$5700 + $3848 = $9548
Even at the top tax bracket 0f 48.5%, this would only refund you cash back of $4630.78 pa. ($89.05 per week)

You are still about $37 negative geared, which will become even more negative geared as your depreciation claims reduce and your tax rate decreases.

(and remember depreciation isn’t all roses and cream when you calculate your capital gains tax bill if you ever sell)

It may still be a good investment if the capital gains of the property exceedes your weekly loss.

Lifexperience

remotes for ceiling fans are usually fixed hard to a wall just as if they were hard wired.
Much easier (cheaper) for a sparky to install and just as good.

Annaw , Not to be confused with your “TV” idea of a remote like your friends air con unit.

Lifexperience

………..sorry greg, being a smart ass does have some draw backs. I should of warned you.

Lifexperience

an electrician will cost a lot more than $150. Suggest you get a quote to install fan before you buy the unit[].

Lifexperience

bwendan,

i can’t argue with illogic. But, yeah, sure, why don’t we all just say that a plus and a minus and multiplying are all the same thing.

….very clever b

Lifexperience

“It’s on at 9″…..(but it would actually air at .

This game is great :0)

At this stage of your life, What hourly pay rate does it take to keep you away from close loved ones?

…..and how many more years do you think you will live?

Lifexperience

Sorry to jump in on the rational discussion on NZ, but I couldn’t help but add to the initial hilarious discussion on positive/negative gearing/cashflow. And felt compelled to try to define it.

Positive cashflow may be when the weekly income minus the weekly expenses results in a positive but this could possibly be considered negative cashflow if the current market value of the property drops or has not risen above purchase costs yet or even if you were at the mercy of the average variable interest rate of 10% for the last 20 years or so. So positive could be negative or positive depending on how you look at it.

Negative cashflow could be when the weekly income minus the weekly expenses results in a loss but could possibly be considered positive if the market value of the property has increased or is increasing at a rate greater than the expenses. so, like positive, negative can also be negative or positive depending on how you look at it.

Positive Gearing could be the same as positive cashflow in some circumstances and in others it may not.As is negative gearing. Either and/or neither may or may not be the same as another.

Before and after tax is simply that, but could be positive or negative before or after.

So positive could be negative and negative could be positive, But I am positive that it would be negative to define any formula whether negative or positive as being more positive than another as positively hilarious. And that then would make it positive.

Even an overall negative could be a positive.

HA!

(Is your glass half empty or half full?)

Lifexperience

Hi guys,
To find out the councils requirements for prescribed accomodation, which in my area was 5 or more people in a house make an anonymous inquiry, use an accountant because there is a good chance you wont like the answer which may include health inspectors and other requirements.

Also don’t ask your insurer if they are happy to cover a boarding house situation with standard building insurance, because they wont be. Pray it doesn’t catch on fire.

Try not to put in the student or students that no-one wants to live with. It’s easy to scare off good tenants and hard to remove bad ones. You get the situation I had where I couldn’t fill the last few rooms.

And don’t buy in an area too far away, as it is very hands on to initially furnish and find good students.

And double check what the uni on-campus accomodation charge per week. I plucked $105pw out of the air and got burnt when I found out the uni cost a lot less.

And Don’t underestimate how much electricity and gas students will use after you check the REIV boarding room requirements that state you must include utilities in the rent. Over $1200 per property per quarter for 3 properties nearly killed me last year.

And be twice as wary of the many dangers if you plan on doing multiple properties this way.

rain, rain, rain on this parade. I got burnt a lot last year and just wan’t anyone jumping in to be aware of what you are in for.

Most important, remember students don’t have a lot of money and campus accomodation officers will quickly end any chance of getting students in if they get a sniff that you may be out to rip off poor students. Do 9 month leases, be flexible for the kiddies.

Good luck.

Lifexperience

Dianne,
Look on the upside, just think of how much time you now have to investigate property investing techniques. I beleive that you are streaks ahead of a comparable situation when you would have had all of your valuable diminishing time on this earth consumed with earning a wage. With enough knowledge (start reading) under your belt to be able to persuade your husband to support investing (find and explain all of the upsides and potential freedom that could come from successful investing ) and you may well become a powerful investing duo of wage-earner and full time investor turning that simple wage into many many more dollars.[biggrin]

What a huge opportunity….good luck![][]

Lifexperience

Hi copper G,

This is how I would look at it.
You are trying to work out if one is better than the other. Here are the sums if:

Your house is worth 250k and you owe 100k and…..
Your IP is worth 300k and you owe 150k.
Your net worth is 300k.

If you keep it the same you pay
*interest of about $675pm on your home.
*interest of about $1000pm on the IP
*TOTAL INTEREST of $1675pm
You have to earn about $2600 pre tax (at 48.5%) to pay this but you get a tax rebate of $394 on the IP interest.
TOTAL COST = $2600-$394 = $2206pm

If you sell the IP and pay off your home loan. Then use the equity to buy another $300k of investment properties (the same one or other ones, in a trust or in your name…whatever)
…you will have to pay about 25% tax (50% CGT discount)on the capital gain on the IP (say you bought it for $200k)of $25000 + you will have to pay stamp duty of about $15000 plus extra costs of refinancing and setting up trusts and conveyancing etc.

You will have reduced your net worth by $40000 and now be worth $260000 and ……..
Your house is worth 250k and you owe ZERO but…..
Your IPs are worth 260k and you owe 250k.
Your net worth is 260k.

you pay
*interest of ZERO on your home.
*interest of about $1675pm on the IP
*TOTAL INTEREST of $1675pm
You still have to earn about $2600 pre tax (at 48.5%) to pay this but you get a tax rebate of $804 on the IP interest.
TOTAL COST = $2600-$804 = $1796pm

Rough estimates in this scenario would mean you are saving $410 pm at a cost of $40,000.

You would BE SAVING MONEY EQUAL TO A 12% RETURN ON YOUR $40000 COSTS. You would have to fund this money by reducing your investment portfolio to $260,000 or injecting $40,000 cash if you kept your existing property.

You of course would really have to do the numbers in your specific instance.If you still want to do it, get your accountant to do exact numbers for you.

And allow for your current tax rate, medicare levy maybe, current cashflow requirements, long term goals, etc.

phew!…. I may have just confused the heck outta ya all….he he he

Lifexperience