Although it does not specifically offset that particular source of income, you can write it off again your overall income, and this includes the rent you are recieving. So effectively, you CAN write it off again the rent recieved.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
The disadvantage of buying a new property, is similar to buy a new car. In one year, it is no longer a new car. Imagine you paid $300,000 for a new place. You paid this much because it was brand new. In 5 years, although property has gone up, you are no longer selling a brand new house, so have lost value in a way.
What do you mean the $80k is not tax deductable, why would it be, it is income not an expense. Do you mean the interest on it is not? This is true, however if you use it in another income producing way (for example another IP) then it is.[]
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t…[Read more]
Hi Neddy1,
Not sure if you already knew this and hit the wrong button, or if you are new and didn’t know, but when you want to reply to someones post, click “reply to this post” (or something like that, can’t remember the exact wording). Only use “New Topic” if you have something un related you want to ask/share.
Here is a little trick to get some tax free money (and it is legal). Rather than just owning your property free and clear and letting the taxman get a chunk, why not re-mortgage. Using your example, say you pull out another $80,000 cash. This cash is tax free, because you have not sold. Now the rent you are collecting is taxable, but is written…[Read more]
Thanx Shelley,
Have heard of such strategies, but not heard ofanyone actually doing them, soit is usefull to know it can actually be done. Out of interest, where did you get a property for $50k, and did you +ve gear it?
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
Not sure if you are wanting to buy/fix/sell or rent out, but if you intend to flick it straight on, here is a trick that will increase your profit. See if you can talk the old man into an extended settlement. Make sure on the contract of purchase you put the term name or nominee (this means you can assign the contract to someone else at…[Read more]
For someone with a name like HousesOnly, you know a bit about townhouses. One more quick question, how much area would an average 2 story 3/4 bedroom townhouse take up?
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
The sooner you start, the sooner you can retire [] it’s a good thing to take an interest in. First of all… my story. Before i tell you, I will say that i got a bit lucky, and in hindsight i would do it different (even though it went/is going well).
I am currently in the UK, have been for about a year, and was in NZ before that. Bought…[Read more]
There are 2 schools of thought… +ve and -ve gearing. Personally, I subscribe to the +ve gearing. ie. I want to make a profit on all my investments from the outset. If you were the same, the only advantage to the higher income fro investing purposes would be to save more deposits, hence get more properties.
The biggest advantage of Interest Only, is the increased cash flow. Quite simply, it could mean the differrence betweenbeing positively gearedor negatively geared. Remember, if you are positively geared, there is no limit to the number of properties you can buy.
Dan.
If you want an extraordinary life you have to be prepared to do things that…[Read more]
I agree with Benny. Certain people have racked up around 126 posts (not naming and names) without actually adding anything to any conversation, while usually being a pain in the rear at the same time.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
Others have said it, but Robert Kyosaki’s Retire Young Retire Rich is the best “Psychi” book I have read. I also read another good book recently called “Nothing Down for the 90’s”. I know we are not in the 90’s, but most of it still applies.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t…[Read more]
Another little trick that not many people use… say you fix your interest rate at 6.3% for 5 years, then in 6 months, the rate hasn’t changed, you can always fix it for another 5 years from then. You can do this as often as you like, but only at or above the initial rate fix. The advantage being, you know it is fixed for longer.
You model would obviously depend on alot of variables. I am currently in a partnership for a buy reno and sell, so i will tell you what i am using, not sure if it will be appropriate, but anyway…
I put up the deposit, he is living in the property for cheap rent, he is doing all the labor, and paying for all materials until he has…[Read more]
I think this new forum is a great idea… something that i think might add to it furthur though: If you find a great deal you would love to be involved in, but don’t have the resources, use this new forum to find a partner. For example, with Sooshie’s post, she might have said “I found the deal, and will put up the equity, but i need…[Read more]