Alexander, easiest way is to click on the Search button and type in your query.

But, as it’s easy

Take the rent, say $120 pw. Divide b 2 = $60. Multiply by 1000 = $60,000.

$60K is the price you’d want to purchase the property renting at $120pw for. Alternatively, if you bought a $60K property, you’d want it to rent for $120pw.

This is a really quick filter to find what properties return 10.4% rent v price. More research needs to be done to determine if it’s cashflow positive (other expenses need to be considered) and a good area etc. etc.

Cheers
Mel

Canberra (NOT Queanbeyan)[]

Cheers
Mel

Sure it is Paul. I can understand you being a bit cranky, after all you are a race car driver!!!

The more you post, the more I see that you have lots of money that I could spend, so that’s got to be a good thing (for me anyway!).

Cheers
Mel

Hey Shaun, it’s Dolf!!

Castle Dreamer, you can leave your PPOR for up to 6 years, and claim it as in IP, and depreciate and all that stuff that you’d do for a normal IP.

The beauty is that if you move back in within 6 years, there is no CGT, even on the depreciation that you claimed!! Beautiful.

I just finished reading Dale GG’s Trust Magic, and he talks about the 6 year rule in this. He says it used to be only 3 years. Why did it change? Well, the politicians (who else?) realised that at the end of their careers, they could get a lucrative diplomatic post overseas. These were typically for 6 years.

Sooooo, if the rules stayed at 3 years, they would have to pay CGT on their house when they returned home, sold it and bought a better one with all their extra dollars!!!! So as a group, they changed it to 6 years.

Cheers
Mel

Hey gazzaa

You forgot to turn caps lock off after PPOR!!

If you plan to sell one of the PPORs, I would definitely as a first point pay off the remaining loan on the other one. This is non deductible debt, and should be vanquished!!!

Then you have the choices to find +ve properties that will offset your -ve ones, or pay some off the IPs. If you can find good properties that are +ve, I would buy one or two or three of them (you could even put down larger deposits), and aim for cashflow from them.

If you have a long term strategy, and are willing to hold for at least 10 years, then you will ride through this end of the boom, and be into the next one. My strategy is that the more properties I have, the better off I am when there is growth – 5% growth on $1Mil worth of properties is $50,000. 5% growth on $200,000 is only $10,000. (That is the ‘predicted’ rate of growth in a down market). If your holding costs are nil, then more property is better.

Cheers
Mel

Shaun, if you delay longer in selling your IP to the trust, chances are it will go up in value, and you will pay more CGT. And more stamp duty on a more expensive property. something to be very aware of.

As for your PPOR, that’s not a huge issue CGT wise, but is for stamp duty, and is if you are looking at renting it from yourself.

Just to clarify Rugbyfan’s point about Land Tax in ACT. There is NO threshold for anyone who has IPs. No matter what the value is, you pay the tax. They don’t add the values of the properties together though – it’s a levy on the particular property, no matter who owns it as IP.

Cheers
Mel

Hi Stephen

Talk to all the agents in the town to check out the rental demand.

Also, I know that Steve’s book focussed on properties under $100K, but it’s my experience (and I spoke with a few agents this weekend in country towns – Gunnedah/Boggabri especially), and their opinion (and mine too now that I’ve seen some of these places) is that they are cheap places because they are cheap. Good tenants with halfway decent incomes can afford to be a bit more discerning, and only pay an extra $20-30 per week, to get a much better property.

Perhaps look for some that the purchase price is a little higher, and maybe newer, and go for some depreciation as well – you have the taxable income to wear some neg geared/pos cashflow places.

Cheers
Mel

Steve, you would definitely be wise to get the permission of the owner, or else you’re still up for all damages etc. etc. etc.

Why do you want to sub lease anyway? Are you planning on charging a higher rent, or do you just want out?

Cheers
Mel

Now Paul, I’m wondering what you are suggesting here!!![]

ShaunWalker is from Queanbeyan, so he would be a good one to ask on the talent out there.

Personally I wouldn’t do my shopping there…..[:X]

Cheers
Mel

If it was something like a TV that was easily ‘removable’ and had a definite shelf life, I would include it as a ‘gift’ to the tenant if they stayed for say, 2 years, paying an extra $20 or so per week. If it’s included in the house, I believe that you can depreciate it, so you also cover some of your costs this way.

Cheers
Mel