Hello PaulHow far along is construction? Are you quoting finished product when you value it at $500K ? Is it possible to value it quickly in it's "as is" status to reduce the SD liability?CheersElka 

Hello MartinI'm in the same situation as you are in as much as I am currently renovating 2 places long distance. It's very frustrating having to pay for things that you would be able to do yourself if you were there. However the most important thing is to have people you trust to do the job for you.Have you only had one quote done? I must say it…[Read more]

HelloIt looks like no one knows the answer to this. Why dont you ring up the city council of the area you are interested in and just ask…. then post it here for us please.CheersElka

Hello sjordanI don't know which state you are in but here is a link with the addresses of all the state revenue offices. You might like to read about stamp duty and land tax. Please note that your home (PPOR = primary place of residence) is land tax excempt.http://www.ato.gov.au/corporate/content.asp?doc=/content/8792.htmThis page is on the Aust.…[Read more]

Sorry, DraconisV,  I don't know if it's possible to charge more than one months rent but if I had to guess I would say no (at least in Vict.). I've never had an agent ask if I wanted a bigger bond from a tenant.  I just looked up the REIV leasing and managing authority document and it gives two options for bond. 1 month and other …  but I'm gue…[Read more]

Hello whyalla$1500 ???? You've allowed it to slide too long and now it's an amount that may be a problem for the tenants to pay in one go. Maybe get your PM to send them a last reminder together with what the consequences are of being in breach of the lease. You may like to offer them the option of paying it off in instalements. i.e 3 X $500 if y…[Read more]

Hello JadeMay I ask why do you specifically want to deduct it from the rent? As it's in the lease, they are liable. Get your PM to send them a copy of the water bill with a "please pay" next to the water consumption amount. The PM could even include a copy of the relevant section of the lease, just as a reminder.Or have they refused to pay? If so…[Read more]

Hello MArcus10Nice problem to have.  Your PPOR debt is certainly the killer as I guess you are paying out around $4K per month on it and none of it is tax deductible. Of cause an option you haven't mentioned would be to move out of your home and rent much cheaper elsewhere in which case you would not only have the rent to help pay the mortgage b…[Read more]

Hello C2Are Changing places real estate the people you are looking for?http://www.changingplaces.com.au/Hope this helpsElka

Hello ChrisAlso something to consider in your calculations is that if you turn your PPOR into an IP rather than sell it, you can rent it out for up to 6 years (as long as you are renting and haven't bought another PPOR) and it still maintains it's CGT free status. You can even move back in before the 6 years are up and then move back out and start…[Read more]

Hello black tulipHere are a couple of sites you can brows and a book to read. There is not much around about commercial property investing.http://his-best.biz/http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3FThe book is called "How investing in commercial property really works" by Martin Roth and…[Read more]

Hello simpsdYes definately get a depreciation schedule done. With a new place the deductions will be considerable.While your renting it out all expenses will be tax deductible including interest on loan, insurances, rates, water, management fees etc.Make sure you take out landlords insurance also.If you come back to your home before 6 years are…[Read more]

Hello Troy and jc1979Some of the costs of buying an IP are tax deductible over a period of 5 years and some just form part of the cost base for calculating the capital gain if you sell. This is not dependent on the state you live in as it's an ATO ruling.Acquisition costs form part of the cost base but borrowing costs are deductible over a five…[Read more]

Hello JeffGood that you've shared that as there have been people on the forum who have asked advice about "pretending" a place was their PPOR while they renovated it without actually living there. No flies on the ATO unfortunately. CheersElka

Hello jc1979I think your friend misunderstood his accountant. Alternatively, it could be a case of broken telephone. You know, it's that game where you sit around in a circle and someone whispers a sentence into the ear of the person next to them who then repeats it to the person next to them and so forth until you get to the person who originated…[Read more]

Hello SeanmigThe CG on which you will be tax will be calculated by first working out the CG over the 10 years and then only charging for the percentage of time it was rented. .i.e. 3/10th of the total CG over the 10 years. You will of cause get the 50% discount.However, if after turning your PPOR into an IP you have not declared another place as…[Read more]

Hello AnitaYour scenario above of capitalising the interest on $1M non deductible debt would give me nightmares.People who live off equity don't usually do it by taking out $1M to begin with unless they have considerably more equity than you have at the moment, I think.. They usually take out something like for eg. $100K per year to live off which…[Read more]

Hello vyaw2003It all depends on your lease which, as hookstart mentioned, is much more complicated than a residentual lease and takes into account things that residential landlords only dream about. It should be prepared by your solicior.  It also depends on what sort of commercial property it is as to what is "usual" in the lease. Generally on a…[Read more]

Hello JeffLooking at your example is it then correct to say that there is no advantage to supplying a  depreciation schedule showing the written down vaue of both P&E and capital works with the contract of sale? Or have I totally missed it?  ThanksElka 

Hello jaycoHave you looked at the possibility of strata titeling the flats and selling some off after a facelift maybe? Just another option?Elka