Hi is it possible to have the rent from my IP (approx $30,000 pa) paid into my wife's bank account, so its considered part of her taxable income, (rather than mine) even though the IP is in my name? I'm on the top marginal tax rate and she is on the bottom

I know I've posted on this before but, after hearing yet another story from an unlucky home buyer, I thought it prudent to issue another reminder.
Turn on those electricals when inspecting properties! Especially big ticket items such as air con units, fancy rangehoods, dishwashers. At the very least ensure they have power and are doing what they're supposed to. An acquaintance told me recently they moved into their recent purchase to find both air con units in non-working order! They never tested them (as did the building inspector but this is fairly common as many of them don't test electricals) or asked the agent if they worked or not. Lesson learned- now they're looking at installing ducted as an alternative but aren't happy with their lack of DD. Buyer beware still applies!

From the desk of Domain.....

The Reserve Bank's cash rate may have risen one percentage point in the past five months, but economists have warned home owners to brace for more to come.

Commonwealth Securities chief economist Craig James said yesterday's interest rate rise of 25 basis points was a precursor to at least two steep rate hikes in 2010.

"Our view is that the cash rate will be somewhere between four and a half and five per cent over the second half of the year," Mr James said.

"We're at least 35 basis point short of where the Reserve Bank wants [interest rates] to be [currently], if we look at decade averages.

"The best the average person can do is assume that by the end of the year interest rates could be as much as one percentage point higher, which is equivalent to four typical rate rises. If you factor that into your calculations you're not going to be too far wrong."

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It's been interesting talking to fellow investors about such forecasts with IR's - most I've spoken to are comfortable with another 1% rise and don't see it a an impediment to investment. However, if the banks continue to hike rates up without the RBA doing so, it could be a different story.

Has any of you got IP through DHA and if so have you got rent increase in the last January cycle?

I've got my interests in a house thats in a flood prone area outside of newcastle.

Purchase price is 370, last sold for 330 in 2007.

Anyone had any dealings with homes in flood prone areas? Any idea on an insurance quote for flood insurance? Thanks.

Hey all,

Just about to get my first home loan. Just curiously, is this example correct?

$300k P & I loan... after a couple of years the balance is say $270k. If i move out of this PPOR and make it an investment house, i can only claim 90% of this loan (balance) $270k as investment since i knocked some Principle off.

If i was to refinance in a couple of years and effectively 'recoupe' that principle i had already paid, and got a new loan for say $330k (extra $30k from capital growth) and made that house into an investment property, the whole $330k would be tax deductable right?

Just curios what loan option to go for. I'm looking at a home package with offset account.

If i had an IO loan, and saved excess money into an offset, then i'd have money for a deposit for a 2nd house.. Is this the same as paying P & I, then refinancing when ready to buy 2nd house and getting the principle back out for my deposit?

Hope it make sense.. :)

Hi i have been searching the web hi and low for a simple rental .xl spread sheet where i enter my tenants weekly rent and it automattically enters the paid to date. I was a property manager so know how all the programs work but could never buy a program. I have seen Quicken but for me its too complex.

I have seen free downloads but am reluctant to try.
Hope someone can help.

cp

I attended the annual REINSW sales conference yesterday and was on a panel with a well respected valuer, Colin Rooke, who does a lot of work in the Eastern suburbs of Sydney. He gave a presentation on how to use comparable sales when valuing, and it was quite informative and useful- especially in my line of work as a BA.

One thing that stood out, however, was his comment on comparing properties with different quality inclusions eg: curtains, light fittings, carpets etc. His comment was that valuers don't take these items into consideration at all, as they are all items that can be physically removed by owners prior to selling (and he was mainly referring to Mortgagee in Possession sales) and so make no difference in valuation reports. I wasn't aware of this, and found it noteworthy as quite often dwellings can fetch higher prices, due to the quality of such inclusions. Food for thought, anyway.

Hi all,

Getting ready to buy my first house and have a question in regards to Mortgage Brokers, are they worth it, why etc..

I just got back from ANZ and they said they'd pre-approve me $335k etc.. But i saw the mortgage insurance for them was close $6k. Now... A month or so ago, i went to see someone at Mortgage Choice and they quoted me around a loan or $320k or so and mortgage insurance was a bit over $4k..

My question is: Why the 2k difference? Who's ripping me off more?

Of that $4k the mortgage Broker quoted, what expected commission would they receive on this? I ask, because recently i read an article at news.com.au about travel agents charging 30-50% more for travel insurance, so whenever i hear this word 'insurance' one must expect they are being ripped off so someone can type some figures in and make a smooth 20-30% commisson.

Anyone had any dealings with Mortgage brokers / banks, preferences? Thanks.

Does anyone know of any property managers in Townsville that provide a good service. We have had a house on the market six weeks and dropped the rent by $30 and the property manager can't understand why it isn't renting. We asked a friend to drive past it today and she tells us the grass is waist high and junk mail is pouring out of the letterbox so no wonder its a problem to let. Has anyone used and had a good experience with a property manager in Townsville?

Hi guys :)

I am a newbie looking to buy my 1st investment property in Sydney. I have had some equity in my residential unit so I can use that as a deposit for the IP.

I have read some research and they said houses with land has traditionally had higher growth than units. But in the past few year, units has overtaken houses in terms of capital growth.

So it made me confused on which options would be the sound investment in a long term. I have budget to spend around $300K to $350K. That means to get a house with land would be around Penrith area. If to buy a unit, it would be near inner west somewhere or near Auburn, Homebush Bay, stratfield (2 BR unit) etc.

Sorry if this may be a silly question. It's hard to keep up with all the trends.

Any thought would be appreciated.:)

Cheers

Has anyone got any great tips/tricks for negotiating prices with real estate agents in a private sale situation? You always hear stories about some of the tactics real estate agents use, but are there any good tactics buyers use?

Look forward to hearing your views!!

Regards
Property Buying Guide

Hi All,

I would like to open a discussion about buying an IP in Bendigo. Is anyone familiar with the area and/or an investor there?

I am thinking about buying my 2nd IP close to the La Trobe Uni and renting it to students. My aim is to purchase a 4 bedroom townhouse or house, ideally something which will be positively geared.

Any comments about capital growth potential for Bendigo and rent return would be much appreciated.

Cheers,

Mike.

I am currently researching for positively geared property in queensland

so far I have these suburbs under my radar:

rockhampton
aldershot
torbanlea
howard
blackwater
emerald
dysart
middlemount
stanwell
hervey bay
mount morgan
dalby
dirrinbandi
capella
__________________________________

My 2 favorite are Aldershot and Stanwell,
becuase both sit about 5mins from large regional city's
(rockhampton/maryborough)
Both also have potentiol for more employment with mining projects.
Houses under 200k aldershot does not have a lot of land atm
Both areas you can buy blocks around $50,000.
Both are a short drive to the coast stanwell 45mins to Yeppoon
and Aldershot 20mins from Toogoom.

If you have more areas in qld or another state please ad them would also be good to hear your favorite areas and why.