Only way to defer CGT as I see it is to do your tax return and hand it in on October 30th – get the full three months extra use of the money!!!!! Honestly – our government really does like to tax and hit the good old humble property investor don’t they – CGT, new stamp duties in NSW. Makes you wonder why we invest in Oz, take money O/S instead. Though I digress…..

CastleDreamer

thoughts from my accountant. If you are primarily operating as an “Investor”, with the majority of your income coming from that, then the trip would be a business trip.
CD

CastleDreamer

Equity in house:
Value * 80% – mortgage = Equity available without mortgage insurance
125K *80%=100K – 74K = 26K equity available without mortgage insurance.

Access:
Speak with your bank to have a line of credit extended against the equity, or to extend the total loan figure up to the 100K level.

If rent is 280/wk and repayments are 240pwk:
How much is the lend? How much is the asking price? What are the rates, insurance, maintenance and management costs? Add all costs up and deduct from income to see if anything is left over – this is your cash flow.

Yield:
rent times 52 / price = yield
eg
225/wk *52 = 11700
11700/62500purchase price = 18.72% return or yield

Cheers
CD

CastleDreamer

Hi Shane,
G’day,
You ONLY earn about 80K per annum? That’s not a bad income to start with.
Have you investigated what the bank will offer you to continue borrowing? Perhaps a broker could evaluate your position with the three current -IPs to determine your current borrowing capacity to go and purchase +IPs.
How much are your holding costs for the -IPs? Would you need to sell all of them? Don’t forget the CGT if you do.
I earn a little less than 80K pa. I have managed to achieve three properties in Brisbane in last two years one PPOR and 2 -IPs. I am now buying +ips and have had no issue going about getting the lending.
As I see it – with only the brief info you have given us:
1. Keep IPs and get bank to lend for +ips
2. Sell one or more -Ips to access cash to deposit for +ips
3. Sell all -IPs to be able to access more cash
4. Better yet, consider accessing the equity in IPs without selling and use this as deposits for future +IPs.
Your decision to sell or hold the -IPs will really depend on things like:
do you think the market has peaked?
How much does it cost to hold them? do you think that the net growth will be greater than holding costs if you continue to hold?
how much disposable income do you currently have to show the bank to get more borrowings/
how much equity is in the -IPs that could be used to redraw to pay for deposits on +ips?
Lots of things to consider, and a full proof answer can’t come from any of us really – especially with the brief info given.
I suggest a mortgage broker to look at: where you are at now, and possible scenarios if you moved on one, two or whatever IPs or redrew against equity in them.

Good luck

CD

CastleDreamer

Hi Pisces,
I was in Timor – same horror stories, so quickly forgotten as Rwanda – and I sense from your post a lack of respect for UN – found that myself in Timor – the Civil arm of UN that is.

CastleDreamer

like elves said, you can use the search engine here, also could go to propertytalk.co.nz – great site for NZ investors.
Cheers
CD

CastleDreamer

Hi KiwiZena,
“dust in your coffee?” Watch out for asbestos in your coffee!!!

I renovated a place in Brighton Brisbane last year – two weeks living in the place sleeping on a camp stretcher with no hot water or electricity – in Winter!!!! AHHH! for an acclimatised QLDr it was cold ++++. We did the lot, stripped the bathroom and kitchen, carpets out. painted the lot, pulled down a wall, replaced the wiring and plumbing (tradesmen for this bit), new spec kitchen in and new bathroom from scratch.. Pulled off wall linings in the rumpus room to pull out the four foot high grass that the tenant previously ahd let grow accross the footpath and into the wall cavities. Chopped down two trees and build a picket fence. Me and my dad. Moral of story – consider very wisely how long you will need to make things happen. We blew out to three and a half weeks, and damn nearly killed each other – it was very hard on us both and the cold didn’t help!!! it was possible to do this by being able to stay on site, have the trades prebooked prior to settlement, and to be prepared to work 14 hour days – I would not do it again (at least I don’t think so). Oh, we also hung new doors on all of the rooms and put down new lino and carpet the place looks a treat – but it took a lot!! WE were nothing like reno rescue thats for sure!!!
Cheers
CD

CastleDreamer

Hi Hux,
don’t know what the other guys are doing precisely, but this is my plan. For the first year, pay all loans interest only, accumulate all cash flow into NZ savings account, bring it home in larger amounts maybe every couple of months – otherwise the telegraphic transfer costs will get you.
Other ideas you could consider – get an NZ credit card and use that – check the costs of changing nz to aud on the card if any –
plug the money back into the next investment in nz.
plug it into the current investments
One thought – if you don’t know what you want to do with it – i suggest you don’t put it into one of the loans thinking you can draw it off later for other use. If you draw it out – albeit that it is extra payments – for private use, the interest will not be tax deductible.

Cheers
CD

CastleDreamer

Jaffasoft, I LIKE the calculator!!

CastleDreamer