Thanks Scott,

I will give the builders a ring on Monday morning and back it up in an email too thanks

JPS25

Thanks Richard,

We are in QLD so will look up the number and give them a ring first thing Monday morning to see where we stand.
 
Without seeing it I don't know if it is structual or not only the info from the property manager about it looking like the drain sinking and causing 2 of the fence panals to buckle.

Thanks again

JPS25.

Hi Storm,

Thanks very much for that info, certainly beats having to do amendments every tax year.

Jean

Thanks Terry,

That is good news, I guess the same goes if he sells while still working in PNG the rollovers will reduce his capital gains then too. I know he can take a whole year off and reduce capital gains that way, picked that up from the guy doing a tax seminar from the ATO in Brisbane a few months back. Before Paul got offered the job overseas typical.

 I don't mind going ahead with a second IP now, just got to find the right one still reseaching while Paul gets settled into his new job out of Port Moresby and obviously need time there before applying for another loan.
The first IP we did through using the equity in our home mortgage as collateral, on an I/O loan with 100% offset attached. We don't use the offset only couple of $s in it. We just use it for receiving rent and paying interest payments on the loan, as we have one attached to our home loan which we fully utilise including the instant transfer of rent into it on the day it hits the account. We are thinking of doing an I/O LOC for 22-23%  to cover deposit and expenses and then take out an 80% I/O for the reminder. 
May just have to build up a bit slower than planned.

Thanks again for your help I really appreciate it, You guys on here are great.

Jean

Thanks Terry,

We would have a loss, so looks like it will get banked for a few years or so

At least we know where we are for the second IP and know not to rely on tax refunds, I know if we keep it reasonable we can do it as I have already done some figures, just didn't want to miss out altogether.

One point though if they are banked and he doesn't work in aus again stays working out in PNG say till he retires, if he sells an IP can the banked credits be used to offset some of the capital Gains?

Thanks again for your help.

Jean

Hi Terry  and Evolve,

To give you an update, and ask for more help please

Well he took the plunge and is now working in PNG 24 days on 18 off.  Done lots of reseach but still a few grey areas as I heard that although he will get a tax credit for tax paid in PNG and I have looked on the ATO to see how this is worked out, what I am hearing differently is about whether or not he can claim a tax refund on depreciation and deductable costs for the IP, if he has not paid tax in this country. This year he will have done for the first 3 months of this tax year, but what happens over the following tax years? Does it get banked until he is earning in this country again? Main reason for asking as we would like to get a 2nd IP but want to know we have this bit right first as we keep getting told different things. He will still be classed as an Aussie resident not PNG but his taxes will be paid over there and then his net converted back to AU and paid into his bank account over here.
Checked on the tax rules in PNG and he doesn't have to declare rental income from here so therefore sounds like he cannot claim the depreciation and deductions out of his PNG tax?

Any help or advice will be appreciated

Thanks Jean

Hi Evolve'

He will still be classed as an australian resident wages after tax paid into au account but tax and super paid in PNG

Ist Investment so not sure how this will effect it next year. This years all done ok and straight forward as still working here at present possible job offered after we had seen our accountant.

Thanks for any advice you can give

Finaly got our copy of the lease and property report. Not too happy that the lease is for 8 months not the agreed 12months as per phone call. Lesson learnt in future we will have everything confirmed by email and make sure we sight the lease before the tenant signs. On the positive side I suppose it means we can increase the rent when up for renewal if the tenants decide to stay on.
You learn by your mistakes so hopefully we won't repeat this one in a hurry.

Thanks for your help

Hi Rodjen123

Yes we have always s/s in the past just stopped while building up funds for the investment property for a rainy day so we would also use that as a fall back too when it comes time to sell if not left for the kids.

Thankyou