Very true Scott. That's why, if your accountant confirms that my understanding of the 6 year rule is correct, I would get all this sorted out before I signed anything.  

Hello tuggerwaughI rent one of my IP's to a family member and don't use a PM. They just transfer the rent into my account each month, clearly marked as rent for this IP and this seems to be sufficient. I haven't had this checked by the ATO but my accountant is happy with this arrangement. Naturally you need to keep the documentation for all ou…[Read more]

No problem. Let us know how you go.Cheers

The problem may not be that you lose 6 months out of 2 years CGT exemption but that, because it will be seen as having been an investment property first, it will not qualify for the 6 year rule.  This is what you're planning to use based on your original post.  (That's the one that says that you can rent out your PPOR for up to 6 years without lo…[Read more]

Sorry Scamp. Won't happen.Now you're talking about Holland not Australia.Different mentality …….. even in the Labour party.No offenceElka

Congratulations.      I imagine the first thing you need to do is find out about retail leases and what outgoings are usually the responsibility of the tenant ( insurance land tax, rates, water, small maintenance? ) as well as any obligations/restrictions you have as a landlord. Also what is usual as far as yearly rental increases go (CPI or …[Read more]

Hello JamieHow long has the other shop been vacant?CheersElka

Thank you Stuart

Hello StuartThank you for your reply and the link.As you say it depends on the quality of the advice. I certainly have no problem paying $3K for good advice and even don't care if the advisor gets commissions but I am not sure if I am going to get it. The person I went to doesn't appear on this site which is no surprise. He is part of a large…[Read more]

Hello StaggerleeSorry but that's not true. Stamp duty forms part of the cost base and only comes into play for the purpose of calculating the CG on a property if it's applicable. Perhaps you can read the info on this site to understand about tax deductions for an investment property.http://www.propertyinvestment.net.au/tax-deduction.htm You m…[Read more]

May I ask what sort of investment property you have/had in Holland Scamp. CheersElka

Hello PaulAs it will be a brand new house you will also have great depreciation deductions to claim which will also help save tax on your other income. Speak to your accountant about this too and maybe get him to help you calculate your actual holding costs.CheersElka

Hello SueI've always used PI loans for IPs but now want to change over one of them to IO.I don't really want to pay the loan out earlier. I'm just trying to figure out how much to make the new loan for given that I have nothing I want to do with any extra money at the moment. I don't want to put it into the offset account, for the reason in my…[Read more]

Hello MareeBy your title I assume that the lease is still current in which case you, as either the renter or the owner, need a very good reason to be able to terminate a lease. After all it's a binding contract. If it's only because the tenant wants to move then I think the usual procedure is for the tenant to advise the agent and ask permission…[Read more]

Hello suavemechanicThere was a thread about this subject some time ago. This involved land tax in WA and though  the laws are different in each states you may still find it an interesting read.  https://www.propertyinvesting.com/forum/topic/19858.html?SearchTerms=land,taxUnfortunately we never did get the end of the plot.Hope this helpsElka

Thank you all for your helpful replies.To explain a bit further. Last year I converted one of my loans from variable PI to variable IO (both with offset accounts) and asked the bank just to make the new loan for the amount outstanding. This reduced my loan amount by about $70K prematurely.I have a second loan that I want to convert to variable IO…[Read more]

Hello Darian1179I've been renting to my sister and her husband for several years. I have never had a lease with her and I do the management of this IP myself to save PM fees.Each month her husband just transfers the rent into my account clearly marked as rent for this address.I have never been audited so I can't guarantee that the ATO would be…[Read more]

Thank you both. I have registered with Ozforex and even though I haven't transferred any funds yet they seem very efficient and professional. After registartion they phoned me to complete the verification process and to ask if I needed more information. Very helpful.CheersElka

Hello MichaelThank you for that.CheersElka  

Hello BluewaterFinancialThank you for your reply.I also think that the AUD will appreciate against the Euro but am a little confused about your last sentence.Surely if the Euro weakens I will get less A$ for my Euros and so should convert now before this happens…………. or have I got that backwards??    Feeling stupidElka