Fair point;
I just wanted to make sure you were attending these seminars with both eyes open. I don’t want to see you get burnt.

Cheers,
Marc.
erardent@hotmail.com

Yes.
If you hold an I.P for less than 12 months then sell, you are liable for cgt on 100% of the profit.
If you hold an I.P for more than 12 months then sell, you are liable for cgt on 50% of the profit.
Any depreciation claimed during the time you hold it is added back on to the total as well, but all the purchase and selling costs are deducted…[Read more]

Originally posted by brendon11:
contract was signed and everything was in order for the settlement date, which is today.
I had a call from my agent who said the buyer got in touch with him, and wants to move the settlement date back to Jan 10.
Not much I can do but wait until then.
Still, its sounds a bit more positive than it was a few days…[Read more]

I think what they are referring to is ‘salary packaging’.
This exists in the health industry (my wife is a nurse) and other govt industries as well.
You are allowed to have a certain amount of your wage deducted before tax is applied, so you only pay tax on part of your wage.
The deducted funds are then paid towards loans, or utilities such as…[Read more]

“Hi guys,

Everyone recently has been talking about interest only loans for property… If I was adopting a “buy and hold” strategy what is the advantage of buying a property with an interest only loan and that is still negatively geared?

I ask because if the property is negatively geared (which it most likely will be) than you are totally…[Read more]

Just tell the accountant when you first advertised the unit for rent. This is the point when all your expenses become deductable. He/she may want to discuss the next two points below as well:-

You don’t need to inform the bank, but if you plan on doing it long term it may be advisable to convert the loan to interest only, in which case a…[Read more]

There was an article in Property Investor about this a year or so ago.
From memory the news from that article was that the industry was going through a boom, so the future danger was that the market could become over-saturated and the returns might drop away because of this.
The upside was that the returns can be good, with little management,…[Read more]

Loan Mortgage Insurance is insurance that the bank takes out to protect THEM in the event of a loan default. This should tell you that the bank thinks your debt level is probably too high for their comfort – they think it is at a high level of risk.
All banks have their own policy on what they will lend without LMI and it is usually around the 80%…[Read more]

would the real Richard Taylor please stand up?

Cheers,
Marc.
erardent@hotmail.com

Hi Sam,
many property managers ask for a copy of the insurance on your property when they take on the management (mine do anyway).
They usually request a pub/liab worth $20 million, and I use this amount as standard on my properties.
You can go for less, but the cost difference is not all that much and is tax deductable.
I also do my Landlord’s…[Read more]

I live in Dromana (have been in L.A for 15 months) on the other side of the bay from Point Cook, but one of my mates used to live there.
The area is in the growth corridor between the city and Geelong; a satellite city about 1 hour from Melb. A lot of people live in Geelong and commute to Melb. Point Cook is on the way.
Point Cook I reckon will be…[Read more]

I don’t know the answer to how you combat ‘listing buying’. It is endemic in the industry – it’s very difficult to get a listing without doing it unfortunately. Having said that, I know some very successful (and truthful) agents. It took a long time and lots of hard times, but the people in their neighborhood know and respect them and they get the…[Read more]

You tend to get what you pay for.
With I.P loans, the interest rate is not the main concern as it is tax deductable, as are a lot of the set-up costs, so a lot of the cost is diminished.
What is very important is getting the right loan to allow you to continue borrowing in the future, and using a lender who is investor friendly.
This may cost a…[Read more]

You could treat the property as your PPoR from settlement day and not claim any costs etc as tax deductions, then you will never be liable for cgt as this is only charged on income producing assets.
This also means you would probably have to pay tax on the rent, or not declare it – not a good idea.

If you plan to keep this property for a long…[Read more]

Originally posted by Sargeant:
I am a licenced Real Estate Agent in South East Qld Brisbane.
To improve my service I thought I would ask you all as you all have had dealing with Real Estate agents as to what skills and qualites do you and don’t you desire in your Real Estate agents.

You help will be appreciate [thumbsupanim]

Thanks

Aslam…[Read more]

I am not qualified to give advice, but I have some experience in this area.
I am in this situation at the moment. We have our PPoR in Australia rented out while we are in the U.S.A for 2.5 years. We never intended to use our house for this purpose when we bought it in 2000. There is no mortgage on it – only utilities, insurance, rates,…[Read more]

Originally posted by wiseinvest:
Dear

I have been advised by a so called financial advisor who has lost me millions since I took his advice. Does that answer your question. dynacash@amnet.net.au

NB New email address.

I don’t understand this – if you had millions to lose, you must have done something right to begin with?
Why start taking…[Read more]

If this is your first I.P I wouldn’t be too concerned about buying a more expensive property. You can do that on the next one!
$200k is certainly enough to buy an I.P in many parts of Australia. You just need to re-adjust your idea of what you want to buy. Besides, cheaper properties quite often provide better rent returns which will help your…[Read more]

Look on the Neil Jenman site for tips, stories and there are 2 books called:
“18 worst mistakes made by homesellers” and
“don’t sign anything”.

There is also a contract you can download to use with your selling agent to protect yourself from their little games.
I have used it several times – agents don’t like it, but they sign it.
Also
I am an…[Read more]

I’m with bruham on this one condog.
I have never bought a services apartment, as I heard a while ago that you are at the mercy of the management company who have the management rights.
They can go broke or sell the management rights to someone else which can greatly affect your rent return.
Also, the outgoings on these investments can be quite…[Read more]