Hi Henry,On limited information supplied some of the following may not be relevant.Coomera is one of those new release suburbs (has been for a while) and with more land to come. AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent…[Read more]

Know what you are saying – just doing some feasibilitty on a WA mining town for investors with ~17% return. Making sure the fundamentals are all right first. So far looking good.

Don't know Middlemount so take what I say with a grain of salt.Seems a little small for me (N.B. Using Wikipedia figures – so disclaimer applies).Would also need to check banks willingness to lend in Middlemount. Some banks have aversions to certain postcodes.Nothing else to add – sorry.

Not sure if it really fits in this topic but Christopher Joye recently released this discussion paper discussing 'affordability' which, to me, underpins any bubble debate.http://tinyurl.com/3qlux2r

Where is your property Tiffany?If Perth, which suburb?Really need this information before I can provide any useful information.

Another 'rent to buy' story out of WA.http://tinyurl.com/3sepb75

Purely and simple it is a question of numbers.What cost will the deposit bond be? Bear in mind it will need to cover the sunset clause date for the contract. The longer the bond is required the more expensive it becomes. Weight that up with the consequences of using your cash. As Terry said using cash on an IP is not usually the best option, but…[Read more]

Hi Henry,You are well and truly paying overs at that price for a 2 X 1 X 1.Coomera like much of the Gold Coast and its hinterland is struggling big time.

I'd be thinking $435K for a 2 x 2 x 1 in Coomera is too expensive.Coomera is struggling a the moment but having said that a longer term point of view is required.

Rough maths. possible selling price – purchase price = Taxable Capital GainIf property has been owned for more than 12 months only half the gain is taxed.Apportion the balance remaining in accordance with ownership ration of property and add this figure to taxable income. Compare tax payable on taxable income without sale of property with tax…[Read more]

Terry won't sleep tonight

HI Chris,Welcome aboard.A few random thoughts. 1. Based on the numbers provided you equity available is somewhere between 92% and 83%.  If a valuation establishes the property to be valued closer to $380K you would be hard pressed to do anything. 2. Seems you have quite a few financial commitments I would like to see attended to before doing…[Read more]

Not a broker.Always use a broker because of their;1. Knowledge.2. Tailor made finance package.3. Loan structuring.4. Access to multiple lenders.5. Focus is on customer's needs and not the bank's need for security.

Hi Paul,Unfortunately there will be some people who abuse or mismanage th erent to buy concept. Then there are those who probably really don't understand what they are getting into either as end of line person or even as the middle of  the road person. In many ways the wheels would have fallen off at some stage, To be honest I am a bit surprised…[Read more]

Give Deppro a call. Check out http://www.deppro.com.auThere is also a QS who posts on this board and has done in recent days. My humblest apologies I cannot recall name. Maybe check out a few recent 'depreciation' questions.

Terryw wrote:
very generally.80% of rental income, and 30% of salarymust be greater than repayments of all loans.

You having broker pangs Terry?Just can't keep the broker out of the lawyer can you

Hi Jac,100% rented at $240/week = $12480LessNotional 10% property management costs = $1248Notional rates allowance                                 = $2000Notional insurance allowance                         = $1000Interest bill @7%                                                = $16800Notional Contingencies Allowance                = $1000Shortfal…[Read more]

Hi Jac,At 7% interest only the annual loss is around $9000 – $9500 depending upon costs for property management and rates. I did allow $2000 for rates and 10% of gross rent for property management costs.To Nick,If you are a wage earner you can cushion the shortfall through the use of depreciation reports (if relevant) and/or PAYG Income Tax…[Read more]

Hi Adam,Congratulations on getting to step 1 – pre-approved and deposit saved. This is a big feat in itself. As to whether or not to buy – the answer to that question really boils down to your plans, timelines and personal circumstances. For every statistic supporting the 'buyers market' theory there will be a statistic supporting 'potential…[Read more]

Certainly not trying to diminish the efforts of other posters here at all but to me it seems as if your accountant is the one you are speaking too. The three posters have each raised concerns with respect to your proposed structure and it would seem to me that it is time for your accountant to start earning some bucks. Here it is early August and…[Read more]