Hi Jannan,

How long ago did you get the Urathane done?

Just curious.

Hi Dennis,

Which state is the property in and is there a lease in place on the property? Answers to both of these will determine what you can, and cannot, do.

Make sure you refer to Department of Consumer Affairs (or similar) of the state you are in and grab a copy of legislation to guide your actions moving forward from here.

As an interim…[Read more]

Hi Waz,

I know a number of property investors who use Chih Wah (Chee) at Davlin Finance. All speak highly of her.

They are based in Harris Park and can be contacted on 02 8843 8999

There was a very convoluted question there.

Hi Dsenior,

Just did some rough numbers for you assuming an 80% loan of $336K

Interest cost at 6% = $20K
Ongoing property costs at 1% of purchase price = $4K
Property Management Fees @10% = $2K

Income
Rent @ $400/wk = $21K

At current interest rates your shortfall = $6K/annum or $115/week. N.B. I have not factored any negative gearing benefits…[Read more]

Hi Peter,

The key point from Terry's link is that you can only have one PPOR at a time. Certainly the legislation allows "(4)  If you make the choice, you cannot treat any other * dwelling as your main residence while you apply this section, except if section 118-140 (about changing main residences) applies." you to maintain your original…[Read more]

Paul B. wrote:
Michael, being a mortgage broker, how would you suggest I approach this with my bank (NAB)?

Don't! Use a broker to help you through the process.

Banks are more interested in mitigation of their risks – often this is detrimental to your goals. I suggest you give Michael a call.

Being in the property investment sphere myself (we do JVs in Perth) I don't use buyers agents but there are three main BA players in Perth.

In no particular order.
Hegneys – http://www.hegney.com.au
Momentum – http://www.momentumwealth.com.au
Property Wizards – http://www.propertywizards.com.au

While I haven't used any of them it would pay you to give…[Read more]

Hi Peter,

Certainly would not recommend another property (new IP) in Harvey as you would be over capitalised in a smallish community.

With a population of 2,500 and a dependence on dairy industry (when I last looked) it would be very susceptible to small hiccups.

Hi Brian,

The ATO does not look at the security attached to a loan when determining whether or not the interest is deductible. Their primary consideration is the purpose of the borrowings.

If I read your comments correctly you are suggesting Peter redraw from his old PPOR (now IP) loan to pay down his new PPOR to make the redraw loan…[Read more]

Which SW town are you in? I assume you are more in the Bunbury area.

I know Deppro do head down south from time to time and are due in (Mount Barker, Albany & Denmark) in the next few weeks. Give them a call on 61026920. Ask for Claire.

Your old PPOR will start incurring CGT liabilities as soon as you move into your new PPOR apart from a brief…[Read more]

Hi Peter,

Certainly the additional income from your old PPOR will add to your taxable income so you will need to factor that into calculations.

How old is your old PPOR? Getting a depreciation report done may be to your advantage in terms of tax minimisation as this can be used to reduce (on paper) your net profits. There are depreciation…[Read more]

Hi Pvasi,

You have a couple of options available to you and it is difficult to give some definitive and constructive feedback without more detail. I'll throw a few options at you to get your mind started.

1. Sell old PPOR and use funds to reduce mortgage on your new home. Then leverage off increased equity in your new home to re-start your…[Read more]

Hi Lila,

$10K in approx 6 months (?) – you need to get to the bottom of this sooner rather than later as it may be an early warning sign of something not being right.

Things to look for.
1. I would go back through each account separately to see if any have seen an overall increase in debt. It could be one of your loans (LOC) is capitalising…[Read more]

Not sure where and why you are looking in Qld.

There are opportunities under your nose in WA. Just gotta know where to look.

Deppro reporting 30% increase in investor activity in WA compared to 12 months ago.
Current listings in Perth below 9000 properties (normally 12,000+)
Vacancy rate at 1.9%
Rents for units rose 14% last year (as reported by…[Read more]

I would start by asking what your accountant invests in. You may/may not be surprised that not all people including accountants are created equal. 

Ask what their opinion of property investment is. If they say 'no' then you may be wasting your time.

Ask about deductibility of interest on land purchase when you buy a house and land package. You…[Read more]

Hi Ladyhawk,

In the main 'Retirement Villages' are not a good investment. They have certainly been peddled as great investments largely due to their, often, high gross rent return. If you are seriously pursuing this as an investment make sure you have a clear handle on the ongoing costs before you make a decision to invest.

Your parent's…[Read more]

raj.lover82 wrote:

Personally, I want to attend the presentation and see how it will go. But based on peoples' comment and bad experience, I will make sure that will not sign any paper or commitment for buying property through MA.

Appreciate if any one share their experience

Hi Raj,

You have already had a few people cite their experiences…[Read more]

Know what you mean.

I would still encourage you step back and look at the bigger picture. After all the 'bigger picture' is more important that the short term hurdle you are having trouble stepping over.

As they say in the classics 'one swallow does not make a summer'

Bugaloo wrote:
but now the race is on to set up for retirement.

Given you have paid off your home then Terry's comment has some merit to it.

But the above is far more telling than any tweaking what you do with an offset (or not) account.

If you are now in the 'setting up for retirement' phase then it MAY be more appropriate for you to…[Read more]