I'm a noob investor but I DO love my spreadsheets!

The decider's for us:
We wanted to invest close to home but its hard to find cf+ properties in perth metro and we are too busy.
One of us pays a lot of tax so we could benefit from a negative/neutral geared property with some capital growth potential.
We wanted to make both scenarios work.

We did our gearing calculations first then added the NRAS benefit back in. We looked at the NRAS as icing on the cake, especially as we have also got some capital growth expectations in our target area.
 
We found a cf neutral (in year 2) property in NRAS and we'll use the incentive to pay off our non-deductible  property in less than 10 years.

Nobody has a crystal ball but if the investment ticks all the normal boxes why would you not go for the incentive?

So far we've had everything come up to market (no high fees or valuations) and actually got lower management and strata fees.

We did decide we would NOT buy off the plan because we wanted tenants from day one of settlement and no uncertainty about costs and finishes.

One thing I found is that there are so many different scenarios out there you just have to knuckle down and crunch the numbers in your situation.

This calculator was really helpful.

I did a reno with that veneer paneling and hideous 70's wallpaper. Sanded it all down made sure it was all sound (pvc glue in the areas that needed it), Painted with oil based undercoat and paint in a light colour and it looked fantastic.

You can also fill the grooves in veneer and joins in wallpaper and sand back to smooth if you want to. Not suggesting you do that on large areas, I had to work around existing cupboards and fittings so didn't want to rip out and gyprock.

Caz

Thank you Terry

I'll make a note to take to next meeting with accountant.

My partner and I have just started a discretionary trust with ourselves and our daughter as beneficieries. We have started a business and the income from my husband's share of work in a newly signed contract would otherwise be second income for him and attarct the highest tax rate. I work as a principal in the business but as yet have not brought in any of my own clients (though hope to change that soon!). It cost us $550 for the legal documents to be drawn up and accountants initial advice and that is much less than the tax which would have been due on the first month's work if it was not paid to the trust so I am very happy.

As for buying IP, our accountant seems to think it is better bought in the name of  the highest tax earner if it is negative geared, although I admit I was having trouble focussing by the time we got to that part !

Like Terryw he explained that the trust does not pay tax unless the profits are not distrubuted, it is the beneficiaries that pay tax after receiving it into their own taxable income (including the cat?).

However, what I am not clear on is if, say, a trust has several assets and/or income streams, can they be offset against each other. Total income + gains against total expenses + losses from all sources equals profit to be distributed? If that is the case it seems like it can be very flexible with the right planning.

This discussion makes me wonder if Perth rents are too low.

I've been looking to buy something under 300k that is at least CF neutral and not having much luck. And yet there is a lot of talk locally about the lack of affordable rentals and the difficulty of renting a decent home. Makes me wonder if Perth rents will rise higher sooner rather than later.

Maybe Sydney is a better bet, although I did want to personally inspect before purchase and probably can't travel within 12 months which is why looking in Perth and southern regions of WA.

Any chance of a snapshot?