I think I know where you are getting confused.
You must look at each property on its own….

So if you are negative gearing, the property will cost you say $5,000 p.a. Before tax. (Don’t worry about your income for now.)

So this means that whatever your tax bracket is (say 47%) you will get back 5,000*47% = $2,350.

Ok now what…[Read more]

I am not sure people are allowed to lend you the DVD’s or the manuals.

If they did they would have to make sure that they didn’t sign any contracts saying they couldn’t.

This NII group doesn’t sound to good! Wouldn’t suprise me if they were reading this thread so beware!

I can tell you now, $15,000 is way to much for any seminar.…[Read more]

Sorry to hear the bad news. Things will get better…

Anyway I wanted to mention something VERY important.
I have seen people get “stuck” on rent and holding out for their figure, when this is NOT RATIONAL!!!! (exept for commercial properties.)

OK Let me show you the numbers (I must admit that this took me a while to digest at…[Read more]

Thought I would try and balance the views a bit. Why negative gear? There are a lot of reasons and you will see why by the end of this post.

(To give it away you will see that the BEST strategy is actually to have both Negative AND Postively geared properties, with a ratio of 1/3 or 1/4). I will not go into the details , but just…[Read more]

quote: Is that all I should be thinking about? Are there are other things / issues that are evident that I’ve missed.

YES… What are your goals? What is it that you want to achieve?

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Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
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None of us really know what your problem is.
Could you elaborate a bit more…

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Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
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There is some really good advice here!
OK I am going to ramble so feel free to skip this post if you don’t have the time to read it…

What peterp said is excellent and very true. It is interesting how some people will be ready to pay someone $16,000 to spoon feed them when ALL the info is out there (especially on the net).

It is very…[Read more]

Which is worst !!???!?!![][xx(][?][?][?]

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Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
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It will do all the calculations you will need.

Just click on the link next to APDM.

Cheers

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Australian Property Software

APIM: http://www.apim.com.au

APDM: http://www.apim.com.au/apdm.htm

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What are the deals? Have you already exchanged?
I am sure there might be some people interested in your deals. You might be able to transfer the contracts to someone else that would be interested in them.
A lot of people don’t have the time to look. You already have one or two that would be good for them.
Let us know how the figures…[Read more]

Sounds interesting. How about I buy a block of land and then sell you an option to purchase it in December. If the price goes up then you complete the option. If the price falls you can pull out.
This way you carry no risk (but you will have to pay for the option.), and I carry the risk.
I would need to get more info though so email…[Read more]

Ok thanks for the explanation. I understand what you are doing now. I agree that this seems legitamate but I am NOT an accountant either. (not even a mortgage broker for that matter!).

Not sure I find it very useful though. Will keep it in mind however.

APIM

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Australian Property Software

APIM: http://www.apim.com.au

APDM:…[Read more]

Thanks for the links. I read them and found them well balanced.

You are correct in comparing apples with apples. If people put their diposabe income back into their loans they would be in front either way. However I am not sure that many people do this. The worse would be for them to but their disposable income into a savings account…[Read more]

I see a BIG problem with what you wrote. I don’t know where you got your info from but it is wrong. (or did you explain yourself wrongly. It makes me worry that people are giving this kind of advice.) I agree with what lynne14 said.

Stuart,

I am not sure I understand what you mean by:

quote:That is, you are better off paying…

[Read more]

I had a good read of this. At first I thought, yep this is your standard split loan arrangment, but after reading more carefully it doesn’t seem to be.

Yes there is a way to repay your PPOR loan much faster but I think your friend is doing it wrong.
He needs to make “special” arrangments with the banks, but he shouldn’t be using the…[Read more]

What you need is the yearly interest rate (call it i%), and the amont you want to borrow (call it X)

Since there are 52 weeks in a year, your weekly repayments on an interest only loan is:

weekly repayment = (X*i/100)/52

so if your interest rate is 6.3% and the amount you borrow is $100,000 then your weekly repayments will be =…[Read more]

Landlord insurance or malicious damage insurance?

Not sure what you mean but I know they will insure IPs as well as PPORs.

I am not sure whether they have malicious damage. I am prety sure CGU do. The best is to call them up and ask.

Not sure what you mean “by combination of a few”

APIM

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Australian Property…[Read more]

We used to use Zurich because they gave us a discount (15 or 20% can’t remember exactly.). However now that they have been bought over by QBE their prices have increased!

We called NRMA and saved $1,250 !??!?
Saved nearly $400 on the car and $500 for my PPOR!!!! and now I am a member too.

I also use CGU but think they are a bit too…[Read more]

If the numbers stack up and you know what you are doing then go ahead. The good thing with property (unlike shares) is that people need a property to live in.

APIM

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Australian Property Software

APIM: http://www.apim.com.au

APDM: http://www.apim.com.au/apdm.htm

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Let me try and answer this one:

quote:If I buy a new resi property for 330k inc GST will the BANK value it at 300k or 330k?

NEITHER!!!! The bank will send a valuer around and whatever figure he comes up with will be the value of the property. It can be anywhere between 250K and 380K. HOWEVER your bank will use the lesser of the contrac…[Read more]

Ok this is what I would do.

If you have the equity then buy the place and try and improve on it without spending too much money.
(i.e. paint it and clean it up, or whatever ….)

Then get it revalued. (Make sure your bank will allow you to revalue the property soon.) This time make sure that you are there when the valuer comes over…[Read more]

Yes it seems like they will cross collaterise. This may be good or bad. (Yes there is a good to it) But in your case it would be bad.

You want each mortgage to be seperate. So this is what you may want to do.

Ask your bank to revalue your property an borrow the 20% you need to purchase your IP. (I would recommend a LOC but you can do…[Read more]

From what I understand they have lost twice in the lower courts and have gone to the high court to stop people claiming the capitalised interest.

If they loose in the high court again they will probably change the law.! (Yes they can do this, well not exactly them but they will ask the government to change the law…[Read more]

Like Saskatoon and Peters have already mentioned the ATO does not like Split loans because of the capitalised interest on the IP loan.
However I did some calculations using split loans WITHOUT claiming the capatilised interest and you still come out miles in front.

The good thing about split loans is that they help to reduce the loan on…[Read more]

OK what you may want is a split loan. This will allow you to have two loans. One for your PPOR and the other for your IP. You can then make ALL the repayments into your PPOR loan and therefore reduce the loan faster.
The interest on your IP loan will be tax deductable too.
With your income and figures you gave me you will have no problem…[Read more]

How much do you owe on your property?
What is your income roughly? and how will you finance an investment property?

This will help me answer your question.

APIM

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Australian Property Software

Coming very very soon…
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Finally got the website up and running! (still need to double check everything is working but you can download the spreadsheet if you want.)

You can have a look at what the spreadsheet can do at http://www.apim.com.au/apdm.htm

or download it directly at http://www.apim.com.au/apdmdownload.htm

APIM

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Australian Property…[Read more]

Actually your deal is not as bad as you may think.
From the quick calcs that I have done it looks like it will cost you a bit over $2,000 dollars to keep AFTER tax. (If the interest rate doesn’t go up etc…)

Make sure you depreciate the property and claim all expenses. (including interest. The stamp duty is a capital cost NOT an…[Read more]

I have been out of action for a day.
Not going to make a big deal out of this but do want to put the records straight.

The reason why I like Steve’s approach is becasue he is a peoples person rather than just making money. He says to “invest in the people NOT the property”.

I agree with him that there is a lot more to property than…[Read more]

One thing to keep in mind is that if you have property (or land) in the trust you will have to pay land tax on the total value of your holdings. There is no threshold as for individuals.

This isn’t really a problem since the advantages far outway the disadvantages. (just something to be aware of.)

APIM

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Australian…[Read more]

I thought there was more to property investing than just numbers…

OK I have no intention to make a “flame post” but do want to put another view across.

1) I could never agree with such practices, and feel no sorrow for the workers. They stay on the job because of drugs and fear. They COULD find a better job if they really wanted…[Read more]

quote:To have the house you live in classified as your PPOR you need to live in it for 12 months before you can sell it. Correct?

Not exactly. You can live in it for 2 or 3 months and then move on, but you would have had to have the intention of it being your PPOR. (You would have to get your mail delivered there. etc..)

Also if you do it…[Read more]

I have nearly finished my website and there is a free excel spreadsheet that will do what you want.
Should be finished by tonight.

APIM

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Australian Property Software

Coming very very soon…
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Do you have a PPOR, or is this going to be your “PPOR” so to speak?

There are significant implications depending on your answer. Let me know and I will fill you in.

APIM

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Australian Property Software

Coming very very soon…
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The calculations are really not that hard, and in actual fact your bank will tell you on their statements the “interest” component you have paid and the “Principal” you have repaid. If they don’t just ask them!

For property investing it is nearly always better to use Interest only loans.

I am not sure I understand what you mean by…[Read more]

Good work. How about underlining the titles and putting the authors in italic so that it is easier to read.

This should be on a page of its own and it would be great if people could vote and put reviews on books (a bit like Amazon.com)

APIM

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Australian Property Software

Coming very very soon…
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No i am not insomniac[], I just work till very late… but I get up late too [8D]

It is important to know what will happen to the suburb in the future. If investors are going to come in and start pulling down and rebuilding then defenitly keep the property. (Is your block flat? does it have views? How big is…[Read more]

I need a bit more info.

– The interest on your loan

– Council rates

– Water rates

– Insurance

Once I get these details I will be able to have a closer look.

A good deal is a good deal, and I think this is a good deal. (so basically you can’t loose. You just have to decide which is the BEST way to proceed.)

Based on my quick…[Read more]

Just a few questions.

1) Is it worth renovating? and then selling.

2) Why hasen’t it been rented out yet?

3) Are there any problems with the house?

I will do some sums and post them up for you.

APIM

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Australian Property Software

Coming very very soon…
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Thought I might add a bit more:

1) Getting a good “team” together is a must (i.e lawyer, accountants, banks, real estate agents etc…)

It takes time to get a team together, but is worth it. An important thing is that your team will start to know you better and learn how you operate.

The two MOST important people are BANKS and…[Read more]

This is exactly right! It becomes VERY time consuming when you have more than 5 properties…

One of my best advice is get a good property manager and get them to sort out your bills for you (like water rates, council rates, etc…)

You will also need a good filing system.

This is also one of the major reasons why I started the APIM…[Read more]

I am not sure whether I understand your example, but the simple answer to your question is:
You can claim the interest on the portion that is used to invest with. (It does not matter where you get the money from)

So let’s say that somehow you have $100,000. If you use $80,000 to invest with then you can claim the interest on that…[Read more]

http://www.stampoutstampduty.com.au/rates.htm

It calculates the Stamp Duty for each state. (Each state is different.) and Victoria seems to pay the most (2nd is NT). The state that pays the least is (not suprisingly) Queensland.

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Australian Property Software

APIM —>…[Read more]

http://www.taxinstitute.com.au/CDA/Stories/Individual/1,1030,37255,00.html

which talks about Stamp duty “corporate reorganisation exemption”.
Does anyone know more about this?

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Australian Property Software

APIM —> http://www.apim.com.au/beta.html

APDM —>…[Read more]

I have sent you a patch (to your grafx email address) which will fix the problem.

For comments please use the forum http://www.apim.com.au/files/forum

or email us directly at beta@apim.com.au.

Thanks

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APIM coming very soon …

APDM coming soon …

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No there isn’t a problem. I am not sure why you are having this difficulty.
What browser are you using?

Ben

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APIM coming very soon …

APDM coming soon …

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I think it will not be as bad as you think.

How long did you live in the first house?

(I am NOT an accountant. Please see your accountant to double check this..)

Say you lived in it for 2 years, (which is 24 months) before renting it out and you have rented it for 10 months.
The percentage of the time it was a IP is about 10/(24+10)…[Read more]

You will find the download links at the bottom of the page.
I have put an example in already so that you will know how it works.
Report any bugs to support@apim.com.au
Enjoy!

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APIM coming very soon …
APDM coming soon …

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I have nearly finished a spreedshet that does (i think) everything you are looking for.

It is called APDM (Australian Property Decision Maker.) If you would like to test it with me I would be more than happy to let you use it, however it must be used on a “use at your own risk” basis.
I developed it using openoffice calc. (Since it is…[Read more]

I am just wondering… How do you keep track of all the paper work when you have more than 10 properties (Let alone 50!!).

All the bills etc… Seems like a good program is needed

Can anyone tell us how they do it (their thoughts on this and a few explanations.)

Thanks

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APIM coming soon …

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