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  • Profile photo of TC62TC62
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    @tc62
    Join Date: 2011
    Post Count: 45
    March 4, 2011 - 6:08 am

    WOAH there intrigue!

    TAKE 2 SIPS, 6 DEEP BREATHS AND HOLD ON cause I may have a solution other than diazepam!
    <moderastor: delete advertising> stop being like the proverbial dog chasing its tail and try to get some advice from the professionals – advice that's specific to you!
    I hope you haven't had a meltdown and you find some rock solid, unambiguous, and lay term education and you should be onward and upward without the alcoholic poisoning.

    CHEERS!
    TC

    Profile photo of TC62TC62
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    @tc62
    Join Date: 2011
    Post Count: 45
    March 4, 2011 - 5:33 am

    Hi intrigue.

    I have arrived! You are not alone young padowon!
    OK, minimal info but here goes. A lot of your decision should be reliant on your existing tax burden. Have you heard of tax variation (old name from ATO is a 221d)? If not, check out tax variation on the ATO website. Putting it simply, you have ZERO tax deductions on your PPOR however, often when one factors in the expected rental return on an IP along with the reduction (or variation) of your tax burden throughout the year from the ATO (works beautifully if you are PAYG but also works for self-employed), one usually has minimal ongoing out-of-pocket costs to upkeep the IP. You will get huge reductions in your current tax burden (up to 50% reduction is allowable from the ATO), you will get the growth in the IP along with the growing equity in your home and IP as you use your tax dollars and rents to pay off your home loan is half the time! Have I lost you yet young grasshopper?
    OK, let's take a break and let you absorb the above.
    TC

    Profile photo of TC62TC62
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    @tc62
    Join Date: 2011
    Post Count: 45
    March 4, 2011 - 5:20 am

    Hi Kemjay.

    I live in SA and do business in our "Golden Triangle' of Whyalla, Port Augusta and Port Pirie. Whyalla is interesting. 5 -6 years ago the locals were saying, "whoever is the last to leave please turn off the lights". That was then, this is now!
    SA is riding again on our own resource boom; maybe not to the extant of WA but a boom non the same. Investing in Whyalla, and not the outlining rural areas, should be a sound investment for the longer term as long as the crest of the country's resource boom continues rising. However, it does beg the question as to why Whyalla? If it is investing into a less expensive IP then you could really look at most of Adelaide's surrounding suburbs. i.e. Port Noarlunga – 25 -30 mins from the Adel CBD via the Southern Expressway, new train line, major new shopping complex The Collonades, and so on. Now here's the kicker! Brand new (max depreciation!) house and land under $300K. The latest Property Investor Magazine has Port Noarlunga the fastest growing suburb in Adelaide at 11%.
    Anyway, do your homework but for goodness sake do something! There is never a perfect time to start investing but you have to start sometime. Do your homework and due diligence and then strike. GOOD LUCK!!

    CHEERS!
    TC

    Profile photo of TC62TC62
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    @tc62
    Join Date: 2011
    Post Count: 45
    March 4, 2011 - 4:30 am

    Hi Tegs.

    I guess the first thing we need to understand are you and your parents motivation for developing and duplex's? It is for growth – short or long term? Is it for tax reduction/minimisation?
    I would need to ask a lot of questions before I could answer your questions with some degree of accuracy Tegs. My suggestion is you and your parents need to sit down with someone who can look at the pro's and con's of what you're wanting to do and realistically advise you on your various investment and borrowing options. Why not talk to a mortgage broker first and explore the various loan products available, their suitability to what you want to do, and your capacity to borrow and service a loan? Best of all, mortgage brokers are FREE!

    CHEERS!
    TC

    Profile photo of TC62TC62
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    @tc62
    Join Date: 2011
    Post Count: 45
    March 4, 2011 - 3:13 am

    Hi Fergus.

    A company we have used in Adelaide as a buyer's agent is Australian Legal & Finance. They're fairly new but very good. Take a look at their website at http://www.legalandfinance.com.au and see what you think!

    Cheers!

    TC

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