Hi NHG

I'm not an accountant and would always recommend you seek professional advice but my understanding is that it's treated as a capital expense when determining CGT – however, if you used a loan for the BA's fees, the interest should be deductible.

Cheers

Jamiie

Hi Michael

My wife prepared a fairly comprehensive application form. We have a chat with all of the tenants, then narrow it down to a few.

From there, we look a little further into their recent rental history and ability to afford the repayments – including calls to previous landlords/property managers. At this point, a reference from a registered property manager is extremely helpful (which sounds biased given that I've got some excellent tentants via private rentals at present).

We also have a good understanding of ACT/NSW tenancy legislation and follow every rule closely.

Cheers

Jamie

Hi there

With your current property, has it experienced any growth? Are there any drivers within the area that may enable the property to grow in value?

I understand that no one wants to lose money, but properties that are negatively geared don't need to be the end of the world providing their achieving enough capital growth to offset the loss. I've got a combination of CF- and CF+ and would never consider selling a property purely based on it's cashflow position – there is much more to consider.

I'm not an accountant but I would have thought that CGT would be payable for the duration that it was an IP – so I guess I'm with your father in law on that one.

A good accountant in Canberra? I use Kelli Lawton from Cosgrave Soutters in Civic – her details should come up in a google search.

Cheers

Jamie

Hi Ozlat – I think I mentioned James from House of Wealth as a good accountant in a previous thread. He’s a specialist in IP related stuff and is in Melbourne.

Cheers

Jamie

No worries Janine – I'll be back in the country mid week.

Cheers

Jamie

Hi Mattsta

The brokers on this forum work with clients from different states daily. I would guess that 90% of my clients are based interstate – the vast majority I'll never meet face to face.

Providing you feel comfortable and confident in dealing with your SA broker – then there shouldn't be anything to worry about.

Cheers

Jamie

Hi Doug

Welcome aboard.

It’s much of a muchness in my books. It all comes down to what the deal looks like and what’s in demand for the demographic within that area. Like the poster above, I’ve got a mix of houses, units and townhouses.

When factoring in the holding costs, remember that you’ll need to include strata or body corp expenses for units (but rates are generally cheaper and strata should cover the building insurance). Most people would probably advise that units require less maintenance than houses – but I guess that comes down to the age of the property.

You can probably add more value to a house – and also come up with ways to add a second income stream (grany flats, ect).

Cheers

Jamie

Hi again

There’s good brokers on this forum who’ll be able to help. If you’re comfortable with using email/phone, then it doesn’t matter where the broker is located. I’m overseas at the moment (returning tomorrow) and I’m right now working on a loan application for a forum client in Victoria who I’ll probably never meet face to face.

Cheers

Jamie

Hi Janine

Welcome to the forum.

From an equity point of view, you’re in a great position.

From a borrowing capacity perspective, it’s impossible to provide any advice without any data.

In terms of structure, is their a particular reason you’re considering investing via a trust rather than under your own names?

Cheers

Jamie

Hi there

Are you self managing or have you got a PM on the job?

Cheers

Jamie