I think that making money via renovations is pretty tough. If you are looking to buy, renovate and sell, then you would probably be doing this within a 6 month period. You would be up for purchasing costs, closing costs, capital gains tax (no 50% discount) plus all of your renovation and holding costs so you would need to increase the value by…[Read more]

Sounds like a good return. Did you buy this through a buyers agent? And is there a tenant signed up or is it being advertised?I would be interested to hear how you go.Cheers,Luke

There are a million threads on this topic on this forum. The consenus- change to interest only ASAP!!!!Search "Interest Only" on the forums for other threads.Luke

I have recentrly set up a unit trust. It cost $1100 for the set up, $220 for an initial meeting wit hthe accountant and $510 stamp duty to get the trust deed stamped (NSW- I dont think other states even charge for this).Luke

You can definitely claim the travel to and from a property you own for maintenance, not sure about travel to inspect a propective purchase.

But you have a contract, on what grounds are they terminating it??

Terry- Is is ok to use a LOC to pay for costs on an IP (such as rates, water, insurance etc)? And do you need a private ruling to be able to claim the interest that accrues on these costs or do you only run into problems if you are using a LOC to capitalise interest on an IP?Cheers,Luke

I think Derek is on the money. You can still claim the FHOG if you have owned reisdential property, but if you have owned a PPOR in the past you can not. This is because property is just another asset class- the same as shares and bonds etc so it is just designed so someone who has invested in property in the past is not at a disadvantage compared…[Read more]

DWolfe wrote:
Hi all,Well it shows to me that if the traditional buyer group of families or singles are not buying, there are other buyers. The majority at this open were older people. The grey army has arrived, and they have lot's and lot's of super to throw at property. They were not buying for themselves as many of the were having trouble…[Read more]

This is tricky- you need to talk to a property savvy accountant about this. Capitalising interest can be done but you would probably want a private ruling to be sure. If you do not get a private ruling and show the ATO that the reason you are capitalising interest on your IP and while paying off your PPOR is not to avoid tax, you may not be able…[Read more]

Take a LOC out for 20% of the purchase price of the new IP plus costs secured against your PPOR. Then borrow the rest secured against your new IP. You will purchase the new property using none of your own money and minimise debt on non tax deductable loans.But speak to a mortgage broker or accountant of course- I am no expert.Luke.

lbluedento wrote:
engelo 10 I ended up missing out on the house. That's what happens when you convince your sister that she should get involved in property investing! She ended up making on offer on the same property as me (neither of us was aware of the other's interest!) and her offer was the successful one, LOL!

That is really funny (for me,…[Read more]

How do they know that the property will grow by 10% per year? Are they God?Luke.

I think discretionary trusts are better, as many banks do not lend to Hybrid Trusts. Also as Dan has suggested, the ATO is cracking down on Hybrid Trusts. If your properties ar positively geared, then why do you care that losses are trapped in a descretionary trust as you will be making a profit?? Discretionary trusts would be much better in your…[Read more]

It depends. What is the target market? Does the target market have a car? Is there an opportunity to add a garage or off street parking (if it is a house maybe, if it is a unit then probably not).If the target market has a car and every other similar property has a carspace or garage, then it doesnt seem to tick enough boxes to make it a desirable…[Read more]

I would say it is legal, as long as you are paying market rent. Better check with an accountant first though. I have heard of schemes like this in various books, I think Jan Somers or Margaret Lomas recommended it.One thing you could do is to both move into your own houses for say two months before you switch and rent each others house out. This…[Read more]

Be careful mixing business and friendship. Good friends are hard to find.Luke.

Laurie,If you are able to claim the FHOG then it may be worthwhile moving in for 6 months so you can do this (depending on your investment plan and strategy of of course). You can only claim the FHOG once and you will not be able to claim it if you have owned a PPOR before. So if you intend to move in to claim CGT exemption under the 6 year rule…[Read more]

Ahhhh, 3 replies to the same post in as many minutes!!!!I just remembered that there are a couple who do a lot of vendor finance on these forums- Paul and Karen Dobson. They may be able to offer some advice.Cheers,Luke

And you have to remember that you have to be prepared to pay at least 10% premium over the market value for a deal like this to get accepted.Luke