Property Investment Q&A

  • I’m considering this property with a large backyard and my friend suggested that I could subdivide the land and build a three bedroom house behind the one already there. I’ve estimated the costs to be around $400-$500k. Will this be a good long-term investment for me, or should I buy a new property altogether? read more

  • I’m selling a property and a potential buyer keeps changing his mind. First he tells me he wants to buy, then he says forget it. Then he says he wants to buy again, only to lose interest again. He’s finally on board again, and now we're awaiting settlement day. If he cancels again, how much and how can I claim losses on fees and costs incurred? read more

  • A property investor from Western Australia wants to subdivide, but is having problems with development approval and is struggling with cash flow. Should he rent out his home while he’s developing his plans, and what effect would this have on his tax situation? Read on to find out how our online forum reacted to his conundrum. read more

  • An investor with a $450,000 budget is looking for advice on what and where to buy in Sydney. Read on for the interesting tips that the Your Investment Property online forum community sent their way. read more

  • When you buy off-plan units, is there a way to calculate the right price for an off-plan project in a certain area? Or is there a guideline to compare the price of a brand new apartment to that of a five-year-old apartment with similar features in a similar location? read more

  • I know that depreciation doesn’t apply to properties built before 1985, but what about renovations done since then? If I install a new kitchen for example, can I start claiming depreciation on that because it was installed after 1985? read more

  • I’ve had the same tenant for three years and haven’t increased the rent since he’s been there. I’m starting to feel the pinch financially with my mortgage and need to up the rent. My problem is that the tenant said he’ll move out if I do and I don’t have a buffer in place to deal with even a short vacancy. How can I manage this situation? read more

  • I’m eager to start picking up more investment properties, there’s just one problem: I’ve recently become self-employed and worry about my ability to get finance. What can I do to reassure the bank that extending me a line of credit is safe? read more

  • My wife and I own an investment property in Sydney. We’re renters ourselves, but want to move into the investment property to save more. What would happen if we lived there 3-5 years? Under current tax law, could we turn it back into an investment property after we move out and buy a PPOR? read more