Darn. There goes the borrowing to lend to trust option.I wish I was close to positive after tax! Quick sums tell me I need to raise at least an extra $550 per week to make up the shortfall across the current portfolio if I can't claim borrowing interest. Even at an optimistic average 10% p.a. rise in rents across the board, I am looking at 5…[Read more]

Ahh, but if I had a DT, i wouldn't get the negative gearing and thus no positive cashflow. (Of course, I could borrow and then lend money to the trust, but I haven't found someone that can walk me through how this looks in 5,10,15 years.)And HDT's appear to be a minefield for tax and bank lending.I can only see a trust making sense for me under…[Read more]

No.

Great info. I will PM you for that other forum.I love reading and will hunt down those books you posted.

Thanks guys. I was thinking of this type of setup as being reasonable. It maintains a clear separation, description and payment of duties;- Temporary position employment contract. Includes list of duties, hourly rate, payment frequency- Maintain timesheets showing hours. Signed off on a monthly basis by both parties- My wife maintains a separate…[Read more]

tballard wrote:
3. I've been trying to follow Margaret Lumas' strategy in the 20 Questions book. I'm finding question number one very time-consuming, She says to do a search within your price range of the entirety of australia, and keep any suburbs or towns within 20-30 minutes of a centre of at least 50k. For the other people out there who…[Read more]

ummester wrote:
emptyvessel,we were obviously thinking of different hats:)With your hats I'd be blood coloured – dark red, or black red:)

Hehe. I reckon you should change that avatar you have. Give the Bear a dark red hat! It would look hilarious!BTW, first time I saw that avatar I laughed my head off. A year or two down the track and I still…[Read more]

Thanks Terry. I can see some key differences here to what we are considering. I am not an expert, of course, but these things seem obvious;1) The number of properties being managed. 4-5+ versus 1 with the Browns.2) No other employment or businesses, like a "fish and chip shop" are involved. This made the Brown case very dodgy because his wife did…[Read more]

ummester wrote:

emptyvessel wrote:
I find it interesting that "bears" have this almost fanatical need to be right. It is in almost every post by a person that identifies themselves as a bear. They also tend to be "black-hat" or "critical" thinkers that are fantastic at finding statistics, graphs and interpreting the numbers. Obviously to…[Read more]

Marie123 wrote:
EVYou know, it probably sounds stupid, and we all know that fear and greed don't get us anywhere when we speak about financial independence but one reason for selling is so I can diversify a little to reduce my risk. All my money is tied up in property… bar 10k. I feel that property prices in Australia are going down – in the l…[Read more]

EPI_Den wrote:
Hi all,I'm particularly impressed at the way emptyvessel has gone about describing the path to becoming a property investor – well done!

Thanks for the vote of confidence. Although it looks like I planned it precisely from the beginning 10 years ago, it just seems that way in hindsight. The plan has really "evolved" or…[Read more]

Nathan, you are a champion. Go son!

MrDarcy wrote:
But im currently Greedy as most others are Fearful!EV Thanks for the reply, I still wonder how you went house > units > commercial/other?Was this a suggestion by the Property Buyer?Im glad your happy with his advice its good to know for future reference.. As for the US property, keep us posted!

Couldn't agree more. I am a c…[Read more]

I find it interesting that "bears" have this almost fanatical need to be right. It is in almost every post by a person that identifies themselves as a bear. They also tend to be "black-hat" or "critical" thinkers that are fantastic at finding statistics, graphs and interpreting the numbers. Obviously to support their negative sentiment. Many seem…[Read more]

xdrew wrote:
I love making comparisons to the fruit and vegetable market .. or the fish market (they are both good examples of markets at work)So … in the off season .. its harder to find a perfectly shiny apple … with no marks or bruises … for a low price. Well .. it still is possible to find one .. its just now a lot harder than the…[Read more]

joeandchels wrote:
Hi all, What do you guys think about the possibility of finding positive geared property in the current market, or does the market itself not change the fact that positive geared investments exist? There is no secret that property prices are at a all time high, in my opinion we will probably see a crash in prices in the…[Read more]

I predict that there will be a boom.I predict that there will be a bust.Rinse. Repeat.I am now the ultimate cause I predicted the future of the property universe accurately. Albeit at extremely low resolution.Good news is, I am going to get richer no matter which one happens.It's all good brother, it's all good.

We have taken a close look at Mildura and still consider it a solid candidate for our style of residential investment.I don't think that it will set any capital growth records, but it will continue to have solid yields and slow but steady capital growth.I would consider the floods a major concern only if they continued to hammer the economy over a…[Read more]

angelinsydney wrote:
Cuteyoungchic,Sweetheart, the motivation will return.  Nice and slow,  take it from someone who's been there and done that.Divorce is not the end of everything.  It could be the beginning of new things to come.  Everything you learned along the way can't be taken away from you.  You start with that knowledge as your foun…[Read more]

Yup, ditch the car. Replace it with a new passion –> Become really really ridiculously wealthy. (Or similar)Lease a fleet of exotic cars later under some sort of company/trust tax arrangement. Then you can change them like you change your underwear. If that floats your boat.