Good to know. Thank you for that. Sorry Simon. You were rightCheers Elka

Sorry Simon. Are you sure that the 6 year rule can be applied if you rented the property out before you moved into it as your PPOR. I didn't think so … but could be wrong. Definitely worth checking with your accountant first Jez. Also, if that is the case and you are not planning to buy another PPOR in the 4-5 years you spoke of, then it would…[Read more]

I don't know the law about when you are obliged to have a body corporate. I do know that when I bought a unit (1 of 2) 5 years ago there was no body corporate and each owner had their own building insurance. When I was organising strata insurance for my unit one of the questions I needed to answer was…..  is the other unit insured and with w…[Read more]

Hello ChilliaaIn Vict. the SRO uses the council valuation of unimproved capital value as the bases for land tax. I would assume it would be the same in other states?CheersElka 

Hello TomI believe the cost for mine will be somewhere in the order of $500- $600. Part of it needs to be done by a plumber and then the water people come and do the final connection. However the cost will depend on how the pipes run and whether any new ones will need to be laid. I suggest you ring the authority supplying water in your area and…[Read more]

HelloIn Victoria, if units are metered separately then the tenant pays the water usage too. I am just having the meter split on a property I owe with 2 units on it. This one time cost will save me years of paying water usage for both tenants. CheersElka

Hello blueheelerI think you mean interest on 40% of the loan.  But what have you given away? I don't know these loans but assume that they want 20% of your capital gain in return. Imagine how much you would have to give away if you had bought a property pre boom and sold post boom or kept it for a long time so that you must have had a capital…[Read more]

Hello RichardMy question was full of assumptions which I neglected to verbalise.  You explanation is crystal clear but what structure would you use which wouldn't trap the loses ( I assume the property would be negatively geared on 100% lend) within the entity, besides a HDT. Don't answer if you'd rather not but is the HDT you use one developed s…[Read more]

Hello MooseheadWhether interest on a loan is tax deductible or not depends on what you did with the money you borrowed. If you bought yourself a nice boat, it's not tax deductible. If you bought yourself a house to live in (PPOR) it's not tax deductible. It does not matter which asset you used to secure the loan.In the 4 steps you outlined above,…[Read more]

Hello RichardPreviously I thought the method you suggested worked by setting up a HDT and then borrowing money to buy units from the trust. The money the trust recieves from the sale of the units is then used to buy the property. Because the borrowed money was used for an investment (to buy the units) then the interest on this was tax deductible.…[Read more]

The agent you bought through is no longer being helpful? How strange. Maybe contacting another couple of agents who deal in that area will get you more information, specially about rent and demand. This is also a good way to sort out who you will get to manage the IP for you …. assuming you are not going to do it yourself.A big difference…[Read more]

The yield is different for the different commercial property classes. Mine is classed as industrial and I get about 7% yield which is normal for this category.Here is a link to a site were, from memory, the different yields for the different classes are given.http://his-best.biz/ There is also lots of information about commercial property on the…[Read more]

Hello WayneAs I recently posted elsewhere on the forum I have a commercial property (wharehouse/office) which is being managed for me by a PM. I pay 10% letting fee and 4% management fees. This is in Melbourne.CheersElka

Thank you for passing that information on. Glad you got it settled at last.CheersElka

Hello DanielI think the reason you have not received any answers is that this is not something that any of us may have come across as it is a somewhat unusual arrangement. As a person totally unqualified in this area I think I see a problems with it.How will the income from the IP be split?. If you don't receive any income from the unit you wi…[Read more]

Hello XeniaYou just betrayed your age …. in a good way.It may politically incorrect but it's a perfectly valid, if somewhat out of date, English word.OOOps. I think I just betrayed my age …. in a bad way. Hello GCGI second the suggestion to give Richard a call. If he can't find a way to help you finance what you want to buy then he should be…[Read more]

Hello happyjack72I pay 10% letting fee and 4% management fee for a single tenant warehouse/office property. Since commercial leases are much longer than residential leases, the agent charges a much higher commission for letting but a lower management fee. I don't know if they have different rates for different types of commercial properties.( i…[Read more]

I own an IP in one of the "leafy" suburbs of Melbourne and have just completeda reno. on it to maximise my rental return. It seemed like the right time. My builder has had two people come up to him (one a neighbour from next door and the other from across the road) and ask if he is the owner and wants to sell. He received one firm offer of $920K t…[Read more]

Hello GoldCoastGirlI'm certainly interested as to what the outcome of your claim will be. I agree that 5 months is an amazing amount of time for a residential property to be vacant unless it's overpriced, in the middle of nowhere or has some serious faults.Good luck with your claim (even though I am a landlord  )Elka

OK. I had a minute to spare and since you are new to the site I have searched it for you.  Here is a link to a thread covering this very topic. If you go to the second post, by duckster, you will find a link to the ATO information you are looking for … as he says …. on page 10. https://www.propertyinvesting.com/forums/getting-technical/finance/…[Read more]