Miniman,Just wondering why you purchased negatively geared property in the USA? is it possible to negatively gear an investment loss from the USA against an Australian income? Did you purchase your US propery in an LLC or in your own name? And did you borrow money locally in the USA or borrow money from an Australian lender?Sorry, I am not really…[Read more]

You will need an accountant to clarify this as it depends on your trust structure. I believe that discretionary trusts are entitled to 50% GCT discount if held for 12 months or more.Cheers,Luke

Hi House Call,You could get a solicitor to write a letter I suppose like GOM has suggested but I imagine that this will cost you another several hundred dollars. Maybe if it isn't a huge cost to clean then just treat this as a property lesson and make sure you inspect the property a few days before settlement next time around.Cheers,Luke

Sorry forgot to add, the website for the Australia Bureau of Statistics is http://www.abs.gov.auAnd I spelled "Bureau" correctly this time Cheers,Luke

You can also try the Australian Bereau of Statistics for a more in depth analysis. The latest data is from the 2006 census.Do you know how old the data on this website is?Cheers,Luke

Agree with Catalyst- stop paying priciple and convert to IO with extra money going into an offset account. Then use money from the offset account to pay stamp dury and legals and a LOC secured against your PPOR to pay the deposit on a new IP.Your accountant and broker will be able to advise the best way forward (assuming you have a good accountant…[Read more]

I think you should at least consider either renting your PPOR out and renting a house for a lower rent somewhere else, or selling your PPOR. Even if you do not want to go down this path it is worthwhile considering it and seeing what your options are- remember that any debt on a PPOR is considered 'Bad Debt" by many as it does not generate any…[Read more]

API magazine has a data section at the back- it also includes a summary of where they thing the market is at in each of the capital cities.Be careful though- no one has a crystal ball and so these things can be wrong. Also there are markets within markets, so there may be a part of a particular city where property prices are stagnant and other…[Read more]

You need to remember to factor in selling costs when deciding whether you want to sell your current PPOR. If you have selling costs of 5% (which based on a $440k sale price is $22k), you will only end up with a net of $418k. This doesn not leave you with much money left over after the sale once you take into account your current debt of…[Read more]

If you choose to find a tenant yoruself it may take much longer than if you used a property manager. Property managers (I am talking of good property managers here, not average ones as we all know we avoid those) have a database of propsective tenants and have a good advertsing system designed to find tenants quickly.If you choose to find a tenant…[Read more]

Hi Ruth,Visit the local councils website and look for a future development plan for the area. There are documents on most (if not all) of the councils websites that will detail the minimum block sizes for subdivisions including minimum sizes for battleaxe blocks. These documents will also have other requirements for the blocks such as access and…[Read more]

Hi Kelly,Please correct me if I am worng.I just had a quick look at your numbers you quoted and they do not seem to make much sense.A summary of the deal that has been proposed:CostsLand and original house: $450k (this is the price you have said you can sell it for so has to be taken into account)Cost to build two duplexes at $250k each:…[Read more]

In IO loan with an offset is a better option due to increased flexibility. This will also help you repay your personal loan faster (which I assume will have a higher interest rate than your mortgage).I would suggest speaking to a good broker as they will be able to help you find a suitable loan. If NAB can not offer IO and an offset account then…[Read more]

You mentioned that you will be paying cash so you do not see how it can be negatively geared. And you also mentioned you will be studying next year so you will not have an income.If you do not have any income you can not negatively gear property. How will you fund the $500 per month shortfall with no income??I am thinking along the same…[Read more]

I would go for laminate floors in the living areas (maybe tiles in kitchen but laminate floors should be ok) and a cheap carpet in bedrooms. Carpet in living areas I think is a bad idea as it will get stained very quickly- laminate floors are easy to clean and reasonalbly cheap and durable.Cheers,Luke

Tickles,I think you would be better off buying 3 x $400k properties as IP's as opposed to 1 x $1.2m property. Rental yields on cheaper properties are much better than on expensive properties- you would likely get 4.5% yield on a $400k property but only 3 – 3.5% yield on a $1.2m property.You could then look again at buying a more expensive PPOR…[Read more]

If your strategy is cashflow +ve properties then this property is not for you. Even if you pick it up for 200k, if will still be negatively geared to the tune of $400 – $500 per month. Also keep in mind that interest rates will likely rise further so it will cost you even more in the coming months.I think if you have a strategy, then stck to it.Cheers,Luke

I believe that if the property you owned previously was an IP you may still be able to claim the FHOG. If it was your PPOR then you will not be able to- check with your solicitor.Cheers,Luke.

Try RP Data- they have reports you can buy that details all of the sales in a suburb from the last 6 or 12 months.Also try local real estate agents- if you a genuine buyer they may have a database of recent sales they can provide to you.

Hi,Before jumping in and buying a property, make sure you think about why you want to invest in property. Is it for capital gains? Is it for cash flow so you do not have to work in the future if you do not want to?Buying into property just to save tax is not a very good reason to invest in my opinion.Cheers,Luke