Hi Harry,

Your post is very heavily focussed on potential rental increases but does not seem to discuss any increases in property values.

If your $20K investment can turn into a $50K/$60K increase in property value then it could well be worth the effort.

When building your portfolio you need to lend money and having surplus income and asset…[Read more]

Hi Yannjgs,

Someone proposed a similar question in another recent thread which you can read here

The 'other thread' made some really useful comments that you may find helpful.

Having said that I do agree with Catalyst – why renovations? Sounds like your capacity in this area is somewhat limited at this stage and if you are thinking 'project…[Read more]

I am not an accountant but you need to fully understand the differences between what is considered a repair and what is considered a renovation.

Renovations (improvements) are not deductible but the work would most likely be depreciable. See this ATO fact sheet for definitions of an improvement.

Repairs, on the other hand, are deductible. The…[Read more]

A couple of similar threads in Heads Up Section.

Try this one

or

This one

Attended a CPD training day yesterday which focussed on the 'recently' released Australian Consumer Legislation.

Interestingly the ACL comes into being, as a piece of legislation, as soon as an enquiry is made. A transaction does not have to be made.

The legislation is quite explicit about misleading advice and the penalties severe if found…[Read more]

Hi Andrew,

Some more ramblings.

Education is seen as the panacea for many of society's ills – underage drinking, underage sex, road accidents and so on. Many sectors of society expect this stuff to 'taught; by schools. In many cases the material is 'taught' in schools at the same time as increasing numbers of children 'experience' something…[Read more]

Cost of money (interest rates) is a small part of the whole equation.

So many other aspects relating to borrowing money that need due consideration.

JacM wrote:

Derek wrote:
Sounds like its well overdue for schools to teach "life skills" so people can learn some basics of life, we have plenty of "smart people" with no street sense and it's really bad to see someone ripped off because they didn't know any better

Good call Derek.  As you have previously been a school principal, can you…[Read more]

aussieguy2000 wrote:
Sounds like its well overdue for schools to teach "life skills" so people can learn some basics of life, we have plenty of "smart people" with no street sense and it's really bad to see someone ripped off because they didn't know any better

Hi Aussie,

Hear what you are saying.

As former school principal I can assure you…[Read more]

Now we play the BS game of banks PR Spinners getting the message out, "we need to recognise funds are more expensive" & "we'll need to consider all factors before determining how much we can pass on" & so on.

Bottom line is any pass on will be extended – the big 4 will probably pass on a similar rate cut – the announcements will happen about the…[Read more]

Hi Ralph,

One step at a time.

Make sure you get good professional advice. Is your accountant mate really up to scratch – I don't mean that as a negative comment moreso about just getting you to look past your friendship and look at the accountant underneath.

Maybe look at their financial situation – consider their personal wealth plans – their…[Read more]

Seems the property is no longer available.

Read here.

Hi SImon,

One step at a time. Get the divorce settled – take a breath & then revisit your question.

While you are 'waiting' re-evaluate your existing portfolio. By your admission some worked and some didn't and it would be to your advantage moving forward from here if you were able to identify why some worked and others didn't.

At 49/50 you may…[Read more]

Hi Jewel,

Don't get fixated on t he one property. If the vendor is not going to budge – send a letter to real estate agent formally advising you will withdraw the offer in X days and will make an offer on another property.

You have gone through a huge learning experience with this first property – use it to your benefit and keep shopping. The…[Read more]

What are you trying to achieve?

If the property is a long term holder I would go the concrete option – less maintenance, harder wearing, fewer weeds etc etc.

If you are doing a quick fix up with appeal I would go stone option. IMO less practical in a rental but attractive.

You also need to consider what sort of traffic will use the side access…[Read more]

gus123 wrote:

I would suggest meeting with a good broker
Im halfway there, I met a broker, but even with my limited knowledge of structuring I feel like he doesnt grasp the ideas. Hes a disciple of the negative gearing strategy above all else which I think has limited benefit for someone in my income bracket. I think its time to broaden my…[Read more]

Hi Gus,

IMO – you need to look at the whole picture.

You have some accessible equity in your existing portfolio. Going to 90% LVR will release around $54K (less costs). While $54K is reasonable it is not a huge sum of money in property investing land.

You haven't indicated what sort of income you are on.

These two aspects of your situation are…[Read more]

Hi Jewel,

Sounds like you have done a lot of work – well done.

Have you obtained an indicative value for the property once the work is completed? While it sounds as if you have done a lot of the preparatory work you do need to have some idea about what profits & rental increases you will achieve with the work you intend to do.

Maybe set…[Read more]

Keep it simple.

The first property may still be CGT exempt if it started out as a home – there is a 6 year CGT exemption that may apply in your friend's situation.

Generally speaking companies are not a good holding entity for property as you are not eligible for ant CGT discount and all profits are taxed at the company rate.

Trusts have some…[Read more]

I am amazed at the 'gutsiness' of some of these people. Must admit my mind never drifts into these zones.