Jane,I'm not quite sure what you mean by your first statement -"The c/c debt and the extra in mortgage payments was a fantastic idea but sadly I now think I have missed the boat as home loan rates will be up again before I can get to the bank."The fact that home loan rates can go up for you, you are implying that you are on a variable rate?…[Read more]

Hi Jane,It doesn't really matter how you got yourself in your current situation. And given that you've managed to accumulate 230K equity, you've don't pretty well for yourself. Two importants Steve M. mentioned:1, Before you lauch yourself in the fantastic world of property investment, you need to make sure you are equipped to manage your money.…[Read more]

SNM – I thought in Victoria, you cannot put in a offer until the Contract of Sale and the Sec 32 (Vendor Statement) has been finalised. I have been told by the Real Estate Agent that offers can only be made when Sec32 has been finalised, and contract of sale is always made avaliable at the same time? Andrew – Deffinately a difficult situation to…[Read more]

Hi Jane,Quick question.Presumably you have a much higher interest rate for your 10K credit card debt than you mortgage?! Is there any particular reason why you are paying down your mortgage as opposed to your credit card debt as a priority?However, I Commend you on your dedication and motivation to financial freedom! I imagine it to be difficult…[Read more]

Hi Orica,I've found real estate agents in different states have subtle differences in culture and practise.I'm also based in Melbourne.Historically, Melbourne R/E agents tend to underquote for auction houses by as much as 20-25%. Personally, I think some agents are worse than the others. I won’t name names, but think YELLOW! The main reason is, th…[Read more]

Hi John,What do you mean by – if GST is payable on the "rental"?1, If you mean is GST payable when purchasing the rental property, that will depend on vendor (if they are a business registered with GST), but the agreed purchase price will be GST inclusive.2, If you mean is GST payable when you rent it to the hotel operator, then no, since you are…[Read more]

Hi Karen,

As mentioned before, the following expenses are capital, or of a capital nature, and are not deductible as repair expenses:
– replacement of an entire structure or unit of property (such as a complete fence or building, a stove, kitchen cupboards or refrigerator)
– improvements, renovations, extensions and alterations, and
– initial…[Read more]

Hi tuggerwaugh,

For repair expenses to be tax deductible, it needs to have nexus to the revenue generated.
While the property does not need to rented out at the time of the repair, there are two factors you need to satisfy in order to claim the repair expense.
1, Has the property previously been rented out or been made available for rental…[Read more]