Have not heard of them, however, I have also been looking at Brisbane/Gold Coast and there are plenty of developments/property groups/agents all looking to ride the property wave in SE Qld. Do your research. I am going to be be purchasing in the area, however only after normal due diligence.

Their advisor is using a negative gearing approach ie…[Read more]

Not aware of any model/formula etc, however you can try this and see how you go.

1. Go to http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.asp
This allows you to calculate your tax payable based on the income you nominate for a given time period (ie weekly, fortnightly, monthly or quarterly)

2. Gross it up to an annualised figure ie if…[Read more]

Of course, if you read the article below, maybe the phenomenon is more pronounced in some areas than others.

http://www.couriermail.news.com.au/common/story_page/0,5936,8705291%255E952,00.html

James

Will be purchasing one (1) within the next month. Currently tidying up offers etc.

Will then have to wait until approx February 2005 to be ina position to take next one.

James

From the advertisement, it mentions the Quest Group, who are a large chain of serviced apartments. I have seen this before, where they (Quest or similar) do pay all outgoings The only thing I would question is what capital growth you would get from this over the long term. My opinion is this would be minimal.

James

Judi,
Most banks in my experience, would not allow a second mortgage to be registered on title. However, it can be an unregistered mortgage – this will probably increase the interest rate though.

James

Interest rates are only going to increase as a result of an improving economic outlook, both local and international. Don’t forget, North America & Europe are coming off recessions and historically low interest rates as a result.

Whilst individually, it may be difficult to asses what that means for each of us financially, on a macro level, that…[Read more]

Mark,
That is one huge lot of negative gearing if I am reading correct. After your deductions, you are still actually paying an additional $17k. Wouldn’t this also be tax deductible or are you effectively paying no tax??

Don’t think negative gearing is the issue as a general principle, just whether it corresponds to your overall property…[Read more]

Of course the extra monies can be funnelled into an offset account on your PPOP to reduce interest payments each and every day!!

James

Ultimately it depends on the area that you are looking to invest in and what suits the area. Apartments tend to suit younger people and to a lesser extent empty nesters.
not familes.

You make a valid point to negative geared property, that eventually, either tax benefits are exhausted or you do not qualify because of serviceability issues. A…[Read more]

TerryW,
I guess what you did lose is time. Time to invest into something else which may have turned out better.

There is an opportunity cost for everything.

James

I just wish for a Collingwood premiership in 2004. (Have been wishing the same thing every year since 1990 though!)

James
GO PIES

Traceytd,
In priciple, the Clayton property is the one to choose for all the reasons previously mentioned. However, if the Clayton apartment is 70sqm, that means just under $4000 per sqm. Now for outer Melbourne area, that is somewhat pricy, I think.

What are the quality of the finishes? Builder? Architect/designer? Floor plan, car parking…[Read more]

Defintely not speaking for Steve, but a couple of comments/questions.

There are varied positions regarding negative gearing versus +ve geared property.
Are you working? Negative gearing requires you to work and pay tax
How much tax do you pay? Will dictate the scope of reductions in tax and whther it is worth pursuing in principle.
How long do…[Read more]

You can do it yourself or get an accountants assistance (for a price) obvioulsy. The 221D from is now called Section 15-15. The actual form you need to fill out and submit is on
http://www.ato.gov.au/content/downloads/NAT2036e2004.pdf

James

Elves, of course inflation from what I can recall from my economics classes in the late 70’s & early 80’s was around this mark and a touch higher. One of the reasons for de-regulation of the banking system. The banks losing money as “real rates” were actually negative.

However, a young family, both parents working as unskilled labour with a…[Read more]

Accalam,
From my somewhat limited experience, I think this is company share/stratum title. The more knowledgeable people on this site will confirm.

When I have looked at older flats to purchase, many have been company share. I know some of the banks will not lend as much on this as opposed to strata title. Just a thought for your future…[Read more]

Purple Kiss,
I purchased an OTP property a few years back and on each level there was no apartment number 4. So on the level that I purchased, level 10, there was no apt 1004. Apparently, number 4 is unlucky for the Chinese(??).

Depends on the nationality of your tenants, maybe number 8 if they are Chinese.

James

Consider most students today will attend a tertiary institution until about 22-23 and then go on to get a job.
Most will run their own car, have a part-time job, live at home, have a little bit of cash saved, gofor a holiday (maybe Bali or GC, Qld) and have an active social life, want to have nice clothes, mobile phones etc etc. (Notice I said…[Read more]

Can’t they re-finance existing home loan, rent out property in the suburbs. Surely that might assist them in getting a 90 or 95% LVR loan for the apartment. I know St george have a 100% loan facility, although income qualification is higher.

The numbers will dictate if this can be done. Whilst it might be an expensive mistake, I think just…[Read more]