Barbara Smith of taxpayers Aust suggested two ways, one of which I didn’t hear[]

The other way is to have the Super Fund as 1st Mortgagee, which means that the bank has to agree that the SMSF will get all its money back before the bank then gets any. good luck with the banks on this one!!!

Cheers
Mel

NATS, why don’t you look at buying the house that your sister wants, and renting it to her? She gets the house she wants, and you get a (hopefully) reliable tenant, and an IP for yourself.

Cheers
Mel

quote:

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$200,000 divide by 769 = 260.7 x 2 = $520.00
$520.00 per week for a $200,000 house!

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quote:

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The rental figures may seem high, but thats what you have to aim for, if you want positive cashflow.

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Fully financed, a $200K loan at 7% IO = $270 per week. Are you seriously telling me SIS that the ‘other’ costs for this property are going to amount to $250 per week, or $13040 per year – for rates, body corp, land tax etc?

I don’t think so Tim.[]

Cheers
Mel

Thanks Terry

Ask an easy question next time!![]

Roughly calculating on the last years results, and noting I’ll allow about 3 minutes for the subsequent downloads, I would say about $20 – for a 10 hour week. So, cheaper than purchasing. As for time spent actually reading it, well, that would be considerably more!![]

Cheers
Mel

Hi Guru

I’m here, but I’ve just not been able to turn on the computer much the last few days. Plus I need to do my christmas shopping soon…

Cheers
Mel

Kavita

If you’re going to use a PM, I would talk to them now, and specify a date it will be available. January is one of the busiest renting periods for Canberra – by Feb, those who are coming with families of school age need to know where they’re living.

Cheers
Mel

Karan

With the building depreciation – it doesn’t matter that there’s already 10 years gone – you claim a flat 2.5% (or 4% for some) depreciation on building cost.

You will find that the higher depreciation in the first couple of years is cos of the fixtures and fittings. Your QS will come in and put a value on all of them for you, and yes, some will be quite low value, but presumably some should have been replaced due to age etc. You can still get some good claims yourself.

Cheers
Mel

It is my understanding that if you move out of your PPOR and rent it out, the loan is then completely tax deductible.

EXCEPT, where you have increased the borrowings to do other things. ie, the only part of the loan that is deductible, is that which actually was used to purchase the house (and maybe renos.). Definitely not the ‘debt consolidation’ or the overseas holiday.

Cheers
Mel

If you’re asking is it illegal – then no, of course not.

It would be very wise to have permission from your landlord if you wished to sublet though – I think you can probably be kicked out for breaking terms etc. if you do not.

I don’t know how often it is done in Australia, but my guess is quite a bit. It’s a way of getting round some of the councils rules that say you can only have one dwelling on the land etc. If you have a ‘granny flat/downstairs flat’ etc., you simply have the upstairs people on a ‘head lease’ and the downstairs is subletted through them.

It is also what you must do if you want to do a ‘sandwich’ lease option, which is where you lease with option to purchase from vendor, and then turn around and sub lease with option to purchase to somebody else.

Cheers
Mel

Anoto, I suggest you contact Bruce Whiting of the Mint Group. He presented at Dolf de Roos seminar on the weekend, and made a very big point of talking about having your structures set up in each country you are investing in. http://www.mintgroup.com.au

If you buy in an Australian entity in NZ, you lose an awful lot of the benefits that are provided in NZ – like the no CGT, Land Tax, Stamp Duty etc., and we have much higher personal tax rates here than there.

Cheers
Mel