Hi J,

On Bretts recommendation I used LLew Enynon from Eynon Business Consultants – yes he is a JET! Lllew invests heavily in property himself (millions $) and is a gun when it comes to structures. He Set up a company and trust structure for me and spent hours with me explaining all the benefits etc. He is well worth the money!!! just say Dan…[Read more]

Good to hear from you again Brett,
Perhaps you can give me or post the domain name of your web site. It sounds like a fantastic resource!

Hear from you soon
Dan

Dean, it is getting harder (not impossible though) to find cash flow positive properties that meet my criteria in Rockingham. Capital growth prospects are strong through to 2007.

Thats why a property investment group is beneficial, as we can utlise our resources together to take advantage of the wealth of Perth Property opportunities.

Give me a…[Read more]

i am also going to the seminar night on tuesday. what are other peoples experiences with this seminar info. has it been useful?

Tails277,
everyting in life has a risk – even walking across the road to get to my bustop to go to work in the morning has risk. So to talk about not wanting to invest because you have to put in some effort, in my opinion is more risky than the risk itself.
I live in Perth like you and have bought in Bassendean (11km from city). It is cashflow…[Read more]

Tails277,
everyting in life has a risk – even walking across the road to get to my bustop to go to work in the morning has risk. So to talk about not wanting to invest because you have to put in some effort, in my opinion is more risky than the risk itself.
I live in Perth like you and have bought in Bassendean (11km from city). It is cashflow…[Read more]

i agree that you have to manage forex fluctuations, however, will be interested in this idea. If you were talking big dollars how about setting up a REIT (US Real Estate Investment Trust)?

PS tell me more about the student accomodation strategy?

Hi Tails,

Welcome to WA land of the reasonably priced homes!
$250k could buy you 2 cash flow positive properties 15-20km from the city (east and north are 2 hints for you).
cheers
Cryptic Dan

thanks Al,
just to clarify though: could you please explain what you mean by split banking??
thanks in advance
Dan

Thanks to everyone for their thoughts and replies.
My problem is not the LVR but my Debt Servicing Ratio (DSR). So to clarify, banks will accept a guarantee from a Company structure and not take into consideration its DSR? Therefore, as long as there are guarantees in place, the bank overlooks the DSR of the individual?
cheers
Dan

yeah and what about Debt Service Levels? meaning, why would a bank lend money to an entity (ie company) that doesnt as yet have any income? how does the bank protect their risk exposure??

If you are on an income of only $30,000 the bank isnt going to care what guarantees you give for the trust/ company, no matter what deposit you have right?????????

Hi Key,

Thanks again for reply.

But i dont think i fully understand how a bank will lend more money to you as a guarantee to a trustee versus in a personal capacity. Isnt it the same thing as far as risk goes for the bank? I.E. isnt your Debt Servicing Ratio and Loan Value Ratio the same regardless of structure? Or dont the Banks take into…[Read more]

Hi MoneyTree,

email me at

[email protected]

we can run through a few real life case studies. I am no expert – i only have 4 cash flow positive properties, but if you are willing to take the time to email me you are more than welcome to bounce investment ideas off me.

cheerz
Dan

Hi Key,

thanks for the reply.

How is it that you “are able to push the boundries”? by having a Corporate trustee for a Discretionary Trust?

cheers
Dan

Hi money tree, what is the suburb called where you are looking? Is it near a capital city? why are you investing in that particular area?
PS i would buy all 3 properties if they would fit your investment objective and goals (and if you dont have a goal WRITTEN DOWN yet, then i suggest you do that before you start investing.

good luck and best…[Read more]

Hi Nathan,

on my calculations you are getting a good 8.5% gross yield.

To boost your cashflow you need to take into consideration the “non-cash” deductions that the Tax man allows you. Ie Depreciation benefits if the house is built after 1984 and also the 5yr write off of borrowing costs (inc stamp duty).
Also you are making your calcs i assume…[Read more]

SIMPLY STATED:

My Tenants are my Investment as much, if not more, than my investment property.

They provide cash flow. If I just wanted property as the asset I would errect a monument to myself on the busiest street at the busiest intersection. Sounds silly but its the tennant that makes or breaks, right?

So what i do is keep them happy. I…[Read more]

My Bank (Commonwealth) has a policy of only revaluing once a year. I recently purchased a property which i knew was around 20% below average market price (based on my prior research before entering into the deal!). so this is what I did:

1. Approached the CBA and asked if they could revalue the property. They said no (per policy -was worth a…[Read more]

Hi Steve, thanks for your reply.
What do you mean by the banks self insure? does this mean that mortgage insurance is negotiable??

No ZS i didnt catch the ACA article on Perth Suburbs, what where their recommendations?