Hi fullout

A deposit bond is often used for OTP purchases as otherwise you would tie up your cash for potentially a long period of time. However, you can still use them for shorter settlements, if your money is tied up in a term deposit for a further 2 months etc., or if you need to settle on your sale before having cash to purchase.

It means at settlement you basically have to cough up full price, so you don’t get out of paying the deposit, but it can delay it if you can do other things in the meantime with your cash.

Cheers
Mel

ricky, there have been quite a few posts regarding trusts etc. on this site, but for personal preference I have just purchased Dale Gatherum Goss’s Tax Battles, and Trust Magic manuals. They are available from http://www.gatherumgoss.com. It appears that many people are willing to travel long distances or communicate via fax/email/mail with Dale in Melbourne, so he must be a bit of a god.

Other than those, try to get hold of some of N.E. Renton’s books on trusts – they can be cures for insomnia though – I’ve had to read one a couple of times to fully grasp the concept.

As for being a bit bitchy, guilty[], but only once or twice! Other posts that have ‘sparked my ire’ I read over a few times, and then ignore them. I’m not generally into having a go at people – especially ones I don’t know.

Cheers
Mel

I disagree with $400 being a ludicrous amount to spend on a depreciation schedule. It will give you amounts that can be depreciated far in excess of just the carpet.

Barbara, you need a Quantity Surveyor to prepare the report for you on what you can claim – it should certainly help come tax time, and may not be as absolutely critical to have full rental (might provide some leeway). Leave the curtains up, you can depreciate them too – and as Peter says, you’ll be spending more money for no real gain.

Cheers
Mel

Vivarto, this is something that I have been looking at doing in some of my properties – but I’d look at doing the whole ‘home theatre’ bit, and would purchase rather than lease. Cost about $8K wholesale, value about $15K. Would look at borrowing the money as part of the mortgage (IO of course), and so it really doesn’t cost that much per year, and you can depreciate it.

Projector preferably embedded in the roof, remote control screen that rolls away etc. etc. When I get my own house I’m definitely going to have one for myself!

Cheers
Mel

Mike

You won’t get any extra tax back as the others suggested, and if you try, the taxman will come down on you like a tonne of bricks.

However, I noticed that your IP is P&I. While you have PPOR debt, I would definitely change that back to IO, then you’ve got an extra $92pm to go off your PPOR. An extra $1000 per year would certainly make a dent.

Cheers
Mel

kkowalsk I disagree. What if the market is over supplied? There are 20 places for them to choose from. You know that they’re going to leave within a short period of time, but you don’t know exactly when.

You have a tenant that wants the place within a month, for 12 months, but if they can’t have it, they’ll go somewhere they can, and you’re left with one of the 20 places now vacant.

My brother has just applied for and been offered two properties within the past week. He’s currently unemployed. One was OK, and would have accepted a 6 month lease when pushed (they’ve now dropped the rent by a further $10 per week as my brother didn’t take it). The second place (he only applied for the two) wanted my folks to go guarantor, which they did. Three days after application, he’s moved in.

Cheers
Mel

I like his music!

You’ve got to wonder about his childhood though – I think he is a Peter Pan and that’s why he created Neverland in his home. He really does not sound like he has grown up, which is dangerous when he wants to play with little boys (as little boys do) – cos he isn’t one anymore!!

Cheers
Mel

Hey Guru

I don’t think all have closed. It’s interesting to note that the recievers were called in by a company that was owed $7m or more by NII. The company that is owed the money is also owned by Henry Kaye, so it looks like he called the receivers in on himself!! It might be a way to avoid paying back the refunds that ASIC told him to do.

I don’t think this story is quite finished with yet.

Cheers
Mel

‘Nothing Down for the 90s’ ? Written by Robert G. Allen of ‘Multiple Streams of Income’ and most recently ‘The One Minute Millionaire’ fame.

I thought it was a good read (been awhile though – I like his book ‘Creating Wealth’ better). It’s very American, but if you take out the strategies that don’t work here, it still gives good ways of buying the properties. No money down does not mean no cash, it just means ‘not mine’. Gives a few good tips on how to raise some cash when needed.

Cheers
Mel

I don’t think I’d go for an equity deal with a bank! The figures I saw said that they covered 30% of the purchase price (say $30K for a $100,000 place), but took 60% of the value down the track (say $120K to your $80K if the property values at $200K. You pay in $70K, and get $80K back – no thanks!)

Cheers
Mel

Edited after seeing Craig’s comments.

PP is $100K. You put up $70K. Now valued at $200K, so the bank takes their $60K cut of that.
You end up with $110K, bank has $90K. Still doesn’t look good to me, although a little better than my initial figures!