Hi S.O.G,the only problem with the 4% properties between '85-87 is they are only depreciable for 25 years, which runs out in 2012. I see where you're heading now; I would park the cash in an ING account or something like that for sure, or leave it in the shares, and try to save like mad until I had the deposit required.The other argument is; can…[Read more]

vyaw2003 wrote:
so you are fully funded and retired? how old did you do that? what was your income and assets at the time? are you still growing or using all of what you have?

Hi vyaw2003,Retired – not yet. Financially free – yes. Employed right now – no and won't be until we return to Aus.I intend to buy/start another business using some…[Read more]

Agents rates are very negotiable, despite what they will try to tell you. They will try to stiff you with 3% or something like that.I have heard of 1% commission, but that's very optimistic. On a deal of that size, 2% is not unreasonable. That's $18k for doing virtually nothing.Make 'em an offer of $15k flat, with no commission below a certain…[Read more]

Hi Brad1m,If you sell you will have cap gains based on the following;The amount of tax you pay is determined by a) your marginal tax rate on your personal incomeb) whether you sell in less than 12 months (taxed on 100% of gain), or after 12 months of holding the property (taxed on 50% of gain).If so; the rough formula is:Sell price: $240k-buy…[Read more]

You're right dk,a. you do need to have a taxable income for Margaret's strategy to work, but at the end of the day if your property investing is successful and you end up with a surplus of funds which may be taxed then you have won the game – no work for positive passive income.Unfortunately, the stats show that most property investors only ever…[Read more]

Don't forget to also get a depreciation schedule done for the PPoR that has recently become an I.P. This will help substantially with the tax deductions and improve the cashflow – may even turn your tax bill into a refund.Cream on the cake.

Try looking in areas where no one is buying, then see if there is any potential for future growth and rent demand, employment possibilities and amenities, under-valued.When properties are selling before your eyes (and above asking price) there is a frenzy going on. People buy anything they can throw a cheque at. Stay away.With agents, the best…[Read more]

Blogs, where are you looking? You are probably looking in the areas that are possibly experiencing a resurgence; this is not where you want to be investing anyway. If the boom is fully blown as you say – you're too late and the houses are now over-valued for the area.What are the rent returns on these houses in question? is there any leg-room to…[Read more]

Hi rjm_22.First thing; can you tell us your name or a nick-name – your posting name is a nightmare to type after 3 chardys! What about just 22?Sorry to tell you this, but Steve's book with the 11 sec rule is all but a distant dream in Aus these days. You have to create the pos cashflow through adding value, subdividing etc. You can't simply buy it…[Read more]

The argument about what is better – shares or property, rages every day and has been covered here already, but I don't mind putting in my 2c worth.Historically when you look at average returns the share market wins. But not every factor is considered when the numbers are crunched. Leverage is the big difference between the two, and when this is…[Read more]

I'm hearin' ya vyaw2003!I've no doubt you'll be happier than most down by those waves. I got off the "try to impress" roundabout a while ago and became happy. Now it's all about going places, seeing the sites and drinking a good wine by the sunset.Sometimes I see the BMW's leaving the carpark at 7.00am and I know they're heading off to work to pay…[Read more]

The problem with answering this one is what is your lifestyle going to be like? Some people are quite happy on %30k per year, some can't get by on $100k.Why the hell would you want to know about Centrlink and Pensions and means testing??? Set your sights on the clouds my friend, and you may just hit the tree tops!As for pensions and govt…[Read more]

There is no doubt that the correction in Melb has been shorter and shallower than many thought it would be. It turns out that Melb is outperforming most of the other Cap Cities right now. Keep in mind though, that the Age and the Herald Sun are city/suburban papers and will concentrate on the "postcode" suburbs mostly – always have. it's more…[Read more]

If you use the redraw funds for investment purposes then yes the interest and fees will be tax deductible.There are a few ways to finance it;The basic way would be to use your redraw funds to cover the 20% deposit and purchase costs, and organise a separate loan for the 80% balance.Some loans will allow you to extend your existing loan and use…[Read more]

The only problem with buying land is there is no income, and therefore you cannot claim any of the holding costs as a tax deduction.When you say "motivated" do you mean someone who will accept a low offer? You don't know until you ask.To find a motivated seller, offer them a fair bit less than they want, but with a short settlement, and write a…[Read more]

You would need to restructure your loan so you can access the equity in it.There are several different products on the market that allow you to do this; you probably need to meet with a good mortgage broker to discuss your options. There are a few good ones on this forum if you don't know any.There is nothing wrong with pouring every available…[Read more]

It's the old cliche of buying the worst house in the best street and doing it up, which does work.Many people do this and end up with a very nice PPoR, but not necessarily any I.P's or other investments. Nothing wrong with that, but you can do far better by using the increased equity for deposits on I.P's than you can by doing up the PPoR, then…[Read more]

Maybe, but to me this is yet another of those useless stats they dream up to over-psycho-babble-analyse everything. If you are looking to a rent versus property price stat to help you decide whether to buy or not, you will go mad. There are so many variations on rental returns it is impossible to categorise every micro market into one category. A…[Read more]

There is no 10 year rule with this aspect of your investment.Houses built after 1987 (I can't remember the exact month and day in 1987 when it kicks in; so just call it "after" 1987) are eligible for a "special building write-off", as well as depreciation on the fixtures and fittings. Depreciation claims are "on paper" deductions, which cost you…[Read more]

Yeah; go easy; I'm only a two finger typist and I need to stop for alcohol regularly! Send me a few Alto55; happy to help if I can.Thanks kowntafit!