When I last claimed my weekly refund (it was still the 221D form then) I kept it in a separate account, and used that account to pay all property expenses. it worked out well then (I only had two properties).

I think I should submit it again, as it’s February now, and I still haven’t done last years tax return! I’m expecting a refund of $11K, so I really need to get on and do it[], and stop being so slack[V]

Cheers
Mel

freedom finder, I would organise a LOC on my PPOR immediately.

I could then use this to cover the $275 per week. As you said, even with a low growth rate of 3%, you still come out in front at the end of the year. Meanwhile, teh most that your loan will increase is $15K (factoring in interest on the whole lot – which won’t happen as it’s not all drawn down from day one).

This then creates some ‘breathing space’, and enables you to spend time finding some good cashflow deals, or enables you to wait it out a bit until rents increase etc.

I would probably definitely look for some positive cashflow deals – possibly even commercial – to ‘ease’ the ‘burden’ though. But at the same time, I would pay some salary into the LOC (as much as I have spare). I would also look at getting the S15-15 return in to the ATO, so that my tax was reduced weekly – then this extra $$ would also go into that LOC to cover the shortfall.

Cheers
Mel

1/ If it sounds to good to be true, it probably is – but make sure you get out there and check it out anyway – it could be a gold mine![]

Cheers
Mel

What part of the arithmetic is ‘off’?

Cheers
Mel

Houses Only, I don’t get why the rents would be going down if prices are going down.

Lower prices generally means less people buying. Less people buying means less investors buying new rental properties. Surely this will mean that the available supply will drop, and therefore the ‘greater’ relative demand will cause an increase in rents, thus causing increasing yields. Especially if you can afford to buy one of the properties that has dropped in value.

Cheers
Mel

Hi Elves

If you’re happy to sell at the price you listed, I would basically go with the offers in the order they were presented. Ie let the first guy’s wife have a look – but give him a deadline to decide. Let No. 2 know what is happening, and that they will have an answer on their offer by the day after that date. etc.

Cheers
Mel

Hi guys

In Canberra the agents would like you to leave $1000 to ‘show that you are serious’. This is always refundable if you do not exchange contracts. It’s also not very common to exchange contracts with any ‘subject tos’. ie, all pest and building inspections etc. are carried out BEFORE anybody signs any contracts. That’s just the way it’s done – with the added risk of gazumping if the agent is into that.

As for deposit required on exchange, that’s always negotiable (as is the $1000 mentioned before), and my recent purchases (and sale) has been only on $1000 down.

Cheers
Mel

Every year from 93-03 $0K

03/04 Fin Year = $30K ish

Cheers
Mel

Kim, I wouldn’t fix all my rates now, you will still pay a premium. For peace of mind perhaps fix some though.

If you’re going to keep that much of a buffer, I strongly suggest you have an offset account or a LOC to make that money work for you, but be readily available.

Cheers
Mel

Risky, I hate to disillusion you, but you will find that trusts will never be ‘banned’. How do you think all our politicians keep all their vast amounts of money? A lot of them are solicitors by training, so would know all about asset protection.

If you are lending somebody a lot of money (or even a little – depends on your definition I guess), then it would pay to see what assets they have backing them up. You can do searches for $150 ish – up to about $1000 to work out just what they own/control etc. Once again, all part of you due diligence.

Don’t assume that because they live in a $3Mil house, and drive Ferraris that they ‘own’ anything and that the personal guarantee they signed means you’ll get your money back. Blood out of a stone still doesn’t happen.

Cheers
Mel