Hi Alwayslearning,

I can see were you are coming from, but i see many potential investors, investing in QLD because of property housing there is still much more cheaper than, sydney and melbourne prices.

The average house price affordability in sydney is $460k, while many parts of Brisbane are, no were near those figures, i can see many sydney and melbourne investors/siders purchasing and pushing prices near the $460k mark.

So there is still plenty of room for Capital growth and gain.

Cheers
s.i.s

im hope the property boom, holds and carries on till late next year in townsville, though i think you are gonna get more CG from Townsville that Cairns. Cairns was a little pricey and Townsville has plenty of positive CG still to come.

cheers
s.i.s

Oh by the way Sandgate is on the Northside of Brisbane.

cheers
s.i.s

quote:

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Is S.I.S really just code for “Margaret Lomas”? This is straight out of her books!

34 years is a good length of time, and I agree that the cashflow you get in the meantime is great. This will probably be what’s making it postitive cashflow – you just pay for it in CGT when you sell.

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Hi Rubbachook,

lol… i see you have read her books too.
Nah, im not not Margaret Lomas, but she is some one idol

cheers
s.i.s

quote:

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Good to see you’re so well sorted out S.I.S! More so that I am, for sure. Never say never, I reckon.

Re your depreciation strategy, though, if you’re depreciating indefinitely, won’t you run out of things to depreciate? You can’t depreciate for more than an item is worth.

How do you envisage that working?

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The property is 6 years old, With depreciation, you are able to claim 2.5% of the property over 40 years(as long as the property is built after 1986). With this property i can depreciate it for another 34 years, in the mean time, till i move into the property, i will claim as many expenses and depreciation that i can. As long as i dont sell, i wont pay a capital gains tax but will be able to continue claiming a new lower income taxable threshold.

This is just a different strategy, but very effective and legal.

cheers
s.i.s

Hi Sue,

I like the way you think.

Hi Target, Sue was mentioning the words neutral gearing, ok this is one of my favourite areas on Property Investing. Though i like to call it offset gearing,

In my Opinion that if you are going to move out of you positive geared property, that is providing a positive cashflow, but better yet, passive income on top, if it neutrals out, your negative geared property, and all other expenses of both properties.

Your are then left with all your income earnings at your disposal, secondly, you might have enough equity in the 2 properties to purchase a 3rd property and still be able to cover all expenses, as you are having access to your full income. Cause it no longer pays or goes towards your other 2 properties you own.

Doing this, you have used the effect of Offset gearing.

Beautiful isnt it.

cheers
s.i.s

Also neutral gearing is when the property is negatived geared, but you have to pay out of pocket expenses to cover the loan and other expenses, you can claim depreciation and other small things too. In effect, when you go to lodge your tax return, there are enought claimable expenses, for you to claim, that has put your property into a neutral gearing.

This can also apply if your property is positive geared but makes enough profit to be taxed on that makes that property also neutral geared.

Hi Guys,

Im gonna give a differnet opinion here, i live with my grandmother, and i choose to live with her, cause i think paying rent is dead money, second thing is, owning your own home, that is not completely paid off, is one of the biggest liabilities you can have.

Earlier this year i purchased a house in Wavell Heights in Brisbane, just before the property boom, even so, this property is very highly negativly geared. The reason why i purchased such an expensive property is that, one day when im ready to move back to brisbane, i will have a home that is almost or nearly paid off.

How??

The property is Highly Negatively geared, so i make a loss but, this loss will reduce my taxable income, secondly i have offsetted the cost of this property using other positive geared properties to fund the extra amounts the bank wants.

But what the real killer is, i know im gonna move into this house eventually, but cause im never gonna sell it or claim my CG, Im heavly depreciating this property.

This way ill never have to pay a higher capital gains tax, cause i will not sell this property and i will keep depreciating this property, and keep claimin it, till i eventually move in. As for the negative gearing, i will just offset it against some of my passive income properties. Which will neutral out the effect of paying higher tax cause of the passive income offset.

well thats my opinion
cheers
s.i.s

i agree, i wouldnt turn up to a property seminar unless its free, property seminars that cost money, well the lecturer is the one or the property guru is the one that makes the most money that night.

Hey Wezwaz, i fill in your caculation. 100 people go to a seminar were the seats are $1000 (by the way this is cheap some seminars are costing heaps more.)

100 ppl x $1000 = $100,000.00 easy money

or pay $19.95 for a book on property, dont get con by these property seminars, the people i know who own lots of property, dont go to property seminars, they go to tafes, short courses or even still they have taught themselves.

cheers
s.i.s

Hi mcollins,

I would suggest you get a property manager to look after and report about your property to you. This way you can be hassel free and not have another problem to worry or commit yourself to thinkin every night before you go to bed.

The cost of a property manager is claimable on your tax return, so why not do it for a little piece of mind and one less worry.

cheers
s.i.s

Also gettin a property manager is like employin someone, becareful of the cheaper property managers unless you have a good deal or service that you both provide for one another.