Corey are you able to please clarify how much of the kitchen you did yourself? Was $2.5k the cost of the cabinets etc and you installed it yourself or were there professional installation costs on top of this? I might be looking at doing a kitchen reno myself in the near future so curious to know approximate numbers

Out of curiosity, what makes you suggest Braybrook?

Makes sense. Thanks for explaining that guys!

Richard Taylor – do you deal in Melbourne too or only Queensland?

$90k in 3 years isn’t bad at all! If you don’t mind me asking, how is your current property performing in terms of growth?
That’s exactly what I’ve been finding recently too. Especially in Melbourne recently there has been very good capital growth but rents have not kept up and as a result yields have decreased.

Going to one of Steve’s events…[Read more]

Is it possible to find properties which match this criteria in Metro areas or just regional? I have been looking at Metro areas and yields seem to be much lower than that. Or am I just looking at the wrong areas? haha

Is it possible to find properties which match this criteria in Metro areas or just regional? I have been looking at Metro areas and yields seem to be much lower than that. Or am I just looking at the wrong areas? haha

Very interesting thread as I am new to the whole concept of drawing down a line of credit (equity loan as described above). Just to clarify in the above example am I right in saying that the OP will effectively take out a loan of $350k for the second property ($200k + $150k equity he already has)?
So he is ultimately obtaining 100% finance for…[Read more]

Given the property was your PPoR it should be exempt from CGT under the 6 year exemption rule

You may want to look into “OnProperty.com.au”. There are various podcasts and other resources on positive cashflow property

Hi Mark, do you know how the $90 per week is being calculated? If it is simply taking average rental income less interest expense (at 80% lvr and current market interest rates) the property could very well end up actually being negatively geared.

If it is not being accounted for above you may need to consider other holding costs such as…[Read more]

Wouldn’t the 6 year exemption rule apply if it was initially my PPoR though? Or am I missing something

I have a couple more questions relating to CGT which might be easier to explain with an example.

If I bought a house for $400k, spent the first 2 months renovating it (while the house is vacant) which cost me $20k and then immediately got it revalued for say $460k, then got tenants in and then sold it 2 years later for say $500k, what would be my…[Read more]

Thanks for your input guys.

Terry: are you suggesting that if I employed strategy #1 the proceeds may be classified as assessable income even though the property may be CGT exempt?

Terry – that is what I was asking. In the case of being audited, how do people generally prove they lived there in that time? Would being able to reproduce bills showing electricity/gas/water being used along with having mail redirected to that property be considered sufficient evidence or do the ATO require some sort of other evidence?

JacM -…[Read more]

JacM – thanks for the reply. While I had considered some of those entry/holding/exit costs, I hadn’t considered other such as mortgage early exit fees and some legal fees. I might need to do a bit more research into how much these are likely to cost while analysing potential properties. Would you happen to know roughly how much these costs are as…[Read more]