Right back at you :)

Hi Lloydy

Welcome to the forum.

The council websites are a good place to have a look first. However the regional ones sometimes don’t have much information.

I would personally call them up or visit them in person and ask them. You can get a lot of info over the phone. Try to get hold of one of their town planners. They should be able to get you…[Read more]

It could be but nonetheless it’s a good topic. It’s important to discuss supplements that can help us keep on top of our game. Property investing is not that easy.

I personally have been taking garlic pills for the last 3 years and since then haven’t gotten a cold or flue. Must be doing something.

Andrew

http://positivecashflowproperty.net.au/positive-cash-flow-properties/32-gordon-nixon-avenue-west-kempsey-nsw-2440/

Yield: 12%

Hi Nathan

That’s a tough one. Unfortunately no one will help you for free. Everyone has to earn their commission.

The best way to approach it is to work with and learn from the whose commission is based on making/saving you money (they only make money if you make money). In general these people will have your best interest at heart.

With…[Read more]

In general the only people you can trust in property or business are the ones who make money if you make money.

Almost everyone else will sugar coat everything. Therefore the data they give you will be highly biased. You will have to do your own research to determine the risks and rewards involved and then decide if it’s worth it for you.

Andrew

Ok here is a quick example:

Cash Flow Income = Rental Income – Interest – All other expenses + Tax Refund

Taxable Income = Rental Income – Interest – Depreciation – other deductible expenses

If:

Taxable income (positive) = $1000 => Tax = $1000*.375 = $375 (tax payment)
Taxable income (negative) = -$1000 => Tax = -$1000*.375 = -$375…[Read more]

Terry fully agree with you but Chris doesn’t have any non-deductible debt (at least not a PPOR) and neither did I say he should take out a P+I loan.

The main idea behind my post is to lower your interest payments and to differentiate between IO for negative gearing (where the aim is to not lower your interest payments) and P+I or IO + Offset…

[Read more]

Hi Corey

Good question.

According to the agent it’s $900 per quarter and includes water and electricity (apparently it’s already under contract too).

My rental estimation is conservative since the median rent for this area, for 1bed, is $300pw. Given the fact that electricity and water is included the rent will be higher than $300pw.

Also…[Read more]

Hi Daniel

Agree with Jamie. It’s not worth it from a financial point of view.

Yes definitely. It is not a requirement to be an agent. All the forms are available online.

Yes you have to lodge it (based on QLD laws) and can’t hold the money yourself.

Andrew

I would think that most borrowers would use Offset accounts over traditional P+I where your funds are locked in (unless you take out a new loan).

The main idea behind my post is to lower your interest payments and to differentiate between IO for negative gearing (where the aim is to not lower your interest payments) and P+I or IO + Offset…[Read more]

Hi CRJ

That’s what I thought initially but this example on the ATO website says otherwise.

https://www.ato.gov.au/General/Property/Your-home/Buying-and-selling-your-home/Main-residence-exemption-from-capital-gains-tax/

Andrew

Personally I would focus on positive cash flow properties (or neutrally geared) that have potential for capital gain in the future. Any surplus income should be used to pay off the loan to increase your equity. At the end of the day your goal is to pay off all your loans and generate income from the property.

Negative gearing for example relies…[Read more]

Hi Ollie

Your CG = Market price of your PPOR when you moved in – Purchase price.

Andrew

http://positivecashflowproperty.net.au/positive-cash-flow-properties/3626-palm-place-ross-nt-0870/

Price: $165,000
Rent: $290pw

Hi Diver

Welcome to the forum :)

I think that you might be approaching it from the wrong angle.

When you are searching for investment properties I would focus on the price, rent, vacancies, expenses and location of the IP first.

It’s also important to understand the difference between cash flow income and taxable income and how they are…[Read more]

Yes I did not mention that they won’t use your gross rent but will apply a discount factor to take into account agent’s fees, council rates, strata levies, repairs and vacancies (which makes sense).

A general rule is 20% discounting but it varies between lenders. Best approach would be to approach different lenders and provide them with your f…[Read more]

No there is no difference between rental income and salary for the purpose of obtaining a loan. Banks will look at your historical income (rental/salary/business), to judge its stability, and any current loans you might have.

That depends on how much income you will need to cover your expenses and service your current/future loans.

Andrew