Hi Thanh,

In many cases retiring on a single property is 'difficult'. For this reason some property investors build a portfolio of properties, that is they own more than one property. Some people also refer to each purchase as an acquisition – so it is just a phrase to describe each property purchase.

Some general statements coming up – so do…[Read more]

Hi Thanh,

With all due respect you do need to step back and spend some time learning the ins and outs of property investing. Your questions indicate to me that you are a vulnerable position and could be sold anything by a smooth talking salesperson.

You indicate you are looking for capital growth – if this is the case then look for areas in…[Read more]

hi all, As this discussion has morphed into tenants starting to buy I thought I would share this newspaper article.which is based on a RP Data report.

Hi Kate,

What you have described is entirely possible but that is very different to the article which talks about breaking leases – very different to moving out at the end of the lease.

Looking at the Perth market at the moment – I would suggest tenants who want to pay the same rent will be, in the main, either looking further afield or…[Read more]

Catalyst wrote:
I borrow 105% on each new property but my overall LVR is around 50%. .

This is the really important part – high LVRs on individual properties but keep overall LVR lowish. What is correct is dependent upon a whole raft of factors, not the least of which is your personal situation and aversion (or not) to risk.

Hi Pat,

No worries.

The forum homepage is located at https://www.propertyinvesting.com/forums

The forum then breaks into various sections in an attempt to keep similar and related topics in the same section.

For example your accountant question would best be served in tax and accounting forum

Forum > Legal and Accounting Section

And your…[Read more]

Welcome Pat Mc.

Pat Mc wrote:

Questions.
Anyone recommend a good financial advisor in Perth and a good accountant.

I use Shreeve and Carslake in Herdsman Business Park for my accountancy work – they also operate as FP.

Having said that most FPs are not pro-property as little (or none) of their training focusses on direct property investing.…[Read more]

Hi DS,

Rent return is 7.8% which probably would not leave a great deal of surplus rent after all the bills have been paid.

Looking at the price I assume this property is a smaller country town – if this is the case you may be in a position to negotiate heavily on asking price.

But rent return is only one part of the equation as you also need to…[Read more]

simple wrote:
50% TAX discount

CGT is not necessarily the big beast some people make it out to be.

Warning here – rough maths being applied.

If an asset is sold in a high income year approximately 25% of the total gain is lost to CGT.  Assume a $300K profit approximately $75K is payable to CGT and this assumes top tax bracket. Even this…[Read more]

Hi Coota,

Picking up on Richard's thoughts – make sure you're not 'over-leveraged' across your portfolio. I don't believe high all round LVRs,  particularly at this stage of the property cycle, is a wise move.

Leaves little more for you to manouvre if things go wrong.

Simonchua87 wrote:
Hi, I am a newbie in property investment. I just wanna get some advice from some veterans out there regarding NRAS property. I am close to securing myself a land & package deal in Rockingham, WA.

Hi Simon,

Not sure where you are up to with your Rockingham NRAS – have seen a few NRAS properties advertised in the area which…[Read more]

bugeye23 wrote:

i have a car loan for my gf that owes about 15k and i have credit cards to a max of 8k.

How much more could i borrow?

Hi Bugeye,

Part of being a successful property investor is being a proficient money manager – I, for one, would see some advantages to you and your borrowing capacity going forward if you managed to get rid…[Read more]

Your bank will require building insurance as part of a condition of your loan. You will also need to identify your bank on teh insurance policy as having a financial interest in your property.

I agree with Jac – having landlords insurance should be considered a non-negotiable cost of doing business. At around $250 (give or take depending on who…[Read more]

Hi Sunny,

Another one saying BHP will not be expanding their Olympic Dam site in the foreseeable future.

http://www.watoday.com.au/business/mining-and-resources/bhp-mothballs-olympic-dam-expansion-20120822-24m4i.html

santh wrote:

I would agree that it will take a lot of time and effort to produce positive results. I just didn't want to commit if I was to be facing a losing battle.

Hi Santh,

Recommend number 13 on the roulette table.

If you want something that works quickly – then Steve's book is not the right one for you. Mind you 'no' property book…[Read more]

HI Bugeye,

Not a broker so take what I say with a grain of salt.

You cans et yourself up with a line of credit secured by your existing home. For example assume you can extend your existing loans to 90% this will provide you with a line of credit facility of approximately $55K as follows:

Current value ($410K) x 90% = $369K – existing debt…[Read more]

Vendor finance an option?

Looking at this another way.

Someone has listed their property to sell.

Most vendors prefer a quicker sale rather than a stretched out sale as per your initial question.

You don't yet have sufficient deposit.

I can see very, very few vendors accepting such an offer.

Methinks you are better getting finance in place and then look for a…[Read more]

Hi Richard,

I certainly wouldn't be getting advice from a bank rather my point was to explain that sometimes you can redirect funds in a manner that suits your needs than simply following what the bank 'normally does'

Something we have managed to do. Keeps things clean for tax purposes.

Leave the $2300 undrawn in the loan. 

Keep it to replace the hot water system, new carpets at the IP etc.

No interest incurred while the money remains in your loan and retains tax deductibility of interest.

Speak to the bank and explain why you want the funds undrawn. Believe it or not some bank officers are now starting to understand the tax…[Read more]