The tax department don't look at the actual depreciation schedule. If you have done reno's it would change anyway.

Is it worth getting another one done? I can't see how they would be different. What's different- the amount they are depreciating on different things? because the % depreciated on each item should be the same. Or is it that you are…[Read more]

Escal8 wrote:
Great thread everyone! Some awesome goals here! After being a lurker for 4 years, it's time to contribute.

My goal is to sell my entire portfolio (5 properties) and start again from scratch. I'll be walking away with the same money I invested 3 years ago. From this I'd like to purchase 2 properties in the USA for cash flow, as…[Read more]

Stone benchtops can chip, break. Don't be under the illusion that they are indestructible And definitely not cost effective.

As Wilko said a stone benchtop on a cheap property is overkill.

If the floorboards are good (they often are in old places) just polish the floorboards. Easier to repolish that repair tiles, lino or carpet. Personally I hate places that are tiled everywhere.I think it makes the place seem cold and uninviting. Like a rental, not like a home. I do like carpet in bedrooms though.

When buying fittings expensive…[Read more]

Yes unfortunately commercial hype takes over. It seems to be getting worse (now with Halloween added in to the mix). It is a shame when the gifts are the most important thing.

My hubby and I don't normally buy presents for each other. We have just made some big purchases for our home and we didn't need anything else. If there is something I see…[Read more]

Hi Daniel. Where are you located and/or what areas do you have knowledge in (Sydney, Brisbane etc)?

I think it would be much easier to use common ground as you will be familiar with suburbs etc.

Great work with getting your finance right for your first purchase. Most people get that wrong which causes problems when moving forward.

With regard to setting up the company and trust- why did your accountant advise this?  I'm assuming for asset protection.

Wouldn't that give you the answer to under which entity to purchase newly acquired…[Read more]

I hope everyone had a wonderful Christmas.

Happy New Year and a prosperous 2014.

You could have the loan as interest only and put extra cash into paying down the LOC that way it would be less messy.

If your dad wants out then you could just refinance the loan.

I have to admit when I bought my first IP I didn't have any goals. I just wanted to own an IP. It was a good buy but I sold it too early (but made a profit). A few years later I was sorry and bought another negatively geared property. It's made money but not heaps. Lesson learnt.

Goals aren't static things so don't stress about getting it exactly…[Read more]

Hi Joey I think you are on the right track.
Buying an undervalued house and doing a reno to increase equity is actually quite easy (just watch the Block LOL)

But therein lies the basic downfall. On the current influx of reno shows it looks like you can renovate a bathroom (for example) in a day. These shows are far from reality.

I have seen some…[Read more]

Ryan- You CAN get finance but it's not easy. As I mentioned I got an 80% stand alone traditional loan. The other 25% I borrowed from them too but from equity in other properties. CBA

We originally said we were doing the reno ourselves and they would not lend for that. My BIL is a builder and he wrote us a quote for the work, then they passed it.

Is your friend a renovator? Does he know your target audience and what they demand (for sale and/or rental)? If not why are you listening?

Well I wouldn't do that because then you have no separate toilet. Plus those corner spa baths went out of fashion 20-30 years ago.

I'd go a normal bath and separate shower. Leave the toilet alone.

It depends on the bank. Some won't lend as it's not livable. Some even baulk if there are holes in the walls. This is where a good broker is very handy.
I bought one that I wanted an 80% lend on. The price wasn't much more than land value and I already had sizable loans with the bank. They came to the party the week before settlement. Lucky I had…[Read more]

By income do you mean CF+?

$260 rent – PM ($26) – strata ($35) – council rates ($15) – water rates ($15)  =  $169pw.  Figures are guestimations. I don't know WA costs.

Interest on $205,000 (5%) = $197pw.  Did not count depreciation either so with that it may be.

So no not CF+ but not everything is. It doesn't mean it's not a good buy. It may be…[Read more]

Because you bought in a complex with a lift and a pool?

I don't see how you can borrow more. As mentioned you are already at over 90%. The stamp duty, solicitors fees etc will eat up the rest so you are already over committed. Time to save before buying I think.

Put excess money into an offset account until ready to buy. In the meantime research and be ready.

Yes it can be a great strategy but don't just assume you can strata them. There are things to consider- fire safety (fire walls, sprinklers) and other compliance issues that are different for strata.

Most things can be overcome but some may make it cost prohibitive.

Just look on RE.com and ring about a house similar to what you would like to buy. Ask what the rates are. Most agents would know this. Some list it on RE.com.

Yes babyflynn if they are not individually metered you can't charge (forgot to mention that). Thanks.

It depends on which state. Rules vary according to state.

Even in NSW where it is legal if water efficiency taps are fitted some landlords don't bother.

The tenant in that case is only liable for the usage, not the service, so you still need to pay it then charge the tenant for water usage.