Hey Coxy86,Often time, the ruling from ATO looks at the purpose of the property. If the townhouse is purchased solely for the purpose of investment property, any gain on that property is subject to CGT if its sold. If the townhouse is purchased for your own PPOR, then decided to rent it out, after 12 months or so, then sold it 12 months later, it…[Read more]

Hey Mark,I would engage two parties, that is, your qualified quantity surveyor & your accountant. Note, ATO only accepts a qaulified quantity surveryor hence accountants don't fit this category. Ask your qualified quantity surveryor about your recent reno to prepare an amended schedule of depreciation because since you have added  some value to…[Read more]

Why not do the following: Let your PPOR since costs linked to servicesiblity of the loan are tax deductableGo back to rentingUse your PPOR equity to form a deposit for another IP.Hold on to these IPs after 18 months (at max), if sufficient growth in their equities, duplicate. Cheers Leo

Hey GetRichorDie Trying,To build on TerryW comment, your rental income exceeds your outgoing costs such as interest on loan, property management cost, strata levy etc.There are two forms of positive cashflow and these are as follow:    * Positive geared cashflow    * Cash flow positivePositive geared cashflow = your rental income is greater than…[Read more]

House Call wrote:

DHCP wrote:

I like the theory of being mentored, I also like the theory of having a goal, but as you read and educate yourself the goal keeps changing and I don't really know what the goal is, most of the time.  Is it really so neccessary?  What is wrong with buying some property with as close to CF+ as y…[Read more]

Property investing is personal preference hence a personal choice and Derek is classic example on how he demonstrated this. Thanks mate for sharing your experienced.Cheers Leo

Hello Blind67I encourage you get some education first (e.g. attend seminars, read books, get mentoring etc). You need to define EXACTLY what you are trying to achieve. Therefore, you need to have a GOAL and that goal must be precise, measurable and has DEADLINE.For instance, first define precisely your goal is then work backwards.  For example,…[Read more]

Hi johann22I would like to help but you are a bit short defining your goal exactly. You wanted to unwind from full time to part time within 9 years. The key to successfully achieving your goal is exactness or precision.I got some questions for you and here they are:At what exact year you want to move from full time to part time?How much cash flow…[Read more]

There is no right or wrong answer just comes down to personal preference…..hence personally, after all investing is a personal journey towards wealth creation. Of course, if you sorround your self with people smart people, it will help accellerate your wealth creation quickly.All the best.Cheers Leo

Hello BelleStarThe best tip I can provide you in real estate investment is invest first in yourself. Once you gained your education first, the flood gate of real estate investment property will open up.As you gain more and more knowledge you become better, better investor.But, remember true wealth comes from applied knowledge.Good luck in…[Read more]

Thanks Jamie M….keep us posted (i'm sure other posters will be keen to hear about your future progress).

Hello Airstrike,I fully appreciates your input…thank you.I was listening to Robert Kiyosaki Real Estate investment Audio book on the way to work this morning.  He advises new investors to manage their first IP. Since this is business, it…[Read more]

What do most investors purchase? They mainly purchased established properties so they can manufactured their growth on their IP. In new properties, you can cosmetically renovate but it is insufficient to manufacture enough growth for deposit for next IP. So stick with established properties if you want to fabricate your CG in this kind of market.

Hey Mick807,You often find, investors do change their accountant (e.g., not happy with the advised given etc). What I can recommend is use google.com.au to search for tax accountant who specialised in real estate and make sure he/or she investment in the real estate that way he or she knows what you are trying to achieve.But most importantly,…[Read more]

Hi Lulu1,I'm assuming these figures are CG of certain areas for the past 10 yrs? If so,  I've crunched the numbers in Excel, what you should be looking at is to invest in areas that have at least an average of 8% of CG or above over the 10 yr  period. I wouldn't invest in any of these areas because the highest CG you get is only 5% because you w…[Read more]

Hello Jess, Very interesting……….. You can always get your FHOG later if you opted to purchase your PPOR in the future? But, its a lot to do with your investment strategy. For instance if you intend to invest for Growth (provided you invested in area where the CG for average of 10 years is 8% or above), then it makes good business…[Read more]

Well that depends how far the amenities are (e.g. shops, schools, public transport).  It is better to buy the property which has more desirability to the tenant because you rather have your IP tenanted all the time particularly if its closer to amenities. No point buying a larger block of land if the IP is not desirable to tenant (e.g. difficult…[Read more]

Home Occupier (e.g family with kids)  is attracted with large yard. With extra lounge, I would convert it to another bed room because tenant particular couple or family is more attracted with extra bed room (e.g. study room)..hence you can push the rent higher with extra bed room. If the IP has three bed rooms, then convert the lounge room to…[Read more]

See my responses below:1. Take advantage of FHOG and buy 1 property in my son's name.[DHCP] Since you earned good money, you probably pay good tax too, hence why not buy the IP under your name so you get tax break?2. Have my son do most of the renovation work.[DHCP] Since you can afford to purchase 2 IP, put aside some fund to budget for the reno…[Read more]

Hello Macca12,The best  person to speak to about TRUST is your qualified tax accountant. There are different type of TRUST accounts and they have their pros and cons. Given the seriousness of your venture, get the expert advise so you understand clearly the advantages and disadvantages of using TRUST account.Just to give you some idea about TRUST…[Read more]

Hi Duckman The bank has refused you to lend more because they see you as becoming more riskier, most likely, you're IP is negatively geared and having to pay for your PPOR, you are spreading your self too thin financially hence the bank don't like you when you becoming riskier. I'm glad no one has mentioned about balancing your portpolio…[Read more]