Hi there,I have one more question that I forgot to mention.What if I move out of P1 in FY09-10, rent it out, then withdraw the equity in P1 to pay down P2 in FY10-11. Will that fail the purpose test again?cheers

Hi duckster,I have a similar question. My situation is:- Have a PPR (let's call it P1) almost paid off- Have a IP (let's call it P2), negative geared beforeI moved into my P2 from P1 in the end of last year, so now P2 becomes my PPR. I haven't done the FY09-10 tax return yet, so this has not been triggered in my tax return with ATO.P1 has been re…[Read more]

thanks for the advices!I just got 2 tradies came to our house for a quote, they will get back to me this week, will also check out some show rooms in the coming weekend to get a feel about the prices.I've already got a clear picture in mind how i want the finished bathroom to look like, i'll find out about the material cost this weekend.will…[Read more]

u can transfer profit from another trust to offset the loss, so effectively u don't pay tax on the profit from the other trust.if you don't have another trust that making profit, then loss will be locked in this trust with no benefit.u may want to consider the asset protection that the trust provide too. also, u may want to set up a proper JV…[Read more]

Generally this kind of properties are charged higher management fee, one of the university accommodation we looked into charge 12% management fee. Normally when they try to sell it to you, they quote the gross rental which is before taking out the commission.Also, as everyone has mentioned, banks don't like them. especially with studio or uni…[Read more]

Thanks Terry, also you mentioned that it is not always possible to transfer the profit between trust, why is it?If i have trust no.1 that's holding a negative  geared property, effectively making a loss and trust no.2 buying, renovate and selling for profit, can I make trust no.1 beneficiary of trust no.2 then distribute the profit to trust no.1 t…[Read more]

I've used some buyer's agent before, they only sent us a couple of deals throughout the year. We end up buying one property from them. but I just think the speed they provide deals is not fast enough for me. so I end up doing my own research.I would say set a financial target first to decide the price range you are looking at, then add other…[Read more]

Hi Terry,Can an overseas resident be beneficiary of a discritionary trust in Australia? Obviously they have to pay tax in their home  country, but will they be required to pay tax in Australia?cheers.viv

We inspected roughly 100 for the first IP, it was hardwork, 3 months of non stop inspecting every saturday from 10 to 3 with lots of sandwiches lunch in the car or on the go. But it paid off, we got a great bargain that gave us positive cashflow from day one and nearly 100k capital gain within 2 years.the second one we took a different approach, a…[Read more]

HI all, the report is in soft copy pdf format, it is encripted so that u will need password to open up the report. it includes overall NSW market trend analysis and a hotspot map, basically a NSW map color coded according to growth rate. then it has couple of paragraphs summarizing what they believe drive the market in the past 12 months or so. T…[Read more]

The unit actually looks pretty solid and decent condition from outside. In addition to what others have suggested, two things I would do:1. Repaint the outside wall with a more humble color, The bright red is a bit too scary for most people2. Minor plumbing to make the kitchen tab coming out of the bench instead of the wall.  

Hi there, i've purchased 2 residex report couple of months ago. one is Top Budget Growth in Sydney, another one is Top 100 suburbs in Sydney. We've purchased one house in Sydney last month based on the residex report and more due diligence we did. I think it is really helpful in terms of narrow down your due diligence research area. There are…[Read more]

rental yield is dependent on lots of factors, suburbs, location in the suburbs, condition of the property etc.generally units has higher yield than houses, but in outer suburbs there's no units, only houses, so there's no comparison.why does it bother you it is a house or unit? in the end u want something that makes money for you.

Hi Jess,Thanks a lot for the thorough feedback. I also have a question about the financial feasibility software.How does it look like? And how do you use it? Is it just like a excel spreadsheet that helps you to work out the holding cost, renovation cost (with predetermined renovation cost of each component such as bathtub or toilet or wall in…[Read more]

Hi cut the chase,they actually don't ask if there is more than 1 lease, the sales representative just want to get the premium so they don't bother asking details like this. I actually asked explicitly if they insure it, then they answered no. I believe the risk is that if you buy an insurance without telling them it is more than 1 lease in place,…[Read more]

hello, declaring the rent is completely up to you. if you don't declare it, you just keep the cash rent to help the mortgage repayment and you still get 50% off CGT when you sell the house.if you declare it, you can declare part of your mortgage interest now, but when you sell the house you will lose the 50% off CGT on the part you declared,…[Read more]

Hi Matt,All of Steve and Cherie's deals are in the high end market, and their renovation style is to bring a house from bottom of market to the top of the market to maximize their margin. However, I don't think everyone can afford to play in that price range to start with. At least for the first deal, I wouldn't go out and buy a 800k house and try…[Read more]

I've been to their meetings. totally waste of my time.the presenter just keep repeating the advantages of negative gearing. she said she was really happy with her 8 heavily negative geared properties, instead of paying 40% tax, she is only paying 9% tax and can live off from withdrawing equity from existing properties. when we asked what happens…[Read more]

Hi Tinkara,Actually I am curious to know why she doesn't wanna share more info too! To me, I believe their workshop must be good, but don't think it is the one and only one workshop out there to make a renovation successful. besides some of the materials they cover, such as asset protection, subdivision and strata title, I've already learnt. What…[Read more]

Agree with JacM,I don't think the simple ROI calculation is valid for super. Firstly, It is something I can not touch for 30 years, even though it has a value today, the real return is only realised when i withdraw it, and it won't be in today's dollar. Secondly, if you withdraw early, the fees and charges are so heavy that you automatically lo…[Read more]