Thanks Guys,

Yes I had a company before and through mutiple IT income streams missed the PSI rules. (Un) fortunately I have been contracting to the same company for over 2 years and it is the majoritory (95%+) of the income so I am bound to the PSI. (At least I have a steady income though).

Our home (of 2 years) is really our first IP and we're reno'ing it as we go. All equity is being ploughed back in to complete the renos.

I'm 42 so, not able to access my super for a few more years yet, but am keen to move it to a SMSF when it's value gets high enough. (That'll be quite some time at the current rate of decline!!!!!)

TrustMagic, yes we have our IP trust set up ready to go …. just no capital to kick start it.

So, no votes for the book "The Tax Solution" then?

Kenton

Thanks yarpos. Will get the blue metal

Thanks for all that.

I note that if I google Spiro Kladis all I get is forum postings saying "Google Spiro Kladis" (aside from his own postings on CFC). I did not come across any "dirt", however I'll sign up for the free newsletter and then source them from domain or RE.com.au

Hi Vstar

I'm just using:
Annual Return/market rental yield = Property Price

So, I believe that the rent is 33% below market rate thus the property's going for 2/3rds price …. but only if I can get the rent up

Thanks also to Jeff and Scott
Kenton

Thanks heaps for that Jeff.

You have now lead me to another question.

Our home, which we are renovating to rent or sell is a 3BR, 2 living area house worth about $370k. The second living area is a room at the front that is totally underutilised. To turn it into a 4th bedroom, the front door would need to be moved and an internal wall and door added. – yet to be quoted

A RE agent has suggested we leave that reno, but make the suggestion to the purchaser.

My question is, how much do you think it is worth spending to do that reno without overcapitalising? Do you suggest that the 4th bedroom could add $30k?

Kenton