There are always ways to find them – if you look hard enough.

Still some in country areas – alternatively some outside the box thinking will help find ways of “manufacturing” +ve cashflow – change of property use, developments, renos.

Plenty of good info on these forums about how to find positive cashflow…[Read more]

I wouldn’t sell either. If you have $100K equity and you sell your CGT bill will be at least $25K, I’d imagine (not knowing your full details). You can unlock 80% of the equity using a loan at live off that to prop up payments.

Not sure what you mean by making the loan P&I will turn the property positive. It’s still basically the same amount…[Read more]

Hi Milenko

Congrats on such a great start – only wish I had known all this at your age!

Great advice in the posts above. If you do put savings into your mortage account (over and above interest) make sure you can re-draw it and, Simon’s right, only do it for other deductible purchases such as more properties. Otherwise using an offset is good…[Read more]

Good advice in the posts above.

I don’t understand why you say you don’t have enough to buy. $100K will get you into something around $500K without LMI or more with it (Lenders Mortage insurance).

I also have a friend who started by renting and buying investing properties. She started at age 50 and now has 3 – and her own place so I don’t see…[Read more]

Adam

Apart from Terry’s comments, the only other way to increase cashflow is to make improvements to the property to gain more rent.

I think that using equity to fund further purchases is a great way to go and allows you to exponentially increasing your asset base in a way that saving does not.

Regards

Megan

http://www.propertyhub.net

Kiyosaki’s Retire Young Retire Rich is excellent

Megan

http://www.propertyhub.net

Baz

Nothing wrong with your strategy. Despite all of the positive talk about positive properties, these little guys are hard to find and most of us, like it or not, usually end up with some negatively geared stuff. Don’t forget that even thought it might be -ve geared you will benefit by capital growth.

The borrowing costs on an investment…[Read more]

Jacob

Each council has what’s called “Development Control Plans” “DCP” and Local Environment Plans “LEP”.

They will explain to you the various zonings and what you are allowed to do on each. As well, they will give you guidelines as to the structure details e.g. setbacks (how close you can build to boundaries etc), materials you can use, uses,…[Read more]

I agree that storage might be worth investigation.

Have a chat to the council and ask them what the land might be able to be used for to get some ideas.

Regards

Megan

http://www.propertyhub.net

Had a friend in the same position. He ended up caving in and selling. I’d suggest you have a chat to a lawyer.

Otherwise, if you want to keep it, can you not finance him out – or find another partner to take that share?

Regards

Megan

http://www.propertyhub.net

Did you have landlord’s insurance? If so, you shouldn’t been able to claim. If not, perhaps lesson learned.

Don’t let it discourage you. I’ve had a similar experience (with no insurance!!!!) and learned – and it’s onwards and upwards from there.

Regards

Megan

http://www.propertyhub.net

The Cupcakes

We all get a bit shaky at times but you just need to take the plunge. You say that you’ve got a good lifestyle – so go for it.

Are you after property that is positive before or after tax? If after, I might be able to help.

Send me an email if you’re interested.

Megan

http://www.propertyhub.net

Jonesy

Do you mean corporate rental or holiday rental?

With either, I’d check out the vacancy rates of comparable properties and make a calculated guess from there after doing a synopsis of what my bottom line is likely to be.

Either way, Cairns is currently getting good growth and, even with a residential lease, it’s only costing you a small…[Read more]

Great advice, as always, from Steve.

My first thought when reading your post was “how successful is your accountant?” His advice is very much “old school” save, pay off your loan, put money into super and then retire.

Most people will tell you that this is the slow way not the fast way.

Having said that, you do need to ascertain your total…[Read more]

Agree with Rick. If it’s only going to cost you $130K to build and yet will be worth $350K when finished, I can’t understand why you would sell.

You certainly don’t need to sell to unlock the capital – you can borrow it – tax-free – and also don’t have to worry about GST and CGT.

If it were me, there’s no way I’d sell.

Megan

http://www.propertyhub.net

Hi Gilad

My thoughts –
1. Share market – don’t know where it’s going unless you have a crystal ball that works well – in which case, can I borrow it![biggrin]

2. Lease Option – interesting strategy but takes a fair bit of expertise and wouldn’t be where I would start in your position – also don’t know if $3K is an investment I’d make if I was at…[Read more]

What about trying to find a property where the vendor will finance you in? Provided you can afford it (and you make a good argument that you can) you might be able to find a person who can “wrap” you into a place

Regards

Megan

http://www.propertyhub.net

Can help you with info all about positive cashflow and negative gearing on our site and can send you some free reports.

Megan

http://www.propertyhub.net

Couldn’t agree more with the above posts. Bankruptcy might seem like the “easy” option but it has other implications.

Buckle down and get serious about getting yourself out of this predicament. Not only will you do it faster than sitting waiting for your bankruptcy period to pass, you’ll also feel a whole lot better about yourself and put in…[Read more]

You’ll need to get their DCP (Development Control Plan) to find out what you are and aren’t allowed to build. You’ll also need to find out about Floor space ratios (how much land to buildings) you’re allowed, where on the land you can build, how close to boundaries etc and what materials you can use.

Make an appointment to see a Planner at the…[Read more]