This is complicated- I would get actual advice from a suitably qualified and experienced accountant rather than from a forum. Relying on something that someone told you in a forum is not the best idea.Cheers,Luke

Why not get a LOC? I dont know if you can just get a normal residentail loan and get the bank t give you the cash. also, when you get the cash, you would need to put this in a seperate account away from your savings otherwise the borrowings may become contaminated and you might lose tax deductablity.You will pay an extra 0.1% for a LOC but this is…[Read more]

I AALI- I don't understand how you can contribute 4-7k per month on two $65k incomes. Is the $65k after tax?Cheers,Luke

Another shrimp on the barbie? Does anyone do that anymore?I had prawns a few nights ago, but they were with a white wine and cream sauce………Hope you enjoy those ribs!!

Ahhhh yep, sorry Jay I didn't realise that you had posted that earlier reply, I thought it was from someone else.

Is everyone just jealous because Labradorinlove owned 8 properties before she was 23?Sounds like you are doing really well to me! This Jay Hinrichs might be the person to talk to, there are not many people on this forum who know the ns and outs of USA property (apart from the peolpe trying to sell their services of course!). There was also a guy…[Read more]

Hi RB,If you were simply borrowing the funds to renovate your PPOR then you certainly can do this. However the interest on the loans would not be tax deductable as the purpose of the loan was not for investment purposes.If you have purchased the investment property in your own name you may be stuck, but if it is purchased in a trust I am sure…[Read more]

If you would not buy it at $510k, then don't buy it for $510k. If the property is only worth $490k and that is what your offer is, then they will not find a buyer at $510k and so after a few months they will need to lower the price to the market value, which sounds like $490k. When they do this you will be able to buy it!!But getting the seller t…[Read more]

If you are converting to two dwellings, you will need council approval as there are issues like fire seperation and BCA compliance that you need to meet, So you will probably need to get a DA to do this project- the easiest way to find out how to do it is to visit the town planner at the local council.To split the electricity bill, you could just…[Read more]

Hi Raj,If you want to convert the house to units then you will have to get approval from council, which will probably mean getting a DA and then after work has finished obtaining a occupation certificate which allows people to live in the units.You don't necessarily need seperate electricity meters, but it would not be possible to have the tenants…[Read more]

"icing on the cake" rather

PISTORE wrote:

luke86 wrote:

PISTORE wrote:

Catalyst wrote:

PISTORE wrote:
The idea with any property investment strategy is to aim for a neutrally geared portfolio.

Really??? What's the point in that? OK if you're working a job I guess but it certainly wouldn't be anyones aim.  My investment strategy is to be POSITIVELY geared. I…[Read more]

PISTORE wrote:

Catalyst wrote:

PISTORE wrote:
The idea with any property investment strategy is to aim for a neutrally geared portfolio.

Really??? What's the point in that? OK if you're working a job I guess but it certainly wouldn't be anyones aim.  My investment strategy is to be POSITIVELY geared. I want to be making money. The more…[Read more]

Hi Freckle, just wondering if you live in Perth? The only thing bonkers is the mining economy there. With billion dollar projects being announced every second week, it would be a brave man to bet that it is going to end soon. My observation is that when BHP plan on spending $40 billion in the next ten years in iron ore expansion projects and go a…[Read more]

Saying that the aim of having a negatively geared portfolio is ridculous in my opinion, the same as saying the goal is to have a positively geared portfolio.I think the aim would be to have a property portfolio that acts to meet your individual goals.Some people would be happy with a negatively geared portfolio with plenty of upside for growth in…[Read more]

Hi Kent- Could you please provide examples of suburbs where you believe future train stations are planned? Are you talking about the rumoured light rail that might be built to connect universities to the CBD or are you talking about future heavy rail lines (e.g. proposed airport rail link in the 2031 transport plan?I am curious as to where you…[Read more]

Hi Chen,Cherrybrook is a nice suburb but in my opinion I wouldnt buy an investment proeprty there. The houses are big, the blocks are pretty big, but I am not sure if there is much opportunity for sub division, development or value adding. I think the yields are low and you would be forking out nearly a million dollars for a low yielding property…[Read more]

Seeing as your cashflow is tight, then Jamie might have a good point about waiting for a liittle while as there is no point over committing yourself, expecially when rate rises in the next 12 months are not out of the question. I would also like to say that I don't think $1m is a lot of debt, so that figure shouldnt be something to stop you from…[Read more]

Yes, but basement construction is a lot more complex than above ground construction. If you are building close to the boundary and there are existing multistory buildings on the neighbouring properties close to the boundary then you may need an expensive retaining system during construction. If you are not planning on building close to the…[Read more]

I meant I don't have a lot of experience in putting prices against construction costs, only the comparative costs between different types of construction.Cheers,Luke