Not sure whether that would be legal. As far as I’m aware, in VIC tenants can be up to two weeks late in any month before any action is taken against them. Also, I think a clause like that, if legal, would scare off prospective tenants.

There are 10 types of people in this world. Those that understand binary and those that don’t.

Crystal,

$3260 divided by $85000 multiplied by 100% = approx 3.8% [happy3]

Good question..I’m not sure whether to be excited or scared about having all these funds available to me. I don’t think it’s the right time to be buying more property just yet. I’ve been trading some gold stocks recently with reasonable success so I’ll continue to do that. But if gold price can revisit and break through its recent high of $US730…[Read more]

Definitely hold if you can afford to. You will one day look back, holding a substantial capital gain, and wonder what you were worried about. I bought a house in 1990 for $84,500 and it immediately began to fall in value. I thought it would never recover, let alone give me a capital gain. I would ask my agent every few months what it was worth. It…[Read more]

samjames,

I pay 5.5% (GST included) and I could not be happier with my agent. I have 3 properties with them.

Tax rates 2005-06
$0 – $6,000 = Nil
$6,001 – $21,600 = 15c for each $1 over $6,000
$21,601 – $63,000 = $2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $14,760 plus 42c for each $1 over $63,000
Over $95,000 = $28,200 plus 47c for each $1 over $95,000
The above rates do not include the Medicare levy of 1.5%

The top t…[Read more]

andymitchell,

The withholding tax form is only of benefit to you if your taxable income is “reduced” because of your investment. In other words, your interest, bills, depreciation etc are greater than your rent. The net loss is used to reduce your taxable income, hence reduce your tax payments. So if you end up with a “higher” taxable income, why…[Read more]

Thanks for your reply ptn,

Property to double in five years, that’s highly optimistic in my opinion, but hey I won’t complain if you’re right. I’ve made a couple of very poor investment decisions over the last few years so that would really make my day (or five years).

I have 3 IPs. Two bought in 2001, fully paid off, good capital gains. One…[Read more]

What a great thread! Informative and very humorous![biggrin]

Originally posted by Colin Gowan:
3056 Please accept my apologies I didn’t intend to offend anyone.

No offence taken Colin.[blink]

I understand exactly what you are saying Simon and I take your comment as a compliment. I was just trying to make the point that the problem is the card owner, not the card.

Originally posted by Colin Gowan:

Perhaps the first thing I suggest should be to cut up the theft cards, nobody needs them, if you are intelligent enough to be disciplined with repayments you are intelligent enough never to need them.
Enough said about those evil cards.[evil4]

Credit cards are not evil, it’s the people who cannot manage them…[Read more]

Yeah…OK?

“From the heart of my bottom”. At first I thought it was a typo. What a great come back!

I think an IO loan is great as long as the difference between the IO and PI monthly payment is also invested. If not, I would stick with a PI loan because you are not only disciplining yourself to save better by having to meet the larger repayment, but building equity in your property faster by reducing the loan (and saving interest) and getting…[Read more]

MK,

This is one of many reasons why I would never manage my own properties. There are so many advantages to using a PM I can’t understand why everyone doesn’t do the same. I pay 5% commission and it’s tax deductible. You say you like to save $20 per property by managing them yourself, but how do you know an agent wouldn’t get you more rent?
I…[Read more]

Thanks Derek. By the way i’m Marco, not Steve.

Exactly my point. Can we leave it at that, i’m tired of this. If i had have known i would be attacked for my post i would not have bothered. Everyone else on these forums seem to encourage each other and only offer positive feedback.

Why don’t you use TLS in your calculation? Or why don’t you use CBA when it was around $35 before it dropped to $24? It is easy to handpick stocks that have done well after they’ve gone up.

hb…

Please don’t give me a lesson on shares.
I know all about BHP, CBA and hundreds of other stocks. I’ve followed them for years. But you are right, they have by far outperformed property in the last 3 years. But before that, property did much better than stocks. Thats why you need to be diversified. So next time, read my posts correctly. I…[Read more]