I have answered your criticism to the best of my
ability, using quotes from the tax office booklets that prove my arguments, if im still wrong then im just going on what the booklets say, but i think you hav lost your case… Where are u getting this information from anyway saying that im wrong?? so far u havn’t proven a thing… just told me that im wrong lol perhaps its you who cannot read my friend…..

That is alll!!!!

Jason []

To auspiciousdna;

How certain are you of this??? If someone pointed out to me that I was incorrect and I found this to be true, then I would have retracted my statement and apologised… Calling my comments illegal, and being an “advertisment on how to break the law” is just going way too far in my opinion… unless you are an accountant or a Lawyer (are you??)……..

Ok, now this is what I found in the most recent Booklet from the ATO….

One period of absence of 10 years

Home ceases to be the main residence and is used to produce income for one period of six years.
Lisa buys a house after 20 Sep 1985 but ceases to use it as her main residence for the 10 years immediately before she sells it. During this period she rents it out for six years and leaves it vacant for four years.

Lisa chooses to treat the dwelling as her main residence for the period after she ceased living in it, so any capital gain or capital loss she makes on the sale is DISREGARDED. The maximum period the dwelling can continue to be her main residence while it is used to produced income is six years. However while the house is vacant, the period is unlimited, which meant the exemption applies for the whole 10 years.

In addition to this, because the dwelling is fully exempt as a result of Lisa making this choice, the ‘home first used to produce income’ rule (explained on page 56) does not apply.

Home used to produce income for more than one period totalling six years

In the 10-year period after Lisa stopped living in the dwelling she rents it out for 3 years, leaves it vacant for 2 years, rents it out for the next 3 years, then once more leaves it vacant for 2 years.

If she chooses to treat the dwelling as her main residence for the period after she ceased living in it, any capital gain or capital loss she makes on selling it again is DESREGARDED. This is because the period the home was used to produce income during each absence is not more then 6 years.

Pg 59, Guide to CGT, 2002-2003

Well??? what do u think of that??? it does sorta reflect what i was saying doesnt it???

As i also stated in my first response “I may be wrong” Im just human, but please, in future perhaps you should use a different aproach when you ‘believe’ that someone is incorrect!!!!!!!!!!!

Jason….

Hey there Muppet,

One property scam thats been doing the rounds on TV is Qld units being sold to SYD investors at inflated prices…

Jason

Hello RentMaster,

Not wanting to sound like a smart alec, but are people “braging” on this site perhaps? after all it is a site thats based on people buying investment properties! my self and many others hav probably mentioned what places they own, and what they are worth, but surley u dont see this as a “mines bigger then yours” statemnt? we are here after all to help each other…

As for your second question, i personally do prefer cheaper properties, but this does NOT mean “crap”. But as Slum Lord mentioned, i do also have some premium places, the reason is that some day i may want to live in one myself…
and yes, the cheaper places are by far the easiest to rent out!!!

As an investor im looking for income, based on cost, and will give you an example:

3 places (2 houses, 1 Villa) in regional NSW total purchase value of $247K making an income of $405 pw, (5-20% capital growth per property in the last 3-6 months)

1 place (unit) a friend bought in the Sydney CBD around the same time, purchase “value” of $465K, vacant for 2 months, finally a tennent at $370 pw and nill capital growth (thus far)….

which would you choose??? i know what ill stick to…

Jason

Hey Lawrey73

Im a part time mum, part time dad, part time doctor, part time maths whiz, part time shrink, part time scientist, part time comedian, part time coach, part time mediator, part time art critic…..

AND a Full Time Casual Primary school teacher

And its the best job i know!

Cheers !

Jason

Hey Michael

I personally believe that in the next 5-7 months we will see our first rate increase. i think just last month the US has had their first month where they hav had a small ammount of growth in their economy…..

Keep track of what the banks do with their fixed rates, just this monday Members Equity has increased some or at least 1 of its fixed rates.. could this be a sign of whats to come???

But as others hav said… u pretty much need a crystal ball lol

Cheers

Jason

PS i very much doubt that rates will go into double figures any time soon if ever, the public backlash from first home buyers and anyone else thats got a mortgage will be huge… just my thought i guess

Hey there Vluu

No matter how good you think u are at maintaining your debt, the main banks seem to still want blood out of a stone…

Unless you hav a full time job, or a business number more then 2 years old its very hard, no matter what ur circumstances are… i did exactly the same thing 3 months ago, i re financed all my places, had about $240K of play money to use, and just thought i could stroll into a bank and say, here is 20 % deposit to cover ur bums, lend me the rest…. (i had this “crazy” idea of buying 5-8 more places)

still needed group certificates, still needed work history, and still needed work, even though my loan repayments were about 50 % of my gross rental income… i got declined….

i had to buy the places outrite.. which i didnt want to do…

2 years ago i bought a unit in Worrawong, past Wollongong, cost $71 K, rented at $125 pw, and the repayments on 80 % loan were about $65 pw interest only… that was not enough for the lender… i STILL needed a job…

doesnt make sense, and its not fair sometimes… (70% of my work is casual by choice – banks still wont touch me lol)

My suggestion is, as mentioned by other ppl, get an ABN asap, get as much property as you can while ur still working and then decide about quitting working… its funny how after u get a 25 or 30 year loan u never get bothered again about work or even if ur in the same job….
go figure…

All the best!

Jason

Hey there Julie

I just found this site a few days ago, and must admit havn’t read the book.. but buying places starts off slow, and the more you get the more you can get…

I bought my first place at 20, then another at 21, then another 3 months after that, then another 6 months after that, then another about every 6 months after that… im onto my 6th now and hav just turned 24…

first of all people obviously dont buy places outright when starting off or do so vary rarely, they get them under mortgage so they hav control of the property. buy places that firstly pay for themselves, then save the extra and keep on saving all you can… for the first few years an over seas trip or a new car is a very bad idea… all these things will come with patience when you can more afford them.. (and when you can afford not to work)

Hopefully the places you buy increase in value, you then use the equity to buy another place, and it goes on and on…

soon you will hav a small portfolio of real estate, you will also be in a great deal of debt, but as long as its well spread out, and your not letting the money go to your head you will eventually have many places at your disposal. if things go bad you sell one, or 2 lol…

a secure, full time job helps with getting the loan(s), as well as minimal debts and expenses..

just remember, if u put your mind to it you can achieve anything!

Jason…

How High?

Well i hav heard that house prices double every 7 years… as a general rule i guess…

look at past trends, it sounds crazy now i guess, but sure enough, a $600K house would hav been worth about half 7 years ago, and as crazy as it sounds in another 7 years it will probably be worth $1.2 mil. there are obviously exeptions to the rule, some real estate i hav dealt with has doubled in 2 years, a friend of mine bought a place in bathurst 12 years ago for $42K and its now worth about $57K…

Just dont get me started on the “value” of inner city apartments in sydney thats all lol

Jason

I would re-finance the townhouse and inject the extra funds into your new house, remembering that interest on an investment is tax deductable but interest on where you live is not…

hope it helps

Jason.