Investment Property

Interest Rate Cut by Reserve Bank

Thumbnail image for Interest Rate Cut by Reserve Bank by Kara Peachey 4 November 2011

The Reserve Bank’s decision to lower the cash rate by 25 basis points to 4.5% aims ‘to deliver an added boost to confidence’. Why was there a rate cut? Global financial markets have recovered somewhat from the turmoil of recent months. Australia’s terms of trade have now peaked and will decline somewhat in the near term, but they remain very [...]

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How to Calculate Cost of Negative Geared Investment Property – Video

Thumbnail image for How to Calculate Cost of Negative Geared Investment Property – Video by Arnold Shields 5 October 2011

Negative gearing allows you to offset the cost of buying an investment property against your other income. The tax savings from negative gearing reduce the after tax cost of buying an investment property. One of the forgotten aspects of negative gearing is depreciation where you can claim a tax deduction for a proportion of the cost of building the property [...]

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Investment Property – What Structure?

by Gavin Bateman 21 February 2011

Investments can be held in a number of different structures, e.g. individual, partnership, company, trust and superannuation fund. There is no one size fits all. Choosing an investment structure largely depends on a number of factors including asset protection, financing requirement, income tax, capital gain tax, income streaming requirement and cost of compliance. The advantages and disadvantages of each investment [...]

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What is Negative Gearing?

by Gavin Bateman 13 February 2011

Negative gearing is a form of financial leverage, where the funding costs exceed the income returns. Two most common examples of negative gearing are: An investor borrows to invest in a residential rental property. The rent received is less than the interest on the mortgage. An investor borrows to buy shares (i.e. margin loan). The dividends income cannot cover the [...]

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Investment Property Rental Expenses

by Kara Peachey 12 October 2010

Some of the expenses you can claim as deductions on your rental property include: Advertising- This only includes advertising associated with obtaining tenants. Advertising costs associated with selling the property add to the cost base of the property and are not available for an immediate deduction Bank charges- any fees or charges associated with those bank accounts from which you [...]

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Capital Growth on Sydney Property over 17 years

by Arnold Shields 8 October 2010

A recent article in the Sydney Morning Herald discusses the increase in house prices from 1993 to 2010, a 17 year period, in which the average Sydney medium house prices rose 233% from $188,050 in 1993 to $626,444 in 2010. It is interesting that they used a 17 year period from 1993, which was the low point of housing prices [...]

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Negative Gearing Calculator – Introduction Video

by Arnold Shields 3 October 2010

Our Negative Gearing Calculator is easy to use without drowning you in a sea of numbers, so I thought that I would put together a quick screencast video showing how easy it is to use. Our Negative Gearing Calculator is here: http://www.dolmanbateman.com.au/online-tools/negative-gearing-calculator/ One of the really powerful features is the ability to change variables such as interest rates and depreciation [...]

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