Hi All
It’s been a long time since I last logged on but now I need some advise pleaseMy current situation is as follows: –
My husband and I own our own home with no mortgage – under no circumstances will we use the equity.
I bought a block of land for $34,000 and was revalued at $80,000 after 12 months great really.
I used this equity to build an investment property (building completed Aug 2005) costing $284,500- being rented as holiday rental only and made close to $8000 over Christmas and still having bookings
The house that I built went up by $25,000 so I used this equity to build another house for $265,000 (Builing completed Dec 2005)and this one is currently renting out at $240 per week.
I have had a depreciation schedule done on both houses and I have documented everything that I pay on these houses for tax purposes.
I am currently paying out apprximately $2500 per month to cover the bank loans, I guess I will be able to get some tax benefits.
Could some one please tell me if I have over extended myself, I don’t seem to be able to work out if these properties will be positive, negative or neutrally geared.
We are able to pay the mortgages but I am not really seeing any benefits at this time.
Should I cut my losses and sell now? Should I keep? Can I wrap the rented property? What about Capital Gains Tax?
Help!Thanks
Martine[blush2][blush2]Very hard to say whether you are overextended.
Know nothing of your plans or goals let alone what you make each week.
I think the real issue is can you afford to keep this going as is?
If yes then I think you sound like you are doing well. You are buying properties that rent well and go up in value. Keep doing that and some day you will wake up and find you are rich!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Martine,
My suggestions is find a good accountant that has his/her own property investments and understands multi property portfolios. These matters can be very complex. Once they have worked out your situation, taking into account all income, tax deductions etc, then you will know if you are heading for trouble or not.
Once your situation is identified in detail, you can start looking for solutions and planning your next move. My accountant is in Sydney if you would like his contact details. I send him my financials and future investing goals and he reviews them and makes suggestions.
If you keep investing without working out exactly where you are financially you could have problems down the track.
Just remember “You cannot fight the enemy if you do not know what the ememy looks like”
Hi all!
Steve and Dave were offering their accountant as a sounding board a week ago at Master Class, couldnt be a better guy for the job really?
Too late at night to recall his name though the email is
[email protected] he was waiting for our emails/calls, worth a try…“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)[email protected]
Climbing & Consulting
Arboricultural Services
0431433288“be ye angels?”,
“nay we are but MEN!”Jarrah – was it by any chance Mark Unwin?
— M.
Originally posted by Jarrah:Hi all!
Steve and Dave were offering their accountant as a sounding board a week ago at Master Class, couldnt be a better guy for the job really?
Too late at night to recall his name though the email is
[email protected] he was waiting for our emails/calls, worth a try…“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)[email protected]
Climbing & Consulting
Arboricultural Services
0431433288“be ye angels?”,
“nay we are but MEN!”It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarHi Everyone
Thanks for the advise and tips.
Regards
Martine[exhappy]
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