It totally depends what tax bracket you are in – if you're in the 30% tax bracket, then you will get roughly 30% of all of your property expenses back in your tax return. Depreciation can help bump this figure up. I would definitely speak to another accountant who has more experience working with IP's, there are loads of deductions available to…

Hi Pete, your second calculation is right, because it's a 50/50 share, you need to divide the purchase price by 2.So your half of the purchase price is $50,000, and your sale price is $120,000 = $70,000 difference. With the 50% concession for holding the property longer than 12 months, the amount that capital gains tax will apply to is $35,000.

Your agent charges 3 weeks rent to find a new tenant?  That seems ridiculously high to me!!  We have 3 IP's in Queensland and we pay one week's rent plus GST each time a new tenant signs – or $25 plus GST "re-sign fee" if the same tenant re-signs for another fixed period. I have never heard of such high management fees before?? There are ce…[Read more]

I think you will be partially liable for CGT, regardless of whether you claim interest expenses, etc. Speak to the ATO – they have a great example on their website (full details here: http://www.ato.gov.au/individuals/content.asp?doc=/content/36910.htm). You can claim a portion of the interest, rates expenses, etc, but you should also technically…[Read more]

Hi Ben, It's currently a buyers market so I would say now (to early next year) is a great time to buy! I bought a property in Varsity Lakes 2 years ago, it's gone up in value by $35k so far (bank valuations) and even if, as Scamp predicts, the market crashes on the Gold Coast, that won't affect me, because I'm not planning on selling for another 1…[Read more]

Hi atevans,Are you looking to sell because it's costing you too much to hold? My opinion is, if you can hold it, don't sell – it's a buyers market and you will almost definitely not get the best price. If you wait 12 months the market will pick up and you'll be in a position to negotiate a much better price. Residex/RP Data/BIS Shrapnel are all…[Read more]

Hey Mel, Is the mag going to be online or in print?  What age qualifies as a "young" investor?? I have a few stories I could share, but I'm late 20s and my partner is early 30s..

CONGRATS!  It's such a good feeling isn't it – I paid off a credit card in January – it was only $2000 (still have another $6000 to go!) but such a great feeling to pay that final payment!  Especially at the moment, with interest rates as high as they are.. Anyway well done!

hi BrownyCheck your contract – there is an agreed amount stipulated in the contract that a property manager is allowed to spend on repairs without your approval.  It often defaults to $300, (I always reduce mine to $150).If you authorised him to get quotes, and he went ahead and got the work done, it sounds like your property mana…[Read more]

hi LeddI've bought several properties sight-unseen, and I would definitely recommend buying interstate! I live in Sydney so buying here is pretty much out of the question for me – instead I own 3 properties in QLD, and I have only physically seen one of them.I would generally prefer to view the property before I buy it, but if the property is in…[Read more]