There is another consideration for these types of investments;you have one of many units which are virtually the same in a very big complex. Many are bought by investors, so there is stiff competition for renters and/or buyers if you decide to sell. There are also high management/maintenance fees as well with these places generally.The cap growth…[Read more]

There are two schools of thought on that:1. sell the property and take the cash profit and use this as deposits on more properties, thus minimising the debt. This improves the LVR (Loan to Value Ratio) and the cashflow, but the R.O.T (rate of return) drops with more cash used. The good news is that the more cash is used, the better the chances of…[Read more]

Yes, if you are in a position to buy and can buy below market then do it.

Hi IslandGirl,I've read all Margaret's books and have been a Destiny client for over 3 years. My investing is only done her way these days and it has worked well.I can't remember her ever slagging anyone off; she does always give you the heads up on the different strategies, dangers, benefits etc around.She is nothing but professional and has l…[Read more]

I agree; the problem with a lot of these companies that source properties is they find you one, but it may be in a place where getting tenants if one leaves may be very difficult, few or no local property managers etc.Do your own due diligence and do a thorough search on the areas they select for you before hand.This always makes me think that if…[Read more]

I've been a Destiny client for about 3.5 years now (in Melb). I cannot recommend them highly enough. They can be as hands on or off as you like and will hold your hand as you go if you need that.I am on the phone regularly with my guy in Melb simply to discuss the future and strategies, and even have him analyse the deals I find at times.They even…[Read more]

First of all, you would do better financially to keep on renting and use the new PPoR as an I.P forever!But of course, you don't want to do that, so to answer these questions;1. You only pay CGT on the period you use the PPoR as an I.P, if they move out within a year you can then give 1 months notice where you are and move into the new place.2.…[Read more]

There was a case in the courts a couple of years ago between the ATO and a guy who capitalised the interest on his investment loan while paying down the PPoR loan. I think the ATO denied his tax claim, he sued the ATO and it went to court. Correct me if I'm wrong if someone can remember this case.The ATO lost the case for the time being, but the…[Read more]

But if you never sell the house you never have to pay any CGT.Better to utilise the tax benefits and depreciation to improve the cashflow, pay down the debt with it, increase the equity and use the equity to fund more of same in my opinion.

Speak to your accountant.Is the property in your name, a company name, etc – these things affect the outcome.The sale of any income producing invetment that increases in value is subject to CGT.If it is your sole source of income, any profit from the cashflow will be taxable as well.The good news is that if you don't earn much income from the rent…[Read more]

I will have a stab at this, but please remember I'm no accountant and I am suggesting possible scenarios.1. If your Auntie does not earn any income in Australia, she cannot claim any tax deductions from the I.P. However, I think it may be retrospective; which means that if she returns to Aus within a certain time, the years she was absent from Aus…[Read more]

I am no accountant, and you will need to speak to one about this, but I'm fairly sure you cannot rent the t'house to yourself.If you have a company, you may be able to buy the t'house in your name and then rent it to your company, but as I said; talk to the accountant.

My belief is that no matter what the purpose of the loan is for; investment or personal; if you have excess funds available to pay down the debt then do it. It will improve your equity and cashflow.Of course, it is good to still be able to have access to the funds again in the vent of an emergency, or to re-use for more investing, so the type of…[Read more]

I read in one of Margaret Lomas' books about the pros and cons of fixed or variable, and her study revealed that at the end of the day the difference between the two was bugger-all. I think fixed interest was the narrow winner from memory.I guess the "sleep at night" factor comes into play with this one; it's good to know what your interest bill…[Read more]

1. get your personal finances in order; property investing requires a good degree of monetary skill and habits, disciplines, mindsets. Start treating your personal finances like a business and it will flow into your business dealings with you investing.2. reduce personal debt, learn to live on less and start saving more. The more cash you have…[Read more]

"There will be a rally in property in 2010 that will make 2003 look like a blip. But thats a whole other thread……"Crashy,I will be happy if you are 100% correct!

There's only two times when it is good to invest in property;1. during a boom; prices are going up, so the cap gain is instantaneous as long as you are ready to buy.2. during a slump; no-one is buying, prices are down, you can pick up bargains.Now is the time to pick up those bargains!!Of course, this is for 'buy and hold' to build long term…[Read more]

An answer in good faith;baspet, look at the similar properties in the area near your property, and also ask every property manager in the area as well to give you an estimate. Be careful with that one as they can sometimes over estimate the figure (experience).Better still to get the list of rentals available from each manager and select the ones…[Read more]

Also look at the size; it's hard to get finance on anything under 50sq/m.A simple calc to see what the likely cashflow might be (and allowing for worst-case scenario) is:1. deduct 20% of rent for holding costs such as 1 month vacancy per year, insurance, rates, body corp, maintenance, management etc.2. add 6% purchase costs to the purchase…[Read more]

How about  "Landlords' Friend Property Management".