Hi PWA,

I would also recommend you download a copy of the ATO’s CGT guide.

It has a number of examples, one of which is the scenario you are currently investigating.

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

Not a valuer but have spoken to and used a number from time to time.

Originally posted by d_robb21:

* What does a valuer specifically look at when valuing a property (block size, property condition, number of rooms, car accomodation, etc etc)

* What other considerations does the valuer make when looking at a property (recent sales, property…[Read more]

Hi D,

The use of quartile medians as per the API magazine is aimed at giving people who are stats driven some more information about the relativities of a property market.

I’ll use 100 sales (ranked in order from lowest to highest) as the sample to make the illustration a little more meaningful.

Primarily the median price is the middle price…[Read more]

Hi Dannii,

Would suggest that the comment is related to the changing tax bands which come into play from July 1 of this year. Capital gains are added to your taxable income and taxed at the appropriate rate.

As an aside have you considered hanging onto your property – there is plenty of anecdotal and researched based evidence to suggest that…[Read more]

I would suggest you do yor sums a little more comprehensively. Renovation costs can be a hidden nightmare if not undertaken thoroughly enough and planning delays can, depending upon the relevant local authority, add considerably to your work timelines.

Have you considered placing an offer, with extended settlement time to allow for further…[Read more]

Hi Reg,

Been there done that.

In addition to Crusher’s comment – I would add keep it simple.

Explore the ‘let’s get ONE investment property’ train of conversation with the wife. If you have leaped off the great divide and talked about a multiple property portfolio before taking the initial steps this can be overpowering to someone just starting…[Read more]

Hi Kariba,

First Question – Do you own investment properties?
Second Question – I buy a block of land and build and investment property on it – can I claim the interest on the block and also on the loan drawdowns used to pay construction costs?
Third Question – Is is worth claiming depreciation?
Fourth Question – What are the benefits and…[Read more]

MF = Line of Credit?

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

And that is why they love locking you into fixed term property management agreements.

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

Hi IAS,

I would always recommend you see a broker first. Banks are normally hamstrung by their lending policies whereas a good broker has a wide range of lenders, with their various policies at their finger tips.

You will need to make sure that the broker you use is fully aware of your long term investment plans and if he/she suggests…[Read more]

Hi Lisa,

The ATO can make adjustments, in their favour, for property built or was purchased after after May 13, 1997 or 30 June, 1999 as detailed below.

This little gem escapes some accountants – just don’t ask how the ATO will calculate the depreciation that you should have claimed but didn’t.

From ATO CGT Guide.

You must exclude from the…[Read more]

Originally posted by iamsooty:
Just one thing – the housing market is climbing rapidly here – like every couple of weeks the properties appear to be on the rise. Is there a place for purchasing another property before we completeely pay out the debt – or that just a big no-no. We have held off – but know that we are missing out on some…[Read more]

When banks assess someone as a potential borrower they will look at your asset compared to debt level (LVR) and also your serviceability (DSR) levels.

Loan Value Ratio is simply the value of your loans as a percentage of the value of your assets. So someone with $600K of property and $400K of loans – has a LVR of 66%.

Your DSR consider all…[Read more]

Originally posted by iamsooty:

I know we are doing RIGHT things – paying off needless debt, buying houses that have fantastic growth. But we think we need to restructure the IP from an interest only.

I would suggest that you maintain your IP loan as interest only, particularly while you have (it seems) non-deductible (and/or consumable)…[Read more]

Originally posted by iamsooty:
an agent has just recommended that the other one would go on the market for 70k more than purchase price 18months ago

I am not sure whether or not you are considering selling this property but just in case you are, remember that you do not have to sell to access your profits.

I will also add that PFS seems very…[Read more]

Housing Industry Authority

You could also try QBSA – Queensland Building Services Authority.

If these people cannot help they may be able to direct you elsewhere.

Unfortunately both organisations will be hamstrung by the vagaries of construction.

I am curious as to why you want a construction…[Read more]

Originally posted by proper property:
I am desperate to buy something already i have been searching for six months but have not come up with some thing

Hi PP,

I am not sure if your comments are an accurate reflection of your level of ‘enthusiasm’ or not but it is important you maintain a business like approach to decision making.

A vendor may…[Read more]

Hi NWM,

It is all relative – while some people only feel ‘safe’ with a low LVR others are quite happy pushing the envelope as far and as fast as they can.

Bear in mind some banks will lend up to 100% (with restrictions) and LMI. Obviously if you constantly rely on LMI to get your loans it is highly likely they will say no sooner or later…[Read more]

Hi Iamsooty,

Don’t do it – too many alarm bells going off for me.

It seems to me that everything is moving too quickly, you are being ‘educated’ away from home, on a short timeline, little chance to do your own checks and balances and you also indicate that they are a ‘new’ company.

To me forget the airfare costs (if you have already paid) and…[Read more]

Hi Kel,

I cannot speak for the others but I am not an accountant (I don’t think Ani is either – she is ‘just’ an experienced investor)

Different states have different calculation rates and thresholds for land tax and NT is still land tax exempt. I suggest that you log onto the OSR website for the state/s in which you hold property and that will…[Read more]