I am no accountant (so why am I answering this?), but would think that any expenses currently incurred may be able to be claimed at 50% of cost (as you have a tenant), or it may be better not to claim at all as you may lose your PPOR CGT exemption. But once you move out, then any expense incurred would be 100% deductible.

The air-con would be a…[Read more]

Yes this would be a good idea, but you may need a Real Estate licence.

I know one real estate agent that runs a lease option program for people. He kind of acts like a buyers agent, finds property, tenant, and does the management etc.

There ws also a real estate agent near Yass (canberra area), he used to advertise sometimes in API magazine. He…[Read more]

I’m with Mel. You could just start out with yourself as trustee. Cost to set up would be around $1000 and running costs not much at all. Maybe $60 extra per year for accounting.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Antara

Where do you live? I am asking because you maybe able to get a place wrapped to you for something similar to what you are paying in rent. Maybe your mum could lend the some money for a deposit?

or

You and your mum could go in together and purchase an investment property or two. You could use part of mum’s money as a deposit and borrow…[Read more]

Aparently there is a way to do this. Chris Batten is a good account and has some infornation avialable at
http://www.chrisbatten.com.au

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

This strategy was very good a few years ago. Some people became millionaires over night. I think things have changed now, and it could be a very dangerous strategy at this point of time.

In my job as a mortgage broker, I have seen a few disasters. One client purchased off the plan 2 years ago and when it came time to settle recently, the place…[Read more]

I can recommend: Bruce Whitting of Mint Group. http://www.mintgroup.com.au he is in Sydney.

or

Dale Gatherum Goss in Melbourne, http://www.gatherumgoss.com.au

and there is, Nick ??? of Strategic Management ??? (can’t remember the details, but he knows his stuff).

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I don’t know of any free ones, but have one called Home Loan Analyser Delux which does what you need and costs about $60.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

NATS

If your sister has too much property exposure-in terms of loans, then selling half won’t really solve anything because she would still would be liable for the whole debt. ie if you were to stop paying, she would be liable.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Thanks guys. I have talked to an accountant and it is very hard to do an educated guess wihtout knowing all the details. But approx 1 to 2 years profit maybe a guide on the worth of a business.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I don’t think there is anything wrong with having a mailbox instead of an office. Many people can work at home these days, and don’t have a need for an office if they don’t have walk in customers.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

from my experience, I wouldn’t sell again. You are just wasting money on agents fees, CGT and then stamp duty etc when you buy again. Your current properties are going to keep going up, so why not jsut keep them and borrow against the growth for the next lot.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I don’t think you can simply transfer without stamp duty. (If it was between spouses in a divorce settlement, then it may be possible).

To makes things worse, your brother may even have to pay capital gains tax as well. Maybe he should have bought it as trustee for your parents.

It may be better just to leave it as it is?

Terryw
Discover Home…[Read more]

I agree with Terry. Borrowing through a trust is not difficult, but all lenders will require a personal guarrantee from the trustee or directors of the trustee company.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Liberty Finance used to have a 110% and 105% loan available (on the one security), but it had many conditions and was only for high income earners as it required extra repayments in the first few years. But they have scrapped this loan now (maybe due to a perceived lack of growth in commong years).

There are still 100% loans available, but…[Read more]

I don’t think there is anything wrong with that. If you provide furniture and charge market rents it is ethical in my opinion.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Credit cards can be very good or very bad, depending on how you use them.

It is a good idea to have access to a card with a large limit for emergencies. I know someone that made some miscalculations with her home loan and was about $10,000 short only days before settlement. She used a credit card for this shortfall. Standard rates for short term…[Read more]

Just think of tax deductiblitly like this:

If an expense is incurred in a genuine attempt to make a profit, then that expense is, generally, claimable.
So if you rent your house out and are paying an expense in the form of interest, then you should be able to claim that expense..

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

You could just use something like a price of $240,000 (ie 20% markup) reducing to $1 over 25 years. Part of each weeks rent could go to reducing the strike price.

The way I see it, you have three choices with lease options

1) a Strike price higher than your purchase price that reduces over time.
eg $240,000 reducing to $1 over 25 years

2) a…[Read more]

Blowie

I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au