Old update,

I did go with option 2.

It has been up for 4 years now, was very easy to DIY and worked out quite cheap in the end.

Still looks like new too.

Cheers,
Miike

Hi,

You seam to be jumping into the pool without being able to swim.

If you’re asking the questions of should I invest, you have not done your due diligence.

Your research should be done no differently to how you would invest in the area in which you live.

Here’s some food for thought:
– Research the area, town planning, demographics.

– Go…[Read more]

Best to check with your accountant and also do the maths.

Here is a good reference regarding the 6 year CGT exemption rule.

http://www.ato.gov.au/corporate/content.aspx?doc=/content/86191.htm

Cheers,
Miike

step one,

speak to the council town planner.

cheers,
Miike

This sounds a bit suss.

If it is the same agent selling both properties and they have development potential, due to overlays and zoning there would be a heavy push for dual purchase for development if this is the case.

If your looking to develop the key is not trying to get the cheapest price for both properties, but reducing cost of the entire…[Read more]

You may need to think outside the box on this one.

If the purchaser is a property dealer or developer, they’re intention is purely investment and return in a short period of time.

So the following are possible scenarios:
– The purchaser may be seeking DA prior to settlement and on-sell.
– The purchaser may be seeking DA prior to settlement with…[Read more]

Thanks Corkeran,

This is great!

Some recommendation for additional changes:

Analysis based on an existing property portfolio.

For example, use the same spreadsheet to analyse multiple properties with an overall analysis such as your Ratio Analysis and Property Purchase – Graphs, pages.

It’s an excellent start and I look forward to your new…[Read more]

Worked it out,

You need to click on small icon at the bottom left which says: view full size workbook.

Cheers All,
Miike

Hi Corkeran,

Any way you can provide this as a spreadsheet for download?

Cheers,
Miike

Hi Guys,

I’m no expert in this area, however considering the sounds of your strategy is buy, hold, lease, wouldn’t the following be applicable:

As an example:

PPOR (Valued at 450k):
Loan 1 (IO) – 300k
Offset Account attached to Loan 1 (All Savings) – 20k
Loan 2 (IO) – Equity from Loan 1 (based on 80% LVI) – 60k

IP1 (Valued at…[Read more]

Think I just answered my own question.

s118-145 ITAA

(1) If a * dwelling that was your main residence ceases to be your main residence, you may choose to continue to treat it as your main residence.

(2) If you use the part of the * dwelling that was your main residence for the * purpose of producing assessable income, the maximum period that…[Read more]

Thanks Terryw,

Yeah, that would not be a great scenario.

I’ll just have to wait until I turn it over to an IP.

Thanks for the help everyone!

Cheers,
Miike

Thanks for the quick replies everyone.

If I was to have rent out one of my rooms and as it is a 2 bedder I believe I would be able to claim some sort of percentage or the like as an IP.

If this is the case, would a depreciation schedule then be viable due to the room seen as an IP?

Thanks everyone, really appreciate the quick responses!

Miike

Thanks for the responses.That was extremely useful and will help with our thought process on looking into making this happen.Really Appreciate the effort in both posts.Cheers,Miike

Dan42, some support on your claims A pause is well expected…http://www.thebull.com.au/articles/a/11183-rba-offers-no-reason-to-expect-a-rates-pause-in-june.html

Hi Sasha.Good on ya for taking some action in property at such a young age…One thing to note is that purchasing property is not a given right, it's a privilege to those that can afford it.At the end of the day, property is seen as an investment and the majority of property is owned by investors, not home buyers, as much as we like to believe we…[Read more]

Hi Michael,The best way to learn is by taking action and engaging people in the know. Yes you will make some mistakes along the way, but this will be for the better and in the long run will pay off with experience.I have gone to a few seminars and renovations to make profits is a strategy that is dependent on many factors and is best performed in…[Read more]

Hi Ryan,I'm only 26 and no kids of my own, but I can tell you a few things that my father did to help me with this and has really set the tone for how I will pursue a strategy to teach my own child some day about investment.In cases a child wants something, give them a positive and negative option which they must chose with consequences on…[Read more]