HI Jaffasoft,
Of those figures you just quoted for the number of visitors to the region, how many of those are backpackers?? Do you know the dollar figure that those travellers are spending on average in the town??
And, if I may be so bold as to ask….which area are you looking at?? I know investors are incredibly antsy about revealing where it…[Read more]

In short, yes you will have to pay CGT if you buy and then sell at a higher price. 100% on the gain if you sell within 12 months, 50% on the gain if you hold it for 12 months.
You will need to speak to your accountant because money spent on renovations I believe can be counted as capital works, and so will raise your original price of the house,…[Read more]

This is for EllaB….I’ve just had my mortgage broker around this afternoon, doing a variation loan on our existing loan to release equity from it to pay the 20% deposit on our next purchase.

Basically, our loan experience went like this:
We (Mum and I) applied for a lo-doc loan (I am self employed and have run my own business for the past 5…[Read more]

Fair enough….my loan was a lo doc loan, with the deposit financed through equity in my mother’s home. I am negotiating to buy another property using the 80% from the bank and 20% through the vendor to be paid 6 months down the track, so am interested in the outcome with your finance as I haven’t financed a deal this way before.
[suave2]

That last post killed off discussion for a couple of days!
This is for Felicity….when you were negotiating to purchase the house with 80% down (funded by the bank) and the vendor was to leave 20% in the deal, did you tell that to the bank/broker/valuer when you were applying for the loan?
I have only got the one investment property at the…[Read more]

Hi CK,
Have you tried applying for a lo doc loan?
I was in the same boat as you when I started out investing (a year ago) – self employed, renting….but applied for a lo doc loan and was approved. It was a tremedous help, as I don’t think I would have been approved at a ‘traditional’ bank had we not had the access to lo-doc.
Also, what sort of…[Read more]

Each person has their own risk tolerance and “sleep at night” factor….there is an element of risk in everything inherent with investing – share trading is riky, but the rewards can be substantial if you get it right and have a good knowledge of what you are doing. Property is risky if you don’t know what you are doing and just buy anything…[Read more]

Duritz,

I’m glad to hear you are trying to make a better life for yourself by investing in property as we all are.

I can understand you trying to find out correct information etc, but I got fired up when I started reading the negative comments that were being expressed in the thread.

As for buying a property with $1000 down, all you have to do…[Read more]

To Kaloni and Duritz and all the other knockers of anyone attempting to better themselves…when you achieve success and you’ve got the formula for producing money day in day, then life becomes more about family values and doing things other than chasing the almighty dollar. These people weren’t handed the holy grail at all, they were made to work…[Read more]

Ooppps….sorry about the misleading information….I will get onto my accountant and tell her that it wasn’t right.
This is why I read this forum…I have been living under a rock for the past few months (namely, have just had a baby), so haven’t heard about the tax changes. Thanks for picking me up on it.

Oopss……meant to say property was NOT a depreciating asset! Meant the car….

Geo,
I’d have to agree and disagree with you there on the image thing….sure, image is important and if you look successful then people perceive you to be successful, BUT, as Steph said, the bottom has fallen out of the second hand car market and you can pick up very decent second hand cars that are good and reliable for a lot less than a new car…[Read more]

I just recently received this email from my accountant explaining the land tax.
Hope this is of some help to anyone confused about the land tax payable on their investment properties.

It is essentially a tax on the value of land held as at 31 December each year
The office of state revenue determine the value of land for assessment purposes based…[Read more]

No problems with the advice – more than happy to help! And it doesn’t mean that your idea is a bad one, just that you may have to think a little outside of the square to be able to make a profit in the competitive industry that is the backpacking industry. Backpackers are notoriously tight with their money, but a total contradiction as well -…[Read more]

Hi Jaffasoft,
I really don’t want to rain on your parade, but your idea has been done to death in the backpacker industry already. I would suggest having a look at TNT Magazine, The Word, Backpackers guide to Australia, Zinc magazine, Travel Australia etc, and you will find that there are already many chains of backpacker hostels right throughout…[Read more]

I am just about to finish our first renovation project, and I have learnt so many things just by being involved in the project that I would never have learnt any other way.

Firstly: you need to know who your end buyer is going to be if your intention is to buy, renovate and sell. Are they going to be a first home buyer, a young family, downsizers…[Read more]

Thanks for your help guys, it really helps.
The vendor has already bought elsewhere, but is not in a hurry to sell – she just comes back to the property on weekends to clean up and collect mail. So I’m sure if I can get her to agree on allowing me to have access, and negotiate a long settlement, and offer her what she wants for the property…[Read more]

Hi guys….thanks for all your input. Haven’t had a chance to get back on to the forum until now, and i appreciate all your comments.
Markpatrick, I have put down $1000 deposit to show the vendor I am serious about this property. I would like to get just another $5K off the price of the property….the building inspection has shown up some minor…[Read more]

It’s a worst house/best street situation…..I also think the vendor was being greedy and originally asking too much for the property, but is now desperate to sell it. It’s not in that bad condition, just the few things I have mentioned. We are going to be doing a lot of the work on the place, I’m just curious to know the sequence of events that…[Read more]

I haven’t put in a written offer, only a verbal one.
The house is about 60 years old…I did budget for some various things with a house of that age, and offered what I thought was appropriate at the time. Obviously I’m not a pest inspector, so couldn’t tell whether there were termites in the body of the building, but looking over the property…[Read more]