Barbara Smith of taxpayers Aust suggested two ways, one of which I didn’t hear[]

The other way is to have the Super Fund as 1st Mortgagee, which means that the bank has to agree that the SMSF will get all its money back before the bank then gets any. good luck with the banks on this one!!!

Cheers
Mel

riff

It depends on the age of the property as to how much the depreciation will save you. If it’s post 1985/7 you can claim 4/2.5% of the actual building cost.

If it’s pre that time, you can only claim depreciation on any renovations, carpets, curtains, HWS, stoves etc. etc. etc.

You need to get a quantity surveyour to prepare a report for you…[Read more]

NATS, why don’t you look at buying the house that your sister wants, and renting it to her? She gets the house she wants, and you get a (hopefully) reliable tenant, and an IP for yourself.

Cheers
Mel

Dolf de Roos is a Kiwi, who’s lived in Australia, and many other countries while growing up.

His first house was in NZ. He went to all the four banks (at that time) that offered student loans ($1000 a pop). He didn’t tell them that he was also applying for the other loans, and not one of them asked him what he was going to use the funds for.…[Read more]

quote:$200,000 divide by 769 = 260.7 x 2 = $520.00
$520.00 per week for a $200,000 house!

quote:The rental figures may seem high, but thats what you have to aim for, if you want positive cashflow.

Fully financed, a $200K loan at 7% IO = $270 per week. Are you seriously telling me SIS that the ‘other’ costs for this property are going to…[Read more]

Hi Tanya/Simon

I think the lower rate would be cheaper. The extra $130 a month sounds like it is coming from your ‘savings’, and therefore would be saving you 7.07% interest on the $130, which is about $1 per month.

Basically

Loan at 5.79% interest = $241.25 per month.
Loan at 7.07% interest = $294.58 per month.

Your interest saving on the…[Read more]

Thanks Terry

Ask an easy question next time!![]

Roughly calculating on the last years results, and noting I’ll allow about 3 minutes for the subsequent downloads, I would say about $20 – for a 10 hour week. So, cheaper than purchasing. As for time spent actually reading it, well, that would be considerably more!![]

Cheers
Mel

Paul, anything that you borrow to build your new PPOR will be non tax deductible no matter what the security.

If you have not already got an offset account for your PPOR, set one up, and pay all extra repayments into that account – not off the loan. If you can, refinance now to interest only.

That way you might be able to keep the loan at…[Read more]

Hi Guru

I’m here, but I’ve just not been able to turn on the computer much the last few days. Plus I need to do my christmas shopping soon…

Cheers
Mel

Yep, Matt I got them to work. But I had to download three of them a second time.

Cheers
Mel

Kavita

If you’re going to use a PM, I would talk to them now, and specify a date it will be available. January is one of the busiest renting periods for Canberra – by Feb, those who are coming with families of school age need to know where they’re living.

Cheers
Mel

Thanks Matt

You’re a champ!

Cheers
Mel

Karan

With the building depreciation – it doesn’t matter that there’s already 10 years gone – you claim a flat 2.5% (or 4% for some) depreciation on building cost.

You will find that the higher depreciation in the first couple of years is cos of the fixtures and fittings. Your QS will come in and put a value on all of them for you, and yes,…[Read more]

Shaun, what you talking about?

If you can prove that the trip you took was for IP purposes, then entire airfare and accomodation is claimable. If you only go to see one property, and spend three nights, you’d best have good reasons – ie, day 1 visit property with manager, day 2 do research in area, night 3 is body corporate meeting or…[Read more]

It is my understanding that if you move out of your PPOR and rent it out, the loan is then completely tax deductible.

EXCEPT, where you have increased the borrowings to do other things. ie, the only part of the loan that is deductible, is that which actually was used to purchase the house (and maybe renos.). Definitely not the ‘debt…[Read more]

confused, click on the Profile tab at the top of the page. then you can choose whatever name you want.

Cheers
Mel

If you’re asking is it illegal – then no, of course not.

It would be very wise to have permission from your landlord if you wished to sublet though – I think you can probably be kicked out for breaking terms etc. if you do not.

I don’t know how often it is done in Australia, but my guess is quite a bit. It’s a way of getting round some of the…[Read more]

Poor Arty. What is he going to do with all his spare time now!! Can’t even research for those properties.

He might have to start making lots of interstate phone calls to all his friends – no, he should call Muppet in NZ – international, even better!!

Cheers
Mel

Anoto, I suggest you contact Bruce Whiting of the Mint Group. He presented at Dolf de Roos seminar on the weekend, and made a very big point of talking about having your structures set up in each country you are investing in. http://www.mintgroup.com.au

If you buy in an Australian entity in NZ, you lose an awful lot of the benefits that are provided…[Read more]

fullout, if you have an option to buy a house at $120K, you do not have to have and/or nominee at all to onsell that property at $140K. You are merely onselling your option.

If you don’t want to pay stamp duty, you either have to get your buyer to pay you the $20K extra for the option, or you need to somehow convince the seller to sell to the…[Read more]