C2, Michael888 and harb.Happy New Year to you and all the regulars on this happy happy forum.And thanks for all the valuable information from you guys and all the other contributors.

Just copied this from http://www.bantacs.com.au newsletter.Bantacs Newsflash– 3 –Capitalising InterestJust by way of a comment PBR 84855 further verified capitalised interest is deductible by stating:'Further, interest on a new loan used to repay an existing loan, or pay the interest expense incurred on anexisting loan of this type will generally also be…[Read more]

Terryw,            Thanks again for reply. Understand more now.I will do some maths and look at it over time. I have never tried one of these before, I guess I am just too conservative.

devo76, well put.But as Linar says, you can always pass them onto your kids, so they have a head start into the buy and hold strategy and hopefully get to the positive return stage and continuous the growth, that us mums and dads have started up for them.You need to start educating your kids when they are young, so you can be confident that your…[Read more]

Terryw,            Thanks for reply and education.I can understand what you are saying and understand the tax claim, but , boy it seems so dodgy to me. Basically, its saying, Hey I got this loan which I can't repay. So I'll borrow some more to pay the shortfall and claim it as a tax deduction??

AnthonyJFAgree with above.New estates usually take a long time for house prices to rise over time, also usually located out away from rail and shops etc.New house will generate more deductions over a longer period, but I think I would go for a near new home rather than get one built and have big hassles with building and never ending bills for…[Read more]

My question is…. How can you claim the deductions on the LOC if it is not associated with the Investment?The IL is for the house, so how can the LOC you build up be put against the house???You can only claim the interest against the property that is getting rental.I cannot get a loan for $400,000 against a $350,000 rental property??Am I missing…[Read more]

chrislang,                 Where is the house? If its in Northern Australia then most houses have had some termite treatment ( or should have ). Something like one in three houses are or have been attacted by termites, thus its probably not a concern, especially if the pest inspection says no active termite infestation noted.               …[Read more]

timaruboy,                  Dont buy now. Wait. Keep reading, but don't belief all that crap in API. API is a magazine mad up of one off articles of one off situations, it tries to give you the impression that you will get the same result as the people in the article.Yes, you can make a profit in property, but not at the moment. House prices are…[Read more]

Don't Buy  – Wait…. 2009 will be bad for employment and houses above $300,000 will fall and fall over the year. Cheap houses will sell to first home buyers and they will live in them for 6 months then rent them out and move back home.Just look at any suburb on realestate.com or any other house site, I have been watching for months now as house p…[Read more]

Mark76g               Most house builders are now going broke because it costs them more to build a house than they can sell them. Houses only a few years old are now much much cheaper then new houses, why would anyone buy a new house?               You may be lucky and get someone who cannot resist the look and feel of a brand new house ( or unit…[Read more]

Interest only is the way to go in a rising market, but today is another story.TerryW is probably correct still, you can go for interest only to start and work your way to P & I or just put some cash into the loan when you get a bonus like tax refund etc to slowly make an impact and bring down your loan over time, thus releasing cash for other…[Read more]

mark76g                Good point, well put on paper ( sort of paper).I think many people have thought of your idea and come to the same conclusion.We get a lot of experts telling us how they made millions by doing the obvious, but , as you say , they are always in a rising market. They just happen to be in the right place at the right time and…[Read more]

hbbehrendorff,                         Unfortunately, I have to agree.I have seen it coming for the last few years, and read about the point of no return regularly on finance pages and postings etc by economists, but , no one seems to listen.I am prepared, what about the rest of you?You can still make money, but not by negative gearing, you a…[Read more]

Focus06         Also, get 3 phase air conditioning if you can, its more efficient and cheaper to run.When I lived in the tropics we had external horizontal aluminium blinds (maybe not called blinds I forget ). They were great for shading the windows. You see them on old highset houses in the tropics.Agree with most of above, except I persona…[Read more]

hgwells,               What has storms got to do with landlords insurance?Do you mean house insurance? If so try budgetdirect, they have saved me hundreds each year.

pyramid,               Love it. Especially the bit on the end.O those poor Americans. I wonder if it may be those poor Australians in 6 months?

I can remember the old days of saving money in the bank and then paying interest to the ATO in advance for the next years interest etc. I just lost interest in doing that.

TerryW,             What year was that??

wealth4life,                    What no hits yet!!! hard to believe.By bottom I presume you mean the stock market?? or do you mean when will the Sydney or National house prices bottom?Maybe you mean the superannuation bottom?