Off the plan (or new) would be one of the worst possible ways to create a property portfolio.

If you are really serious about building a portfolio then you need to look at strategies that allow you to add value otherwise all you are going to do is track the market.

Off the plan (or new) would be one of the worst possible ways to create a property portfolio.

If you are really serious about building a portfolio then you need to look at strategies that allow you to add value otherwise all you are going to do is track the market.

Off the plan (or new) would be one of the worst possible ways to create a property portfolio.

If you are really serious about building a portfolio then you need to look at strategies that allow you to add value otherwise all you are going to do is track the market.

Hi Jess,

Regular renos and move out may see the ATO look at your operations differently and you may miss the 50% CGT discount. Really think you need a terrific accountant for some definitive answers on that one.

Barring the ATO ruling you are a trader then the property will be CGT free while you live in it. You can retain it as your PPOR for a…[Read more]

In rising market I/O so you can minimse repayments and use the money 'saved' to fund other purchases – the logic being trying to add more assets to your portolio during the growth phase of a property cycle.

In a flat or declining market Chan argues that individuals should switch to P & I as organic equity growth is not going to come from the…[Read more]

lsta5487 wrote:
After 2 years of procrastinating, i am finally ready to put my goal of being financial independent and free into action! I want to do everything correct from the beginning, so later down the track my mistakes will not bite me in the arse.

I wouldn't call spending two years at your age procrastination. It sounds more like you…[Read more]

If you are contemplating renting your existing property I would suggest converting your existing loan to interest only and part surplus funds in an offset account linked to your home loan. If the property does become a 'rental' long term then you have maximised your tax position through this simple strategy.

A good accountant will be able to…[Read more]

Togs wrote:
We are trying to establish our borrowing power but so far everyone seems to either give us different advice or no advice, it is so frustrating.

This is the critical aspect of your operations – certainly until you get the ball rolling.

If it is any assistance I would grab yourself a decent broker and try and nail your borrowing…[Read more]

Some of the bigger builders (Dale Alcock comes to mind) do this sort of thing.

I haven't used them or know costs etc but at leats you now have a starting point.

Hope this helps.

Marketing companies have been pumping the life out of the town in recent (and not so recent) times.

Watch that you are not entering the market at the tail end.

Hi Mick,

There have been other threads about MA – recommend you do a search of the organisation.

Search facility is located top right corner.

Plenty of reading there.

Hi Beaka,

Thanks for the update.

Do you know what has caused the oversupply issue? Is it too many properties being built or a reduction in employment opportunities or a combination of both?

Are there expansion plans with accompanying increases in employment levels in the pipeline? Without this, you may be seeing the early indicators of a longer…[Read more]

Hi Brodavo,

While you may have landed on your feet so far – the landing has the potential to set yourself up quite well from here onwards. The key will be for you to take action.

For mine I would be looking at development options in Perth and keeping things fairly simple. Being so far from the site of your work you will need to consider how you…[Read more]

Hi Beaka,

A fair bit of information missing at this stage.

Where is the property?
Why is the rental market dropping?
Is this a short or long term matter with current trends an indicator of a bigger issue manifesting itself in a rental oversupply?
What is your property manager saying about the rental market outlook?

Cheers

Forget the small change issues an even bigger issue is getting insurance coverage, with public liability included, for a privately managed rental.

What happens is your tenant injures themselves in/on your property and launches legal action because they injured themselves?

I personally would go I/O and park additional funds in an offset account.

Wile, at this stage, you have plans to return 'home' – this isn't always the case. You may well find that you have outgrown your existing home, want to live somewhere else, or that your career takes you elsewhere. Any/all of these possibilities are very real and paying off…[Read more]

Stop your complaining Jamie. We allowed you  the priviledge of looking after our politicians.

You win.

Hi cc,

Being an expat will provide you with a few challenges – the biggest being getting people you can you can trust who provide you with the necessary support and assistance.

For starters you will need a broker (if you don;t already have one), an accountant who understands the tax issues faced by expats, a lawyer to assist with documentation…[Read more]

Hi Togs,

By all means speak to an accountant and/or lawyer about business structure and Terry would be a good phone call to make. At the same time it would be advisable to have a comprehensive discussion about your borrowing capacity to see if your plans will work. Terry would also be able to assist with this side of your plans too.

For now you…[Read more]

No worries.

If you are paying your deposit and purchasing costs from a line of credit you will need to move your funds into the solicitors/conveyancers trust account in sufficient time for them to be cleared ready for settlement day.

Once again your solicitor/conveyancer will be able to give you an accurate estimation in time for you to transfer…[Read more]