Get a few valuations (RE Agents can do it in writing)now and then when it comes to sell, you can choose whichever method allowable at that time by the ATO to give you the minimum payable CGT.

More options…

Good Luck

Live, Learn and Grow

Lifexperience

Mum,
Well, there you go. I suppose anything is possible.
By offering finance and deposit bonds at the one place, you have probably overcome the headache that I experienced sourcing a deposit bond from somewhere separate to the lender. I had to make many frantic phonecalls and pull a few strings to get it done in under 14 days (Even though I had…[Read more]

Great Question Misty. In the past I’ve always paid the RE Agent the deposit and they’ve held it until settlement without a second thought. I never thought about the legal requirement and the money earned from interest. I suppose because I usually negotiate a very low deposit amount.

But if I had a long settlement on a hefty deposit, this could…[Read more]

hi misty[biggrin]

You will have to ask the auctioneer before the Auction if the Vendor would accept a deposit bond.

My guess is that they would not, as auctions by nature are aimed at people who can 100% commit with a 10% cash/cheque deposit then and there.

I don’t like auctions myself. I prefer flexible terms from Vendor.[cool4]

Deposit Power…[Read more]

Terry,
WRT – with respect to

I am real, just very careful how much personal info I expose on the net for security reasons.

will contact you by email

Live, Learn and Grow

Lifexperience

SK2

Take out a loan with an offset account for your investment property.

Pay all your living expenses out of a separate credit card (55 days interest free)

Put your pay straight into the offset account.

once a month (or before 55 days is up) simply pay the credit card down with funds from offset account.

Maintains complete tax deductibility…[Read more]

Terry,
That’s why I can’t get in touch with him.

Would I be able to contact you WRT changing a loan PG initially set up for me at Discover??…..

cheers

Live, Learn and Grow

Lifexperience

Look up “Valuers-Real Estate” in phone book to find a local one.

Don’t pay too much more than about $250 for the valuation.

Choose one that you get along well with on the phone and is sympathetic to your need for a generous valuation in order to minimise CGT in the future.

I always try to meet the valuer in person and strike up some chit…[Read more]

I always prefer property that has the potential to develop. So I would choose a potential reno with land content over a new townhouse anyday.

But if you have no intention of ever improving the property and want a simple buy and hold, with dep’n and low maintainance costs then buy the townhouse.

[juggle]

Live, Learn and Grow

Lifexperience

I’d guess that if anyone could get you the loan you want, TerryW would be able to!!!! Try him.[thumbsup2]

Terry,
I see you are at discover home loans, does PropertyGuru still work there?

Cheers

Live, Learn and Grow

Lifexperience

Yep, some lenders will only lend up to 70% on properties with a large land area. Say 20 acres or more.

We had to hunt around but did find a broker who could get an 80% lend at the standard interest rate without LMI.

Live, Learn and Grow

Lifexperience

As an electrician I advise that the cheapo motion detectors are very difficult to adjust. You will get lots of nuisance tripping (geckos/cats/rats/possums/wind/rain/fog etc)no matter how much you play with settings. Get a good quality one installed and set up by an electrician….. or spend endless hours adjusting it yourself!

penguin chick,…[Read more]

You could have had both your names on the title, and simply got the loan in your partners.

Good luck

Live, Learn and Grow

Lifexperience

Have a lawyer write up a contract as part of the sale. You could place a caveat over the title similar to a wrap scenario. Maybe ask for the 10% to be repaid in 2 years. You could word the contract so that it is paid out of a redraw on the equity that has grown in property. or have regular repayments of P+I like a personal loan.

If possible, I…[Read more]

I used a broker who found me insurance for a share house I was living in and renting out rooms. It was about $15,000 pa. (no misprint) $15,000!. To do it 100% by the book.

In the end I took out normal investment property insurance with one company and took out home owners building insurance with another.
If it had of come to the crunch, I was…[Read more]

Andrew

The Local Tenant Authority usually restrict the amount you can increase rent each time. In Vic I thought it was 5% per year, (correct me if I’m wrong?).

For me, the properties I mentioned above are located in an area with a higher yield than usual, but also with a tenant base that has a lot of ratbags, and seasonal periods of long…[Read more]

If It is a nice place, then good tenants may actually be better if they have less wear and tear on the place than bad tenants.

Personally, I’d take lower rent “Good” Tenants over higher paying scoundrels anyday!.

In fact my whole portfolio has a good tenant base paying cheaper prices , when last year I had lotsa a trouble squeezing extra bucks…[Read more]

hi Chris,
I have found my investing portfolio accelerates dramatically if you keep your living expenses as low as possible (tolerable) and put as much extra cash into the portfolio as possible.

I still rent as it is heaps cheaper. Remember 7.5% interest on $350,000 means that over $500 PER WEEK will fly off to the banks vaults. This is not…[Read more]

thanks for advice mikala and coasty mike.

I hope to sort it out this week.

The drama has probably been a blessing in disguise as it has really shown up a communication problem between my partners and accountants involved that needs to be resolved.

I’ll keep you posted.

Live, Learn and Grow

Lifexperience

My guess is :

annual loan (private and investment related) repayments (including P & I)

divided by

annual after tax income (wages + rent + dividends)

[biggrin]

Live, Learn and Grow

Lifexperience