LoL Hobart!

Too bloody true!!! Us syd/Mel investors have prob. reduced yields by about 3-4%.

But when stocks take off again see the yields rise again… Has happened before… will happen again.

Rgds.
Lucifer_au

Okay how the figures work:

$100K property, 20% deposit which is provided by the seller, 80% through the bank.

A contract is formed thats between you and and the seller in which you promises to pay them $XXX amount per month. This is just like a loan, usually you include an interest rate and a time period.

To protect their interest the seller…[Read more]

Yes it is betterbiz, though many smaller newsagents don’t tend to stock it.

Rgds.
Lucifer_au

Usually it’s the mortgage insurers who restrict the loan size.
Use http://www.pmigroup.com.au/LocationWizard.asp to find out how high you can borrow and how much they will lend.

Rgds.
Lucifer_au

Just check out the deprication rates. Sometimes these agents use the tax savings to make it positive CF, which is not a bad thing, but just realise this.

Check out http://www.jaffasoft.com to work out the figures.

Rgds.
lucifer_au

“The tenants are not very regular with there rent and aren’t very clean.”

So they don’t tend to pay you on time and they don’t really keep the house clean?

“They also refused to pay the $10 pw rent increase which was supposed to start when there contract ended in Oct 04. They said they didn’t have enough notice and so wouldn’…[Read more]

Do banks or financiers lend to trusts with an individual as a guarantor?

->Yes they will, though you may find that a more commercial approach is taken (for example you will probably have to open up a business bank account, which has slightly higher account fees, thats about it though… nothing too hard at all).

Also, can anybody recommend…[Read more]

In terms of which is better… I would keep them seperate, otherwise you could ‘taint’ the proeprty trust with the share trading. Also if someone slips up in your property they can’t get your shares!

Rgds.
Lucifer_au

If you are buying +CF properties a trust. (15% discount on CGT, plus adds extra layer of protection from lawsuits)
If you are buying neg geared prop. a hybrid trust.(see above + can still offset tax losses to other personal income).

If you will be buying allot of CF+ or neg. geared properties use a corporate trustee (a non-trading company runs…[Read more]

Nat R – all the info you needed was contained in one post…
But since you want extra SPAM, I’ll be happy to add it.

SPAM.

O’h if it turns out that there is a product, I guess you will be the one who dosen’t know what they are talking about….

Rgds.
Lucifer_au

In some states you might need a licence, but thats about it…
And no it’s not illegal. And anyone who tells you it is has never been to Harvey Norman before (where they buy very low and sell very high).

Rgds.
Lucifer_au

DHA housing is usually more expensive, mainly because it is seen as a more secure investment than say a vacant rental property.

The problem DHA is that when you sign you have to keep the lease running for the period that they have specified, so if you want to sell you probably won’t be able to sell to owner occupiers, which is a lerge % of the…[Read more]

From the normal channels of finance (banks, etc) – Impossible;
For ‘short term finance’, possible but then your paying up to 3-4% per month, and usually they don’t go below 80% LVR anyway.

Rgds.
Lucifer_au

” I have read the same article and I am having trouble understanding how she is achieving positive cash flow if the average gross yield across her whole portfolio is 6.9%”

I think she is using the tax benefits to create positive cashflow.

Rgds.
Lucifer_au

“I certainly don’t depend on people who call themselves “bird dogs” unless they hold a qualification to do what they do.”

“If I want a property, I go to real estate agents. I certainly don’t depend on people who call themselves “bird dogs” unless they hold a qualification to do what they do.”

>Some of my best deals have come from people…[Read more]

In my view it’s way too simplistic to say stocks vs. shares, because the investor themeselves determines wether they will get a high return.

As an example US bonds are currently paying 1-3%, yet I know an investor who makes round about 2% per month, so over a year he might make 24% while other investors are only reciving 1-3% per yr.

The asset…[Read more]

Lonewolf, you will only be able to get a maximum of 80% loans, and probably less than that (low doc, but you would prob. need a no doc which have a LVR of 65%), which means you will have to proivide 20% (or 35%) deposits.

You might be able to buy one house (up to 100K), and if thats all you want great, if you want more however I don’t think your…[Read more]

In the latest API mag (http://www.apimagazine.com.au/) there was an article on a family who invested on the West Coast, a year latter they sold the property because they couldn’t find a property manager. It wasn’t a total diaster because it did go up by $10K, but after all expenses (costs in buying, costs in selling and they was slightly neg.…[Read more]

So with the procedes you are going to spend probably a large % on a holiday (hay air fares and hotel rooms ain’t that cheap – I know!).

Nearly everyone I have ever spoken to about investing and have been succesful (usually very succesful) there has been a period of delayed gratification. I know it’s been the same for me.

Cut the holiday and…[Read more]

Read Steves 2nd book as it is more up to date and reflects the changes to the market since 0-130 was written.

Rgds.
Lucifer_au