Wct01 wrote:

If the market is flat or declining, how does an investor get beyond their first property and on to the next? In times when prices were going up, investors would buy a property, wait for prices to increase, have it revalued and borrow on the increased equity to fund their next property purchase – and they just keep repeating this process based on rising equity. If the property market is flat or declining, how does one go from their first property to their second and to their third and so on?

If the investor buys, quickly increases value and refinances or sell, then the market being flat isn’t an issue.

In a declining market, a hit to the profit will occur. If it’s not a big hit, the investor may be able to still proceed to the next property.

Yeah, rising market is the easiest 😂👍😎

Cheers,
Ethan

Yeah, something similar happened to me a while back. I think eventually we got it through the vendor 😉

seinfeldesque wrote:

I don’t really know the ins and outs of investing under a company structure other than that I lose a capital gains discount

Hi Seinfeld and welcome to the forum 😊

There are many differences to investing via a company than individually. To name a few, yes, you’ll lose CGT discount, also no land tax concession nor negative gearing.

If I were you, I would do some online research and then approach a broker so you could discuss specifics with them.

Your stepdad might like that you believe that the current company is a risky investment and instead you suggest a more conservative investment. Since you have a few IP, you should be able to demonstrate that you know what you’re doing, especially if you’ll pitch to him the specific investment and strategy you have in mind before he actually pays up.

Would also suggest to have all understandings in writing to avoid (or at least minimise) “he said, she said” discussions down the line.

Hope this helps?

Cheers,
Ethan

aftab wrote:

even if I did manage to get one, the property would be in a distressed condition.

Properties in distressed condition are our favourites! 😂💰💰💰💰

We buy them, fix them up, refinance at a profit and rent out. Everyone is happy and full of joy.

Overall, lots of fun 👍😎

Hope this helps?

Cheers,
Ethan

Satvik wrote:

i) 3 BHK of approximately $550K
ii) Shop in a developing shopping centre off the plan which I can lease later or use for my own business.
iii) Shop in established Shopping centre of $450 K
iv) Shop in small shopping centre of suburb around $280K.
iv) Buy a block of land for around $200K and build it a 4BHK 2 storey house in next one year and sell.

Hey mate,

Happy to help.

Ok, let’s talk short term.

Option iv is clear (buy land, build house, sell). What’s the plan regarding each of the other options? How do you plan to make a profit quickly with those ones?

We’ll then be able to zoom into figures 👍😎

bla0018 wrote:

And Richard in terms of your question I can’t service the loan hence using investment loan to increase borrowing capacity and once ive settled I’m moving into it and applying for first home owners grant

In which state are you that you can claim first home owners grant after you bought the house and moved to it?

Do I understand correctly that you plan to tell the lender one thing (“it will be an investment and I’ll get $x in weekly rent”) but actually you plan to move in and tell the ATO a different thing (“it’s my home so no CGT should apply when I’ll sell it”)? 😳

My 2c: buy well, manufacture growth, refinance, repeat as many times as you can.

When the time is right to sell, you should be able to sell a few and keep the rest debt free.

Property investing is lots of fun! We simply love it.

Best wishes!
Ethan

bclarke wrote:

I’m not suggesting that we are the only company with some of these features, but they along with others are key things to look out for. I actually wrote a 12 Most common pitfalls when insuring your rental property ebook some time ago which goes through a number of the important points, it’s had quite a bit of distribution over the past few years. Happy to post a link to this or any other educational type things if you wish but I don’t wish to appear to be here advertising (I participate in other forums and try to keep as non-biased as possible as I would rather use my experience to help educate, I don’t personally sell insurance anyway).If you wish to see it feel free to let me know.

Fascinating stuff, mate. Thank you. if you could please email me the link or the document, that would be great.

I’m also wondering how your insurer of choice compare to Allianz’s landlord insurance?

Cheers,
Ethan

Hi Mike,

As long as it’s council approved, there shouldn’t be any issue.

Hope this helps?

Cheers,
Ethan

fxdaemon wrote:

Terryw wrote:

NCCP

Thanks Terryw, I assume you mean for resi lending only, right?

Yes.

“The NCC applies to credit contracts entered into on or after 1 July 2010 where:

* the lender is in the business of providing credit
* a charge is made for providing the credit
* the debtor is a natural person or strata corporation
* the credit is provided:
* for personal, domestic or household purposes, or
* to purchase, renovate or improve residential property for investment purposes, or to refinance credit previously provided for this purpose.”

http://asic.gov.au/regulatory-resources/credit/credit-general-conduct-obligations/national-credit-code/