I have a question about depreciation. I have read that depreciation does not really save tax, it just puts it off, as you will have to pay the tax in the form of capital gains when you sell.
Am I right in saying that the person will still benifit by depreciating in two ways.
1)The tax saving on $10000 today is worth more than the tax on $10000 in the future due to inflation.
2)After owning an investestment for more than one year, you only pay tax on half the capital gains. So even though the buy price of you property is written down by the ammount you depreceiated it by, the tax payed when selling is halved.Benali, all depreciation schedules give you are effective deductions for everything in your IP and im sure i would miss quite a bit. Just had one done on a 2 bed townhouse in Kingston. The $2089 for the first year is about $20.00 different to rates and body corp for the year so with a 7.5% return and the depreciation schedule im neutral.
So tip1 get a dep pro schedule
tip 2 read this months API mag about 50 ways to increase rental yield(cool article about me on page 48 too hehe)
tip 3 never say die, bad val get a different lender or a different valuer on banks panel, not going to settle on time get extension, repair as if you would live there yourself, and take no prisoners!!!
tip 4 have a team of professionals around you at all times. Tradesmen, solicitors, agents etc.
tip 5 never get emotional about a property, as Peter Spann put it in Brizzy last month. “if you sell you are just realising profit”, dont be afraid to cut and run.
tip 6 set goals and review regularly. My wife set goals 10 years ago that nearly gave me a heart attack. Now 10 years later its all happened.
tip 7 get some sleep!!! its 3 am why am i typing this??
Goodnight
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Tip- Look for properties with multiple income streams, lots look past them as too hard.
Sorry Jaffasoft, and Thecrest.
I think I found better and cheeper way to deal with accomodation.
If you wish to invest in area – buy one house first, than you can stay there for free, while you buying the rest of them!
[biggrin]
CheesNever buy in area that:
Is flood prone.
Has 500 people and population is decreasing!
Don’t buy just becuse you found +Ve property without doing all the research on that area first as it could be disasterous!and remember:
A winner knows when to quit and walk away. A winner must know that losing is part of winning if you do get into the mess!
[biggrin]
Dont worry about spending energy trying to find what a property bought or sold for in the past – just compare it’s potential to the current market. If a property has great potential in your current investing strategy it is not relevant that the vendor is selling it to you for double what he paid for it – good for him – but what is your opportunity – where are you going from here?
Tip
a tenant should smile when they hear your nameHi All
1. when a aged person dies a library of information burns down.
2. when a rich man meets a wise man the wiseman gets a little richer and richman gets a little wiser.
3.when you travel never take anything you don’t want to lose, there are theives in this world of ours and thats not only overseas.
4.If you’ve gained it, do everything in your power to protect it or you will lose it.
5.Never lose sight of the ball unless you want to lose the game.
6. My mums favourit(no longer with us)live life for today as tommorow may never come and the chinese your along time dead so enjoy today.here to help
Final Inspection Checklist
Just thinking about a final inspection checklist that we have coming up and I’ve jotted down some notes today, can you think of anything else to add?
Tips
-CheckWater Pressure and seals in taps
Toilets all working properly
Reticulation
Electric/gas ovens and hotplates all work
TV antenna still on roof
Remotes for garage door
Keys for doors, window locks etc
PowerPoint’s (use a babies night light for this one)Any other Tips?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by redwing:Tips for Investors-[grad]
Here?s a place for everyone to post tips for novice and experienced investors, either your own, or those you?ve read/heard of that may be of benefit :
Tip-
Consider the areas Long Term Growth potential, not just the short term and check to see if there are any planned infrastructure developments for the area.Tip-
Rental income is a *key* factor, your property should be within easy distance of transport, schools and shops, to attract the highest number of tenants.Tip-
Consider the? land content? and the potential to subdivide at a later stage, remember buildings depreciate-land appreciates.Tip-
Look at display homes for current colours and ideas, most also now feature water-wise gardens.Tip-
Buying a house with a ?host? of extras could save you thousands later on, consider items such as air-conditioning, heating, reticulation, patios, window dressings and recently replaced items.Tip-
View the property at different times of the day to get a *feel* for the area, check out the neighbourhood, possible traffic problems and weekend activity.How about adding to this list with your own tips you’ve found..
REDWING
.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorTip
Assume that tomorrow your computer is not going to start up, and all will be lost. Including those spreadsheets, emails, contact lists, all the treasured family photos that are now digital .. everything.
Back up your data !!
Tip
When rushing around doing property inspections interstate or any other area that you don’t know, take a navigator to read the road map and give directions. Its faster, you get heaps more done, and it’s much safer. Also take plenty of water or something else to drink.
Mal
Getting out of your comfort zone, can help you become comfortable
tip:experience is what you get when you don’t get what you want
Tip:you can never pay too much, just too soon
Tip
Don’t tell anyone what you are doing, one exception, people that have already done it! i.e. investors. People that don’t know what they are talking about usually think they do.
Tip
I send my tenants a $50.00 gift voucher every time I get a good inspection report or after tax time – They love it and I love them for looking after my property.
[grad]
“as per the contract”
The 4 words you need to live by.
If a contract is good enough to sign, it is good enough to be upheld in the future.
The Count
Real estate is not about financing, deals or property..its about people!
Dont rent to Family or friends
There is “no” best way to invest in property, its horses for courses..
“People” lie
You can never learn enough about investing
Purchase in the correct entity and then rent a property..through the correct structure, I think the benefits outweigh the negatives, especially if you dont sell
Wasp
**************************************************Its not what you earn but what you do with what you earn
Originally posted by secretgnome:Tip: Wise men never spit into the wind.
– Wiser men never pee into wind
cheers. MkcNot really a tip but this seemed appropriate for the topic:
If a person tells you that they are a pathological liar, do you believe them?[blink]
Thank you all for your tips. I have some that haven’t been covered yet and they are :
1 : All ways settle with the property vacant. All ways !! You need to know everything there is about who it is living in your place. Start fresh.
2 : I prefer to give my managers gifts rather than the tenants. A good gift is something like a hamper from the cookie man which can be shared with the whole office.Tenants come and go, especially in cheaper ereas.
3 : Never put the date on the contract, always finance 14 days and settlement 30 days from date of vendor signing contract. The reason being if the vendor doesn’t sign the contract straight away you may find your self running out of time.
4: And just remember that some things you read on forums is like saying I heard it down at the pub. ha ha.[biggrin]
Research will find you the deals, but dont rely on one source, such as the internet… get out there and network!
When renovating remember time is money, so be organised before hand, and always have a contingency fund!!An inch of time is an inch of gold but you can’t buy that inch of time with an inch of gold
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