Hi Wilko & Ballerina,

I am buying 2 blocks of land side by side and they will be combined to fit the 6 Townhouses. Land Registration will be in approx 2-3 months and the plans are already in council. Construction should commence around the same time as registration.
This project is not a typical one where i am project managing. I am purely…[Read more]

Thanks Richard.

Just to clarify. Is the LVR based on valuation or land + tender?
If valuation stacks up at say $2m but we only require $1.7m to complete could we borrow against the $2m value?

Hi Corey,

They will be sold off the plan but wont’t settle until after completion.
Yes this will be the first development. I will be doing this with a friend and we both own properties and are in a good financial position.

Thanks for your feedback.

Hi Dave,

I’m sure some of the finance guru’s on here will provide some insight. As you mentioned you are self employed. Generally what the bank will require is 2 years financials (on the rare occasion 1 years financials) and by financials they will want company tax returns and individual tax returns. In this day and age it is too easy for…[Read more]

http://www.realestate.com.au/property-house-nsw-condobolin-112625043

Asking price: $125,000
Currently rented: $200pw

Hi Carl, If the income (rent) you receive from the invetment property is greater then the deductible expenses such as interest, rates, etc then yes you will pay tax on the difference. A quick calculation seems to indicate that the rent could possibly be higher then your expenses. Rent: $560f/n x 26f/n = $14,560paInterest: $120k x 6% = $7,200 (…[Read more]

Thanks for your feedback. I was thinking the off-set account would be best. Cheers, Shane.

Hi Kong,

That does make sense to me. At the moment my IP is negatively geared so using your example above would that change your calculations?

Even though I would be getting taxed on the interest earnt wouldn’t I also get a higher tax refund from the interest charged on my loan as it would be reducing my taxable income?