Hi Hudson,

I am in agreement with Celivia – yes you pay for the PM services but for me that is ‘cheap’ compared to the costs involved should something go awry.

I tend to suggest you are better off using your energy on researching the market and looking for the next property.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Avranjes,

I recommend a look at the Asbestos Diseases Society Website to see what they say.

Anecdotally it would seem to me that there are growing concerns about the validity of Steve’s comments above – which were the generally accepted ‘guidelines’ for a number of years.

Ultimately your call – just be aware that if you do proceed any lter date removal of asbestos needs to be undertaken by licenced operators in WA and that associated costs can be on the high side.

You may be able to drive a ‘harder bargain’ because of the asbestos.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Marisa,

As others have said I recommend a lengthy talk to your PM about ways you can legitimately increase your rent. A discussion with your tenant, either directly or through PM, may also reveal that ‘something extra’ the tenant would be prepared to subsidise.

I also suggest a talk to other PMs to see what they think the going rate should be – it is possible your PM is a little lax in cranking up your rent in keeping with the rest of the rental market. At the moment Perth vacancy rates are declining so there is scope for some pushing of rents – in saying that be mindful of the mid winter ‘slow changeover phenomena’.

Assuming you are prepared to invest some of your funds consider some of the following; airconditioning, fans to bedrooms, garage door, lockable storage shed, security screens and/or system (never go astray in Westminster), outdoor area, new carpet, painting, refurb kitchen or bathroom, gardening service, front fence, side fence to keep kids in, external refurb, student accommodation for students at Tuart College, and so on.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Ray,

As Steven has indicated I would also suggest taking your LVR out as far as possible on the proviso you are comfortable with this and the extra LOC doesn’t overly limit other borrowings.

It may even be worth going above 80% LVR as you may find the additional funds could be put to use in an investment program somewhere.

For example in the early days we extended out LOC and a couple of early purchases out to 90% to maximise the number of properties in our portfolio.

The growth in our portfolio since then gives us a bucketload of equity and we now only borrow up to 80%.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Scott,

Nah it could never happen – methinks you’ve written a piece of fiction.[biggrin]

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi all,

In some respects this thread is becoming a pointless exercise and threatens to be an anti-jenman and nothing more.

To be a little more productive and dare I say it balanced – G7 really needs to tell us who his family friend is.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Stuart,

My comments were about the ‘legality’ of the different loan rates as discussed in Ez-Rents initial comments.

By default they probably also applied to your ‘deal’ – and as you are an accountant – I hear what you are saying.

As a specific question would (in your opinion) Ez-Rents ‘offer’ fall outside part 4A of the tax act?

I picked up this little ‘heads up’ comment in this morning’s Austrtalian ” Whatever the intention, it is highly likely the ATO will be using its latest victory (against the Wealth Optimiser – which marketed itself as a tax minimisation loan) to scrutinise similar split loan structures that have tax planning in mind, but offer greater tax benefits than the ATO would like.”

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi all,

It seems we all jumped on the final challenge at about the same time[biggrin]

PS apologies to Mel who picked up the 32 degrees etc

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Scott,

I might add that most of your posts (you told me off once for recommending Deppro ahead of your firm [biggrin] – and I won’t forget) have been all about information first and foremost.

I, for one, have no problem with a little ‘contact me message’ as a signature – such advertising to be allowable.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi all,

Not an accountant.

I would contend a purchasing trip would not be deductible but would be classified as a capital expense.

I would also argue that if you did have property O/S some travel may be deductible based on Australian Tax rules – but what about the country in which the income is earned.

There are (as I understand it) issues to do with income earned overseas and the deductibility of these expenses in the overseas country involved and whether or not costs incurred O/S costs can offset income earned in Australia.

Ultimately a highly skilled and knowledgeable tax accountant is required in each country.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.