Hi Vluu,

To make money in property management, I believe the answer is in owning the rent roll. Wages are not good, so you need to own the risk. If you have time to spare, do both. An owner may move back to the house or change agents, but therein lays the value/risk. Rent rolls run at about $2-3,000 per house. Do the sums. Buy a 100 props…[Read more]

Oops, sorry about that Chief!! I will get the hang of this, I promise. Apart from your handle Agent86, I’m at about the same point as you. I’ve read the book and am gathering info. Hope to share some insights. Regards, Phil

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Hi Guys, first time posting but have enjoyed viewing the forum posts for a couple of weeks now. I’m also in IT (for a…

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Hi Guys, first time posting but have enjoyed viewing the forum posts for a couple of weeks now. I’m also in IT (for a large law firm in Melb.)

Like some of the other IT people here, I’m bored!!! and I want to live an extraordinary life.

Haven’t purchased any IP’s as yet, but I have just finished Steve’s book.

Look forward to chatting…

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Hi to everyone,
I believe I have caught the bug. I have just reconnected to the internet for the purpose of chasing bricks and dirt after reading the book. I preferred a Gum tree to the Net up to now. Steve’s approach turns Real Estate attitudes on their head. All makes sense to me, but still “wrapping” my mind around a wrap-around-mortgage. I…[Read more]

Hi Mini, I know what you are saying. I can only respond by saying that obviously we negative gearers are taking a bit of a punt. The punt is that the properties we control will achieve enough capital gain to make it all worthwhile. The depreciation is crucial to making it work. We have to be able to be able to keep our head above water until the…[Read more]

Thanks all. The charge I incurred was from Westpac in setting up my professional package. I haven’t tried to buy any more properties since. I guess I’ll find out everything when I do.
Regards, Jim.
PS any loan costs have to be depreciated prime cost at 20%, ie over 5 years. I was allowed to write off the written down value of all previous loan…[Read more]

Just a digression, but in relation to buying interstate, do any of you buy interstate to avoid the land tax threshold, ie by effectively combining the thresholds from each state?
Jim.

Regina, I know you like suburban houses, but I know some investors prefer new 2-3 brm units or townhouses, within a 3 to 7 km radius from the cbd. One of the reasons they give is that the unit represents a larger proportion of the cost of the property (smaller land area) and hence achieves a greater depreciation to purchase price ratio. This…[Read more]

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It was not clear to me if the yield % is before you pay tax or after.

Maggie your question hasn’t really been explicitly answered properly. I know Richmond has effectively answered you by his example, but the simple answer is that yield is just the gross yield, or “Gross Rental Return”, ie simply the rent per year divided by the…[Read more]

Hi Resurrect, I used to have a RLOC but I refinanced it with a standard investment home loan plus offset account when I changed banks.
Here are some pros & cons (my opinions only)
Pros of rloc: 1.It’s very ready investment cash which is great if you want to buy and sell a more liquid asset like shares.
2. It’s also very easy to provide the 20%…[Read more]

I suppose the obvious thought that springs to mind is that people will leave the country and so prices will fall – less demand for the properties in the area. This could happen at the same time as people who are unemployed – recently laid off, on the DPB, for whatever reason – in the city moving to the country so that they can get a decent quality…[Read more]

What about if you have owned an investment property and are currently ‘between’ investments?

Boy that ATO website is frustrating to find info in! It explains how a balancing adjustment on a car works, but how do we work out how much of our sale price of a house is due to the carpets?!
Waiting with bated breath for enlightenment, mensch. Thanks I.A.

Thanks mencsh for clarifying those numbers, but I’m still not sure what a balancing adjustment means.
“When u sell, u have to do balancing adjustment of div 40 – lets assume its $3000”
How do you come up with the number? I assume it’s got something to do with the expected life of the fittings, but I would really appreciate a clarification. Thanks, Jim.

mencsh, hi, I’ve just been trolling through the ATO guides about deprecitation & CGT. They state that your cost base is reduced by the amount you claim for capital works, (eg 2.5% of the cost to build the property), but I can’t find any mention of whether depreciation of your carpets, curtains etc affects the cost base or not. Can you clarify…[Read more]

Thanks all for your answers. Yes Chandara, that’s where I just read about it. I’m mainly thinking about my Daughter’s first PPoR. She’s got a good wage, but has only just started her career, and wants to get her own house asap. I’m assuming you might be able to refinance when your equity improves after a year, but I guess the main issue would be…[Read more]

I must have made the little b..ers too tough R! They only ever bought serial numbers 001 and 002!
J.

I’m in IT! Lots of spare time to kill on the web.

I think that sometimes ppl might change jobs to opt for more pay (and obviously more work).. however, I find that the extra pay that I am missing out on if I had changed jobs, I more that make up for if I only find 1 right property in a year.. I would really have to work my butt off for the…[Read more]

Hey guys,
I have been sort of monitoring Wagga for about 6 months (since I have a block there) and it seems that a 2 br unit can range from about 70k for a really older crappy one to over 300k for a nice new one. You can easily get indications from websites such as realestate.com.au Apparently according to the real estate agents out there, the…[Read more]

Tas, try a telepone operator like Omni Plus who apparently charge one 10c per minute for calls to the USA.

Piscess133