Good point – a depreciation schedule on a new property like yours is going to provide a tidy return. You could also look at submitting the ATO’s PAYG variation form (assuming you’re a PAYG earner) and claiming your property deductions each pay as opposed to one lump sum at the end of the financial year. This will assist with cashflow.

Cheers

Jamie

Yep, it is

Borrowing for the deposit means the funds are deductible (whereas the cash in your offset wouldn’t be). This method also avoids crossing the two properties (i.e your first investment property won’t be used as collateral for your second property and vice versa).

Cheers

Jamie

Hi Elisey

Where is it advertised? Is it being professionally managed? If so, what feedback have you received from the PM?

Cheers

Jamie

Hi Saqib

Whilst not directly related to the question, the fact that your borrowing capacity is limited to $180k suggests (if you’re a PAYG earner) that things are a little tight in terms of income. For that reason, I’d carefully look at how much you’re willing to put into the deal – $80k is a lot of savings, perhaps putting up a smaller deposit and retaining some in an offset for emergencies will help.

Cheers

Jamie

Hi imaginery number

We used bunnings to carpet an entire 3 bedroom property. All up it was $2,700 – including installation. It looks pretty decent as well – there’s some pics on the reno here http://www.facebook.com/media/set/?set=a.205513116151125.43824.127826280586476 (although it’s a little difficult to see the carpet in the pics).

Ebay is another good place for picking up cheap flooring. Particularly laminate flooring.

Cheers

Jamie

Absolutely agree, if you can afford to have an IP, you can afford to have insurance. Now I just sound like a nag

Cheers

Jamie

Hi ccpat

I noticed the same. Personally, I’d rather be buying at the bottom of a cycle than the top – and there’s no doubt that Logan has decreased, whether it’s hit the bottom, I don’t know.

What I do know is, I’d rather be buying now than 2 years ago. To purchase a cheap property an area wedged between the Brisbane and Gold Coast that generates pretty decent yields sounds good to me.

I haven’t invested there yet but do continue to keep an eye on the market.

Cheers

Jamie

Hi Yabbi

I would take them out. I doubt it adds that much to the premium and it’s a huge peace of mind to have.

Cheers

Jamie

Hi Leehom

I’ve yet to see a depreciation schedule that hasn’t paid for itself in the first year. 13 years old isn’t that old – I’d assume you could still depreciate quite a bit. There are also free online calculators – try the one on the corpred website.

Cheers

Jamie

That does seem quite low. We have a $450k IP in Canberra that’s achieving better rent than that.

Also, keep in mind, an increase in the rent will improve your borrowing capacity.

Cheers

Jamie