Hi Carina,

I know you said that you are a low income earner but do you still pay tax and if so, do you get ALL of your tax back ? If you don’t get all of you tax back there is still room for deductions.

Todd Burns
http://www.freepropertyhelp.com.au

Hi Grh,

Just about everyhting rose in value over the time frames you mentioned but not everything is as overpriced to start with and costs so much to hold as DHA property.

I think it is quite likely that an investor may have profited by $400K on a DHA property but a comparative ‘normal’ investment property probably returned $500K (when initial…[Read more]

Hi Stu,

Isn’t the deposit an expense?

Todd Burns
http://www.freepropertyhelp.com.au

Hi all,

Thanks to Nat R for posting the Australian news link. Here’s an interesting quote from it-

Mr McElduff said the purchase was a long-term play counting on capital appreciation, with properties bought on a gross yield of between 3 per cent and 4 per cent.

That yield dropped to “a tad over 3 per cent after the DHA reclaimed 16.5 per cent…[Read more]

Hi specific,

If you pay tax and the building is of a fairly recent age or you have enough depreciable items in the house (chattels) to make it worthwhile, then you probably should claim depreciation. Just remember you cannot claim back more tax than you pay out so depreciation has its limits just like negative gearing does.

I am guessing its…[Read more]

Hi All,

I think a few of you have hit the nail on the head as far as Westpac is concerned. The rate of return is based on what is paid for the property in the first place and I think Westpac probably got a BIG discount so obviously there return on investment would be higher.

DHA have been trying all sort of free stamp duty offers and similar…[Read more]

Hi HappyJack, [biggrin]

Check out these posts on the same subject.

https://www.propertyinvesting.com/forum/topic/23094.html?SearchTerms=student

Regards

Todd Burns
http://www.freepropertyhelp.com.au

Hi All,

The simple fact is that these DHA properties are over priced, have poor rent returns relative to cost, have high management costs, are inflexible in their use and generally soak up too much cash. They would have to get very high capital growth to compensate for all of this.

I am sure Westpac have some sort of cunning plan that involves…[Read more]

Hi Nell and Tony,

If you choose to go ahead (taking into account what the other forumites have said) this is a few other things I suggest-

Note: This is quickly off the top of my head. I could have missed some things-I am sure others will add to what I have said. Try and get as much due diligence done before you start spending money on…[Read more]

Hi Derek,

To promote discussion, I was outlining a possible scenario if the higher value property was sold.

By the way, how do you get the ‘originally posted by box to appear’ when replying to a specific post.

Todd Burns
http://www.freepropertyhelp.com.au

Hi IM Charlie,

It can be difficult to get a residential loan for these dwellings and they can be hard to sell for that same reason. Once costs are taken into account the yield is usually not that good, especially if they are only tenanted for the Uni year (not the full 52 weeks) or if students are moving in and out.

You will probably get…[Read more]

Hi Tomtkb,

I got a quality 4x bed, 2x bath, 2x garage house built in QLD about 18 months ago for close to $150K complete with everything required to get it to tenant walk in stage (even had a garden auto watering system and remote garage door).

I would be very surprised if you could not get a complete package for under $200K from a VIC builder.…[Read more]

Hi Teedee,

Disclaimer: I am not a qualified accountant or financial advisor.

It’s hard to say if this would suit your situation but I’m throwing it in as an idea……

If you need some extra cash, why don’t you talk to your lender about extracting some equity from the property without selling. You will lose a lot of money in fees if you sell…[Read more]

Hi Dave,

I wish I started investing in property at your age.

I’ll give you a bit of a hint….. Look at some mining towns and regional areas. You are not the only one that cannot find CF+ properties at the moment. They are out there, you just have to know the secrets to finding them. You also need to be aware of the risks involved before you…[Read more]

Hi All,

Consider this… 1 Mil x 10% (which you should be able to get fairly safely on that amount)= $100,000pa (or $1923pw) Obviously 1 Mil would not be the full useable amount after the sale because of CGT tax but it just goes to show to me that this option requires some more thought. The tax rate would be high too so you would need plenty of…[Read more]

Grossrealisation Quoted-
hi tamtam
sorry put must disagree with crusher as its not a 107% lend if you are putting up other equity its 80% lend and then the rest lend on the other equity.

A misinterpretation here. I got a 107% loan secured against equity in my owner occupied property. I did not extract any equity.

Todd…[Read more]

Hi Bennido,

I found it hard to make myself spend the money on a good accountant but my portfolio was growing and getting very complex so I decided to go ahead with it.

I am glad that I did go to a property specialist accountant because he has helped me soooo much. Just because he knows property, tax law and legal tax minimisation strategies so…[Read more]

Hi Sadie,

Just remember, you won’t lose unless you sell. You haven’t had the property very long. In a couple of years it could be capital growth positive. If it is a CF+ property and you have good depreciation (which you should have being so new) it may be worth holding on to for a bit longer.

It would be worth finding out a bit more about…[Read more]

Sorry Patrick I got off track on the previous post. I wanted to give my suggestion for your situation….

I would use as little of my own money as possible and buy where I can get a good rent return to get enough money so that my IP is not a financial drain on me Obviously it still needs to be a place where capital gain is likely.

I would not…[Read more]

Hi Clare,

Very interesting… What state are you in ? I would like to check the FHOG criteria you mentioned because it could benefit a friend of mine in a similar situation. [blink]

Todd Burns
http://www.freepropertyhelp.com.au