Chattaway replied to the topic first home buyer and renovations converting to investment and depreciation in the forum Help Needed! 4 years ago
If you were to move out and then use it for income producing purposes (renting it out) then for sure it would be worth it. You would get capital works deductions for your renovations and can depreciate the fixtures and fittings. The combination of the rent you receive and the deductions and depreciation that you may get may make a big difference…[Read more]
Am I right in thinking that in an off market private transaction (lets say a daughter buying a property off of her parents) if the property was sold to her for 200k but it was actually worth 400k – Capital gains tax would be calculated as if the parents had received market value. Is this correct?
I’ve recently wrote out a plan from July this year till 2029 (when i’m 45!) where I’ve mapped out as best I can an accumulation of properties and based growth pa on each investment property at 5%. I’m interested in hearing opinions on what they believe is to be the most realistic growth per annum figure that I could use. Is 5% too high an…[Read more]
Myself and my partner are in a fortunate position whereby her parents are happy to sell to us one of their investment properties for 400k. The property is likely to be worth somewhere in the region of 420k and 450k – a valuation will be sought soon.
I have been basing all calculations like the example below, the value is obviously an…[Read more]
Myself and partner are currently saving for an investment property. We have 20k saved at the moment (not a great deal) but are in a position where we should comfortably have 80k before xmas. This can be repeated for the next four years with our current circumstances. Serviceability should be pretty good – we both earn around 80k each with…[Read more]
I’m just curious as to how many investors here, started investing with an end goal and then worked backwards to guide what purchases make. I’m struggling for formulate a clear framework to use.
The approach that I want to implement in regards to property investment is to source positive cashflow properties which I believe may also rise in value within the first three years of ownership but should they not, the cashflow is to be used to support shortfalls for more growth based investments – blue chip properties. I u…[Read more]
I have read and understand the benefits of paying for food and living expenses on credit card and then paying balance off before interest free period kicks in. Is it possible say if you had a credit card with a max of 10k on it, to withdraw 9k of that or transfer 9k and put it in your offset account and then pay it off again before the…[Read more]
I am hoping that somebody may be able to provide me with a rough estimate as to what I could expect to pay in rental management fees in Tasmania. If anyone has any information, I would be grateful.
Thanks alot Benny. I think i’ve finally cracked it. Am I right in thinking that if it was positively geared – rental income greater than all expenses that you can still get depreciation? or Capital Works Deductions?
Sorry to sound confrontational because i’m really not but what do you mean ‘what about the rental income you are earning?
I didn’t realise that the rental income had an impact on the tax deductions. Are you saying that if the rental income on a property exceeded all its outgoings that you could not then claim for interest on the loan?
Put another way I have been figuring from what i’ve read (obviously wrong!) that you’d work it out like this
Interest paid $16000 but tax deductible and therefore 31.5% of $16000 is $5040 – I therefore recieve back $5040
Property management $1200 but tax deductible and therefore 31.5% of $1200 is $378
Where is my logic failing me :(
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