Ok so once again I will need to weigh up the risks vs benefits. Unless there is a another way to…[Read more]

I agree that having my business partner as the director might be the way to go – he owns no…[Read more]

If you are sued you could lose all your assets.

But to reduce the chances of you getting sued, you could set up the business in a limited liability company.
There may be a few things you could do to further encumber your property so that you have little equity. Would need careful planning and would be costly…[Read more]

"By recording the agreement or outcome in an Order or Agreement, then stamp duty is usually waived on real properties being transferred as between partners/spouses."

He also avoided…[Read more]

You should probably budget for interest rate rises when doing your calculations. It looks like rates were up to 8% just 5 years ago.

I felt like most of that book had the tone of "things aren't going so well, interest rates are high, be conservative with debt"

Look forward to the market update in Perth!

I have heard people saying to avoid "cross collatorisation" of your loans/properties.

Does your strategy use cross collatorisation because you are securing the finance of one property against another?

100% borrowing could be an option. I imagine it attracts quite a high LMI. Where would you find a property for $120K, I would certainly like to know!

The other suggestion – Tapping into equity. Can anyone give me a simple explanation of how I could do this? 

if I borrowed more money against the property, I could…[Read more]

You might be able to do this in a quick formula, although some of the values might simply be a guess.

e.g. assuming $450K loan, $520 per week rent, 5% interest rate, $3000 average per…[Read more]

It really gives you a good idea about the demand in the suburb and who your competing against. And it will help you identify a good deal when you fine one. If you like a property, go visit the next home open to see turn-out and ask if…[Read more]

As far as I know, you cannot claim interest on your deposit.. unless you BORROW your deposit!

I wish this were true, because I am just dropping 50K of my hard earned savings on a deposit for my first house.

I imagine if you have other investment…[Read more]

Based on your responses and my careful consideration, I have decided to drop the credit card feature (which co-incidently came with a $20K LOC loan). My reasoning for this is because…[Read more]

Perhaps it was due to the contract nature of my work (mining company making $130K, I move around a bit but I have been here for around 1.5 years now). Other lenders perhaps didnt want to take the risk on me?

Fixing for 1or2 years was the suggestion of the mortgage…[Read more]

Oh well. Thought I better ask just in case!!

Thanks.

You cannot make this choice for the period before a dwelling first becomes your main residence.

To me, it sound like this would apply If you wanted to sell the property and claim CGT exemption before you ever move into it

Technically an IP can be treated as your PPOR for up to 6 years after you move out.
http://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

My problem is that I'm not sure if I can treat this as my PPOR in the first place.

I am quite sure that I am able to claim FHOG benefits. Sorry, I should rephrase my question:

Can I treat this home as my PPOR for CGT purposes?

When you make an offer on a property and provide the seller with a 10% deposit, do you "borrow" the entire property value (i.e. 400K) from the bank. Have it sitting in your account, then you make a withdrawal of 40K and give it to the seller for deposit?

Then in 6 weeks or so after settlement you transfer the remaining…

If you are referring to a 10% deposit. Would you give this out of your own pocket? and then give the bank another 20% deposit on the remaining amount?

Seems like a lot of deposits…[Read more]

BHP is by far the largest player there. BHP have several big camps in Newman for their FIFO staff to live in. I believe the permanent/residential(non-FIFO) staff would reside in properties just like yours.

I have also…[Read more]

This would differ if i lived in the property first as my main residence?

In that case, would a special valuation take place when i began leasing the property?

i.e. "home first used to produce income" rules by the…[Read more]

Perhaps I would need to apportion the capital gain on my second property based…[Read more]

I think I will be moving into the property first so I can take advantage of the "Main residence" CGT exemptions later down the track.

My next question would be – can I still treat this property as my "Main residence" if I rent it out and purchase another property to live in?

Why not move in first so the whole period can be considered as your main residence?

Hi Terry, I was thinking that I would rent the property out initially in order to claim approximately $5k worth of deductions during the construction phase. My understanding is that if I move in initially, I will…[Read more]

Is it fair to say that If i had a P+I loan repayment of 850 per week (500interest,350principal) would it be effectively exactly the same as paying 500 on IO and putting 350 into the offset account?

To me, it seems like a no brainer to…[Read more]