an image or public perception problem, and if/when I was made aware that there are a few areas that needed improvement I would accept that criticism and look to making improvements; not tell…[Read more]