maybe the vendor is hiding something,

something you might find a problem with after spending extra time there.

have you had a building and pest inspection done?

frosty1

my grandparents were both working most of their life.

they could not apparently afford to buy their first house untill they were in their 50's.
this was about 70/80 years ago in oakleigh, (melbourne).

my parents had rented 14 different houses before they were able to purchase their own house.
this was about 45 years ago in blackburn (melbourne)

i am in my 40's and i fully own 2 and a bit properties and i don't think i work any harder than my parents or grandparents would have.
we just live in different times. (quite possibly easier times).

it also depends on what we individually do with our earned money over time, of course.

frosty1

thanks terry,

interesting reading.

frosty.

Hi Terry,   thanks for the response again.

someone that goes crazy with credit cards possibly wouldn't be good with investments, as you need to be disiplined with money to do well.

also, in this day and age, drinking and driving is something that should be kept under control to be successful in more ways than one.
i do understand there will always be some risk to a certain degree.

if you had money you had to  distribute in a tax effective way, you could always off set it with another investment property, that way you wouldn't pay any tax on it at all.

not sure how a time bomb would result from rents continually rising as this once again could be off set by buying another investement property.  this would result in a growing investment property portfolio, being the desired result for many.
this could continue untill you wanted to cut back on working for wages.  stop buying properties to offset the positive gearing effect and start to live off the properties income.   eventually living off a passive income.     to speed things up a little you may want  to sell some properties to pay down some debt  on others.    the tax you pay on a capital gain might not be too much if you have stopped or cut back on your working wage.  

being in personal names also gets you a 50% discount on capital gains tax ( held longer than 12 months ), something that companies don't get.  ( not sure if trusts do, don't think so though ).

the tax advantage you get along the way, if held in personal names, is helpfull in building up a portfolio quicker.
its nice to not only have yourself and the tennant paying for your properties but also the tax man. ( depreciation claims, etc.)

i still find it hard to determine the best ownership structure as many experts favor different ways,  and all have good reasons, for and against each way.
 
i have read many property investments books including Steve Mcknights, Michael Yardneys, Margaret Lomas, and many more and all seem to be very successful people.  many have made it and with very different investment methods including ownership structures.

kind reguards,
frosty.

hi,

i think all 3 ways would be used by different people.

it depends on what suits your sitiation.

there are fors and againsts for all.

i also find it difficult to determine which is best even when i weigh up the good and bad of all structures.

most property investement books i have read explain the ins and outs of different ownership  structures.

a lot seem to favor trusts.

but margaret lomas does not really speak in favor of trusts.  her books are very interesting and are worth reading.

good luck,

frosty

hi,

would a morgage off set account be a better set up than a LOC?
i guess they have different purposes.

is an  off set account only good if you have the extra funds available?
your income still goes into it just the same as an LOC, and reduces the amount of interest paid and causes no tax problems with money coming in or out for personal use or whatever.

will a LOC help pay down a morgage any quicker than an off set acount?

any comments,

thanks,
frosty1

hi sammi 13,

may i ask why you want a trust?

I am just curious as to their advantages to justify having one.
thanks,
frosty1

hi,
i may have looked at the same property.
it was leased out untill feb 08.
i thought it was a good investment also and i nearly bought it.
it only had a single garage. corner block.
i thought it was a good buy at that price even if it was unfurnished. if it became vacant for too long you could always advertise it for rent as furnished or unfurnished. and just sell the furniture at the local auctions.
i have found some town houses available off the plan also for 230k. 3bedroom, ensuite, double garage,brand new, no stamp duty,expected rental return of 250 to 280,  same area, i am currently considering one of these.
many opportunities out there.

frosty1.