It will all depend upon how much of the work is 'repairs and maintenance' & how much is 'replacement'. R&M is expensed, replacement must be depreciated.

Depends greatly on the type of unit Elka, if it is a window rattler, they are simply 'plug & play' as all that is required is pulling the old unit out of the wall and putting the new on into the existing opening (provided that it fits the existing hole).If you are looking at a split system (unlikely as these weren't around until early 1990's),…[Read more]

A couple of things to consider:1 – as your friend will rent the property, use a standard form lease & take a bond (the managing agent will do this if you engage one, however it is a reasonably simple process of going to the newsagent and picking up the documentation, & filling in forms.)2 – Managing agent will take the hassle out of any…[Read more]

There are still some areas in Western Sydney where you can pick up sub-$200k 2 bedroom units which are returning 5-6% gross. With a little work, they would improve. The banks would loan more favourably on these (80% LVR), values are a little more reasonable considering Western Sydney has taken a big hit price wise over the past few years and is…[Read more]

It is a tax position – as the property is making a loss (even a paper one, through depreciation allowances), that loss goes against the income of the owner (usually in a high tax bracket) to reduce their income and possibly drop into a lower tax bracket.Neg gearing does not have any impact on growth as it is an analysis of cashflow & tax effects.…[Read more]

Medians will give you an idication of what was happening in the market based on the entire market in an area, not being selective of the type of property and only being a statistical analysis. Your own research will dig up the most recent sales, most comparable properties, non-related transactions etc which will provide the basis for your own…[Read more]

Yes, interest excludes any repayment of the Principal.

Or the UK govt bail out its bank

Checks have been done – usually through dept of fair trading/vcat to see if there are any rental bonds/leases on the properties. Not sure of the current situation though.

More precisely, your costs (council rates, water, sewer, interest, insurance, management fees, strata levies etc) exceed the income generated by the property. The difference comes out of your other income/from other sources.

Speak to some earthworks contractors & buy a copy of Rawlinsons (should be next day delivery).

Demo might cost $10-15k. As for the fix-up, how long is a piece of string? First you will need to determine the extent of termite damage & whether it is old, recent or active. If the damage is extensive then it will be cheaper to pull down and start again.You will need to ask yourself 'why is a developer interested in this site?' – does it have…[Read more]

I'd also add subject to satisfactory review by the Solicitor (you never know what the solicitor may not like, even on a std sales contract).

Elka, there are 2 parts to the AC – firstly it is powered by electricity (runs the motor/compressor/fans), secondly it has a refrigeration unit ie how else does it make cold? (Yes I know you can't make cold, you only can remove heat). AC brands are pretty much a muchness, if they have a 3 or 5 year warranty, great. Just remember that they DO NEED…[Read more]

If the contract does fall over, then you keep the deposit (hopefully you haven't reduced that below 10%).

Have you over capitalised on this one (due to inexperience, cost blow outs or emotional attachment)? Is this a ppor or an IP? Can you rent it out and move into something cheaper than the rent that you will be getting and pay the difference off the mortgage whilst taking advantage of depreciation?

Get onto your lawyer and push them to issue a notice to complete. This has to be issued to force the purchaser to complete the transaction and can only be done after 14 days past the settlement date.

ooops.  Centro has taken another dive.

Rent is not the only return of concern to investors, as most are in it for the long haul hence capital appreciation forms a bigger part of the equation (coupled with the tax benefits on cgt). In saying that, you must be able to analyse and understand the market in which you are investing, that is if it is Richmond know what is happening in…[Read more]

Eric,Stamp duty – this is a cost which is generally capitalised both on the land and the mortgage – no instant claim there unfortunately.Your bank will issue you a statement, at least annually detailing any interest charges or other costs as well as payments received. The account should work so that the full value of the repayment  is applied to…[Read more]