Hi,

C2 – I just checked my transfer limit( per month) and its 30K Aud , but I can increase it to 100K Aud ! LOL – As if ! I bank with the National Bank of Kuwait (NBK) here: http://www.nbk.com/nbk/default.htm

Being in this part of the world has its pros and cons for sure, but I actually miss speed limits and sane Aussie drivers. The drivers…[Read more]

P&I(P/I) – Principal & interest
FYI – For your Information
Pos(+ve) – Positive
Neg(-ve) – Negative

“Success comes from having the proper aim as well as the right ammunition”

Hi,

In regards to tenants in common, unless you have a legitimate reason for having a split share of 99%/1% Bryce is correct – the ATO will most likely see this as an avoidance of tax.

I have loans in both names and titles in one name on some of my properties – I dont think the bank mentioned anything to us about that actually.

J

“Success…[Read more]

Ahh I see, but does any of this reporting actually get used or is it just policy ?

The bank Im with does not charge anything for wire telex transfers and the limit is ~ 30K AUD(depending on the rate)

I dont know how long youve been O/S but the strength of this Aussie $ is really starting to P##S me off !

J

“Success comes from having the proper…[Read more]

Hi Sebastian and all,

I am overseas and Im paid in US dollars as well. I am a non resident for Tax purposes and my job has been declared exempt from Australian Tax by the ATO[]. If she hasnt already your Mother may want to find out if that really is the case with having to pay tax. 91 days continious foreign service has a bit to do with it I…[Read more]

Im of the same opinion Terry.

Capital costs :Govt Stamp Duty, Sellers Agents Commission, Legal Fees and improvements reduce your CGT liability.

Loan establishment fees can be claimed over a 5 year period.

J

“Success comes from having the proper aim as well as the right ammunition”

Dont forget that all their fees are negotiable too

J

“Success comes from having the proper aim as well as the right ammunition”

Hi Chriso,

At the end of the loan term you either repay the entire principal amount or refinance the loan, it allows investors to make the minimum monthly repayments.

J

I agree that Pest and Building Inspections are a must, and the last 2 properties I have purchased have been off the internet. I did have someone inspect 1 of them for me, and for peace of mind you may want to do that.

In regards to claiming trips to IP’s on tax, remember that if you go interstate/overseas to visit your IP whilst your going on a…[Read more]

Excellent website – Thanks Prop16

Make sure you put it in the “Useful Media and web link watch” forum, if its not already there.

Thanks

J

“Success comes from having the proper aim as well as the right ammunition”

Yep Im with Kay on this one,

If you only get 170 PW in rent thats still 8% yeild. Why not hang on to it, hit the loan hard and borrow against it when you can. Depending on your expenses and Tax bracket it may come close to having positive cash flow, but I dont think it will be positively geared.

If you do decide to refinance, go to every bank…[Read more]

Hi Myydral,

Yes Mel’s correct , you need a QS. They will most likely tell you to get a copy of your house plans, so you might want to get the ball rolling on that one.

QS’s fees will be around $500, but well worth it !

Cheers

J

“Success comes from having the proper aim as well as the right ammunition”

Hi Robert and Charchie,

I was also born in Mackay and have owned an IP in Bucasia for some time. The only problems I have had with crime was due to my tenants at the time. They have since moved on after some tribunal action and I now have the most wonderfull tenants you could hope for. They took a 12 month lease and really look after the…[Read more]

Hi All,

Other States tax are as follows (as of 2002). I will use the land value increments as per my first post.

VIC
Nil
400
800
3525
11600

WA
15
870
2383
8783
27783

SA
175
875
4175
12425
49425

TAS
500
4113
8613
21113
46113

ACT
1000
3750
6750
14250
29250

note there is none payable in the NT. These figures are from Peter Waxmans “Investing…[Read more]

Hi all,

Im with NAB and have an existing LOC with them up to $185K secured by 2 houses (paid first one off totally, applied for LOC and bought another). I have over 50K in equity with that LOC.

I am currently buying my 3rd also through the NAB as we speak. I knew the NAB would take this 3rd property with a 70% LVR, as a friend is also buying…[Read more]

Hi Fudge,

This property is off the plan, so the figures are higher than if the property were older or residential. Its commercial tourist property so 4% applies. Its $123750 inc GST. The Building allowance is $1613 for 25 years. the Plant and Equipment starts at $1452 in year 1 and goes down to $15 in year 40, so they would be using the…[Read more]

Yes Phil ya got me ! []

I havent read Steves book because Im on the other side of the world, but I’ll grab a copy when Im home next. So I cant comment on his cash on cash return.(sounds like ROI ?)

Ive read quite a few other books on IP’s, and all of them mention how important tax deductions are.

Ive heard that quite a bit here, that she relies…[Read more]

Couple more

http://www.reiq.com.au
http://www.aussielegal.com.au/family_splash.asp
http://www.mortgageaustralia.com.au/index.html
http://www.somersoft.com.au/
http://www.yellowpages.com.au/search/searchEntry.do

Barrance,

I would like to point out that theres a difference between positive gearing and positive cash flow. +ve Gearing is when raw income exceeds raw expenses, you can be positively geared by not borrowing as much (or paying it back quickly). +ve cash flow involves using on paper tax deductions to optimise your cash flow.

Hope this helps…[Read more]

Shirley,

Qld Land Tax (as of 2002)

Land Value Tax
100K $865
300K $3095
500K $5750
1M $14465
2M $36K

ATO website should have up do date figures

J

“Success comes from having the proper aim as well as the right ammunition”