Forum Replies Created
Hi Steve,
Property only has to be less than 20 years old to claim depreciation on the building. But for any property you can claim depreciation on items inside the property such as the water heater, curtains, blinds, carpet, oven, light fittings. The ATO has a list of over 1400 items that you can claim depreciation on.
I don't propose to be an expert, so its best to speak to a quantity surveyor, who can help you better than I can. The cost of the quantity surveyor is tax deductible too. I've received a flyer (which I now can't find), and the estimated cost was around $500.
cheers
mikeHi Richard,
On that note, can you refer a good property accountant?
Cheers
MikeHi Steve,
Several tips for you.
1. The housing cycle in Sydney is at the bottom (I believe), so now is probably the worst time to sell, when in a years time, you may have a decent capital gain, if you wanted to sell then.
2. Make sure your loan is Interest Only – that will reduce your monthly repayments
3. If you don't have a mortgage offset account, see if you can set one up and have the rent paid into that.
4. You could also ask for the rent to be paid into your account weekly/fortnightly rather than monthly, this will reduce the interest you have to pay.
5. Get a Quantity surveyor to do a depreciation schedule for you. I believe that you can claim up to 4 years of depreciation in one go if you haven't been doing it in the past.
6. Download a form from the ATO website – (NAT 2036) "2008 PAYG income tax withholding variation application" – this will allow you to get your tax refunded monthly rather than a lump sum in July/August when you do your normal tax return.
7. The old Navy ship HMAS Adelaide is going to be sunk off Terrigal in 2008/early 2009 as a dive wreck, so this should bring a lot more tourism to the area, as well as potential buyers, and may help increase the value of your property.Hope those suggestions help.
cheers
mikeYou may also need to reconsider NOT refinancing – especially if the bank values your property at less than $375K, anything less than this and I calculate that you may be liable for Lender's Mortgage Insurance, again…..
cheers
mikeHi,
I had Lasik surgery done by Dr Rogers (Eye Institute) at Chatswood in Sydney 4 years ago. I'm 40 now. It cost me $4000 all up then. Was the best thing I have ever done. I had surgery at 1.30pm on a Friday, on Saturday morning I had 20/20 vision, and I haven't looked back since.
I was told that I "might" need to wear reading glasses when I get older, but not that I "would" have to. No issues so far, and my vision is still perfect.
cheers
mikeHi Steve,
Thanks for lettings us know your situation. I certainly wish your wife all the best and hopes she's ok. Also wish you well, looking after everything.
cheers
mikeThanks for taking the time to reply Steve. Sorry for being sceptical, but I guess unless we know exactly how you did it, there's an "air" of incredulity about going from 0-130 (or 260+) with very little capital up front. From your **sigh**, I assume that many people are sceptical. I am only trying to understand the process you used, unfortunately, if you can't demonstrate or explain it so we can understand it, then people will be sceptical. Your book is great in that it has evoked many thoughts in my mind, along with hundreds of questions.
If you had to calculate the equivalent amount of capital in today's terms that you started with, what would that amount be? Can you give me an example of one of the latest "positive cash flow" properties you have purchased and when?
What exactly is a "standard accounting structure"? a company, a trust? What type?
I tend to agree with you cattleya, I think the method that trakka describes above using various trusts to fund the investments is unethical. I also suspect that finding positively geared properties is almost impossible in today's world, unless you have the cash up front for a sizable deposit.
