C2 – I just checked my transfer limit( per month) and its 30K Aud , but I can increase it to 100K Aud ! LOL – As if ! I bank with the National Bank of Kuwait (NBK) here: http://www.nbk.com/nbk/default.htm

Being in this part of the world has its pros and cons for sure, but I actually miss speed limits and sane Aussie drivers. The drivers…[Read more]

“Success comes from having the proper aim as well as the right ammunition”

In regards to tenants in common, unless you have a legitimate reason for having a split share of 99%/1% Bryce is correct – the ATO will most likely see this as an avoidance of tax.

I have loans in both names and titles in one name on some of my properties – I dont think the bank mentioned anything to us about that actually.

J

“Success…[Read more]

The bank Im with does not charge anything for wire telex transfers and the limit is ~ 30K AUD(depending on the rate)

I dont know how long youve been O/S but the strength of this Aussie $ is really starting to P##S me off !

J

“Success comes from having the proper…[Read more]

I am overseas and Im paid in US dollars as well. I am a non resident for Tax purposes and my job has been declared exempt from Australian Tax by the ATO[]. If she hasnt already your Mother may want to find out if that really is the case with having to pay tax. 91 days continious foreign service has a bit to do with it I…[Read more]

Capital costs :Govt Stamp Duty, Sellers Agents Commission, Legal Fees and improvements reduce your CGT liability.

Loan establishment fees can be claimed over a 5 year period.

J

“Success comes from having the proper aim as well as the right ammunition”

J

“Success comes from having the proper aim as well as the right ammunition”

At the end of the loan term you either repay the entire principal amount or refinance the loan, it allows investors to make the minimum monthly repayments.

J

In regards to claiming trips to IP’s on tax, remember that if you go interstate/overseas to visit your IP whilst your going on a…[Read more]

Make sure you put it in the “Useful Media and web link watch” forum, if its not already there.

Thanks

J

“Success comes from having the proper aim as well as the right ammunition”

If you only get 170 PW in rent thats still 8% yeild. Why not hang on to it, hit the loan hard and borrow against it when you can. Depending on your expenses and Tax bracket it may come close to having positive cash flow, but I dont think it will be positively geared.

If you do decide to refinance, go to every bank…[Read more]

Yes Mel’s correct , you need a QS. They will most likely tell you to get a copy of your house plans, so you might want to get the ball rolling on that one.

QS’s fees will be around $500, but well worth it !

Cheers

J

“Success comes from having the proper aim as well as the right ammunition”

I was also born in Mackay and have owned an IP in Bucasia for some time. The only problems I have had with crime was due to my tenants at the time. They have since moved on after some tribunal action and I now have the most wonderfull tenants you could hope for. They took a 12 month lease and really look after the…[Read more]

Other States tax are as follows (as of 2002). I will use the land value increments as per my first post.

VIC
Nil
400
800
3525
11600

WA
15
870
2383
8783
27783

SA
175
875
4175
12425
49425

TAS
500
4113
8613
21113
46113

ACT
1000
3750
6750
14250
29250

note there is none payable in the NT. These figures are from Peter Waxmans “Investing…[Read more]

Im with NAB and have an existing LOC with them up to $185K secured by 2 houses (paid first one off totally, applied for LOC and bought another). I have over 50K in equity with that LOC.

I am currently buying my 3rd also through the NAB as we speak. I knew the NAB would take this 3rd property with a 70% LVR, as a friend is also buying…[Read more]

This property is off the plan, so the figures are higher than if the property were older or residential. Its commercial tourist property so 4% applies. Its $123750 inc GST. The Building allowance is $1613 for 25 years. the Plant and Equipment starts at $1452 in year 1 and goes down to $15 in year 40, so they would be using the…[Read more]

I havent read Steves book because Im on the other side of the world, but I’ll grab a copy when Im home next. So I cant comment on his cash on cash return.(sounds like ROI ?)

Ive read quite a few other books on IP’s, and all of them mention how important tax deductions are.

Ive heard that quite a bit here, that she relies…[Read more]

http://www.reiq.com.au
http://www.aussielegal.com.au/family_splash.asp
http://www.mortgageaustralia.com.au/index.html
http://www.somersoft.com.au/
http://www.yellowpages.com.au/search/searchEntry.do

I would like to point out that theres a difference between positive gearing and positive cash flow. +ve Gearing is when raw income exceeds raw expenses, you can be positively geared by not borrowing as much (or paying it back quickly). +ve cash flow involves using on paper tax deductions to optimise your cash flow.

Hope this helps…[Read more]

Qld Land Tax (as of 2002)

Land Value Tax
100K $865
300K $3095
500K $5750
1M $14465
2M $36K

ATO website should have up do date figures

J

“Success comes from having the proper aim as well as the right ammunition”

http://www.otter-software.com.au/Software/PropertyTrackerPages/NEWSBREAKNOWFREE.html

Yes I agree, depreciation wont affect plan 1 or 2 differently. But if your reducing debt quicker than normal and relying on cash flow, depreciation is a big part of it. It could turn a neg geared property into +ve CF. Yeah before 18 July 1985 you cant claim the special building allowance for residential property. From July 85 -…[Read more]

I do believe that only the interest portion of your repayments…[Read more]

I have always prefered to invest in property to keep for the long haul and to eventually live off passive rental income from those properties. I buy properties every year or 2 now and reduce debt considerably at the start of the loan. Yes your ROI will decrease because of your increased equity BUT dont forget your cash flow will…[Read more]

Slum Lord, sorry but I just about wet myself.

mmmmm landlords insurance !

Wouldnt these 3 properties actually be negatively geared (positive CF after tax), seeing the highest any of them return is 4.8% ?

These figures are a bit out of my league, but I would have thought youd need a few positively geared properties to alleviate pressue from the other 3 ie.

I tried to get more info for you, my wife said that it does have low areas, but she couldnt remember where. I could find out but it will take a little time, let me know if you can wait ?

Cheers

Oz

“Success comes from having the proper aim as well as the right ammunition”

I couldnt link to that site Simon, but land tax is a state tax so you can minimize by spreading your investments around each state. The amount payable depends on the value of all your properties land values in a particular state. Tax levied goes up at increments of 100k,300K, 500K,1M and 2M.

I have the figures here, if you want let me know…[Read more]

I lived in Katherine for 7 years, and was there during the FLOODS, yes Katherine is a natural watercourse. The whole town except for a few areas in Katherine went under, I was in Katherine East and was untouched by about a foot. I think the chances of it flooding like it did then are pretty remote but a lot of people didnt have adaquate…[Read more]

I am buying a niche unit in Mitchell St, right in the main drag. Positively geared, 8% net, lessee assumes all operating costs including vacancy, insurance, rates, and body c. NAB guarantee for the first 5 yearts. There were 12 left last I heard. They have commenced construction and completion is scheduled for June next year.

I have the info…[Read more]

I am in the middle of a commercial lease back deal. Its my first niche property so its a little scary. The NAB is providing the guarantee for the first 5 years. The lessee assumes all operating costs, including Rates,Mgt Fees, Body C, Vacancy and Insurance. The lease is 5x5x5 with a ratchet clause. Return is 8% net, it is CF positive and…[Read more]

Thanks for your post, I enjoyed it and learned something new from it.

Im actually on the other side of the world and use PM’s in Oz. All the more eyes and ears near your property the better !

Cheers

J

“Success comes from having the proper aim as well as the right ammunition”

Buy and hold ! – you may not get rich…[Read more]

As for finance find out what LVR the banks will give you as this will effect your borrowing capacity…[Read more]

But I do agree with Steve, youd have to weigh up the Savings Bucket with the S&%t Bucket !

Also I would make sure your property manager or any agent is a member of the Institute…[Read more]

I cant say for other states, but in Qld there are 2 commissions and 1 management fee.

The 2 commissions (which are negotiable) are Letting and Rent Collection, both are capped by the PAMD and depend upon length of tenancy and if the Letting commission has been charged or not. More than likely though the letting commission will be equal…[Read more]

I live overseas and always stock up on IP books when I return home. I hadnt heard of your book until coming to this site.

I’ll be sure to check it out when Im back !

Ozpat

“Success comes from having the proper aim as well as the right ammunition“

I havent read that book, but ive just finished Margaret Lomas latest” How to Maximise your Property Portfolio” found it very helpful for going through after tax cash flows. The parts in her book about Niche property couldnt have come at a better time as Ive just bought my 3rd IP which is very…[Read more]

I have just put a deposit on my third property which is quite Niche, but it is positively geared[] ! The Unit will return 8% net, no Body Corp fees , no rates, leased back on 5x5x5 with ratchet clause.Lessee assumes all operating costs including Vacancy and Insurance.Bank Guarantee for the first 5 years from NAB. My Unit is $123750 GST…[Read more]