Thanks everyone for your replies and thoughtful comments.

I simply tossed it up as an idea for discussion. I don’t know for sure but I’d suspect the ATO will just lump the entire lot received from the tenant and call that the assessable income, they’re not usually that stupid.

However, I can see other benefits if you do fall under some…[Read more]

There is a cleaning business for sale, 190K + SAV with the owner working 10 hrs/wk and his net is 90K/annum.

This might be a way to get a reasonable passive income for the cost of an IP.

Hmmm, with a P/E ratio of 2.1, this business is either a steal, or something is not quite right.

90K p.a. for 520 hrs work is $ 173 / hour nett…after…[Read more]

Heya Dr X and Dr Y if he’s also there….

I was also impressed with the storyline and your due diligence in the areas that you are concentrating on.

I’ve never bought or read the API magazine before, but your story inspired me to buy a copy at the airport just as I left the country.

I thought your logic and progression in investing was very…[Read more]

Good onya Redwing….a proud achievement in anyone’s language.

Hi Felipe,

We try and go for those properties that exhibit both good histories of capital growth coupled with the ability to more than pay for themselves.

Why not have both ??

Do the beasts that you describe need to be mutually exclusive ??

For research I’d go to the council and also car park space owners.

For purchasing, I’d go to either car park space owners directly or REA’s acting as a go between for the car park space owners.

Yup, I could be wrong about Perth about to slow, but the point is we can only offer opinions coz we don’t really know what will happen.

I just spent 20 minutes preparing a detailed reply to your comments JES, but I’m a lot calmer now and don’t feel the desire to anymore. I’ll leave only one comment that I wrote.

Yup, you could very well be wrong.

Och aye it twas me laddy, I must confess !!!! Sometimes I have this urge in property investor meetings to ask everyone if they visit PI.com and if they do, what their psuedonym is. I’ve tried it once before and everyone looked at me as if I had three heads, so won’t be doing that again.

I feel it’s a dreadful shame that some of us are in the…[Read more]

Good onya Simon, at least someone is manning the fort. How was the hols ??

I’ve been out and about for the last three hours with the wife and kids doing due diligence on a big skip bin company…..too busy to be reading spam, although one could argue we were both just checking out a big pile of rubbish.

Yes Redwing,

The intent of the operation is to extract as much equity from the IP as possible so as to pay off as much of your PPoR NTDD as possible.

Example :

1. PPoR bought for 100K (no debt, in wife’s name only)
2. IP bought for 400K (full debt, in husband’s name only)
3. Roll forward 4 years…..PPoR up to 180K, IP up to 650K
4. Move…[Read more]

Couldn’t help but ask Derek…..Is that golly ??….as in….golly gosh ??? [biggrin]

HUGE rent, what the property worth in the market ?

Hmmm, not so sure about that. The prop is worth ~ 840, but the loan we have on it is only 400. So the increased rent is only just covering that 400 loan plus some of the outgoings.

At 2,800 gross p.c.m., we think the rent is still pitifully low.

As a comparison, I’m looking at a skanky…[Read more]

Dazzling what are you doing over Easter ? Bring your spade, boots and bucket !!

Hiya Amanda,

Ummm, won’t be in the country unfortunately, so you’ll have to get clones to help muck in for you. I’ve found for really skanky houses, you really can’t go past the steel rake and finish up with a good stiff broom. How do you optimise rubbish…[Read more]

Yes, we’ve done this three times now.

Target the IP that has the most equity in it. Assume it is in your name only as you might be the highest income earner. Sell it to your partner ( incurring stamps) and use the funds to pay off your PPoR. Your partner simply takes out a loan to purchase the IP. Job done.

Partner has a loan for an IP (tax…[Read more]

I agree Wylie. Ol’ hb is probably trying to help the only way he knows how. hb wrote in another thread that in 60 years time he’ll be 155, so I can only presume he’s the most up to date whizz bang 95 yr old website surfer in the geriatics division. I’d also prefer to see his experiences detailed on this rather than derision…..apparently he’s…[Read more]

I really want to purchase another one but Im worried that I’ll lose my pension.

Excellent Derek, those were my thoughts as well when I read the initial post.

My medium term goal would be to acquire enough income producing assets to happily ditch the pension.

I don’t know one successful ‘in control’ person who aspires to receive the pension.…[Read more]

That’s pretty easy to answer – playing and mucking around with the kids.

Every morning for the past 4 days we’ve been playing pool chasey. No-one has slipped and cracked their head yet, and we always have a marvellous time, it’s great to see all the girls gaining strength and co-ordination, with that fire in the eye determination that will serve…[Read more]

when your paying those sort of prices , i wouldn’t have thought

G’day hb,

I’m assuming those examples you’ve listed are reasonably new and not 60 year old dives. I did say in the long term.

It would be fascinating to take the same amount of money you have quoted and purchased a nice waterfront vacant block of land.

Wind the clock forward…[Read more]

G’day Lynnette,

You haven’t detailed whether the $ 7.2K p.a. is after tax contribution from your pocket, or simply costs are bigger than rent by 7.2K. If the latter that’s before tax, and so will be 4 or 5K p.a.

Either way, take the after tax bit you need to chip in and divide it by the value of the place. That’ll give you some idea of what it…[Read more]

Boy I wish I had a bit of land

Hi,

This may be the weak link in the plan ??

I’ve always felt the dirt is the big thing in this game, the thing sitting on top is quite irrelevant in the long term.