APerry wrote:
Whether or not you use a trust to buy shouldn't have an affect on your servicing.

Hi APerry,When we went to the bank, they calculated our borrowing ability and said that as we already had a PPOR and guaranteed the trust loan, we were at our limit and so no more money was available. This was because as Directors of the trustee…[Read more]

Marthamel wrote:
I have been tumbling this question over in my head for a while… what drives people to begin property investing? Obviously there is the obvious "increased wealth" … but what does that mean for people? And does anything else come into the equation? Why property? Why now? Do you have any altruistic motives? If you own rental…[Read more]

It is the freedom or the choice of not working that entices people to seek out 'retirement'. My aunt, based in Singapore, aged 54 yrs, works roughly 10 hours a day with a global company, has 5 properties under her belt (1 in Melbourne, 1 in Sydney and 3 in Singapore). She is leveraged to about 80% and is focused on paying down the debt, so she can…[Read more]

HiRK's Rich Dad Poor Dad did it for me when I was around 18 yrs. Got me started on the investing journey. Years down the road  in an heated debate, my best friend accused his books of taking away the old 'me' and that the current one is a fraud.  RegardsDaniel Lee

Hi DarklordYes. You can repaint a laminate benchtop. That is exactly what we did with our IP. It has an old wornout benchtop from the 70s and we did not have the budget to relaminate. Suggestions from the forum led me to my local paint shop where I bought a bonding agent and a small can of enamel paint for laminates. I cannot recall the name of t…[Read more]

Hi Wonderland,It might be good that you spend more time learning about property investing, investor concepts and investing psychology. Many of your fears can be answered when you understand more.Regarding savings, it is good that you are doing so. You also have to remember that not many can save more than the month appreciation in property prices,…[Read more]

Hi dbliss, We purchased an old 2BR property also around the same age in May 09. Initial rental appraisal was $301 per week. Did the following on a small $12K budget with much of our own labour. 1 – Restumped with new concrete stumps. That sorted out the bedroom doors not being able to close. ($4700) 2 – Got a tradie in to replace the single hung w…[Read more]

House Call wrote:
  My personal interpretation is that what people  mean is that they want to be financially independant by 40…I would go differently and say that it is better is to 1. have someone to love2 have something to do3 have something to plan/dream/look forward to for ( and this is where the whole financial/investing in IPs comes i…[Read more]

danviv1 wrote:
Hi dogkangaroo,So both of your IPs are negative geared, plus you have to pay rent for the place you are living. Based on the current tight lending policies, you may have a difficult time getting a loan for a 350k place (even if it is a 80% loan and you use all the 70k as 20% deposit). And you will need extra 10-15k to cover the…[Read more]

So the next question would be: what is the cheapest way of transfer a property to a trust without incurring stamp duty?RegardsDaniel Lee

That is most odd… especially if I could get better returns than through a typical financial planner.Surely there must be another way around this. RegardsDaniel Lee

I have a question…Can I simply go to the bank and say I want to take out some equity to invest in the share market? Will my lender be happy to do that, even if the LVR is set at a limit of 80%?It would seem to make sense for a lender to lend the money, as long as the drawn equity can be serviced.Any thoughts?RegardsDaniel Lee

HiSorry I missed the meetup. Have been busy with the baby.Adam, I just emailed you.CheersDaniel Lee

Hi Pasha,Spent more time reading and learning from wealth accumulation and personal improvement books, and also check out this and other property investing forums. Often, there is a direct corelation between your personal abilities / character and the eventual size of your accumulated wealth.Many successful investors are often not deeply motivated…[Read more]

Hi Raewyn5,We purchased our first IP in a Family Trust with a Corporate Trustee. The main reasons for going down the trust route were to run the portfolio like a business even when overseas, and also for income distribution. We intend to have a large portfolio throughout Australia, so income distribution would eventually become a good problem to…[Read more]

Terryw wrote:
If you just pulled money out of a LOC the interest wounldn't be deductible. So after many years you would end up with a very large loan with none of the interest deductible.I have been thinking about something slightly different.very roughly (haven't thought this thru properly yet):what you could do is pull out some equity and…[Read more]

Dan42 wrote:

daniellee wrote:
Hi Was wondering about this article…http://www.smh.com.au/business/property-prices-on-way-down-warns-bank-20091204-kays.html1 – There is a general perception that many FHBs have become highly geared in their rush to get into the property market during the low interest months of late 20092 – Credit has been…[Read more]

Hi Briduff, It's difficult to do things alone. The best way is to visit your local public library and check out the investment section for all the Property investing books available. I found out the best way to learn was to read up on the various techniques, discuss about them on the forums, and then apply them in action. Although this is a slower…[Read more]

Hi Chrissd,Here is my general advise – Yes. Investment in a property. With at least $4K left over a month, that is a fantastic amount to be saved. I wished my partner and I was able to save that amount a month. Your available equity from your home is $129K ((80% of $430K) – $215K). Keeping your gearing to 80% avoids LMI. With this amount, it…[Read more]

Hi, Happy to participate in a informal discussion with no selling please. There are also other groups in Melbourne, which you can find out in other property forums.I have a young family though, so my commitment will be limited, but interested none the less.Live in Oakleigh.RegardsDaniel Lee