If you are investing for the long term (>3-5 years), it shouldn't be an issue. For example, land in Caroline Springs is limited and once its gone its gone.

And while there are new land releases, they are getting deeper into the estate (i.e. further from the city). So you'll find the demand for houses in the earlier releases is quite high. On my street alone in the past 4 months, there were 3 sales and all were sold in less than a month of putting up for sale !

Yes I agree you can find some great deals in Victoria. Some investors have panicked (due to the drought crisis) and I have seen some properties go for way below their true value. So have a look around and you'll amazed at what you can find.

I recently bought a cashflow positive property in the Winmera region without really "solving any problem" (like Steve says) other than a fresh coat of paint. Not exactly "11 second" stuff but good enough returns nonetheless for lazy people like me who like to find solutions ..

Like Andrew said, a house wirth 400K renting out for 200 seems way below market rate without knowing too many details.

Is there any way to increase the rent ? In most cases, the rent should be much closer to 300-400 pw for a place of that value.

Don’t get me wrong, I neither against or for the trust structure. Frankly I don’t know enough to have an opinion either way.

Thought I would just raise another view on trusts from an experienced and respected property investor for consideration and discussion.

I was just going through one of her books at Borders yesterday when I came across the part where she expresses her opinions on structures like trusts.

Naturally, it stumped me coz it kinda goes against general opinion here. I’ll pop by Borders tomorrow and see if I can find it again so I can post the book title here ..

I was flipping through a Margaret Lomas book and she says that trusts are a waste of time and do not really offer any protection.

What do you guys think of her statements ?

Hi Nehal,

I am extremely impressed by your interest in investing as a 15 yo. God knows what I was doing at your age, probably more like hanging around the mall staring at chicks !

I would strongly recommend you start off by reading the book “Rich Dad Poor Dad” by Robert Kiyosaki.

It is written in a manner that is easily understood and portrays the investment philosophys and lessons that Robert acquired when he was not too far off your age.

Good luck and remember – NO question is a stupid question !

I not sure I agree with you Kiwi.

For example, I buy a new house and move from my current PPOR into the new house. Then I rent out the old PPOR. I believe the interest would then be tax-deductible although the loan was originally taken out as a PPOR loan.