The contract note will be a legal offer and binding on you when accepted by the seller. My advice is you should show the contract note to your solicitor.

Rather than a question of tying too much money up in one deal, it seems to me to be an issue of whether your return justifies it. Assuming 10000 for closing costs, the amount required is approx $75,000. Assume 9% interest rate (should be able to get it cheaper eg IMB last time I looked was about 7.5%)

If you pay the outgoings net rent approx…[Read more]

I don’t know what that means. My guess however is that if you bought on a 10% yield and then yields change so that you can sell at the same rent on a 5% yield, the value of the property has doubled

The real issue is whether spending some money now either gives you better protection or saves you more money down the track. Ed Chan in “Secrets of Property Millionaires” has some things to say about structures.

I think there was an article in API a couple of years ago. Choices could include purchasing property in different states as land tax is a state tax

What sells in your area. Is it homes with 2 bathrooms or homes with 3 bedrooms and a study/office? If you do a second bathroom will the property increase in value?

What are you looking at, a lifestyle decision where you are going to live in the house for several years or an investment decision to add value?

Horses for courses. My wife and I…[Read more]

As well as the differences in investing in commercial property you are adding complexity by investing with someone else. You need to make sure you have an agreement eg for term of venture, exit strategy, what happens if extra contributions are needed etc etc

IF property is your business you would be paying income tax on your profits, not CGT.

go to http://www.selfstorage.com.au and look at the investment paper link

will give you an idea of some of the issues

I helped someone do this in nSW over 10 years ago. Costs weren’t that high. Suggest you speak to your Council first and see if it is possible eg land area might be less than minimum allowed

I know some people like to self-manage, but for my money if i have a good property manager it’s worth paying them as they will check employment and other references initially. Another advantage is because the work they generate to tradespeople is substantial required work is normally done promptly. I have a block of flats and I estimate my time…[Read more]

By all means accumulate some capital so you can start investing, but don’t overestimate the capital you need. I was like you that I needed to get some capital together. However, for a few years I had been researching a particular area and when we had the capital together was able to recognise a good buying opportunity. That opportunity taken…[Read more]

More information is needed, although you are basically on the right track

When did she acquire the property eg pre 13? Sep 85, no capital gains tax.

Has she been using the upstairs part as PPOR at all? When did she aquire the property? When did she cease to use it all as PPOR?

On the face of it your assumptions seem right, but there is not…[Read more]

I like Dubbo as a place to invest. Don’t buy in Catherine Drive sight unseen. Check whether other agents will manage the property.

Many successfulinvestors have started by paying themselves first ie committing a figure to savings rather than spend and then see if anything’s left. A book on the subject is The Richest Man in Babylon

Torrens title is a system of registration of title where you get your title by registration, that is with extremely rare exceptions if you are a bona fide purchaser for value without notice of any defect in the Vendor’s title you can buy relying on the information in the register without needing to check every transaction that occurred in the past…[Read more]

Assuming you’re not talking PPOR, then when I was looking at this a couple of weeks ago it seems like an apportionment of the cost base is done

eg value of properyty at purchase = x apportioned as to y to house and z as to the new land

CG calculated on sale of new land less z

Talk to your accountant

if he has taxable income eg from the funds, then interest he has incurred on loans to purchase those investments would normally be tax-deductible and if this exceeds the taxable income the loss could normally be carried forward

Hutch,

If the property is already tenanted, consider the length of the tenancy and the tenant’s payment history and as far as you are able the tenant’s ability to pay the rent in the future. If the tenant is a company have the directors personally guaranteed the lease.

If the tenant vacates, will the property release easily eg is it in a good…[Read more]

Are you going to move into the new dwelling as your new PPOR?