Forum Replies Created
Hi Dazzling,
I have been looking for positive cashflow properties for a while now and can’t find many that are cashflow positive. I look locally, interstate(mainly)and in the country.The only positive cashflow properties I find are ones in country towns with a very low population. The risk is then in finding tenants and the capital growth is going to be very low if not non existant.
For us novices where do you suggest we broaden our scope?
Thanks[confused2]
Hi All,
I find the debate about whether or not to include Depreciation in my calculations in assessing positive cash flow properties very intriguing. I would love to not include it, but unfortunately it is not possible unless you invest your own money into the venture. Tonight I have been looking at three different proposals ranging in rent return from 5.32% – 5.87%. From my calculations I need to put in something like 40-50% of the cost and include the depreciation just to be cashflow nuetral. Am I missing something???[blush2]
quote:
we r looking at buying in a regional centre. this way we can afford to get 2 to start our portfolio. houses are semi-detached, $55,000 & $60,000 asking price, returning $110 & $120. this is good return on a cash basis, but the whole town has only had a 3% rise in median in last 12months. median price is $40-50,000 above asking price for these. The town is solid enough i feel and no problem finding renters. is the 3% enough to continue our portfolio?Hi Weniska,
What Regional Areas have you found with these yields?
Leigh K,
I am no tax expert but I understand in general that if you are declaring your rental income and costs etc then there is no logical reason that these costs would also not be deductible. Warning: Is the ATO logical in their legislation and rulings?
What happens with CGT I don’t have any idea.
I would ask the ATO direct and get their view.
Pandora.
Hi Sooshie,
A good guide to look at is the ATO’s Rental Properties guide.
It implies that multiple trips are allowed (even interstate) however tbey are only 100% deductible if the sole purpose of the trip is to inspect the property. If it is not 100% then only part of the costs MAY be deductible.
My view is that if you make too many trips the ATO may take the view that you are realy travelling for a holiday and the visit to the property is incidental. I think there would need to be some very specific reasons to make more than 2 trips per year.
Hope this helps.
