Everything in the house will have a current value that can be depreciated and a good quantity surveyor should be able to sort that out.
I have had schedules done on old homes and found that the councils keep records of permit applications etc… which has pointed out more recent renovations and additions. Its always been worthwhile for me.

MJK

Summer,

I wouldn’t sell if its a nice property. It will cost you heaps more than the $150pw to sell.

Have you considered applying for a “PAYG Income Tax withholding variation”? This is a standard procedure for negitively geared property and will increase your cashflow.

Have you had a quantity surveyors report done so you can get max deductions…[Read more]

Most of these apartments being sold under 200k with long leases are student accomodation in huge blocks that are essentialy managed investments. Could be positive cash flow but not enough to make it worthwhile and cap growth may be non existant.Not what I’d call an investment for a fully geared aproach

MJK

What are the details. Eg lease lenght , %return, outgoings paid by who ?
Finance will be more expensive and deposit will need to be 30% but I think commercial is the +cf to be going for if you can.

MJK

I think you have to have both kinds of properties. Unless you want to live of equity draw downs, you will have to sell a property that has had good capital growth. Once sold the gain can be paid into high yeilding +ve cash flow investments to create the passive income stream.
I like to use commercial property as the +cash flow part of the equation…[Read more]

I do as Brenda does. I always have. I like to be in control. I have a better understanding of my portfolio than my acountant ever will.

I provide my accountant with one page breakdowns for each property. I don’t think I could trust anyone else to assess it all correctly.
My accountant does the lodging.

Personally I think turning up at your…[Read more]

Yep, I’ve been gone for a while. The last time I complained in my imfamous post ” Its going downhill” I copped it big time from the uni students trying to buy houses in between exams.Don’t write another book Steve HeHe.

MJK[fear]

Do a search. There is plenty in the archives.

MJK

Often a downside to fixing is when the fixed rate expires you’ve lost your negotiated discount on the variable.
Eg. i get a 0.05% discount of the vairiable for the term of the loan. If I fix I lose this forever, so to speak.Perhaps it can be renegotiated.

MJK[V]

Kit doctor,

I sent you a contact that can help with cap growth property by email.

MJK[]

Cash poor,

Check out http://www.navra.com.au
Your talking about using equity not deposit cash bonds are’t you?

MJK

I agree with Kays sentiments. I dont want to own property in the towns that are offering positive cashflow residential at the moment.

I think the experienced investor now needs to focus on having a cashflow positive portfolio rather than putting the focus on the next asset.

You could,
1.Sell a property and pay down some debt.
2.Buy a…[Read more]

Elves,

You may have been in the right place at the right time by accident but those of us who have been doing property for more than ten years make it a habit.

And dont forget some see what others dont.

MJK[][]

The key to buying in brisbane in times of moderate growth is…….

MAKE SURE YOU BUY AT CORRECT MARKET PRICE NOT ABOVE!!!

Buying at auction or private sale usually achieves this but buying from a developer rarely does.
If you cant be in Brisbane yourself get a good buyers agent to help you.

Just a hint for those getting started.[]

MJK

Go to http://www.bulletin.ninemsn.com.au

Scoll down the page and find the article “Crystal Ball”

Read the property link.[^]

As you can see I dont know how to put a link in!but its a good read.[]

MJK

I cant tell you what will happen but I can tell you what I think may happen.
My money is on slower capital growth say 10% pa over the next couple of years. My reasoning is because it offers the best value on the east coast.
By value I mean (1) low vacancy rates (2) lower priced property relative to distance from CBD (3)population growth (4) strong…[Read more]

Originally posted by westan:
welcome to the forum pricey

yes, you are right enough rate rises will turn a cash positive into a negative one……….
……….
the other point is what happens to negative geared properties when interest rates go up – it hurts even more.

Westan,
The problem with this argument is that the reason people are buying…[Read more]

Darren,

Thanks for your reply.Sounds a great investment.[^]

What do you mean by gross & net ? Are you talking about outgoings or GST?

Do you have one tenant running the business or are the individual customers your tenants.

MJK[]

DarrenB,

What sort of return are you getting on the self storage complex. And what sort of outgoings.
Did you develope this investment or did you buy it as a going concern ?[:o)]

Sounds Interesting[]

MJK

Sorry Mel,

Something made me think you were from Brissy. Anyway thanks for your help.[]

MJK