Do your properties pay you?

I'd ask too. Generally a QS will be able to tell you over the phone if its worth getting a schedule done for your properties. It will cost you nothing to ask them.

 

There aren't any improvements

 

End game is LOR, but not yet. Close though.

 

But you had to "improve" them to rent them, no? There's your improvements.

 

Paint, secondhand carpet and and old kitchen don't really count. I did not dismiss the idea of depreciating lightly, I actually put a fair bit of effort before ruling it out.

 

I'm no economist but I remember hearing about stagflation in the 70s. Be careful what you wish for! Ps I was only 5.

 

Hey all

We have an IP owned some 8 years or so.

Being in Sydney the yield is not one that has us laughing too much but the CG has been worth a smile.

Initially, we borrowed 105% and have knocked > $300k off the loan - now cash flow positive and neutral for tax purposes (read: depreciation).

Have 2 more years to go of a 5yr fixed rate and placing some extra funds into separate bank account. These funds will be the future offset amount.

We don't really like debt too much.

But when the fixed period of the loan ends we have decided to do the following:

1. Variable IP loan (approx. 25% LVR)
2. $30k or so into an Offset a/c
3. Rent paid into offset
4. Loan repayment out of offset account.

Forget about property, rents can pay it off and it gets no more of our capital, forget about the property.

From 2019 our 'baby' can stand on its own feet - it has taken too much of our capital, that is it - tenants can do the rest.

Forget about the property and get on with life.

Property won't be paying us as such but it can then look after itself.

Best to all

 

Yes, a pittance each.

 

High inflation will mean interest rates far in excess of 8%.
The main reason for the infamous interest rates of 16%+ was the underlying 10% inflation rate.
Be careful what you wish for!
Marg