[leo777Participant@leo777Join Date: 2005Post Count: 23]

April 4, 2009 - 10:15 pm

ummester wrote:

Some ideas follow. Some could be prolonged but some are impossible to avoid in the short term. I will note those with an *

1 – FHOG boost gets taken away.
2 – Unemployment keeps increasing. *
3 – Immigration keeps decreasing. *
4 – Stock increases as BB leave work and sell both PPOR and investment property. *
5 – Negative gearing is reassessd.
6 – Bank lending criterior is tightened further. *

My personal opinion, FHOG won't be taken away. I think it's just going to be reduced.
The number of immigration also is still going to rise, because more people will come to Australia to get a better life.
The negative gearing also won't be reassessed. The reason for this is in the past they did this, and doesn't work, and they put this back to attract investor.

In conclusion, I think we have to think positive that the property market. In the long run, the price will rise. Just buy what we can afford.

[leo777Participant@leo777Join Date: 2005Post Count: 23]

April 4, 2009 - 10:02 pm

jaglions wrote:

We bought our house 16 months ago for $185,000 and have spent $40,000 renovating the property. The house has been valued by the real estate agents to sell around the $260,000 mark. We have just had the property revalued by St George for only $235,000 and rental appraisal of $225 per week.
I know I can sell the house tomorrow for $260,000 and rent of atleast $250 minimum. We live in Toowoomba- 1 and half hours west of Brisbane and the market here under $300,000 is HOT!!!!

Has anyone else noticed that property valuations are extremely under done at the moment?

The loan total is $215,000 and we are on a no deposit quick start loan- this enabled us to utilise the $7000 FHB grant when we bought the property. Could we get the property valued by another company and submit that to the bank? or do the brokers have any other suggestions?

This is also happened to me. My IP house should worth at least $275k. I try to refinance and the bank came up to me with only 245k. I asked my mortgage consultant, and he said that the bank want to be very safe (especially in recent situation). So they have a tendency to under-quote the valuation.

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 18, 2009 - 6:46 am

Hi,

I would like to know whether people have experience with
Tax Affair Pty Ltd in South Yarra.

If people can share their experience with this accountant, that would be much appreciated.

Thanks in advance.

Regards,
Leo

[leo777Participant@leo777Join Date: 2005Post Count: 23]

October 24, 2006 - 6:28 am

Dear kattan & juzza316

Thank you so much for your response. I think you are all correct about Tarneit. I would rather to invest somewhere else in melbourne…

My next destination probably would be “Monash area” on the south east area of melbourne, such as Mulgrave & Clayton.. Gonna look Bayswater and Boronia as well..

Once again, thank’s guys..

[leo777Participant@leo777Join Date: 2005Post Count: 23]

August 19, 2005 - 4:39 am

Hi,

I heard that when you just acquire the investment, in order to get fully tax-benefit, I need to wait for (say 4-6 months) to install a new fence.

The reason is any fence installation that is being done during the first 6 months is assumed (by ATO) as Capital Improvement, and is not tax-claimable.

Is this true ??

Thanks

[leo777Participant@leo777Join Date: 2005Post Count: 23]

August 19, 2005 - 4:34 am

Hi, commenting the answer from MobileMortgage.

Current property Value $200K
Current balance $135K

Equity available at 80% LVR = $160K less current balance of $135K = $25K available as a deposit on new IP.
Loan 1 with Lender XYZ, PPR used as security for this loan.
Split A $135K non deductible debt (PPR loan)
Split B $25K deductible debt (investment loan)

Loan 2 With ABC lender, IP used as security for this loan.
Purchase $200K
Loan Amount $175K (the remaining $25K is from loan 1 split

So now the Two loans would be:
Loan 1 $160K
Loan 2 $175K

With Loan 1 (with Lender XYZ), what does it mean by:
Split A $135K non deductible debt (PPR loan)
Split B $25K deductible debt (investment loan).

What does it mean by “non deductible debt” and “deductible debt” ?

So, with 25k is fully deductibe (so if my income is $40k p.a., I can claim back the whole 25k, thus my taxable income now is 15k ?)

And is there still any interest of the 25k loan fro Lender ABC ??

Thanks

[leo777Participant@leo777Join Date: 2005Post Count: 23]

August 17, 2005 - 4:30 am

I am a bit confused about the equity access to acquire a new IP now.

Based from the example from MyTrader:

MY PROPERTY:
purchase: 155K (PPOR)
loan: 139K (NAME of BANK = BANK A)
outstanding loan 135K
value of property now: 200K
Seeming Equity: 65K

So, say I get the property in 2000, with the price of 155k. The value now is 200k. The outstanding loan now has been decrease to 135k (I BORROW THE MONEY WITH BANK A). Thus, I have an equity of 65k.

I decided to buy a new IP for 250k, and I want to use my equity of 65k, so my loan for the IP property is 185k (I BORROW THE MONEY WITH BANK B)

My question is if I buy a new IP, using “equity access”. How much is my loan from BANK A now ? Is that:
a. still 135k or
b. has been increase to 200k (because I use the equity of 65k) ??

What about with BANK B now ?? How much money do I owe ?? Is that:
a. 185k
b. any other amount ?

Thank’s in advance

[leo777Participant@leo777Join Date: 2005Post Count: 23]

April 1, 2005 - 4:35 pm

Thank’s for the responds

I still don’t understand the concept of Interest Only. So, if we only pay the interest, it means at the end of the loan, will the property still belong to me ?? (since I only pay the interest).

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 9, 2005 - 4:36 pm

Dear MichaelYardney,

I live in Melbourne, can you advise me a good financial adviser or accountant that is dealing with the rental property and tax stuff ??

Thank’s.

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 9, 2005 - 3:53 pm

Dear Michael,

The link below doesn’t work:
http://www.heraldsun.news.com.au/co…55E2862,00.html

I really want to know about this information. Can I get the correct link ??

Thank’s in advance.

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 9, 2005 - 12:36 am

Regarding to the loan agreement, what kind of information should we provide ?? And who’s going to certify it ??

One more thing, how about the rental agreement, with his her relative ?? What sort of document that we need to declare to the tax officer for audit purposes ? And who’s going to certify it ??

Thank’s

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 8, 2005 - 3:53 pm

Dear Monopoly, Foundation, Mortgage Hunter, Bomandlouisa and anybody who read this topic.

I need to change my word here. It is not Capital Gains Tax. I understand that I need to sell the property to get into CGT.

What I mean here is “negative gearing”, the loss that I’ve made for my 1st property. For eg. I pay the mortgage $1000 per month, I only get $800 per month from my renting income. It means I made a loss of $200 per month. Can I still claim this loss for the period of April to June (see the 1st message above) in my 1st property ??

Thank’s for the information, guys. I’m really appreciate that.

[leo777Participant@leo777Join Date: 2005Post Count: 23]

March 5, 2005 - 2:14 am

Dear Lenny (Deep_Pocket),

Thank you for the info.
So, how about the renovation cost ? Can I still claim it as a tax deduction (provided I have a sufficient income to offset the loss) ?

The second point that I want to mention is: during august to november, the tax won’t recognise it as a loss (since the property is still vacant). And I am only be able to claim it as a capital loss when there is a new tenant coming (which is on December (based from my example above)). Is that what you mean ??

Once again, thank you for your advice.