JPD,

I’m confused a little as my frame of reference is Comm and Ind. where the ‘outgoings’ are simply the rates/WR/Land tax/insurances etc that the tenant pays. Outgoings doesn’t include interest on the loan.

When you say ‘all outgoings’, are you including the interest or not ??

By the way, do the horses chip in for all the outgoings…[Read more]

This I believe is the “harvesting of equity in retirement” that the Investors Club founder Kevin Young has been espousing for many years.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Sarah,

I’d probably go the other way and say that over the 8 year time frame with the right technique and determined attitude, your 0.5MM target is probably a tad low.

Maybe sit down and map out a BHAG – Big Hairy Audacious Goal – and shoot for that…if you don’t achieve it, you may still get the HAG, AG or if it only comes together a little…[Read more]

Wayne,

Hopefully the Seller or his agent hasn’t visited this website recently !!

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Well I don’t know Eric….

You’ve got all the information about where you are / where the IP is / what the distance is between them / facilities and services in the town / type of tenant mix / condition of appliances etc.

What’s going to happen if the HWS fails at 10pm on a Saturday night ?? How long are your tenants going to be without hot…[Read more]

As a suggestion – zip on down to the Govt printing bookstore and purchase yourself a copy of the Residential Tenancy Act (latest version).

It isn’t that big or onerous, and governs all ‘goings-on’ between Landlord and Tenant within the WA residential scene.

Sit down and have a jolly good read of the Act. You’ll be up to speed in no time – hell,…[Read more]

Wayne,

Also wise to remember that you as Buyer have only one deal going on at this exact moment in time.

The Seller also probably only has one deal going on.

The Sellers agent has probably 25 deals going on, and doesn’t want to, or can’t afford to waste time…he will in effect be conditioning his Seller down to get the deal across the line -…[Read more]

We’ve done this twice…works wonders.

We’ve paid stamp duty on both occassions, but hey – compared to the advantages..it’s peanuts.

Just paid out our PPOR loan 4 weeks ago and loaded up one of our IP’s by selling 60% to the wife…all lawful and above board – with both the accountants and lawyers blessing (and our double checking of the advice…[Read more]

Wayne,

I’ve found being the slowest and most stubborn in the negotiating phase always works best. Being a cat on the hot tin roof is the worst place to be.

By reponding this evening you’ve just cost yourself 1K. Even though you’ve given 180K as your capacity limit – you haven’t specified what your ‘top value’ for the block is.

I read recently…[Read more]

Wha ??

Sorry pal – I don’t do “assumptions about emotions”…

I’m here to learn about techniques / finances / stories / experiences.

I’m not interested in pontificating about fluffy feelings, hi-brow macroeconomic theory or any other theoretical variables that you have no input or control over.

Too busy making money to…[Read more]

roessler,

I know you are new and all, and you are all hyped up and ready to go after your Masterclass, but I get the feeling you and others have just jumped on and pumped out 3 posts for the sake of racking them up…probably because you’ve been instructed to. [thumbsdownanim

I don’t want to sound harsh, but do you have any exciting prop.…[Read more]

Michael,

Typically with your developments – do you sell them all / keep a few and rent out / keep them all and rent them all out ??

I imagine the more you keep restricts your ability to fund further developments ??

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Why have you got over $ 20 K worth of prop. costs ?? Is the current Lessor paying for these ??
It seems by the figures the rent is grossly inflated to cover some of these costs. I’d be surprised if the units are being rented at the current market level. 28% is too high !! Would you sell at these yields – no one would.

Keep checking for…[Read more]

Eric,

I’m assuming you knew of this predicament before you purchased the IP and hence have allowed a sum of money extra in your budgets to cover the extra costs that shall undoubtedly crop up ??

If so, were you able to palm these off to the tenant ??

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

The ATO is pretty clear about whether interest on borrowings is tax deductible or not.

You need to answer if the ‘intent’ of the loan is to fund the purchase of an asset that produces or is likely to produce a reasonable amount of taxable income in the future. If the answer is no, the interets on the loan is non-tax deductible, regardless if you…[Read more]

I’m interested in the Shopping centre that is being tarted up…are they selling it or just fluffing it up a bit to justify higher prices for consumers ??

What I’m not interested in are the extremely – CF headaches commonly referred to as houses and units in Mt Hawthorn.

Cheers,

Dazzling

“Go hard or go home”

Mini,

As stated before, the biggest advantage I can see from where I’m sitting right now is that you can ditch the 9-5 and take charge of your life as your own boss.

Like back in the Uni days – you succeed or fail based on your efforts and you push yourself – no-one there holding your hand or complaining if you don’t do something their…[Read more]

Mimi,

I got the wit in your post and very much enjoyed reading it. The lengthy tongue in cheek spiel about offshore co’s and trusts and lawyers etc was good also.

I am amazed with the amount of property work you seem to have on, you can afford the time to write such lengthy posts…not complaining mind you – enjoy reading them, just must be a…[Read more]

A : Just some comfy clothes, photo albums & a couple of big loaded up memory sticks. Get an acquaintance or family to send the rest in a 20ft container at a later stage.

Q : Which would you choose – living at home with your family and working in Oz for $X after tax, or work overseas on rotation and spend 200 days / yr away from your family for…

OK,

I didn’t answer the question…

Not – that is the answer.