Its a tough one. I have not been through it yet but these are my thoughts.

1. If you sell before finding new PPOR. You may be limited in whats on the market and you may not find the PPOR that you really want in the time you have. Or you have the extra hassle of renting and moving twice. This too costs time and money.

2. If you buy new PPOR because its what you really want then the downside is that you may accept or get less for your old PPOR as you need the funds.

So whats worse – buy a new PPOR that really does not suit your needs OR get less money when you sell your old PPOR.

If you intend to stay in the PPOR for many many years then getting a little less for your old PPOR may be the lesser of two evils.

Thats probably what I will do when its time to upgrade my PPOR.

Anyway – just my thoughts.

I pay my wife $750 per property. I work full time and she looks after the kids and properties. The investment properties are in my name.

The management fee is declared in her tax return. I get the deduction against my income and she pays no tax on it as its under the income tax threshhold.

I have a mate who pays his wife $1500 per property. I think thats a bit high, but his properties are interstate.

Thanks Wilandel

Thanks for your comments. One day I can see myself going to meet guys like you, richmond, henry kay and monopoly.

My understanding is that any deprn claimed reduces the cost base when calculating the gain.

eg. Cost $200k
Deprn claimed during life of peoperty $10k
Selling price = $250k.

Gain = $250k – ($200k-$10k) = $60k Gain.

Please correct me if I am wrong.

I dont buy for depreciation purposes.

I actually prefer to buy older places. I feel it works out the same if not better to buy an older place. When you buy newer you pay more anyway and for a worse position.

As an example. Lets say you can buy either.

1. An older 2 bed unit in Mentone – 18 kms from city. OR
2. A new 2 bed townhouse in Edithvale/Chelsea – about 22kms from city.

In 5 yrs time both they will look similiar and the older one is closer to the city and therefore in a better position.

Thats how i look at it. Location is better than short term deprn benefits.

Leigh K, wilandel, minimogul, jetdollars

How many of you guys are parting with the $495?

It would be good for future participants to know who is part of the team and who are actually parting with the folding stuff.

We dont want everyone to think that some of you guys pay to attend this course when you may in fact be part of the team presenting or mingling.

Mines all gone now

1. Sewing Machine $400
2. Two tickets to formal ball tonite $200
3. A great dress for my wife. $300. Boy does he look hot.
4. Bought a suit in the Myers Sales $300. Got it for half price. Take an extra 25% off the already discounted red ticket price. plus shareholder discount. You beauty. shareholder card finishes end of july.

So there goes the $1200.

I agree with Baloo. We are at a point where interest rates are on the rise. As interest rates rise property prices fall as the cost of owning them goes up.

Read the following article in todays Age –

A potential interest rate rise will be back on the agenda when the Reserve Bank board meets next Tuesday after the release of figures showing a surge in job vacancies and credit growth.

The article can be found – http://www.theage.com.au/articles/2004/07/01/1088488095509.html

I am not sitting on my navel as you so put it – so please dont say that about others that dont share your view. I am looking after my existing portfolio.

I recall periods of years where property prices went no where. I believe we will have a period like that. I dont reckon there is a hurry to purchase now.

The US economy is expecting rate rises of .25% each month for about the next 4-6 months. So their rates may increase by about 1% by Xmas. And if the people here in Australia keep borrowing then we may see a rate rise here too. Especially on top of high job vacancy rates.

Anyway – thats why some buy and some people sell. Your buying and I just sold one recently.

The Article said

The quarter-percentage-point increase in the federal funds rate will likely be only the first of many rate hikes over the coming months as the central bank returns interest rates to a neutral level.

The vote in the 12-member committee was unanimous. All twelve Fed banks also requested an increase in the largely symbolic discount rate, an unusual level of consensus.

The central bankers signaled that they would raise rates at a slow but steady rate, probably a quarter point hike at each meeting, economists said.

My analysis –

Kool. The I have anticipating the above and am waiting for opportunities to arise over the next 12-18 months. Property prices wont increase much if at all and may fall further in places – so there is no hurry to get into the market further now. Rents may even increase over this period making it more attractive to make purchases then.

It would make no difference at all. Who looks at the state Trustees web site anyway to buy a property.

I would prefer to have a home sold by an agent of one of the beneficies than just the state trustees appointed one.