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Anyone?
That is interesting. Does anyone want to expand on why they have given the thumbs down?
Thanks guys, that is the type of company I am after. Are there any more companies around or is it a limited field?
Hi Richard,
What time frame are you looking at with the reference?Jas
There has been some growth recently, not that it is anything to jump about. Some of the spending has been done, or has been sideline for the short term.
Hey Richard, that advice would have been good in 2007 lol. What can you do but learn.
The property was purchased in 2007 in Morayfield, just north of Brisbane. It may be due for an increase, just waiting to see if the supply and new houses dry up. Until then I don’t think it will move.
Benny, what I mean is the advantage of a rental schedule is reducing as I used the diminishing value method. I was planning on capital growth and being able to sell around this time to pay off my PPOR. This meant using the diminishing value method for the initial advantages. Obviously with the lack of capital growth this plan is turning to a disadvantage.
As a side not I have talked to other property owners that have fallen into the same situation. That being they have not bought in Sydney/Melbourne, have not had capital growth, and have had a flood of houses onto the market. I wonder how many people are in that situation?
Jas
I am interested to. I have seen the thread recommending Beaumaris Business Solutions in other threads. Are they still competitive in this field?
that makes it clearer, thanks for that.
Hey Catalyst my partner has organised quotes etc to get the work completed and we planned to do it before it was tennanted or work with the tennants to arrange a time and reduced rent if it inconveniences them. I have been away for most of this year and have a short time frame to move due to my work comitments that is why we hadn't planned on doing them now. When it comes down to it, it was only the depreciation I was going to claim for, I know 2.5% for three years may not be much but is more than nothing.
Hi Wisepearl, someone somewhere mentioned to me that if it is repairs required to make it income producing they could be claimed. I guess the ATO would require proof that it was vacated as a PPOR and tennanted after repairs. For example the wiring and fuse box need to be upgraded as I bought after the cut off period, 07 or 08, regardless it needs to be done before renting the place. Can this cost be claimed?
Hey Todd and Drew
I have been in the Army for close to 14 years now and am well on my way with property investing. I purchased my first property when I was 22 back in 2000 and it went really well for me and I just want to do more.
With respect to your debts Todd like everyone else has mentioned if you can get on top of them ASAP and consolidate them or just start with the hghest interest rate either way at $750 F/N you should get ontop of them quick smart. The other side to the coin is that if you do not default on the you should have a good credit rating afterwards which will help you out. If, after your loan repayments and living expenses have been paid,you have some money left place it in a ubank account etc so you have some savings behind you. Good for things like seagoing allowance or field pay.
For both of you I recommend getting into an IP early on in your career and before getting a PPOR. While you are entitled to either RA or a DHA house the money saved in not paying market rent will cover the holding cost of 2 IP. While if you buy a PPOR, even with DHOAS, at your stage of your career it will end up being very expensive in that first year or years depending on which strategy you follow. Also, with housing assistance, if you are deployed you can minimise your property cost to nil while you are away, this allows you save more money to be placed in say a mortgage offset acc for purchasing your own home. I really had no plan but new that I had to do something so I purchased my first IP ad lived in the lines then rented for 7 years untill I had enough equity to purchase my own home. I managed to save the deposit for my first place and since then have always kept my LVR under 80% . It is a little more difficult now though and I suggest, if it is possible, get a leg up by using a relations equity to help raise the deposit for a property. At least this way you can get into the market earlier and you can start working on the LVR untill the property does not require any security.
There is another strategy that can be done but if you would like to kow more about that it will have to be via PM.
6 properties in 2 years that is very aggresive. How do you plan to raise the equity for the deposit on them all? Sounds like a challenging goal though and I wish you all the best with that.
I have been considering the NRAS schemefor some time now due to the properties being positve geared but I am worried about the following interpretive decision. Has any one factored this into there calculations? If mine are correct it takes away a lot of the advantage and the properties will end up negative geared.
ATO interperative decision ATO ID 2009/146
http://law.ato.gov.au/atolaw/view.htm?Docid=AID/AID2009146/00001&PiT=99991231235958
I have talked to a few different groups that insist they have found a way to get around the decision, just wondering what is happening with the guys that actually own properties?
There a group that build dual occupancy properties on smaller blocks of land. Due to the design though there is no body corp fees etc.
For the Sellers I am assuming 80% is better than 0%. I think the sellers would make ther money from over pricing the product which does mean the average joe will have to pay rather than redraw his loan if he wants to keep the property in 5 years as he won't have the equity.
The group is called The Dream Deposit and can be found on the web. As I said I am looking else where for my next IP but am just curios if anyone has dealt with these guys.
I have a question, I posted it in another forum but there seems to be better answers here.
I have a similar idea but, instead of LOC, I plan to borrow against an IP to prepay interest so the rent will go straight onto my PPOR. The interest would be Tax deductable but my intent is to lower the costs to below the DHOAS payments:-) and then start investing again with the higher cash flow. In this case my main goal is to reduce the PPOR so I can own my hose earlier and my girlfriend can quiet work and raise kids if we do. Would this be difficult or floored if having to face the ATO.
Also is taking the LOC a better option as there is no need to fix rates etc depending on what they do?
I have used BMT & associates and found they do a good job. Also used Deppro which was ok as well. As far as Accountants I use Conroys on Stafford road. They are ok last year I received a good return but this year have to pay due to CGT.
I live in Everton Hills as of december last year, that is a fantastic buy in '89.I used BMT and found them to be pretty good. I have used Deppro before and was advised that BMT was better value for money. FYC
Hey KY,
Thanks for those ideas. I was going to rent it out until I had completed reno's then move in, but the house I was renting, the owners mucked us around and put the house on the market. It was easier to move into my now PPOR instead of trying to find a rental. Affordability is good at the moment as I have the DHOAS loan and of course the IP which are pretty much positive geared now. The IP are to far away from work to consider living in for the time being and will be so for at least 2 years. At this stage I have enough equity, depending on my accountant next week, to purchase another IP and start the plane of redrawing on the other 2 ip and start transfering equity.
Thanks Terry. I have to see my accountant next week anyway so I will ask for his advice then as well. Holding onto the properties and tranferring the debt will probably take longer time but save the selling fees where as I will probably be able to sell in 2.5 to 3 years in which case the 6% will be gained by not having to pay interest on my PPOR?
