Wow hwdoo7. This is a 2+ hour accounting lecture (and debate). There are heaps of Tax Rulings and Case Law on this one. I suggest you have a search around on the ATO website (and speak with a knowledgeable professional).

I must admit that it’s something I studied over 3 years ago so I am only just familiar with the general…[Read more]

Remember to compare insurance cover as well as price. This is very important. If a policy has limited cover then of course it will be cheaper (but does not mean that its better value for money). Just a warning.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

This is covered in my next “Unlimited Finance” article.

Yes, providing a guarantee does affect your borrowing capacity and is recorded on your credit file. Extract from article:

quote:Some people are under the misconception that providing a guarantee does not affect your borrowing capacity. By providing a guarantee you are essentially promising…

[Read more]

In my mind responsible investing is all about having integrity. If you say you are going to do something then do it. Integrity includes being honest, ethical and open. Integrity is being true to your word. Without integrity you may make money but you will not hold onto if for long.

Ohhh Sooshie… this is a bit deep for a Friday…[Read more]

If I was you I would give Revenue SA a call. See http://www.revenuesa.sa.gov.au/enquiries.html. They don’t seem to have much info in their site.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Thanks for the summary Del.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Dave

You may also want to look out for an article I wrote on commercial finance in the next issue of API. There are some significant differences between commercial and residential that you should be aware of.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Trueblue

I am a CA and I was just having a dig at CPA’s for fun. A bit of friendly rivalry…

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Do not pay.

1. Not all accountants are licensed to give investment advice (they need an Australian Financial Services “AFS” Licence). If they don’t have one then how can they charge you for something that they are not entitled to give!

2. Accountants normally get you to sign an engagement letter (which, amongst other things, sets out fees and c…[Read more]

Thanks. But some key points from an investor’s view point would be useful because it eliminates that ACA hype!

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Del

It would be great if you could summarise any key points that they make for those of us that return from work after ACA. Is this asking too much? []

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

It’s never a “perfect” time to invest – there is no such thing.

I don’t know the Brisbane market but I’m sure that there are some areas that are still worth investing in. I always find it difficult to hear when people talk about the “property market” going south. It’s unlikely that the whole market will turn… maybe just segments of the…[Read more]

With that association (HK & PCG) I would be inclined to stay away.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Caz in Perth

Renting is not a good strategy for everyone. The difference between you and me is that I don’t want to buy a PPOR whereas you do.

You see if I had $100,000 I would rather buy an investment property rather than a PPOR. If I purchase a PPOR for $500,000 then my $100,000 deposit would not be working for me (as I have leveraged up to…[Read more]

No. It is added to the ‘cost base’ of the asset when calculating the taxable capital gain/loss.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Rstarr

As you are reasonably strong on the serviceability side of things then selling and renting will maximise your borrowing capacity.

Note: your partner will essentially be qualifying for the loan as most lenders will not consider your income if you have been self employed for less than 2 years.

On a personal note I will continue to rent…[Read more]

One advantage of selling and renting is that you will have access to 100% of equity. Whereas, if you purchased again you would have to leave 5% to 20% of equity in the property. Notwithstanding that fact that you would have to pay stamp duty on the new purchase.

From an investing perspective I would sell and rent.

However, if you are weak on the…[Read more]

All property advocated work on commission. That’s fine. But don’t reward them for spending more. Set a target price at the outset and fix the fee (e.g. Target price is $250k. Fee is 1%. Therfore fixed fee is $2,500).

I would suggest firstly considering the qualifications and experience of the advocate (member of real estate institute and…[Read more]

Bruce,

Positive cash flow strategies are not for everyone. There is merit in both strategies (i.e. investing within 15kms of CBD and investing in high yielding country areas). You have made some gross generalisations that are perhaps a reflection of your lack of knowledge in this area.

I would think its every investors aim to secure strong…[Read more]

A purchase of $190,000 in SA will cost you approximately $198,500 (inc. stamps, etc.).

I suggest you finance 80% of the purchase price through a separate loan (therefore, $152,000). The remaining 20% plus costs would need to be financed by drawing down on the equity in your existing property. You would need to draw down $46,500 ($198,500 -…[Read more]