Mate,

You could be on a winner if you're looking to add value to your block.  You might get planning to fit 3-4 units on your block.  Even if you don't build the units the extra value is there for you to use through increased equity.

It sounds good to me from an IP point of view, maybe not so if you want to live there.

Pud

I'm 56 next week and my wife is 54.  We started late on this IP journey in 2005 and now have 5 IPs spread over 2 states and the NT, all -CF but well managed with a LVR of 80% and heading south:)  We have a LOC buffer of $216,000 and are waiting and watching at this stage.  We will possibly buy one more property in the next 12 months which will see us done for our ultimate target of retiring on $100,000 in 6 years from now.  This will happen by utilising LOE when the time comes but the strategy used at that time will be governed by current prevailing conditions.  One thing is for sure; we will be a lot better off than living on a part pension and whatever we have in super.
Ahhh its a beautiful thing:)

Pud

G'day Donna,

I have a lot of records that I want to do the same thing with so I went to Woolworths and purchased a cheap ($130 I think) device that plays records tapes and CDs….  The best bit is it has a USB port for recording to a memory stick then wack it into the computer USB port and let your software do it's thing to provide the format you want.  Voila!!! Pretty good reproduction as well.  I've never tried Mathew's suggestion but don't see why that wouldn't work for your cassettes.  In my case my old record player didn't work anyway so I had to purchase something anyway.
Good luck with it

Pud

Yes.  The form is available off the ATO web site and if you want to take advantage of this option at the start of the new financial year then you need to fill out the ITWV form and get it back to the ATO before the end of May.  I do it as a matter of course as the money is better in my pocket now rather than wait until I do my tax return after the end of the financial year- helps to cover holding costs.

Reading between the lines it seems to me there is some equity in the portfolio that you could use to ease the shortfall.  If you sell and have to pay CGT; why not hold set up a LOC secured against the equity and use the loc to fund the shortfall for a couple of years.  Reassess then.  Say you are $100 per week too tight to hold all properties but have enough equity to set up a loc of $10,000, this would see you right for approx 2 years (maybe more if interest rates hold and rents continue to rise) when, like I say, reassess the situation then.

Some more food for thought……  Would you like 1 square metre of land in the CBD of Melbourne or 2000 hectares out the back of Birdsville?  The point I am making is that it's not the amount of land you have but how valuable it is.

G'day Justgjt,

I'm a registered builder in WA and my advice would be to have a consulting structural engineer inspect the problem.  Having said that,  I have also been involved in 1 or 2 similar problems, all were solved firstly by the stabilisation of moisture beneath the structure before other remedial works were done.  The moisture is usually caused by a leaking pipe/drain of some sort or storm water run off collecting at the base of the structure.  Check for evidence of stormwater drains discharging too close to the house or run off (you've had good rains in your area recently I believe) from ground water entering under the house to pool around the stumps.
Cheers,

Pud

I'm no expert but my understanding is that your ABN is required to show the lender that you are in business which is one of the reasons Lodoc loans was set up. (Because business people find it hard sometimes to show a regular income)  Another good idea is to be registered for GST because it gives the lender an indication of your income: you don't have to register for GST if you earn less than $75,000 so if you are registered it is safe for the lender to assume you earn more than $75,000 and therefore you are probably in a better position to service the loan.

Pud

G'day Glen,

First up let me say that I am involved with TIC so do what you will with my comments.

I suggest you go to a meeting in your area to sus out the situation and ask questions of the people running the workshop.  If you haven't already given your details via the web site or at a meeting already, you will be placed on the mailing list for a free newsletter (which you can unsubscribe to if you don't want to receive it) and be classed as a member.  At this stage you will be allocated a Support Member who effectively becomes your 1st point of contact and will answer any questions you have There is no charge for this and you will never be asked to pay a fee for attending meetings or be pressured to buy anything because there is nothing to buy.  (apart from properties of courYou can go to as many meetings as you like and ask as many questions as you like until you are happy to use the club's services or walk away with no obligation.  The club makes it's money when or if you buy a property, where the club receives a marketing fee by the vendor/developer; this is what happens normally where a real estate agent gets this fee.  This is explained at each workshop.
In relation to valuations of properties you may want to purchase;  TIC could not exist if the properties were over valued to include the fee paid to the club because all properties must be valued by the lenders where a buyer takes out a loan.  Obviously the lender would knock back finance where their valuations are grossly below the property buying price. 

Good luck with your property investing whichever way you go.

Pud

G'day Robramjet,

You can offset the costs by applying to the ATO to vary your income tax withheld from your salary/wages (if you are an employee of course) at every pay day.  This is done by submitting an Income Tax Variation Form to the ATO (available from the ATO website) which should include an amount for depreciation on your IP.  I have a depreciation schedule done by a quantity surveyor for each of my IPs when settled so I can apply the correct yearly figure to the ITVF.  There are some quantity surveyors on this forum who I am sure can give you the advice you need.
Obviously this is just my opinion and you should consult your accountant for the details.

Cheers,
Pud