Why not consider putting down a 10% deposit? You have the deposit as your gift, and can you still get a $7k FHOG or has that expired?Cheers,Luke

Learnings wrote:
Add in GF's 35kpa as guarentor to loan – not ideal

One thing you need to remember is that banks are not allowed to have a serviceability guarantor anymore (since the new NCCP rules I think). So to use her income for serviceability you will have to have the loan and the new property in joint names.Cheers,Luke

Hi Rick- Just wondering who you were going through to get finance for your USA properties? I would expect to pay approx 5-8% interest so am struggling to see how you wouldn't be better off financing 3 properties with a 15-20% net return compared to paying cash for one?Interested to see how you went about getting finance, who through, and what…[Read more]

Hi TH. Managing US property from a distance is the big concern for me as well. I am in the process of completing a small development in Sydney and once that is finished I hope to jet off to the USA and start my foray into property over there.I plan to talk to as many people as I can who are investing the the areas I want to get into. This will…[Read more]

And I forgot to add- if your tenant falls down your non BCA compliant stairs and injures themselves and sues you, your insurance would probably not cover the liability so you would may up for a few million dollars in compensation. I would definitely go with a compliant stair however I can not for the life of me justify a builder charging double…[Read more]

Trev wrote:
There can be no more than 18 risers in a flight of stairs (i.e. in a set of risers not interrupted by a landing or floor).  Does your existing staircase have more than 18 risers in an uninterrupted flight?  I don't think you have any choice but to comply with current BCA requirements in building a new set of stairs.  The builders wo…[Read more]

Get a copy of the BCA and research yourself. Or ask the people who are quoting for a BCA compliant stair what makes it compliant. I think I can shoot you a copy of the BCA if you pm me.

I would say pay Interest only on yor investment property forever. After the 5 yrs interest only period has expired, get another 5 yrs (or 10 yrs is better) interest only period established. If you bank wont extend the interest only period, switch to a lender who will.Cheers,Luke

Good point Richard, I didn't pick up that the loan was CBA.

You won't lose the tax deductions, they will just be deferred to be offset against future income when the property eventually becomes cash flow positive. So I believe you will still be better off using borrowed funds to pay for 100% of property costs plus all of the buying costs. If I were you, I would leave all of the cash in an offset account…[Read more]

Agree Euro, good post.

I agree with Dan. It sounds like it is a property located in a great growth area. Property in this part of Sydney is very hard to come by- no one is making any more land here so I can only see prices continuing to rise. If  were you I would keep the property as it is an asset that is performing very well.

Nice link Dan. It actually says refrigerator in the list of items that need to be depreciated over a number of years!!

luke86 wrote:
No problems about not having a record of the original cost- if you know the approximate ago, size etc you (or your accountant) can make a reasonable approximation of the value and base the deductions on that.Cheers,Luke

Sorry about the typo- I meant if you know the approximate age, not approximate ago.Serves me right for not proof…[Read more]

No problems about not having a record of the original cost- if you know the approximate ago, size etc you (or your accountant) can make a reasonable approximation of the value and base the deductions on that.Cheers,Luke

The best advice anyone could give you (in my opinion) is do not invest for tax reasons. You invest to try to gain financial freedom, or for greater wealth, or to give your ego a boost, or whatever other reason you might have. Saving a few dollars in tax isn't a reason to invest- tax benefits should only be seen as a little bonus that you get along…[Read more]

I am guessing that this fridge is included as a part of your rental property!!You need to confirm with your accountant (I am not qualified to give advice- insert disclaimer here) but I believe this is how it works:Your old fridge would have a paper value (say $400). The old fridge is now not fit for use and so is now worthless (worth $0). Hence,…[Read more]

I remember something Steve McKnight said at one of his seminars- if your house is not selling (and assuming your have done a reasonable marketing campaign), then the only reason is that the asking price is too high. I see houses sitting on the market for months and months and the only reason is that is it priced at $50k too much. Have you had the…[Read more]

You do not necessarily need a DA for a granny flat. Under the new housing affordability scheme most granny flats can be built/approved under a complying development. A DA is only needed under special circumstances- just drop in to your local council and have a chat with the town planer, they are usually pretty helpful.cheers,Luke

I agree with IP freely, you should see your accountant. By using the margin scheme you should end up paying a lot less than $250k in GST.