Hi Marty

Like you, I’m a buy & hold person. For the last year I’ve concentrated on reducing my loans and also picking up the odd blue chip shares along the way. However, like most investors, I continue to monitor both the property & share markets.

The answers to dhttang’s questions are in Michael& Kaye’s first post.

You’re correct, aussierogue. I should have stated after due diligence & that the property is a good buy.

Stuart is correct in that unless an accountant is licensed, he cannot give financial advice. However, it is unfair to assume that the accountant concerned is a CPA. My experience indicates the worst type are those accountants who do not belong to either the Institute of Chartered Accountants or CPA Australia.

If you’ve never borrowed money in big amounts, $200,000 appears alot. After awhile in the game, even $1,000,000 is not a big deal.

The basic question to ask yourself is “Can I service that loan of $250,000 & for how long?” If you can answer yes without any hesitation, then go for it. Property investing is long term. Eventually it’ll move…[Read more]

Congrats Fullout. As Confucius once said, the journey of a thousand miles begin with one small step.

Is it time to buy more? Suggest you have a look at July’s Personal Investment magazine. There is quite a good coverage on properties. More than the usual, actually.

In the Supplementary Income Section under item 20: Rent.

I’ve checked with my accountant on this. Like you, David, he is aware of people who are claiming input credit through trusts when they shouldn’t.

I cannot see why anyone would want to submit a quarterly BAS in this case. Seems like alot of work for nothing.

No, it doesn’t mean that at all. When you buy a commercial property, it either has GST or no GST. As a guide, a vacant commercial property normally has GST tagged on. Hence if the property costs $500,000; the price inclusive of GST will be $550,000 & you need to pay stamp duty on $550,000.

However, if the property was tenanted, the price will…[Read more]

It depends on your net rental income, not just your rental income. If your property is -vely geared, your income goes down. If +vely geared, it goes up. Kapish?

You’ve raised a very interesting point here, David. As I understand, a residential IP is input taxed ie no GST is charged by the landlord. Following on from your suggestion, can we then claim gst on repairs & new plant like airconditioning systems? If this is the case, it is definitely worth while registering for GST & getting an ABN.

Depends on whether your IP’s are residential or commercial. If you have a commercial property and/or your income from residential property exceed $50,000, then you’ll need to register for GST. Otherwise, there’s no need to.

Well done Ozbroker. I think you have done alot of readers a great big favour.

And thanks to Leigh for bringing this to the forum’s attention.

Very simple solution. Just put a big chunk into your own super fund. There’ll be no questions asked.

Hey Neologism,

To get to 2 stars, you need to do 50 posts. I’m still working my way up to the stairway to heaven.

Cheers.

If you know the street address, try ringing up the local Shire. Just advise you need to fix the fence & you need their names. Most shires are very helpful on this issue.

I’ve asked CBA this exact question. CBA will not lend me to purchase in NZ or anywhere out of Australia.

However, if your bank has a subsidiary in NZ, the situation may be different.

There’s no stamp duty involved when a husband transfer his portion to the wife and vice versa, or even to any member of the family for that matter in WA. Just get a settlement agent to do it. It’s pretty cheap. Good luck.

I think the commercial market has moved in tandem with the residential market. I’ve noticed the yields in commercial market have fallen quite substantially. Before, 10% is the minimum. Most are now advertising around the 9% range, with lots around 7%. However this is for the Perth market. I am not familiar with the East Coast market.

Youngie, the ultimate decision is yours. You either swim or sink with it.

Comments presented come from people who probably have seen a boom & a bust in both property & shares. I’ve been through the cycle & I agree with what they have said.