Forum Replies Created
I agree with Stu’s strategy simply because mine is very similar. The only difference is that I also invest in shares, which from reading the forum, is also employed by many others. However, I would not be surprised if Stu has a share portfolio as well.
My nomination is Karratha for +ve cash flow properties. I like Broome as well.
Yes, 6 months of cash reserves is generally sufficient. Brianhc has covered the provisos well.
Sorry, aussierouge. no idea what you are talking about.
Interesting analogy, but true. Even negatively geared properties can be nurtured to be posively geared properties. For all tose who have -ve geared properties, don’t loose heart.
No reason why not if your ex spouse pays market rates. There are lots of people who rent properties to their parents, in-laws, brothers & sisters without any problems with the ATO.
Generally, it forms part of the costs of the plant & is depreciated. However, if the total costs is under $300, you can write them off in one hit.
To answer your question M, city properties are taken up by new migrants.
Why don’t you try your local Haryvey Norman? Just strike up a conversation with the sales bloke & then get a name. Otherwise, the good old Yellow pages may just be your answer.
Good guess, aussierouge.Basically the 1st article stated Tasmania’s population has declined from 4.5% in 1901 to 2.4% now. Over the past 15 years, Hobart has recorded the lowest rise in residential property prices – less than 1% than any other capital cities. Also population trend is to move towards the warmer areas.
The second article estimate 1/3 of sales being from the mainland. Annual yields of bet 8% – 10% being the major attraction. Everything in Tasmania is good value!!!!!
So what’s your bet?
Don’t forget the Fire levy as well. This used to be in our insurance policies. Now, you’ll find it in your rates.
In today’s market, it is virtually impossible to buy residential properties around Perth that will yield a +ve return. However, property investing is long term & eventually, it’ll turn +ve. Unless of course, you are lucky enough to find a commercial property.
You’ve raised an interesting point here, M. Input credit on a commercial property, if it is expected to be treated in a similar way to input credit on, say a tractor which is on HP, will need to be split over the length of the loan. That can mean a long time to claim back the input credit on the commercial property. Does anyone know the answer?
I was in a similar situation. I paid the tenant a visit, asked them what they would like. They asked for an airconditioner. I put in an air conditioner & I raised the rent by $20 a week. Both of us are happy.
Basically an ABN allows you to collect GST & claim your inoput credit. Only of use if you have a commercial property. Not much use if you have a residential property.
For more info, visit the ATO site.
In addition, the entity in which you are buying the commercial property must also be registered for GST & also have an ABN.
Always remember the toes you step on today may be attached to the bums of someone who you may have to kiss tomorrow.
Signwritten on our lunchroom wall.
CGT is pro rata. Your accountant is incorrect to say it is CGT free.
Hi Elysium-M, I work full time as well It’s usual for me to work 60 hours a week. I also used to coach basketball for my children’s team. Hence I don’t have much free time.
To answer your question, once the tenant is in place, there’s very little to do except to check that the rent is paid weekly. This takes less than a minute over the internet. I do make it clear at the start that I am to be advised if rent is late in coming.
As for minor repairs, I normally tell the tenant to get someone in & fix the fault & deduct the expense off the rent & the invoice be sent to me. This happens infrequently if your property is well maintained.
The single most important thing to managing your own IP is to do your due diligence on your tenants as you would when you buy your property. After that, it’s a breeze. I’ve done this for 10 years now. As a qualifier, I still leave my commercial properties to professional managers.
I’ll give my experience for what it’s worth. When I bought my 1st IP, that was managed by an agent. And I was not happy & eventually sold that property.
For my next IP, I decided to handle it myself. The toughest part is finding the right tenant.Most of you will agree that your tenant is your most important asset. So how many of you spent the time to know your tenant? When you handle your own property, you really get to know your temants.
To find your right tenant, just have a face to face conversation with each applicant. The one you feel most comfortable with is usually the best. If you have the slightest gut feel that it is not ok, I’ll give it a miss & advertise all over again.
I normally get a tenant within two weeks. And most stay for a couple of years. I have 3 IPs which I handle myself. All the tenants have been there for the last 3 years.
Admittedly, all my IPs are within 10 minutes drive from home. I also have a rule for myself. I must be prepared to live in my IP. For that reason, they are well maintained, both in & out. And believe me, it doesn’t take much effort if kept right from the start. It is also very easy to get a better tenant.
When you get to know your tenants, they become very reasonable with requests. There’s a lot of give & take. But keep the tenant happy, & you’ll have very little to do after the initial stages.
I’ll encourage you to give it a go if your IP is within a reasonable distant from home.
