Jenelle,Thanks for that info, this is pretty much what we are doing atm.We have set up a split on our portfolio and negotiated a drop in acct fees and fixed some of our loans.Thanks all for your input.What do people think of interest rate situation? I think it's top of the cycle for now.

Yeah lucky, we made this mistake as we used our everyday LOC for deposits. This makes it near impossible for an accountant to differentiate between daily expenses and investment related ones. Our pays went in as well as rent and all expenses come out . If you have an LOC used for investment purposes only, this is the way to go.

Thanks Rich and Mike,You are both right in thinking we need structure in both finance and property ownership, but as Richard pointed out we certainly wouldn't go to the expense of transferring our current properties. What we are wanting is to set in place the correct structures for future purchases and acquisitions.Is it ethical/logical to have…[Read more]

Richard, that is correct. We are looking at refinancing to separate this mess, but at the time we knew no different.We are wondering what the best structure is for our situation at the moment.Thanks.

I should point out that we will be building units, and selling two to keep one.

Thanks Terry.

I would just like to make it clear that i am not intending to rip off the tax department. I wanted to know this information to put end to a discussion which i was told this is possible legally, and i disagreed! So what you are telling me is that i am right in thinking this is not possible without risking tax audit trouble!Thanks all for your input.

No Terry thats not what i mean at all, i realise this happens all the time. What i am asking, can someone refinance investment property and use the extra money for non investment lifestyle type purchases. E.G a pool for their ppor or a holiday to Greece etc? AND still claim all interest on tax? How would the coffers know what the money was being…[Read more]

Terry,How could this legally work if at all? I am led to believe it's a loophole!Cheers.

Thanks propertypower, i thought this might be the case.Does anyone else have anything to add? Any other thoughts on this topic?

Is there any way that the ATO can track how you spent the re-drawn equity? 

How do you mean excel Terry, is this your own calculations using excel, or is there software called excel for property calculations.

cmon guys, surely someone has an opinion?

Thanks for that Mareea. I do refer to the ATO site for that info. It's quite handy.Cheers.

Yeah, that was my post.I am still not quite getting it. Silly i know. I adjusted/changed the figures a bit from what they were.Another silly question, is depreciation income or expense? It could be viewed as either!Another thing i have just thought of ,  how are I/O repayments calculated into the equation?I can follow your example, but when it…[Read more]

I am a bit confused how you deal with Depreciation and Tax when working this out??Here are the updated figures. COSTS Rates $900/ yrManagement $2080 10% of rentInterest $21,000 assuming a loan of 300k @ 7%Insurance $1300/ yrTOTAL = $25280  INCOME Rent $20,800 Assuming $400/wk @ 52 wksDepreciation $8000 1st yr assuming…[Read more]

We have/need 2 cars, one is a Mits Mirage. (runs on oily rag)The other is a 93 RS liberty turbo. (the original WRX) Eats oily rags for breakfast, and then drinks BP ultimate for seconds. But i love to drive, so to me this in itself justifies the expense.We did have an 02 STI for a year or so,  it stopped us from investing for a while, so it had to go.

Thank you L.A Aussie,Rates will be about $900Management i put at 10% or $2080Maint – well a new property, i prob wont include.So not far off.What if the property is in a very well set up trust? I know little about these!Thanks, very comprehensive.

Dazzling,

I wondered if that would be the case! Thanks.

Thanks LA. I will consider it. I would actually be applying to the bank that has the lease for that loan, interesting!
Michelle, as i understand the 7/5/5/5 lease means the tenant must keep the lease agreement for the first 7 years, but then can choose to either renew or not for the next 5 and so on. Once the 3 periods of 5 are up a new lease…[Read more]