All capital costs and are depreciable but not deductible.

Deductibility exists if the work is repair.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

HI GBV,

As part of your learning process you could do well to visit

http://www.chrisbatten.com.au/

A good starting place but SMSF do come with lots of rules and regs and as such setting one up does require a good knowledge of the relevant laws.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

HI Teedee,

Creek Rd?

As Harley has asked why sell?

This property is in an area that is easily accessible to the city, you have a good on-site manager who actively increases rent & has next to no vacancies, and the complex has good access to the motorway and central business…[Read more]

Originally posted by bennido:
However, I was always procastinated and mainly becoz of fear. Fear of going to a qualified accountant and finding out all the bad / wrong things I have done in the past. And having spoken to some of my pals who lodge tax returns themselves, its surprisingly not that uncommon !

– Was it a really tough experience…[Read more]

Originally posted by crusher:
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.

Hi Todd – are you saying sell or…[Read more]

Originally posted by john_preacher:
Just on the topic of IO loans. I understand the tax benefits of this type of loan but what happens when you get to the point in your life where you want to retire off the equity in your portfolio where the bank says it’s time to pay off the loan. Do you sell 2 of your 10 property portfolio to pay off the…[Read more]

Which states are the properties in?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Originally posted by michaelv76:
Hi all, have almost finished reading Steve’s first book and i must say it has opened my eyes to alot of little things cant wait for the second.

I would recommend you read a little more widely and spend a great deal more time researching and learning. There are other books out there that espouse a different style…[Read more]

Bassendean is a good solid suburb and from a growth perspective will do well in the long run.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Hi Sanela,

Having a body corporate (& strata management company) in the mix can add an extra dimension to your investment. This doesn’t necessarily mean it is a bad thing – it is just an extra party to deal with.

On occasions there can be a conflict of interest. Certainly if you are the type to sit back and not involve yourself with your…[Read more]

Originally posted by jglover2010:
I have $100,000. I am confused as to weather is is best to buy say 1 positive cash flow property up to $100,000 and own it outright or say buy 5 positive cashflow properties all with a mortgage, because as far as my returns go it works out about the same, its just that one way I own 1 property, and the other I…[Read more]

Please note I am not an accountant but as I understand it CG events are triggered at signing of contracts and not settlement.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Hi Summer,

When renting to family (I know he is b/f) it is important that market rent be paid. I would suggest the same principle should apply in this instance in order to ensure maximum deductions apply to you.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Originally posted by tajee:
No-one has told us that you can get a depreciation of 4% for short term travellers provision but we have been given a depreciation schedule by Depro for Capital Works and Plant Allowance. Can you claim these two?

Hi Julie,

Depreciation for residential buildings includes a capital allowance (the building, roof,…[Read more]

Hi Julie,

I suggest that you search for previous posts about hotel rooms. There have been plenty of questions asked.

The general consensus is that these types of investment seduce people because of their returns. You also need to consider financing, growth and capacity to release and/or use equity later.

Something more standard is a better…[Read more]

Originally posted by krs:
Also is the current property tht she lives in (and my friend own’s) exempt from paying CGT if it was purchased in the early 80’s? I knwo there is cut off date, just can’t rememver what it is.

Hi Krs,

Generally, there is no CGT obligation for assets acquired before 20 September 1985 (pre-CGT).

Given the set of…[Read more]

Hi Nsellar,

Notwithstanding the desire to refinance I wonder if you wouldn’t be better served by reading this thread for some debt reduction tips and then taking some strategic and concerted action.

https://www.propertyinvesting.com/forum/topic/22883.html

Have you taken steps to maximise your cashflow for the existing IP – interest only loans?…[Read more]

Simon,

Well written – do I have your permission to give a copy of this to my wife and two daughters?

“Now that we have killed the smallest debt we need to sit back and pat ourselves on the back and feel good. This good feeling is important. Associate this good feeling with the saving effort you have made. Associate the despair and feeling of…[Read more]

Hi Molkenr,

Please note I do not hold accoutancy qualifications so take everything I say with a bloody great big grain of salt.

As it is only Mid March you do have some time up your sleeve and the first thing I would do is to arrange an appointment with your accountant so that you can explore options that are appropriate for your short and long…[Read more]

Hi Mr,

You have the upper hand here – the owner only has their property to sell whereas you have other potential properties to buy.

Do not get caught up in the belief that this is the ONLY property for you.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113