The interest rate last year was (majority of the time) 5.01%. Approximately $185k against the investment property (interest only for first 15 years), with the deposit, all purchase costs (including stamp duty), and ongoing costs above rent from a LOC against our PPoR which started around $45k drawn down and is now around $60k drawn down ($90k…[Read more]

Yeah, I’m getting a valuation done by the agency that handles the renting so I have a better idea of where I stand. My hope was that even taking those costs, and losses during ownership, to make a small profit, but I think we might be looking at a small loss instead, which could make for a more interesting decision.

Line of credit. Interest only for the first 15 years.

Thanks. I know they were popular back when I set it up, but I also noticed that banks have reduced LVR maxes for SMSF loans since then (did need 30% deposit, I gather now 20% is more common), so I'd hoped they'd also gotten more flexible with rates.I don't have the offset account setup, but its not a bad idea. I'm only getting about 3.5% on my…[Read more]

Ok. Thanks very much for the reply .

My first lease I deliberately got a car with good resale value so I could pay it out, on-sell it for profit and get a new lease. Worked out I'd make around $5k profit. However by the time I renewed registration, needed new tires for roadworthy, and some competition on carsales.com meant I dropped my price by a couple $k I think I made about $1.5k…[Read more]

The lease has nothing to do with the use of the car. Its just a salary perk. The only tax-effect I'm aware of is that you can't claim travel with a lease car when you could with your own. Because technically the car is owned by your company, not you.Yes, a novated lease should cost you nothing. Petrol, insurance, servicing, road-side assistance,…[Read more]

Its not really that complicated. Most people will go with a Novated lease, which includes maintenance costs as well as the lease costs. The payments are deducted from your salary pre-tax, so you save money. On the other hand, its a loan, you're paying interest. That costs money. So say your lease costs you $10k per annum. At 30% tax rate, thats…[Read more]

fWord wrote:
My money is in property and I have mortgages to pay, so I don't really see how I could potentially upgrade my car and NOT expect to have to lay out more money on a depreciating object and possibly affect my borrowing capacity for future property purchases. Plus, I'm only in the '30% tax bracket' but I do travel a fairly substantial…[Read more]

Ignore growth, its about cashflow.Cashflow is negative.Ummm…

Talk to the council. They obviously won't give you a guarantee, but they should be able to indicate their willingness to let people sub-divide these properties.

He clearly said he only had 300k to spend. Its not a matter of what he thinks its worth, its what he can afford to offer.

Some good thoughts in here. I'm no expert, but here's what I would do.Written offer.$300kA minimum settlement period but beyond that vendor to choose settlement date (i.e., you probably don't want less than 30 days but up to them if they want later than that)Bare minimum of conditionsFinal offerDeadline of 24hrs to accept.A bit of give and take,…[Read more]

Yeah, I believe you can.Even if things seem straightforward, everyone's situations are different. You're unlikely to lay your life out here for the world to see, but with an accountant you can let them know the exacts of the situation and plans for the future and you never know what they might come up with. Its the things you don't realise are…[Read more]

I don't get why people become involved in hundreds of thousands of dollars worth of property deals, but wont invest a couple hundred dollars talking to an accountant. If you've owned this property for 5 years, and plan to buy more in the future, you should already have a relationship with an accountant, but given you don't now's the time to…

Qlds007 wrote:
No that is incorrect as the Title defines who claims the Tax deduction and not who borrowers the money.I hate to say it doesnt sound like your Broker has any idea on loan structure as Jamie initially mentioned it is a bot of a mess.

I'd really think about seeing an accountant also…

Paullie wrote:
I reduce my negative gearing capability in IP2 as it will only be in my name, and I am the sole bread winner paying 80k+ tax a year.

However you structure it, you should end up with the same amount of debt, paying the same amount of interest, set against the same amount of income.

I wouldn't even take it off the market. Just market it for the price you eventually want to lease for and leave it up.