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Redman new to investEd.

Discussion in 'Introductions' started by Redman, 27th Jul, 2009.

  1. Redman

    Redman Member

    Joined:
    23rd Jul, 2009
    Posts:
    13
    Location:
    Adelaide, SA
    Hi all,

    I'm very pleased to have just joined investEd! I've been looking around for a few weeks now, and have more than gained from the things I've read, so thought its time I could potentially give something back (and actually ask some questions:)). I'm 25, and my partner and I are looking at getting / continuing into investing in property reasonably aggresively. I'm an Engineer by trade, but now focus on process improvement, etc while at work, and cars, handy-man jobs and investing when at home.

    I've never written on a forum, but never had the want / need to. Seeing all the useful information and informative members on this one really inspired me - can't wait to expand my knowledge in all things investing!

    When I focus on things, I cant stop myself knowing all the ins-and-outs of it, which is precisely what I've done with investing over the last 2 months. My accountant even offered me a job (jokingly, but maybe not...). Anyway, until recently, we had our PPOR only - we've had it a few years and paid a chunk off. Just bought an IP with IO loan, used LOC against our house to do this, converted PPOR loan to IO with offset (as will one day be an IP), and now realise we can get another IP. So here we go!

    Anyway, I'd like to describe what we've done in a bit more detail and see what useful input you all may have about our strategy - but where should I do that? In this thread? (It's fantastic finding a group of people to bounce ideas off - none of my mates are in our situation / mindset, so I've no-one to discuss with).

    One question I have - why do people talk about keeping records of what costs are for what IP? Is it only useful for if you're selling the IP?

    Cheers,
    Red.
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    You'll need to justify your claim when you are audited by the ATO
    btw, welcome to the forum.
     
  3. Redman

    Redman Member

    Joined:
    23rd Jul, 2009
    Posts:
    13
    Location:
    Adelaide, SA
    Thanks for the welcome, Bill.
    I understand I need to keep receipts, etc of all IP spending, to substantiate claims. More specifically, I've read people suggesting to keep separate LOC's for costs for separate IP's, or at least keeping track of what cost is for what IP. Just trying to work out why this is important.

    I'm thinking, at tax time you have income from ALL IP's, and make deductions for keeping ALL these IP's. So why is it important (if this is so) to track or separate the costs per IP?

    Thanks all!
     
  4. islandgirl

    islandgirl Well-Known Member

    Joined:
    18th Sep, 2006
    Posts:
    118
    Location:
    Middle of beautiful Moreton Bay, Qld
    Welcome!
    One of the main reason I would be keeping track individually would be so you can tell which of your investments are returning better. That way you can decide whether to keep one investment over another
     
  5. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    For your tax return, talk to your accountant
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    My accountant insists on having all costs for my IPs tracked separately - I can't exactly remember why, but I think it has something to do with ATO requirements.