Seems like your accountant might not have caught up with the changes that take efect from 1st Jan 2005

I’d question why you want someone who is negotiable on commission rates. How hard are they going to try for you. Is she negotiable because she thinks you might sell at the lower price.

Maybe you should spend a few hundred and get a valuation done so whatever agent you use you’ve got the facts.

Companies do not get the same CGT concessions as people. Suggest your property purchases should be in the company as trustee for a family trust.

Have the valuer and builder seen the correct property? I heard of one scam where an owner of a flat who was wanting to refinance borrowed another flat in the same building, changed the number on the door and got the valuer to inspect that flat.

Personally I like to get a feel for the neighbourhood etc. A house might be “good value” and built…[Read more]

You might save some money with self-management, but the management fee is tax deductible, and you risk issues such as longer vacancies between tenants, selection of tenants, getting tradespeople to do repairs promptly.

1.Does an agent in a neighbouring town offer property management to the town your property is in (can the agent suggest someone?)
2. Can you do a long term lease eg with police department, teaching or health which will minimise your risk with tenant selection
3. Employ someone (possibly under the Agent’s legislation in that state they will need…[Read more]

If your purpose is to buy using “pre-tax dollars”, the company is still going to have had to pay tax on its profits unless it has losses that it is carrying forward. Might be better to look at maximising contribution from company to a self managed super fund and then using the funds in the SMSF subject to the various requirements for purchasing…[Read more]

What’s the expected life of the mine? How easy is it for other investors to build in these towns? How easy would it be to resell if you needed to?

just to ask whether to invest in +ve or -ve cashflow properties is to miss the point. The issue seems to me to be to answer the question what are you trying to achieve by investment.

In my case I want to invest so that I can achieve a certain taxable income by a specific time.

Then look at what you’re comfortable with as an investor. Do you…[Read more]

There is a somersoft thread on investing in the US in the past couple of weeks by quiggles. Very detailed. Sets out some issues that we might not have thought of re maintenance of buildings particularly roofs

They could, but unless they’re doing it regularly there are a couple of different steps in the process albeit to end up with the same result.

You could try the Law Society and see if they know of any or use a solicitor up close to the Qld border who probably could be familiar with conveyancing in both states.

Just giving gross yields and COC returns does not give much to assist you with.

Do either of the properties thata re negative have potential for capital growth? What CG do you consider they will have?

If you sell one house are you going to be in a position to buy more than one and if so will the total return you get better that of the house you…[Read more]

I’ve seen two properties recently where prices have been reduced by about 15% from their listings 12 months ago. One was grossing 10% 12 months ago, so will now gross 11.5%.

I’ve seen one property that I looked at 12 months ago sell at auction for 65% of the asking price then. 24% gross return on auction price. I was in the middle of settling…[Read more]

I was over in Broken Hill a couple of weeks ago. Seems to be a bit of uncertainty with the NSW Gov’t changes to Area Health Services. Far West which was based in Broken Hill has become part of Greater Western which will be based in Dubbo. Noone’s certain of what it will mean in job losses yet.

If you don’t want to manage the first property yourself is there a managing agent available? Can be a lot of hassles in self management. Have you checked yourself if rent increases are possible or are you just going on the vendor or his agent. Furnished can be good but they can be a hassle too.

I’d suggest that you’re best to instruct a solicitor in the state or territory the property is in and probably one close to the property eg if in NSW the property might come within the Agricultural Tenancies Act. In this case trying to save a few $ might become very expensive

Can you look at increasing your income from the farm eg if you’re close to a town is there demand from people for room for their horses which might mean you need a few small paddocks with water and shelter

Speak to your accountant re the Capital Gains Tax issues.

From the interest/rent point of view you can’t rent from yourself unless there another entity like a trust involved. Why don’t you sell your former PPOR (which you want to anyway), pay off the loan on the property you are living in, then borrow against that property for your new IP.…[Read more]

If there is a caveat on the property the purchaser will not settle unless a withdrawal of caveat is handed over.

Your mother needs to get legal advice. If your father has lodged a caveat and does not have a “caveatable interest” the solicitor can lodge with the LTO (at least in nSW) under Section 74J Real Property Act an aplication by the…[Read more]

Your figures seem a bit skinny

eg pay $430, plus stamp duty etc on purchase, loss between rent and expenses while holding, commission & expenses on sale

if you know you can achieve $505 it can work, but what if the sale takes longer or the ‘bank’s value’ is optimistic