Just food for thought. It’s good to work through all the options before jumping in. If you are looking to use the equity in your PPOR, you might like to think about the CG of the area, so you can keep pulling equity out (I say that, keeping in mind that you don’t want to overcommit the PPOR).

There’s another property investing forum – somersoft.com.au. I think between these 2 forums you should get a number of recommendations of accountants who are savvy in how to deal with investing funds.

$100K income is $1.7m invested at 6% yield – very achievable from a $1m base. If you keep active in learning new techniques and how to manage the IPs, $2+ should be achievable in 15 years. Just keep active on the forums and read lots (Steve’s newest books are a good starting place, but there are a number of books, techniques and authors)!

bns wrote:

Thanks so much loan ranger & superAndrew for getting back to me!

For your information we are 30 years old, live in QLD and earn a total of 160k pa (80/80) = DINKS. Our (my) year goal is to have a big enough passive income by age 45 to retire or semi-retire atleast. I know it’s ambitious but where there’s a will there’s a way right!?

Ok so i’ll do some more research into family Truts and their yearly fees etc…

Oh BTW we also have just over 1M in shares split 50/50 (yes we consider ourselves very lucky)

A few questions for you loan ranger (very wise ranger). If you don’t mind I’d really appreciative your feedback.

1. Is there anyway we could use property to reduce our CGT once we sell our shares? I suppose the only way to reduce the CGT is to drip feed them out slowly over a few FY’s?

2. So lets assume I pay cash 100% for PPOR of say 1M. I sell half the shares and use that 500k for IP’s and keep the remaining 500k in the market to collect divs etc. Would that be a wise strategy?

3. I had a little read up on NRAS (only 40,000 avail I believe) and TBH they seem like they may be difficult getting our hands on some. Forgetting NRAS – if we were to purchase standard rentals around the 400k mark as you suggest, what sort of figures would that present?

4. With all of the tax deductions, how would this all work out should we be able to retire @ 45 and have no income to offset the tax against?

Once again your calculations have blown my mind – thanks so much for your input.

BNS

What passive income/year do you want from your IPs? A passive income of $150K/year requires $2.5m assets generating 6% yield. This should be achievable in 15 years from a $1m base (you only need to generate an additional capital growth through market forces and manufactured growth).

The only way you can use property to level the growth in the shares is to buy a loss making property – one that you sell for less than you bought it for. CGT is just a cost of investing. As you say, it would be best to drip sell the shares so that you aren’t slugged with huge CGT bills. Talk to your accountant about how to manage the shares and properties going forward. Hopefully you have an accountant knowledgeable in the various investing strategies – if not, put a question in the finance section on the forum and people will suggest accountants they use.

Do you need to buy a PPOR for $1m?? Could you not buy something a little cheaper and have more cash for the investing? If you use more of the $1m for investing, you will probably get further in the long run rather than buying big now to keep chasing going forward.

Read widely on a number of strategies. Do a search through this forum on NRAS and other strategies to research a number of perspectives. There’s more than one way to reach the goal. Also read about a number of different investment strategies – shares, property, cash etc etc. Each have their place in the long term wealth creation path. You have time.

Corey Batt wrote:

The big thing for me is maintenance requests, a PM should be able to handle these to make sure any *real* issues are resolved quickly, but also filter out any unnecessary requests/issues.

+1

This really urkes me. I am currently trying to get a fence repaired, at the request of my tenant and we have had to do half the PMs job for them, then they can’t even do their little bit – the saga has been going on for over a year

*(^&^(*&*%#%^%&^

The only thing that makes me keep them is that the tenant is great and I can’t change REA without kicking the tenant out first…

mattsta wrote:

The strategies mentioned above are sound. You can use a home equity line of credit (HELOC) in order to borrow against your existing PPOR or first IP.

My suggestion to to focus on the first property and make sure that is good. Take is step by step, and the first step would be to get your first IP. From there, it gets easier to get more properties since you’ve already done it the first time.

Agree in principle. I like to make sure my IPs are doing the work rather than using the PPOR as a big credit card. As soon as you can, refinance the IPs and keep them on the line, rather than keeping the PPOR’s credit maxed (I appreciate that the loans against the PPOR turn from non-deductible to tax deductible). If it all goes pear-shaped, you could sell the IPs and at least you still have a roof over your head!

By also keeping your IPs working, you will always be thinking about strategies to improve the IPs (eg are they still in a growth area, can you manufacture some growth to get equity etc). I realise this is slightly off track for this thread, but I thought I would throw in something as you start your path.

Englo also makes a great point – talk to lots of investors and find out what is happening on the ground both in strategies and market movements. A good place to start may be http://www.propertymeeting.com.au/ if you’re in a capital city. These aren’t the only meetings in property investing happening but can be a start to meet like-minded people close to you.

• This reply was modified 10 years, 4 months ago by  ChrisA1. Reason: More info

Tamara43 wrote:

Hi Guys
When speaking with sellers I’ve tried a number of things to get them to agree to sell creatively, but I’m looking for new ways and new ideas. All ideas welcome.

I may have missed something, but you would be looking to go into a JV with the seller to sell the property creatively??

What education materials do you have for the seller? If they don’t understand the concept, they’ll baulk every time, especially with the bad rap most creative techniques have on the internet. Since it isn’t as well known as in the US, people just don’t understand it.

I am currently selling an IP and the advertising is paid when the property is sold or when the sales contract is terminated (if I decide to withdraw the property from sale before it actually sells). How the sales process is managed could depend on what state, even city/location you are at. If the area is large enough, I would get plenty of quotes to ensure you’re not being taken for a spin and, as others have said, understand how they are coming up with their prices and their marketing strategy.

(I could understand the advertising costs being required up front as these costs are usually just being passed on from the advertising streams – RE.com.au, paper marketing etc etc and the REA doesn’t want to be left holding the cost for these services when the sale could take months to get to completion).

Great advice in all the posts above. If you’re still looking for information about mentors, do a search on ‘mentor’ in this forum’s search function and you’ll come up with other threads about various mentor/coaching/advice programs and comments about these programs. Also keep reading and posting on the various sections of the forum – great learning and the only cost is your time!

For example, a five minute search on ‘mentor’ brought up a lot of topics, including:

https://www.propertyinvesting.com/topic/4408899-result-program/
https://www.propertyinvesting.com/topic/4990786-looking-for-a-mentor-7/
http://www.propertyinvesting.com/topic/4985493-mentor-needed-8/
https://www.propertyinvesting.com/topic/4934469-mentored-by-property-masters/

Hi Sasharif

You can always go to different agencies to the agency that is managing the property. It is smoother to use the same agency as the one who is managing the property as the sales team can easily talk to the rental team, but you can always use whatever agency you like to sell the property. If you decide to go with a different agency, you just need to let the PM know that so-and-so from x agency is selling the property and they will need to work out arranging inspections etc.

Cheers,

startofinish wrote:

These are the outgoings for a cheaper (Still 2×1) apartment in the same area to get an idea:

Approximate outgoings:
Council rates: $509pa
Water rates: $539pa
Body corp: $2,344pa
Total = $3,392pa

I made an allowance for expenses of 85*52= $4420pa …. which is probably a bit on the lower side, but keep in mind that I assumed the interest rate was 6% when bankwest offer a double deal home loan rate of 4.88% (at least they did when i checked last) which would bring the repayments down to $308 for the first three years, $35pw less than the number I used above.

$85/week for expenses?? What about insurances and vacancies?

Hi Daniel

Your post didn’t come through correctly (or at least it can’t be understood). You may need to type the question in rather than cut and paste.