Ok another dumb question. I’m trying to find info about how one classifies their place as their PPOR but it’s still a touch unclear to me? The ATO states the following criteria:

* the length of time you live there – there is no minimum time a person has to live in a home before it is considered to be their main residence
* whether your family l…[Read more]

Ah thanks Terry! So very resourceful.

It doesn’t even mention that it requires you to live there for 3 months to start with?!? Interesting.

Yes I’m wondering if that is case and if anyone would like to share their story.

My 2 cents worth, though keep in mind I’m relatively new to all this and still yet to pick up my first IP but I have done a fair bit of reading.

To put simply, there are two places where you’ll be making your money, through positive cashflow (if the rent covers loan + other costs) and through capital growth (how much your property is worth in the…[Read more]

Hi Richard,

As you and several others have mentioned above, why is it better to buy an unit in an apartment with less units (less than 8 units)? Are you able to explain this further?

Thanks Jamie. I actually went there yesterday evening afternoon and had a look and didn’t quite like what I saw so will pass it up.

The place that I was eye-ing was listed at offers above $360K. I was considering trying my luck at around $360Kish if all checked out, but I couldn’t even get through to the agent after numerous calls and messages. Checked again this morning, and it was under contract. It was probably already under contract when I was enquiring about it last week…[Read more]

Thanks for your input knightm. It’s a yes to both, it will be for a long term investment and I’m desperate to buy in Sydney with around $350K. I did briefly consider outside of Sydney and interstate, but dropped the idea as I’m just not comfortable with it.

And like you said, I have missed the ripple in Sydney and am buying at the top of the…[Read more]

What kind of adviser are you referring to? A Financial Adviser? Property Accountant? I’m keen to speak to someone who can run through my financial situation and give me advice on what kind of investment strategy I should be looking at.

No I won’t be self managing but letting a real estate agent do it. The spreadsheet has 5.5% as agent fees and commissions in the calculations. Are you supposed to factor in projected growth when calculating cashflow?

Anyways seems that I might pass up on this place as it doesn’t sound like that great an investment anymore. I know the general…[Read more]

Ok here are the numbers I’m working off. The below calculations give me a negative cashflow of $43.49.

Property: $320K
Deposit: $16K
LMI: $12,800
Stamp Duty: $12K
Interest Rate: 5.1%

Strata: $1360 ($340pq)
Council: $1040 ($260pq)
Water $720 ($180pq)

Capital Deductions: $1K (Not sure if this is reasonable?)
Rent: $320 p/w

I’m using a 5.1%…[Read more]

Hi Jarrod,

Thanks for offering your assistance. At this stage I’m still going through and learning the ropes and reading lots of things, speaking to friends, family. Maybe at a later stage if I’m still struggling to catch on then I might turn to some professional help like yourself.

But in the mean time, if you’re not too busy, I’d love to…[Read more]

I live in Carramar with the folks and intend on staying here for a while, so PPOR is not really a strategy I’m considering. It is definitely an IP that I want to get.

This I am open to. I haven’t spoken to an accountant yet to understand what benefits I can gain from negative gearing. As mentioned you can only hold so many negatively geared…[Read more]