Forum Replies Created
Hi Wade,
I know nothing about consumer law etc however i am an Electrician and if it is a 40 degree day outside then getting an air con to cool an entire house to 26 inside isnt too bad. There are a lot of factors that determine an air con’s capacity to cool a house and on a 40 degree day then most of these would be obvious. I live on the Gold Coast in a house that is quite hot due to its position and orientation. We have ducted air and on a hot day we SET our air con at 26 degrees. Asking it to do any more would be a waste of power and 26 is comfortable enough. Just my opinion but for the few days a year its 40 degrees what is it you expect to gain and ask yourself is it worth the hassle?Hi Taylor,
I think you must have mis read my figures.(my fault for not being clear.) When i said:
“Property 1 lost $2763 (including capital works and depreciation this figure blows out to $6114)” The $6114 is a negative number.In other words on Tax return- Rent received= $18100….Expenses (including depreciation and capital works)= $24214
So $18100-$24214= -$6114.
Same for property 2…. Gross rent $22050-$28453 (expenses)= -$6402 loss
Property 3 Rent $23292-$25118= -$1826 loss.
So couple all that with $350k x 5% interest from property 4= -$336pw
So am i looking at depreciation and capital works wrong or what? Should i ignore these and if so it works out at about $20 pw loss all up which i suppose is ok given that this year wont be as negative?
Sorry if i have just made it even more confusing!!
Paul
Hi Paul,
Assuming the interest rate for your properties are around 4.6% – 4.8%, Your portfolio should be cashflow positive or at least neutral.
Just wondering when you said selling property to paying off “bad debt”, what do you mean by “bad debt” ? and what sort of interest rate are you paying for the “bad debt” ? also how much do you owe for the “bad debt” ?
Hi Taylor,
Thanks for the reply.To answer your questions- the int. rates are between 4.8 and 5%.I have been doing some sums and in the fy 2013-2014:
Property 1 lost $2763 (including capital works and depreciation this figure blows out to $6114)
Property 2 lost $940 (including capital works and depreciation this goes to $6403)
Property 3 was positive $1826 (including capital works and depreciation this goes to a profit of $4481). This is due to this being our previous PPOR and only owing 190k on it while renting it out for 500 PW.
Property 4 is now our PPOR and we owe 350k on it. The interest on this 350k is what i have described as my “bad debt”.So when you guys talk about cash flow positive do you mean positive after depreciation and capital works or before?
Also worth noting from my figures above we spent a bit of money on the properties in that year to get rid of some of the recurring issues with dishwashers playing up and stuff like that so this years figures shouldnt be as negative.
Hope all this makes sense.
Cheers…Paul
Hi Terry,
We paid 10k interest in last financial year.The original plan was to keep the property for a few years and then sell during more of a peak in prices. Original thinking was holding out and see what happens with prices leading up to the Comm Games in 2018 but i was always sceptical whether this will make any difference at all. IMO it might go up 20 or 30k so after CGT etc it hardly makes it worth it? What do you think? ANyone got any opinions on the Sth GC house market as well?
Thanks for reading…Paul
