Hi Wayne,

Child support is calculated using your yearly taxable income. So if the property is positively geared you will pay more, if it’s negatively geared you will pay less.

Hi Mandy,

My partner and I were looking at the Chinchilla area about 14 months ago, and to be honest we assessed that we had already missed the boat on that area (would be even more so now). Prices had already risen sharply and there were a lot of housing developments going up.

The problem is that the demand for property has been strong due to…[Read more]

Terry has pretty much answered it for you. With no other PPOR each time you moved out and had it tenanted there would be a 6 year CGT exemption. When you moved back in within 6 years it would reset this time. As each time you moved back in well inside 6 years of absence then you wont have any problems being CGT exempt up to the time you moved into…[Read more]

Jemima,

You seem to have a pretty good understanding there. When you move into Property 3 just be sure to have a valuation done on both it and property 1. Apart from that I don't know much about LOC so can't help with that sorry.

I hate it even more when you search for a house and units show up.

Seeing as no one has replied yet I thought I would try my best too respond. Although hopefully someone who knows more than I can answer you better.

Option 1:  I think if they are classified as a boarder (paying their share of costs i.e. water, electricity, food) as opposed to a tenant (paying market rent) then CGT doesn't apply. (I may be…[Read more]

I wonder what the difference in cost between this and conventional methods would be.

If you're looking at 80% LVR's then you wont have to worry about LMI

Agree with Andrew, set your end goal and then plan on the best way of achieving it. You mention you want to generate large amounts of passive income, identify exactly how much you want to make per year. What asset base and ROI do you require to achieve this? (eg. asset value of $1.5m with a net return of 7% will generate $105K/year) Also setting…[Read more]

To be fair though, I don't think auctions have ever been popular for buyers in Qld.

minds-eye wrote:
I was thinking that I would rent the property out initially in order to claim approximately $5k worth of deductions during the construction phase.

I'm not sure what 5K deductions your trying to claim during construction. It is my understanding that if the property in not available for rent, then you can't claim…[Read more]

Unsure of other states, but in Queensland, yes off the plan purchase will have stamp duty payable on the full contract price. However House and Land packages will have stamp duty payable on the land price only.

Isiah Thomas wrote:
I was thinking when the fixed interest rate finished we would put the 120k into the offset account with the intention to pay the debt off.  I have also read some advice that if you pay off your investment property and keep the loan open that when you want to buy your PPOR  we can take the money from the offset account and put…[Read more]

Hi Jamie,

Thanks for the great article. It was definitely helpful for our situation, and I'm sure will be helpful for many others also.

Regards,

Cubez

10K? I would be looking into why this property is so cheap. You mention it CAN be rented out for $600 per month. Does this mean it currently doesn't have tenants? It's very possible it is located in a slum, making it near impossible to rent out.

If you have a PPOR mortgage or any other personal debt, you would want to have an interest only loan on your investment property so that you can pay down your non tax deductible debt first. Jamie M has written an article on the subject that you might want to read. I spent weeks trying to explain to my girlfriend why an IO loan would be better,…[Read more]

Haha, view things from a different perspective.

Hahaha

Yes it will be deductible. However once you use it to pay down your PPOR loan, accessing the whole $30K will depend on the LVR on your PPOR.

I think it depends on your target market. A family with young children would mean keep them as singles with a BIR. Marketing to young professionals or students I would probably make them all doubles with a small wardrobe.