You can calculate it yourself but it is going to be a PAIN IN THE ASS if you don't know what you are doing.

This is because a lot of things are depreciated at different rates.

For example, floorboards are going to depreciate slower than a whitegood like a dishwasher or a fabric like curtains (they get dirty quickly!).

Depcreciation is generally based on how long the item is likely to last for and there are tax laws around how quickly you can depreciate items.

There are also two types of depreciation. The is a fixed depreciation (not the real name sorry) where you can claim the same % of the purchase price each year (eg. 5% on $5,000 in year 1, 5% of $5,000 in year 2 etc) and then there is accumulative depreciation (again the wrong name sorry).

So year 1 might be 20% of $5,000, but then in year 2 the item is now only worth $4,000…so you would claim 20% of $4,000.

A scrapping schedule is a one off event that is recorded when you destroy something to replace it with something new. If there is remaining value greater than that you have already depreciated then you can most often claim it as a loss.

Hope this helps. For further clarification I have created some articles on these topics

Depreciation – http://positivecashflowaustralia.com.au/claim-depreciation-investment-property/

Scrapping Schedule – http://cashflowinvestor.com.au/blog/what-is-a-scrapping-schedule-and-why-should-i-get-one-done/

You can get a "quantity surveyor" to create both a depreciation schedule and scrapping schedule for you. Some even give you a guarantee that you will save more in tax than you pay them in fees. It isn't super expensive to get done.

I would also meet a couple of other agents and get their quotes as well.

Different agents believe properties are valued at different prices. Their fees also vary widely. 

If I was you I would interview

1. Someone that was recommended to you

2. A top performing agent from the primary real estate business in the area

3. A top performing agent from the 2nd best real estate business in the area

Hey Luisafur (is that a play on Lucifer?…apologies if it isn't),

There are so many things you can do to get started

– Read property magazines

– Read property books

– Save your deposit

– Visit a mortgage broker to find out how much you can borrow

– Visit open for inspections to get a feel for property investing

– Join a mastermind or visit a property group

The biggest thing (I think) is setting a goal. For me that is financial freedom before my 35th birthday (10 years). Work out how much you need and start to work backwards.

I am a big fan of having an investment plans and not just investing willy-nilly.

That may be positive cash flow properties, it may be development, it may be capital growth or subdivision. Up to you and what you think suits you best.

I look at Bitcoin like it's the latest "hot stock".

The fact that it has hit the mainstream potentially means that the rich people have already made their money in it.

Bit coin is a very interested currency and hard to predict what global demand for it will be unless you know a lot about it.

Truthfully, if you want to learn about Bitcoin in detail and become a savvy bitcoin investor then I think it makes sense to sell your property for Bitcoins. But if you don't understand the currency then I think it would be better to sell for cash and focus on making money the way you know how.

There are so many 'get rich quick' stories at the moment about people who's bit coins are worth millions. If it sounds too good to be true it probably is.

Their system has changed now. There is a 7 day trail period before they start billing you. But you really only get 6 days because if you sign up at 10pm on Wednesday night then they count that as 1 day even though it was only 2 hours. So be careful of that

WHAT THE TOOLS DOES

The tool acts like Google for the property market. By that I mean it indexes all the listings and then allows you to search for keywords within the property listing. This is where the value of the tool is derived.

So if you want a property with a granny flat you can search for "granny flat" and it will show you all listings in Australia that use the term granny flat.

You search for positive cash flow terms like "11% rental yield" or other stuff. Or you can search for discounted property by using terms like "discounted" "recently reduced" "all offers considered" etc.

OTHER STUFF

It also gives you access to analysis data of the site. Stuff like previous sales history, previous rental history, previous listings, comparable sales etc.

TRAINING

They also have training modules but I never got into them, so can't comment on whether they are good or not.

Hope that helps

The art of negotiation is that each side needs to feel they have gained some ground in negotiations.

Going in at $225k means you are unlikely to get it for $225k. 

If you are making a lowball offer I suggest making it and then providing justification for your lowball offer.

Discuss comparible sales, issues with the property that need fixing ect. Don't just make a lowball offer and hope for the best.

Then when making a counter offer perhaps discuss your financial situation and that you are willing to stretch a little bit further.

Would you pay $240k for it or is $235k your absolute max? Would you pay $236k? It's important to know these things before negotiations so you know when to walk away. Some sellers just won't budge.

It is hard to say exactly how much to offer to begin with as I am not familiar with the property or the area or the agent.

Good Luck

If you don't want to buy positive cash flow property in rural areas why not look for property in capital cities either with a granny flat or that you can build a granny flat on. This tends to spike your rental yield and can push you into a cash flow neutral or cash flow positive position if done correctly.

The key is to understand your own financial goals. What you want now and in the future.

Can you afford to negatively gear and live off beans for the next 10 years until you can cash in on your properties? I know I could but my wife would kill me if we were super poor for a long time and thus I wouldn't be around to enjoy the profits anyway.

It's about balancing now with tomorrow and being proactive. Work smarter not harder

If you are new to this I would definitely advise getting strong professional help.

It may be worth speaking to a broker (there are many great ones on these forums) about your financing options because it seems that is the part you are most concerned about.

Hard to make any decisions without first understand how much money you can borrow.

You might have to go with option #1 if you can't secure financing for the H+Ls yourself…which almost makes your decision for you.

Agreed much better to do electrical and plumbing work done before you patch up all the walls. Just incase new holes need to be made.

The easier the access for the plumbers and sparkies the easier it is to get done.

Hopefully things will go through for you at 95%. I know how it feels when you aren't getting much information back and you don't know exactly what's going on.

My fingers are crossed for you also and I hope it will be a good investment for you.

Will it be positively geared?