You can’t get a refund if you didn’t pay the tax in the first place.

Cheers
Andrew

Ross Brown wrote:

What are the advantages of renting while buying investment properties?

The interest and the expenses on your investment property are tax deductible. It will also generate you income since the rent you get from it should be higher than the interest payment.

http://positivecashflowproperty.net.au/property-analyser/

Cheers

Andrew

MattyC wrote:

Forming a strong relationship with someone who does have the expertise and is due diligent would be beneficial in the long run. I can only read so much information, so bouncing ideas off someone else who I can trust and listen to their advice would come in handy.

You can get some good advice from different members on this forum and the somersoft forum and it won’t cost you anything.

All the best

Andrew

Did they provide you with a CMA?

They need to justify their price range and show you recent comparable sales.

Ask them if they have sold similar properties and what prices they got for them.

Personally I have never paid for advertising. Maybe it is common in different states but I would try to negotiate.

The written guarantee is useless in my opinion since it won’t guarantee you a buyer at the price you want. At the end of the day you are the one who will accept or reject the offers. The agent will try to get you the best price possible but if the buyers at that price aren’t there then the guarantee won’t do anything to change that.

All the best

Andrew

I was thinking about developing a iphone/android application where you enter your expenses (+ photo of receipt) and rental income for my own use but haven’t had time.

When tax time comes, you can automatically print out all your expenses and receipts from one document. I think the ATO accepts copies of receipts so you wouldn’t need to keep the original ones.

You could have a different account for each property and/or business to record your expenses and income and have one file for each ready to print for tax time. It would also make it easier to store the records for the required 5 years.

Maybe someone else has already done it.

All the best

Andrew

Median rents for 2 bed are $370 pw in Nundah so it will be negatively geared without and with NRAS @ $370 pw. I think it would need to rent for at least $500 per week with NRAS to be neutral/positive geared.

I think they also charge 14% management fee.

Last 5 year capital growth for units has been only 15%.

What rent did you use for your calculations?

Cheers

Andrew

Hi Tara

It is “generally” always better to rent and to invest.

Assuming you can rent for $900 pw and can rent out for $800 pw.

If you rent, your overall cost will be $900 – $800 = $100. If you live in your property your overall cost will be $800 pw. So just based on this it would be better to rent.

However you should also consider CGT. If you live in the property and nominate it as your PPOR then it will be CGT exempt.

Cheers

Andrew

Hi Quachiez

Quachiez wrote:

In regards to the Investment Property, will I benefit from an Interest only loan, or Interest & Principle loan? What is the differences with these 2 features?

You always want to take an IO loan + offset account. This way you can reduce the interest and also have access to the money.

Cheers
Andrew

appg2 wrote:

Is this considered standard? high? Am I obligated to lease out through them ? can I lease through someone else? If I let it through someone else, are there be any drawbacks I should consider?

1. Yes, it is standard rate. Some will do it for 7%, some will want 9%.
2. No you are not.
3. Yes.
4. Generally the local property manager will be better than an external company. They know the units, what could go wrong, how to respond, etc.

Catalyst is right by saying that if they have many units for rent, why would they push yours first? But if you think about it, the same applies to an external company. They will probably have more units for rent compared to the local property manager.

All the best
Andrew