Hi AnthonyB.That is some really good advice thank you so much.  So say for instance the bathroom ceiling needs some painting because of mould or water damage, if the invoice specifies repainting due to water damage or mould can that be claimed as an immediate repair or is it still depreciation?

I know with the CBA at least they have two seperate loan categories which are personal loan and renovation loan on investment property.

Thanx Catalyst.  So they allow double dipping.  Sounds good to me.

Catalyst you are mighty awesome.  Thanks for your help money like that is really not worth worrying about in this grand scheme of things.And I happen to be a massive fan of Doctor Doom from Marvel Comics however now that you've pointed it out I'm beginning to think it's not suitable for this website.

Thanks for the tips.  One last thing, say you buy it tenanted and apply for the loan during tenancy then vacate the property and do reno's.  What you guys think of that.

Thanks guys.  Yeah that is a major bitch.  So the real dodge thing to do is put it up for lease unrenovated for an overly inflated amount for lets say 2 weeks, then take the loan, start reno's and take it off the market?

Yeah I know all those things.  Basically as far as I know they can get a loan for to buy into a property however it has to all be under the one bank so that gives the bank security.  At the moment I haven't worked out any plans for if one party goes bankrupt but I am aware of the risk.  This has nothing to do with spousal or marital issues, it…[Read more]

Hi Terryw.So lets say you buy a unit vacant, take a loan and renovate for 3 months then put it up on the market then you can claim back only from when you put it up for lease?

Yeah that's exactly what I reckon.  What the hell is this about having to lease it prior to vacating tenants and renovating, I am definitly getting a second thought.

No I mean I want to buy a vacant unit and renovate it with borrowed money, then lease it and claim the interest.

Yeah Catalyst is rite.I was a property manager for 5 years and I saw a couple of the following cases.One strata company installed individual water meters for each unit.One landlord owned a duplex with a single meter and had a second one installed,There were 4 townhouses each individually metered but for some reason sydney water didn't…[Read more]

Hi Bjsaust.Thank you very much for your reply.  Yes my main concern is the interest on loan, I am familiar with the repair and renovation deductions on immediate and depreciation.  Here's the thing, with CBA if I were to borrow $50,000 for renovations that works out to a bit over an extra $300 per month, therefore $3,000+ at the end of the ye…[Read more]

Yes that you did, but thank you for the consideration.

Ok I see.  Well thank you for clearing up that second point about the loan Richard.  It's not as simple as one party having one mortgage while the other party has a loan from a different provider.Much appreciated.

Thank you for the feedback.  The way this is meant to work is as follows:You buy an apartment worth $600k in a company name.Renovate it to make it worth $700k then once it's leased for a higher rent sell a share of the property value, we'll say $200k/21% to a low end investor.This way they take out a loan seperately for themselves and you end up…[Read more]

Here's what I was thinking.  Say you buy a unit for $600,000 then you renovate it to up its value to $700,000.  After this lets you decide to sell a percentage of the property to an investor say $200,000.I was primarily concerned about how does the bank treat this in terms of providing a loan to an investor for partial ownership and does this in…[Read more]