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 here are crazy, lots of deaths daily as the roads are very straight and 6 lanes wide. Arabs in big american cars cause havoc ! But what I do miss the most ? Beer and pies !

Sebastian, I dont pay tax here or in Oz. I guess its because the locals here dont pay Income tax – only companies do ! I think the ATO is more concerned with double taxation and avoiding it. I have just changed accountants to KPMG(QLD) and have found them very good !

Terry, so it doesnt matter what amount I send home(from abroad) it all gets monitered ? Well thats easy !

Thanks for the info people !

Cheers

J

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

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 believe, but dont quote me. Like Terry said find an “Offshore specialist” but be prepared to shell out some coin for their services !

C2 I love your hobby – dodging Tax [] ! I have friends O/S here with me that are sending a Dodge Viper to Oz very soon. They are having a few problems, plus left hand drive throws a nice spanner in the works too. Gold here is very cheap too but Ive never looked into offloading any …any ideas ? Do you know what the figure is on funds(that are wired) that get flagged and must be notified to the Govt by the actual bank, I thought it was 5K ?

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”

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 holiday in the same area, the amount claimable will depend on how much of your trip was actually to the property. ie. you cant claim airfares and fuel if you spent 3 weeks in QLD and 1 day visiting your property.

J

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 you can with your Assets/Liabilities and Income/Expenses reports to get the best deal. Play them off against each other.[}]

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 place.

I really dont think that area is renowned for crime or low class tenants. Which suburb exactly are you considering purchasing in ? Every year I go back to inspect the property and the Northern Beaches area theres something new being built.

Value for money, I reckon you cant beat it !

Cheers

J

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

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 one. The strange thing is that they wouldnt increase my LOC accordingly (with new property as security for increase), instead they want it to be a seperate P&I.Heres their best figures.

quote:

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Variable Rate Home Loan Choice Package (no bank fees at all – no application fee and no ongoing account fees) this has a variable interest rate of 6.060% over 30 years

---

But they still want to take my first 2 properties as security for the 3rd property purchase.? [?] ?

I dont understand why the NAB would do this. I have more than enough equity available for a deposit instead of using my first properties as security. I have informed the bank that I would rather not do it this way and Im waiting on their reply.

Can any of you offer any insight into their reasoning for this or a better way to go about it.? As they wont increase my existing LOC, I thought by using a sub account within my LOC with funds to cover my deposit, would be better than this cross collateralisation as you all have been discussing.

1 other question I have for the brokers is why would a lender lower their LVR because an individual resides overseas ?

Cheers

J

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

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 heavily on depreciable assets. I didnt get that from her book at all. What I got was, if something can be depreciated it could turn a -ve Geared property into one with +ve cash flow. Why wouldnt you want to include another Tax deduction like depreciation ? You mentioned extra injection of cash ? Your not putting money in, your claiming it back.

As for investing retrictions – absolutely ! If Im buying for keeps, 15 years would certainly be my limit. Dont forgot though that you can still claim plant and equipment no matter when it was built.

Cheers

J

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 also

J

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