I went to one of their meetings. I was impressed, but their stock list is limited, so unless you’re prepared to take what’s available on their list and forget every other property deal out there ( NOT ME ! ) I think you will pass on it.

They promote their properties as offering high returns, but that only applies to a some of them in reality,…[Read more]

Yes I realise its costing me about $500 per week in CG forgone ( excluding cash outflows ), for every week I delay my next IP. Assuming a 10% capital growth opportunity is not being taken advantage of by a 260K asset

BC these are the things that concern me. I’m concerned that we may be left with coverage holes in our Landlords Insurance policies, that many of us may not be aware of.

Another example; I have emailed AON Insurance about this and await their response. I presume its plant & equip but not sure if its covered by Landlords Insurance.

Are…[Read more]

i played it once. its about general investment rather than property specific. was a bit of fun but did not teach me much about property. its supposed to help you lean to think like the rich, so to speak i.e. invest in income producing assets etc .. to bad if you buy a lemon. hehe.

hmm well the quick simple measure is annual rent / purchase price

but of ocurse you can get more accurate results by then adding cost and tax effects

I have checked my AON policy, and I cannot see that it discusses the issue of covering rent for the period of rebuilding the property in the event of damage from fire or storm etc…

It only appears to make reference to coverage from willfull or accidental damage. This is a concern I do need to clarify with the company, and also with WESTPAC with…[Read more]

This is how my bank lender worked it out;

How much I can borrow as at 1 August 2003

Assuming Estimated Bank Market Values;

PPOR $250K

IP 1 $280K

IP 2 $240K

Total Assets $770K

80% Asset Value $616K

Loan Debt $554K

Equity $62K representing your 20% holding of the loan.

Borrowing Capacity = 62K*5 =…[Read more]

Well whatever value the banks decides I guess, as they are the ones giving the nod.

Perhaps I could have used more appropriate words, but the bottom line is that even with adeqtate equity, serviceability and other issues, obviously the banks also consider the estimated value of the property in determining the eligability of the loan request.

Kate

I would firstly set up a trust in your name as guarantor. Then you have the option of either buying your own property and renting it to yourself as an IP and claiming interest and expenses as tax deductions and using it to fund other IPs the same way.

Although you may then have to pay capital gains tax if you sell it, If you never sell it…[Read more]

Yes Dave I have spoken to Dale before and yes he is very helpful.

cheers.

So you are covered for rent for 52 weeks in the event of ;

1. Accidental Fire ?

2. Deleberate Fire ? NO

3. Act of Nature resulting in Fire ?

that makes some sense, but how do you prove that the proposed property is cash positive ? rent ?

The banks must also look at the assets true market value

Thanks Michael. I think its quite clear now. You learn something every day.

Thankyou all for your contributions.

I think the media is full of mischeif. Mhey talk up then talk down property markets. They make it look easy. Many people get burnt along the way and the smart and experienced and well financed ones cash in. More of the rich getting richer and the poor getting ripped off.

Thanks Harold.

Magnet, I resent your assertions. I’m just asking questions so I know what is legal, so I can steer a clear path and not rip anyone off. I think people like me are trying to gain knowledge by asking questions. I’m afraid I have not studied tax law, but there is nothing wrong with exploring the boundries of legality, so you can…[Read more]

no problem. I tend to stay clear of auctions. I find them too emotionally driven and less rational unless you are extremely disciplined. And as you mentioed the competition can drive prices beyond their true commercial market value in terms of investment returns.

Anna,

What ever you decide to buy, get it valued first by an independant qualified property valuer. It may set you back $400, but it could save you major headaches and worry and money. If they pick up problems that need repair, you may gain greater power in negotiating the purchase price. I expect you will also have piece of mind and fewer…[Read more]

Hmm, I think only once. I think your capital gain less 50% would be added to your gross income to derive your total taxable income.

Thus for a gain of $20K, 50% or $10K would be added to your gross income.

Your income tax would then be recalculated, which you would be liable to pay I presume at next tax time ?

But you best wait for other…[Read more]

Thanks Stu,

Now re; item 2. I thought I heard that when buying a property, so long as your intention is to rent it out, you could claim expenses before you actually get the tenant. i.e. if you showed proof that you intent the property to be available for rent, such as by placing an add in the paper etc…

That said I do see your point, which…[Read more]

Thanks Guys