Russ,

If you can increase the valuation by $20k, you will only be able to up to 90% (with LMI) and 80% (with no LMI) of that as equity for another investment property.

I recommend you do a serach on valuations in this forum and you will see many comments on this matter.

James

Thanks for all your responses.

Interesting to note that on another forum, I did not get one response to this question. Thanks again.

James

Julian,
I am not totally sure of the specific cost. I have seen costs on the net of between $500-$700.

I will be going to see Gatherum Goss accountants to discuss these issues once I have read a little more about them.

James

I think you must mean stamp duty exemption for first home buyers in Queensland.

Not sure of the specific date as I think QLD government trying to put it into place before-hand. Initially it was due for May 1, 2004.

http://www.osr.qld.gov.au/taxes/duties/concession_firsthome.htm

You need to take occupation of the property within 12 months from…[Read more]

Here’s a link to assist you

http://law.ato.gov.au/atolaw/browse.htm?toc=05:RUL:Taxation:1997:TR%2097/23%20-%20Income%20tax&c%20deductions%20for%20repairs

James

Tro,

1. Are you claiming depreciation benefits on the property? If not, this may assist in returning the property to cash flow positive.

2. You mention repairs – not sure whether they would fall under repairs (for wear and tear and deductible) or of a capital nature for tax purposes. If you keep, a tax depreciation schedule would take this…[Read more]

In Melbourne, it is fair to say the new auction rules (volunatrily implemented by most agents from last year), but into force from Feb 1, in conjunction with two interest rate rises has ‘spooked’ a lot of people.

However, in the areas that I had been looking, the effect is that is now takes a little more time to sell, to get the price you are…[Read more]

Steve,

Check this link out – http://www.pmigroup.com.au/calculator.asp

Usually, as a rule of thumb, 1.9% of the loan is the mortgage insurance fee.

James

Steve,
I have seen 15 (I think St George), but I am sure there are many others.

James

Interface,
I don’t know the area, but one of the factors in determining value is rental return. Whilst larger homes generally have lower yields, if the average rent for the property is $250, then even at $360k to $380, that is a very low yield.

Look at comparable sales before putting in an offer.

James

Mika,

A lot of debate about negative gearing but ultimately, it is just a tool, to assist you in buying and holding a property.

Get the right property and if negative gearing can be used to assist, that’s a bonus.

James

I have just bought in QLD and I have subject to finance approval at the purchasers discretion.

James

Elves,

In the other example and wording from that ruling, where private arranagements between the parties to fund the purchase are not affected for income tax purposes. Therfore if you purchase an IP as joint tenants, the ownership is 50-50. If one person brings 80% of the funding, the ARO does not recognise these private arrangements.…[Read more]

Chan I think Westan was saying if you are on a salary of $100k, a capital gain, in this instance, would effectively make your assessable income $200k. The additional $100k, would be obvioulsy taxed at the marginal rate of 47%. Therefore the $47k figure.

James

Another thing to ponder.

Save, save, save. When you are ready to purchase an IP, if you don’t have 20% plus costs, you will need mortage insurance. Mortgage insurers will need to see 6 months worth of savings. Savings account like ING are pretty good, decent interest rate and can be set up on the net, with periodical payments from your bank…[Read more]

Anastasia,

Thanks for the question because after doing some searches on the ATO web-site, I think I have an answer for you. (And added learning for my benefit!)

This is an exert from Taxation Ruling 93/32 Income Tax: Rental Property – Division of net income or loss between co-owners.

If Mr and Mrs X owned the property as tenants in common with…[Read more]

Ezy,

Guide to Capital Gains Tax – http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&page=1#H1_1

James

Hi Techa,
No doubt the power of leverage.

The numbers you have assumed about capital growth of shares and property, how did you determine the 3%. Over the long term, many of the studies I have seen, pretty much have return on both investment classes very similar and around 8%.

The only difference being that you are able to borrow more on…[Read more]

UNCHANGED

James

Info at http://www.osr.qld.gov.au/taxes/duties/concession_firsthome.htm

James