Thanks Jamie,

When you make an offer on a property and provide the seller with a 10% deposit, do you "borrow" the entire property value (i.e. 400K) from the bank. Have it sitting in your account, then you make a withdrawal of 40K and give it to the seller for deposit?

Then in 6 weeks or so after settlement you transfer the remaining…

Hi Jamie.
Thanks for your reply. But it wasn't the figure amount that I was questioning.
Why 90% finance? Would you not give the seller a lump sum of the full amount?

If you are referring to a 10% deposit. Would you give this out of your own pocket? and then give the bank another 20% deposit on the remaining amount?

Seems like a lot of deposits…[Read more]

Hi JacM,
I am at the stage where I am looking to buy my first IP.
I find it interesting that you mention 90% finance.
Can you please elaborate?

Newman is a very active area for mining, with all three of the major iron ore players running some form of operations there.

BHP is by far the largest player there. BHP have several big camps in Newman for their FIFO staff to live in. I believe the permanent/residential(non-FIFO) staff would reside in properties just like yours.

I have also…[Read more]

Hi Matt, you would be wise to consider the 1/3/5 year growth figures as well. They might paint a different picture!
When you look at the 10 year growth figures, please keep in mind there was a freak 100% growth between 2002-2006 in the WA real estate market. Do you believe this could happen again?…[Read more]

Hi not_so_lucky,
I will be using a builder who will sub-contract the tradies.

Thanks guys, this is all very good info to fill in the gaps of my knowledge. Much appreciated!

Thanks Terry. That makes sense.

This would differ if i lived in the property first as my main residence?

In that case, would a special valuation take place when i began leasing the property?

i.e. "home first used to produce income" rules by the…[Read more]

Hi Terry,
In that case – If i sell my initial "Main residence" property and I then sell my second property (which I have been living in) two years later – Would it be true that I can never really claim my second property as a main residence for CGT exemption purposes?

Perhaps I would need to apportion the capital gain on my second property based…[Read more]

Thanks for the feedback guys.

I think I will be moving into the property first so I can take advantage of the "Main residence" CGT exemptions later down the track.

My next question would be – can I still treat this property as my "Main residence" if I rent it out and purchase another property to live in?

YouKnow – I may be wrong here, those one-off repair costs can be claimed as a tax deduction for that FY, however if you move into the property during that FY your deduction may need to apportioned.. i.e. if you lived in the property for 6 months out of the year you could only claim 50% of the deduction. I imagine you could time it so that if you…[Read more]

Excellent link Nigel – Thanks!

Hi Terry, thank you very much for your response.

Why not move in first so the whole period can be considered as your main residence?

Hi Terry, I was thinking that I would rent the property out initially in order to claim approximately $5k worth of deductions during the construction phase. My understanding is that if I move in initially, I will…[Read more]

Hi, newbie question here. I've just learnt about the benefits of Interest only + Offset account just yesterday.

Is it fair to say that If i had a P+I loan repayment of 850 per week (500interest,350principal) would it be effectively exactly the same as paying 500 on IO and putting 350 into the offset account?

To me, it seems like a no brainer to…[Read more]