Hi Rebecca
i live in Newcastle aswell, if you like
we could talk, both on and off this forum.?
good investing
nigel

Rod, your loan was 207k, not 230k, so you get 23k back in your bank account when you repay the loan.
J

Sorry, I just see principal payments as a mediocre investment of about 3% after tax.

I know Oscar (sb’m middle name I just gave him)isn’t really worthy of a reply, but I just thought I should say “I thought this forum was about giving advice on simple questions ‘like how does cgt work’ to inexperienced investors, so that they don’t have to hassle the poor overworked ATO call centre with such simple questions”.

Dang, I must have missed the “1” on the calculator!

But Rod, surely you end up with $71,353 in your bank account after all the dust has settled, ie $23,000 + $48353, which is 48353/23000 CoCR or 210%. The original deposit is part of the purchase price, and you get that back, plus the net gain.
J

>>Although it does not specifically offset that particular source of income, you can write it off again your overall income, and this includes the rent you are recieving. So effectively, you CAN write it off again the rent received.<<

You have lost me there dan. Can you explain the above with a bit more detail ?

Thanks,

Pisces133

Hi Dan,

I just bought 2 with no money down, BUT I did get snagged with Mortgage Insurance!

Bought for $50K but needs $5K worth of work to be done on it (int paint and new carpets). The RE agent wrote the offer up for $55K with $50K going to the seller and $5K to me at settlement as per the annexure on the back of the contract. The bank sees $55K…[Read more]

Come on Steve, or anyone who has read the book and knows how to use a calculator, can you please explain the (suspect) maths in Appendix B.
Thanks, J.

quote:
IMHO,contact the ATO about CGT on your IP

Geeze Shane, if you can’t offer better advice than that then perhaps you shouldn’t be offering any. Have a read of many posts in this forum that explain how cgt works! Humble? you’ve got to be kidding.

I wouldn’t mind having a look at Karratha and perhaps Geraldton at some stage.. just need to do some homework first.

I think as long as you can make money out of tents in your back yard – GO FOR IT!! []

Kimmy, feel free to email me anytime shelley.heinrich@wmet.com.au

Cheers,
Shell.

As Noel wrote: they just have so many staff in the phone help area, they can’t all be full bottle. I guess you’ll just have to get confirmation in this forum!
I’ve received bad/ wrong/ potentially very costly from my EX accountant so we’re not safe anwhere!
It was about the old capital gains tax method, so I did the research myself, and I then…[Read more]

Just to clarify, Mel, Noel was writing about the inaccuracy of the telephone advice, ie I wasn’t implying that Noel’s advice was inaccurate.

Just another thing: I wrote principal for your PPoR, which would be equivalent to an offset account against the loan for your PPoR, except for one important thing: If there is any chance you might wish to change your PPoR into an IP in the future, then keep your PPoR loan Interest Only for as long as possible, with what would have been principal…[Read more]

quote:
I know buy not paying our mortgages off it will be better for Tax Deductions. I suppose we never something that will yeild more than we pay in interest rates.
Any suggestions?

Hi again Judith, as I wrote earlier, an offset account is a nice place to park your excess funds for a while, but remember that your are only saving tax deductable…[Read more]

How come so many people are taking Diamond_Gus seriously ?

Pisces133

Sue, what do you mean by ‘commercial’ ?

Shops ? Office space ?

If so, where have you been looking ?
How big a project do you think you can handle ?

Your comment ‘Everything is just so overpriced and the rent doesn’t even come close to covering the repayments to the bank.’ just isn’t correct.

The secret is to look for something which one can…[Read more]

Hi Judith, You can’t just increase the mortgage on your rental property and have it continue to be tax deductable. The purpose of the loan must be to purchase an income producing asset. The only way you will be able to end up with full ownership of your PPoR and all debts deductable is to sell one or two of your IPs. You could then purchase your…[Read more]

Hi Ronulas, saw your question looking forlorn and unanswered, so I thought I’d put my $.02 in. My Q/S report on my new 3 br house cost $450 in 98, (probably a fair bit more now) but it was well worth the cost as it was new. You won’t have any building allowance, and it may be difficult to establish the age of all your fittings. It would probably…[Read more]

Thanks K, I always thought it to be one of those “urban myths”. I know my hardwood home gives out some incredible crack noises occasionally! Some builders use Cypress pine, which is supposed to resist termites (theoretically cypress heartwood, so I’m not sure how you are supposed to tell if youv’e been given heartwood[?])
I’ve read that they have…[Read more]

Sheesh! 32 people have read your question and 32 couldn’t be bothered answering it! Its just a simple way to multiply your weekly rent by 500. This tells you the cost of the property which would give you appx 10% gross rental return with that amount of rent. (10.4% to be exact, because there are 52 weeks per year, not 50)
Hope this makes sense Kim,
J