I bought my first PPoR with FHOG and my boyfriend moved in there with me. His step-dad was my accountant at the time, and advised on all other sorts of property issues and talked about converting it to IP when I  moved out and the tax issues involved. He never once said anything about claiming 50%.

I would be extremely surprised if this was allowed under ATO law. I don't understand how a property could be both PPoR AND IP. I thought it was one or the other.

I wonder what they say about people who take in lodgers into spare rooms… But the fact he is your boyfriend and not a normal lodger, well, just don't go down the path of trying to cover up the truth – you never know when it may come back and bite!

another option D could be, subdivide, find a builder, get some plans and also get council approval and then sell "off the plan" as house + land. or even move into the new house yourself and rent out old house.

if you do option D, you still have the option of listing it as land only, or weith council preapproved plans for a good profit. plus that way you can control the house design and ensure you're happy, as you'll be close neighbours!

i'm sure if you can afford to hang onto it you'll have a better outcome by building yourself and renting it out, enjoy the growth on it and if its a good investment by the time the house is built there should be instant equity in it which you can then refinance and obtain for your other future venture.

just keep in mind that its not just the highest offer that wins, but its the one most suitable in terms of price AND conditions.

if you were selling and were offered either $245,000 only subject to finance, where your buyer had preapproved finance letter, settlement in 6 weeks and paid a 15% cash deposit, compared to a $255,000 offer requesting various clauses and a longer settlement and onyl 5% deposit, perhaps the vendor will choose to negotiate with just the first offer…

personally i've never really understood giving a price "from $245k" or "$245k plus" or even "$245 – 265k". the buyer in me says if they'll accept from $245 why would i offer $265? i think its just to give the agents an extra angle to try and push the offers up.

$15k after all deductions and expenses? that's a very healthy return indeed!

with development projects, its my understanding you can get a good project manager on board who can effectively guide you through the whole thing. if you don't know what to do, just hire the appropriate experts. it will cut into your profits, but with the right information, guidance, plans and approvals you should be set for good profits anyway. once you've done it once with experts guiding you the whole way, perhaps the second time you'll know more about what you can do yourself to save on costs and what is better left to the experts.

i'd love to go into development, but i think i need just a bit more $$ behind me, or a JV. I want to learn a little bit more too, buy another IP for rental and do some renos  before going after the development side of things.

i'd be thrilled to be in your situation!!

I have one IP, no PPoR. currently owing $190k, VERY positive geared, probably valued now around $450k. As soon as I have reached my 6 month probation with new employer, end of sept, I'll be jumping straight into a loan for IP #2. I plan to get #3 as soon as possible after that. I obviously have a lot less equity to access than you, but figure with IP#1 I have enough equity to cover 80% LVR on 3 properties without using any of my own cash. The aim is to have all 3 resulting in a net neutrally geared position within the first 12 months, and hopefully from the second year onwards they'll be +CP.

With interest rates low, and the property market in Perth in a good place, I'm wanting to jump in straight away and the only thing holding me back from future purchases will be the banks.

Don't forget with your house fully paid off, you can get a LoC loan against the equity of that which can be a fully tax deductible loan as far as I'm aware, as well as raising the LVR up to 80% of your current IPs. so you have loads of equity money to play with! use the leverage. I know if I had that sort of position I'd be going into small developing projects. But that's just my opinion.

I am wondering though why your properties are only slightly +CP when the loans are so low? Have you looked to see if you can add rental value there to raise your rental returns?

Definitely consider the FHOG, BUT as far as I'm aware once you are married, if your spouse has a property in her name it will make you ineligible.

I am looking into this at the moment, as I own property but my partner does not yet. We are thinking he should purchase our new PPoR in his own name solely, receive the FHOG and do this before getting married. The grant may be "only" $7000, but the real benefit is the stamp duty exemptions (and I think that varies from state to state as well).

mchutton,

as a fellow perthie i have also looked at East Vic Park for IP. There was some suburb report that came out a while ago which listed units in Vic park and East vic park as being good for future growth, whereas houses in these suburbs are already overpriced. there's loads of rentals, but a lot of the units there are old and rundown meaning the large rental market is driven by international residents and students. i'm not sure of the price of the apartments that you're looking at are, or the style of them, but i don't know what the rental demand for high priced trendy apartment would be and if you could find a good long term professional tenant. a good book i'm reading at the moment said never stray outside of 20% above/below the median suburb price as its harder to then sell or rent places at the bottom or top of the suburb.

if a financial advisor hands you a package on a plate for a fee which looks too good to be true, chances are it is. they will be taking their slice, along with the developer, both of which come out of your pocket. if you have the time to find a great deal yourself you should hopefully save some $$ !

good luck