Hi Crows

An unencumbered PPOR and IP is a nice problem to have

I'm with you in regards to placing importance on CG – without it, it's difficult to get ahead.

Assuming you're talking about the northern Adelaide burbs – is there any scope for picking up properties that can be cosmetically renovated to add value? This is how I started out – and is how I continue to invest, I just avoid doing the work these days

My first IP was in a so called "dodgy" area. After spending a couple of thousand on cosmetic renos – new paint, fixed up some tiles, spruced up the kitchen and gave it a general clean up, it was valued $40k higher a month later.

If you're willing to be proactive with your investing then it's possible to find properties that offer a decent yield that you can add value to (rather than waiting for it to kick in).

Cheers

Jamie

Just one offset against the PPOR.

Cheers

Jamie

Hi there

Is it being professionally managed? If so, the PM should be on the ball in respect to how much to charge and how to manage the risk.

For what it's worth, we've allowed pets in all our properties and (touch wood) have had some excellent, long term tenants.

Cheers

Jamie

Investors are buying. This August has been our busiest month in settlements – the majority have been investor clients.

Cheers

Jamie

This app works really well on the iPad.

Cheers

Jamie

Hi there

Welcome aboard.

Can you increase the rents?

Are you claiming depreciation?

Have you considered lodging a PAYG variation with the ATO so you can pay less tax throughout the year instead of waiting for the large return at the EOFY?

Cheers

Jamie

I had a year of utilities bills sent to the incorrect address – they were water bills that were sent to the IP address (instead of my address).

It was agreed the tenant would pay the water bills but they never bothered – and I simply assumed all was being looked after because I never heard otherwise (that's because all of the late notices were being sent to the wrong address).

After the tenant took off – I found out I had a $2k water bill. Not a whole lot I could do but pay for it – tenant was nowhere to be found and technically it was my responsibility to ensure that the account was looked after.

Cheers

Jamie

No – not necessarily.

How much were your other costs such as:

property management fees

rates

land tax (if applicable)

insurance

maintenance

body corporate (if applicable)

other….

You need to factor in ALL of the costs associated with holding the property. If the rent coming in exceeds the total costs than the property is positively geared.

Cheers

Jamie

Hi Mrs Bee

What you're aiming to do is possible.

If your property is valued at $340k, you potentially have $46k that you could access for the deposit/costs on your next purchase.

I'm not sure how much you're looking to spend on the next purchase (or how much you can afford) but the $46k could be used as a 5% deposit and costs on a property around the $400k mark (possibly a bit more). It will be a 95% lend so lender selection will be important.

With your current loan – it would be ideal to convert it to interest only now rather than continue to pay down any more of the principle (because this debt will become deductible in the near future).

Cheers

Jamie

5% plus enough funds to cover costs is the minimum.

Technically some banks will allow equity releases up to 95% but it's a painful process and difficult to get approved.

Cheers

Jamie