I recommend Steve’s “Wealth Guardian” if you have not read/listened to it already. It teaches about protecting your assets which will be a major factor in your wealth creation plan. Also incorporates structuring/planning to create wealth/protect wealth etc. A very good resource.

It seems that you are on the right track and have a basic knowledge of the area and it’s advantages in terms of Investing in Property. I think it’s now time to take it a step further and get down to some serious investigating. Perhaps even before you start investigating you could setup a structure followed with that of a quick check list, if the proposed area passes the quick test then forward you go.

I personally think if you are keen to get out and be financially free then your motivation which I see you have plenty of will be matched equally with your determination and persistence being that it’s time know to take it a step further and go into the local council and get the statistics / reports / future planning etc. go to the real estate and ask for copies of median house prices over the last year and rental prices, use the Internet especially, the Internet can be your Best Friend, it can link you up with nearly all the tools needed to conduct your indepth research. And once done I’m sure you will feel immense satisfaction in knowing that you have covered all possible angles and thereby reducing the risk associated with investing in property.

I hope this gives a sort of general outlook into investing, I know you may just be asking other forumites if they have invested or their opinions if they have researched but then again I think at the end of the day no opinions or no comments will be as solid as those that you have researched and ascertained yourself from your own hard work.

Happy Investing!

That’s correct Celivia, the report is once only. They should give you at least 8 to 10 year’s worth of data, but the rest can easily be derived from the last WDVs. Let us know how it pans out, I’m curious to know how they estimate it all. They may just give you a report with everything at prime cost, and another with everything at dim. value, leaving the choice up to you. (That’s what they did with mine, but older prop’s may be different)
Regards, Jim.

He who hesitates is sometimes saved!…Thurber.

Celivia It’s probably not worth the cost, as you just wouldn’t find enough deductions to make it worth it. Perhaps I should list the Q/S report for a brand new home below, so you can get some idea of what’s depreciable, and how much doesn’t apply to an older property.
Firstly the wholesale cost of the building may be depreciated at 2.5% pa, ie over 40 years, so this won’t apply.
Secondly modular kitchen cupboards are depreciated at 2.5% pa (don’t know why) so you should still be able to claim a small amount for these. Eg my house: kitchen cupboards were assessed @ $2585 which amounts to the princely sum of $65 pa depreciation! You will be able to claim the whole of the written down value remaining if you ever replace these however.
The rest is as follows (note that several items could be deducted 100% as they were worth less than $300):

Item|Cost|%pa
Carpets | 2365 | 25%
Electrical equipment:
-Distribution gear | 1085 | 20%
-Lighting units | 741 | 100%
-Master Antenna system | 220 | 25%
Counter fittings/shelving |1627 | 100%
Vanity cupboards | 1127 | 20%
Shower screens | 995 | 20%
Hot Water system | 2420 | 20%
Kitchen general | 298 | 100%
Kitchen stoves | 763 | 20%
Wall Oven | 961 | 20%
Security screens | 1446 | 100%
Telephone connection | 229 | 20%
Ventilation plant | 252 | 100%

That’s it for a brand new 3 bedroom house, so you can see just how much of that won’t apply for an older home. All the new stuff you’ll probalby know about, so it’s just a matter of knowing the depreciation rate and age. Work on 20% and you won’t get in trouble. The Q/S report may be $500+ so it probably won’t be cost effective.

Regards, Jim.

He who hesitates is sometimes saved!…Thurber.

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I agree totally with Dogs. I’m just writing an article for The Australian about this. This arrangement can save you from nil to 5% (of interest payable)… not that great really.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

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That a bit Ruff Stu! (calling me dogs!)[]
How is that article going? Let us know when/if it’s going to be published, or maybe we can email you for a copy?
Regards, Jim.

He who hesitates is sometimes saved!…Thurber.

Hi Rorqhual, you can find info on NSW tax at:
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63650&_dad=portal&_schema=OSRPTLT

Note that your PPoR is exempt, so you will have to notify them of the change. You should have been sent an assessment each year, so it’s strange that you have to pay so much now. I believe that most people are only aware of it when they receive their first assessment. I paid tax on my PPoR for 3 years before I finally noticed the exemption in a brochure they sent me last year, so I would be interested to hear if anyone else has been caught out by that. Land tax works on the total of your (your share of) official valuations of all your land minus the land your PPoR sits on, so make sure they have got it right. You can certainly claim it a a tax deduction. It a bit strange, the way the tax benefit effectively makes the federal gov’t subsidise the state gov’t. The only way you can “avoid” this tax is to have total land valuation less than $261,000 in NSW, $220,000 in Qld etc. Note that you can spread your properties around different states, and effectively add those thresholds together, because they are independent.
HTH,
Jim

He who hesitates is sometimes saved!…Thurber.

It costs nothing.

Stars don’t mean crap unless you can cash ’em in or uptrade. Who cares ?

The important thing is that we might learn from one another, be able to contribute or take a thought and expand upon it.

Then you can give yourself as many stars as you want.

Anyone want to rent a star ?

Kind regards, Phil

quote:

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An international flight attendant for Qantas (even though the Q stands for queer, I am not!! [])

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Hi Brent, Qantas worker here also (just served 20 years on the 15th). No need to qualify yourself as straight by the way. I wonder why you blokes seem to think that you have too. Anyway, I would be keen to discuss a side income producing idea with you, targeted to the audience of long haul crew. If ya want .. you can contact me at [email protected]

Kind regards, Phil

Purchaser 1 is paying almost twice your monthly repayment at 80%.

How much does this represent of their income?
Why cannot Purchaser 1 obtain their own finance?

Cash flows are overly simplified.

Their monthly payments – your monthly payments = cash flow (wrong!).

You will need to find out all your annual costs and take them into account.

Also, check that the property is valued at $120,000. If your purchaser defaults in a short period of time, you will need to either let it or on-sell it again. Make sure your purchase price is correct.