Hi GP,

Interesting question; not sure about that. I was always under the impression that a deduction for associated costs on IPs was applicable only when you actually owned them, I have never thought about the “looking for” part….hmmmmm….???? Even if they were possible claims, how would one prove the purpose of these expenses (that is, that…[Read more]

Hi Wayne,

Don’t know if you have tried it already, but another way to check out the going rental rates for properties on offer (through REAs) is to go to http://www.realestate.com.au or http://www.property.com.au and select RENT option, type in the state, and area you wish to look at.

Have fun,

Jo

Hi Wayne,

Your suggestions sound fairly reasonable to me, and I would imagine after 3 years (with the same tenant????) a $10 increase “should be” agreeable. Perhaps you could negotiate the alternative changes, and ask the tenant if he/she/they would prefer the dishwasher or air con whatever, but it would be a jump of $20 instead of $10.

No harm…[Read more]

Congrats MM, [drummer] [thumbsupanim]

You are an extremely valued contributor and I am sure you will do a great moderating job to boot!!!

Cheers,

Jo

Hi JenD,

As far as I know, the CGT exemption is for PPORs that have been turned into revenue-generating IPs once the owner-occupier has moved out, and he/she has 6 years in which to sell the property without incurring a CGT bill, provided they don’t purchase another PPOR in the meantime, in which case, they have only a 6 month grace period.

Cheers,

Jo

Originally posted by kay henry:

I thought my request for discolure wopuld have been fairly easily understood. Please Jo, don’t try to engage me in the kind of personalised arguments you have with others on here. I was asking george a question- my question to him was not hostile, so I’d ask you to take your derisive comments and argue with someone…[Read more]

Originally posted by kay henry:
That area is not looking good, from a driveby point of view. Also, there are lots of social problems (hoons) in the southbank area. Slums of the future is my call on them.

Totally disagree, but hey you’re entitled to your opinion. I think if you had driven passed “Melby” during the week as opposed to the weekend…[Read more]

Ask our politicians, maybe they can answer….and then let me know!!!!

Misty1,

Rob is correct, the CGT would be apportioned.

CGT would be applicable as the property (albeit your home) was used as a means of making income, whether this is by rent or home office, making money is making money as far as the tax dept sees it!!! The fact that you lived there yourself, means that CGT would not be calculated at the FULL…[Read more]

Excuse me, sorry to rain on your parade Misty1, but even if you could claim such expenses as a tax deduction (and I’m not saying you can or can’t) but justifying some of them may be a tad difficult, especially if you get audited.

I personally would exercise a great deal of caution in claiming some of these tax deductions, for if they are not…[Read more]

Hi Misty1,

Two words: PUBLIC LIABILITY

If any accident occurs your insurance is designed to cover injuries sustained to people who set foot on the premises, be they visitors or residents of same. HOWEVER, this is not as “cut and dry” as all that, and my strong RECOMMENDATION to you is SEEK PROFESSIONAL LEGAL ADVICE please!!!

Ignorance is no…[Read more]

Originally posted by Matt P:
Three men who were lost in the forest were captured by
cannibals. The cannibal king told the prisoners that they could
live if they pass a trial. The first step of the trial was to go
to the forest and get ten pieces of the same kind of fruit. So
all three men went separate ways to gather fruits.

The first one came…[Read more]

Interesting article! Definitely nothing new!!!

My favourite quote:

CLIVE HAMILTON, THE AUSTRALIA INSTITUTE: Consumption today consists of people spending money they don’t have to buy goods that they don’t want to impress people they don’t like.

Hmmmm……err…..just one correction if I may?? Would the word “want” be best replaced with the…[Read more]

Hi Jason,

As is often quoted in here:

If you are not embarrassed by your offer, you are offering too much [blush2]

Your observations are valid ones, and you have obviously done your homework…well done!!!! So IMO……Go for it!!!!!

I’d offer $270K to start with, and see where it goes from there!!! You never know….the longer the property…[Read more]

Hi startxing,

Interest only loans are just that; all you are paying off on your loan is the interest; you never actually pay off any of the principal (i.e. the amount you actually borrowed, including fees etc). Yes they are still available, and there are many investors who prefer to use IO loans over P&I (principal and interest) loans.

Many…[Read more]

Originally posted by aussiemike:
Krazy is talking about the Australian version of Monopoly which came out 1985. Prior to that Australians had the London version of the game. I think there are over 50 different countries for Monopoly now. Great game.

Thanks for clearing that up Aussiemike; I have all three versions (Oz, UK, USA) and I still…[Read more]

Originally posted by redwing:

Quote:
Guess that’s why ‘buyers advocates’ are becoming more commonplace, the average person, or a first-timer wouldn’t be aware of thier right’s. I believe DOCEP is a pretty ‘busy’ place..

Ain’t it the truth Redwing!!!

Then again maybe we have the ‘she’ll be right’ attitude here. have i used a Solicitor ( No) but…[Read more]

Hi Derek,

Look, I am by no means trying to prove you wrong, or myself as right. Because in all honesty, IMO this situation is a grey area.

Correct, cleaning is a deductible expense in the event of change in tenants, and that is exactly what I was planning to do, REPLACE the tenants….I was told that had I been planning to MOVE INTO the…[Read more]

Originally posted by Derek:
As an aside – under these circumstances I believe that making the premises habitable will be considered a capital cost as the buildings were acquired in that state and such will not be deductible in the normal scheme of things.

Sorry Derek, but I beg-to-differ on that note.

I was once in a similar situation as “Y”…[Read more]

In one word:

ADVERTISE

Good luck,

Jo