Thanks Guys this is really great info i really appreciate it.
So let me get this right, i can use the 1st IP as a deposit and then borrow the other 80%, so would i be able to pay the mortgage section off first or would it be there for the life of the loan????
now if i wanted to get 2 more IP’s could i use 40% mortgage divided over the 2 new IP’s…[Read more]

Ok
At this point in time my brother only owes about $10k on the property, so i don’t think that that will be a problem.
once i beat him into submission to sign the loan documents, where do i go from there???
do i take the loan out and use the house as a guarantee on the loan or is there a better way ie Equity mate. not that i now how that works…[Read more]

Ronulas

I asked a simular question not long ago and was put on to this address

http://www.ato.gov.au/individuals/content.asp?doc=/content/42782.htm

This explained everything that i needed to now, give it a try, i learnt a hell of a lot from it.

Ty

Go hard or go home

ok guys

I have started to read the stuff on the ato web site that derek informed me of, the way i read it, if i have a loan to add the extra room on, i can claim all the interest incured on the loan. Am i reading this correct????
As for the depreciation, i can claim this each year but only get a certain % back each year, but can the new room be…[Read more]

Thanks Derek and Dram’s this infomation is great it’s just what i wanted sorry needed to now.
Just to extend on it a bit more, we are looking at building another bed room on the house, the rest of the house is old can we do the depreciation on the new extension??

Ty

hI gUYS.

I AM VERY INTERESTED IN WHAT YOU GUYS ARE TALKING ABOUT AS I AM ABOUT TO START INVESTING WITH MY BROTHER, TROUBLE IS I DIDN’T UNDERSTAND ANYTHING THAT YOU HAVE MENTIONED HERE IF YOU COULD EXPLAIN IT A BIT FOR ME IT WOULD BE GREATLY APPRECIATED. WE HAVE ONLY DECIDED TO GO PARTNERS OVER A FEW BEERS AT XMAS SO I HAVEN’T LOOKED INTO IT THAT…[Read more]

Collie

One thing to look at is if you are going to rip up the carpet and polish the floor boards, how old is the house/floor boards, what type of timber is it and in what sort of condition are they in. might be an idea to go under the house and have a look at them to make sure they are in good condition or that reno figure could blow out in a big…[Read more]

Thanks for the input people.
Tony the house is actually in Tassie, my brother only paid $15000 for it 5 years ago, has spent around $15000 extra on it but is in short supply of cash to finish the reno’s, and wants me to put in $15,000 for a half share(it is worth approx $150,000 now), i will have a look at the web site you posted and see if there…[Read more]

I have been thinking about doing the same thing but the Van i was looking at has a long term tenant in it already(old couple) and think that if the van you are buying is in the same boat with a long term lease i couldn’t see a problem. Remember to check out other costs though, ie rental of the caravan park lot etc would have to be factored in and…[Read more]

Terryw

He paid cash for the house 5 years ago, but due to his work(dairy farmer) he doesn’t have the time or money to finish the repairs. I am currently in the Navy and am going to Iraq for 6 month and will come back with an extra $30,000 for being there so i will be paying him in cash as well. i can understand that you think it is a deal to good…[Read more]

Hi Neo

As i have previously stated i am originally from tassie on the north west coast(Burnie). personally i would have stayed away from Q’town, yes the house was probably cheap but the number of possible tenants in the area is pretty stagnent and as you said yourself the mine barely escaped liquidation, this has alarm bells ringing for me…[Read more]

Hi Rav

Thanx for the input, the $120 a week rent is a figure that is on the low side for the area(smithton) and the reason i stated that is because i work on the theory of the lowest figure and if i get more than that it’s a bonus. At the moment the problem is not the contracts between me and my brother it’s trying to get my wife to understand…[Read more]

Hi All

this is my first message so bare with me
Being originally from Tassie(Burnie) i have considered trying to buy property down there but was informed that it was hard to find positive c/f property. i read Steve’s book about a year ago and have been trying to get into the property market ever since but i am finding it hard to get the cash up…[Read more]