Simon’s right. Its only a relevant interest that counts. If you don’t move into it, then it should be OK. I wouldn’t intentionally be defrauding the govt. Would hate to get an audit. Apparently they’ll ask ou to show proof like send in copies of drivers licence, change in electoral roll, utility bills…etc..

On another note, anyone have any thoughts/guesses as to when the govt will stop that FHOG hand out? It surely can’t last forever.

I believe Celebration, Home Buyers and Dale Alcock are the same mob. They seem to be the best. Had one done around 10 months in SW. Engaged Celebration to do another in April and almost caught up to other with Content when plans drafted end last year! They’re short the works – if its not brickies one week, its roofers or plasterers. Think the Dale Alcock guys manages their projects and subbies better than others but with all of them – expect at least 12 months.

I’m also struggling with the same dielemma. From where I’m looking to buy and live, even the cheapest 1 bedder will cost me in excess of $325K. And unfortunately I cannot find a strategy in converting the equity in all my IPs to equity in PPOR so I don’t need such a huge mortgage to get in to the market. Only way to increase deposit is to sell IPs and trigger CGTs, incur selling costs….etc.. and I’ll be selling better growth prospects IPs to buy in Syd where predicted growth is squat didley over the next couple of years. Then again, no one has a crystal ball…

I think I might have to stick to rentville as its <$250/wk and I don’t have to worry about NTDD interest costs, strata fees and maintenance..etc.. My break even is something like $15K pa. Simply, I don’t think I will get that kind of returns in that unit over the next 2 years – lower Nth Shore. Any thoughts guys?
Should your decision to buy PPOR the same as IP? I just look at the numbers, holding costs and projected returns..etc… and it doesn’t make sense to me. Maybe I should be placing more emotions into the decision making seeing your home should be your castle…?

But I suppose will need to bite the bullet when this market picks up and buy that PPOR or when I get married, whichever comes first.

Confused.

Thanks for that Terryw. Might be a bit troublesome to show audit trail for rent to come from family/friend but for all purposes, I could argue that its just like any other IP. Might continue to use parent’s address for correspondences with ATO/electorate so it doesn’t create alarm bells with me claiming deductions from IP owned by the trust which I’m also living in. I know a lot of accountants are not big advocates of this strategy so will see. Thanks again.

Candy,

i too live in Syd and have IPs in WA. Theres is simply no way I will do this without a PM. They charge more than over here – up to 8.5% plus GST but negotiable if you have a few IPs. I have built a good relationship with mine and she gets on top of problems ASAP. Especially with this storm they just had. Also helped out in organising the pre-work and finishes for project homes we’re building. She is truly gold. And if there are any contractors/tradies out there who would like a change of lifestyle or looking for work – head over to WA. Especially the SW – they have work there lined up for the next 18mths. Awesome beaches and magnificent wines. Can’t beat that. Unfortunately I have a desk job

Hi guys,

This is my first post so be gentle. I think this forum is great to pick up valuable info on IPs. I’m still relatively new to IPs but have in the very short time done found a little success compared to my previous experience with the share market. I was trying to pick stocks back in 99-01 during the tech hype. You’d be up $30-$40K in a week then give it all back and then some. I’ve learnt the hard way that unless you have inside information (which is illegal), its hard to outperform the index in the long term. You could try to profit from quick rallies or ranges but that just mean you’re a short term trader and you never win in the long run anyway unless you’re very disciplined in cutting losses. I work with some pretty good traders simply because theres no emotion and its not their money.

I think the sharemarket is toppish at the moment but I’m sure theres still value out there like our resource sector. If you’re going to start picking stocks, then research is the key. I suppose its the same as due diligence in IPs. Otherwise, buy an index fund (low fees) or margin lend STW (Streettracks ASX200 shares) or buy an instalment warrant over it.

Historically, returns on shares are a couple of %s higher but I still reckon leverage in property is the greatest. To make money in sharemarket, holding blue chips are safest but its like an income play so you want to throw in some growth stocks in there but LVRs on those are sometimes only around 50%. There are lots of products that provide both 100% gearing and protection but interest rates on those are very high. More suited to those on the TMR.

I think diversification is probably the key here. There are many alternative investments out there. A lot with capital protection and hedge fund style and also income not necessarily from property but in terms of leverage, nothing like property.

Someone mentoned o’seas shares. Now I haven’t done my research in terms of whether Asia, Europe or US is better in terms of value but I’m pretty certain for sure that you guys should consider averaging in on USD assets. Historically, the dollar trades around 0.67-0.73. If the asset doesn’t do as well, you’ll at least have the currency to maybe compensate. Obviously a double whammy if it keeps going up and your assets perform poorly.

I suppose I could ramble forever but seeing this is a property forum, have a good night.