Hi Meg

Welcome aboard :-)

I’m not an accountant so recommend you seek professional advice on the matter.

Generally speaking, if a property is going to be negatively geared then it’s ideal to have ownership (or a large portion of) in the higher income earners name as they pay more tax. Likewise, if the property is positively geared then it’s best to have ownership (or a large portion of) in the lower income earners name because they currently pay less tax.

However, keep in mind that rents tend to go up over time – so a property can be negatively geared today but move into positive down the track.

When it comes to borrowing, you can have both of you on the application (for borrowing capacity purposes) but just have one of you on the contract/title of the property (it just needs to be clearly explained to the lender that you’re doing so for tax purposes).

Lastly, if you own other properties, please make sure that they are not cross collaterised with this purchase. Also make sure that you maximise the deductions against this IP purchase by using borrowed funds to cover the deposit/costs rather than cash (this only applies if you have equity in another property already).

Cheers

Jamie

No worries.

Some markets are moving really quick – whilst others are starting to rise, some are steady and others are dropping. There are so many markets within the country so there will always be opportunities.

In the mean time, stick around the forum and continue to ask questions and provide input. We’re a friendly bunch :-)

Cheers

Jamie

Hi Rinoa

Welcome aboard :-)

Personally, I’m not a big fan of using  a guarantor to purchase an IP. For a ppor I think it can be worthwhile but for an IP, it’s kind of mixing business and family which can cause issues.

Property investing isn’t a race, another opportunity will pop up when you’re ready to purchase the next one.

Cheers

Jamie

Hiya

Generally speaking, a negatively geared property isn’t the end of the world providing the property grows in value.

Having said that, it sounds like this might not be the case with the particular property. If it’s costing you money to hold onto and there’s no scope for future growth than it might be worthwhile cutting your losses.

Explore long John’s idea too – it’s thinking outside the square.

Cheers

Jamie

Valuers will often value a property at purchase price if the reval is conducted within the first 12 months.

However, if the property was newly built, you may have some luck.

What’s the current LVR?

Cheers

Jamie

House of Wealth usually get a good wrap.

There will be other recommendations on the forum too – just do a quick search and you’ll find them.

Cheers

Jamie

I can’t click on any of Terry’s website links :-)

Cheers

Jamie

Hi Steve

Thanks for hosting the site.

First thing I noticed was an inability to quickly look at the most recent posts – it might be possible but I can’t find it.

My profile is playing up too. It logs me as another Jamie M who was a member 7 years ago and posted once. However, when I post in the forum it shows my avatar and user details as normal.

Personally – I think the key with any forum is simplicity. It’s the content that’s important – so making it easy to read, respond and search is of most importance.

Cheers

Jamie

By the way – is that your dog in the pic? I'm a sucker for brachy breeds – I have two spoilt pugs.

Cheers

Jamie

Makes sense to keep it then – especially if it's in area with growth prospects.

Cheers

Jamie