All,

Found this link:
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20002/NAT/ATO'&PiT=99991231235958

“21. Where a taxpayer makes repayments over and above the required minimum payment and the line of credit facility comprises one mixed purpose sub-account only, the taxpayer cannot choose to notionally allocate the repayments to a…[Read more]

Hi Michael,Do you have authoritative literature to back up your comment: “You can pay down the private debt independent of the investment debt regardless of whether it is in a single LoC or multiples, or a single SVR etc.”I have to say, it is not a simple scenario, so it is understandable that people get confused over these complex cir…[Read more]

Thank Ben,
Good luck with those properties.
Kenny

John,

Economics is a social science and no one can predict to a certainty of what is going to happen in 3 months time let alone 12 months.
It will be difficult to predict at this point in time, as there are several factors in play.
1, FHO Boost – will reduce/removed by the end of the year, reducing artificial demand
2, Demand of resource export -…[Read more]

Great idea, Richard! Well done!

Benhatter,

Local councils use different way of estimating land value. My experience is that local council tend to undervalue properties (ULV and Capital improved value) for rate calculation purposes. I won’t rely too much on these figures, especially when estimating the “value of the building”.
The important thing is to determine the condition of…[Read more]

Mccrills,

I think you will need to disclose a little bit more information in order to assist.
I don’t think it’s impossible to get into the property market with savings of $10K.
With the federal first home owners grant + federal first home owner boost + (if you are in victoria) state first home owner bonus + state regional bonus, eligible…[Read more]

Hi Jenny,

Thanks for that! Glad to know I’ve helped.

There are pros and cons with different structure when it comes to purchasing property investment, understanding the application and advantages will serve you well in your journey of property investment!

Personally, I have stayed away from serviced apartment and student accommodation myself,…[Read more]

nice one Dan42

Jenny,

1, Yes, you will only have to quote your ABN when you purchase a commercial property. It is not a necessity to have ABN or GST for residential IP. A simpler way to think about it – if your tenant is a business, you are likely to require ABN. (There are exceptions)

2, No, GST payable is dependent on your vendor, not you (ie, if your Vendor…[Read more]

Thanks for the post, FinSpec

Congratulations! You’ve done very well!

Sounds like you are in control and understands your finances, maybe you can start using debt to your advantage! (if you haven’t done that already)

Keep up the good work!

Jenny,

Sorry, needed to clarify my previous answer regarding buying commercial property about Q1 and 2.
While you can purchase the serviced apartment with your own name (ie without ABN), however, if you cannot produce an ABN , you will be charged a higher withholding tax when your tenant pays you rent – to which you will need to claim back when…[Read more]

Hi Jenny,

When you apply for an ABN, you have essentially created a different entity to yourself. However, since it is a Sole Trader, you don’t have the same treatment as a partnership or a Company. I won’t go into that, but you will be able to purchase the property under your name, or under the ABN. The difference is, under your name, if it is a…[Read more]

Agree with Dan42, unless of course you can demonstrate nexus (connection/relationship) of the LOC loan to an income generating activity (not hobby or private nature). (eg, you used it for deposit for an investment property)

Interesting that you still have a LOC loan when the security asset has been sold off?!

Hi all,

I’m based in Melbourne.
Had a look at Frankston about 2 years ago, but it was a bit too expensive for me to drive all the way to frankston to inspect houses on a weekly basis (40-45km from cbd), so that was abandoned.
As Sophieh suggested, I would avoid Frankston North, even though the properties are cheaper.
There are some great houses…[Read more]

Hi Bjsaust,

I won’t comment too much on the structure. There are obviously pros and cons in terms of a JV with a builder. However, do make sure this builder is qualified and registered with the appropriate authority. (and have insurance).

That’s the typical quote: 10-15k a sq. I would’ve thought the builder can give you a more realistic…[Read more]

Hi bjsaust,

Just a few comments on your expenses:
– you have not included any borrowing expenses (assuming you will be borrowing to finance your construction, and even if you don’t, you should build in the opportunity cost – eg, the interest rate of that money in the bank) Construction can be around 6 -12 months depending on the builder, and…[Read more]

Hi Nathan,

You can also get the Vendor’s name and last registered address through a Title Search (cost $5-10, so it may become costly after a while).
The local council will have that information, but there will be limited circumstance when they will give that information to you. (eg, if you are the neighbour and you need to contact the owner in…[Read more]

Hi PE,I'm not sure how financially savvy you are, but a more systematic way of assessing the different options would be to do a simple cost benefit analysis (or more sophisticated NPV). These are some of the techniques used by business to appraise long term projects in terms of their profitability and feasibility – as finance is a scarce comm…[Read more]