I think part of the key is what are you including as ongoing costs? The obvious big one is interest on loans but then add rates, water rates, insurances, agents commissions, accountants fees and the variables can be many. Maybe a better question may be what are the profits or losses each year on an investment. Just a thought.

We live in the south-west of Sydney, in the growth corridor known as the Macarthur District. Land prices are now at around $1,000/m2 so as you could imagine, just buying land is a huge expense without the build. The area has an abundance of land at this stage, literally thousands of homes to be built over the next decade or two but the way land is…[Read more]

“After using the BoA secured card for 6 months I got offered an unsecured Capital One Platinum card in the mail. You need to make sure your secured card is reporting to your ITIN credit file.”

Just because you receive an offer for an unsecured credit card doesn’t mean you will get one! We have visa’s, SSN’s and are living in the US but have…[Read more]

Hi Streamlineinvesting,

It’s a choice no-one can make but you! You need to feel comfortable with your decision but some things to weigh up in your decision would be, how comfortable are you with the thought of having no or part insurance? What if you were to wake one morning back home in Australia to hear hurricanes were battering the Fort Myers…[Read more]

Hi Moonpie, firstly let me say positive cashflow property has taken us to full time investors in a little over 10 years. We could have transitioned earlier but chose not to. As to books and seminars you can’t go past Steve McKnight’s stuff in Australia and Robert Kyosaki’s Rich Dad, Poor Dad books. You will find plenty of discussions about this…[Read more]

Thanks for your input here Derek! Again, I would discuss this with your accountant because our experience is certainly as I have suggested. In the big picture it doesn’t make a huge difference if you have some good CG but if a deal is only marginal it can be money not well spent!
It’s always good to know what implications are in as much as you can…[Read more]

Hi Emma, great advice and some we will certainly put into use! As for aircon. you are correct in presuming Phoenix has them all on the roof.

We’ve used Depreciators in the past and found them great and easy to work with. Be aware that if you do plan to sell properties in the future any depreciation you have claimed will be added to your profit so the ATO give with the one hand and take it back with the other!!! Talk to your accountant about this.

Hi, theft is proving to be an issue. We’re Aussies who have moved here to Phoenix, Arizona and know of 2 break ins of rehabs that were on the market and most of the staging furniture stolen. To date we have been spared of this but it does highlight the need for insurance.

Mick

Hi Tito, I would prefer to PM any more to say about BW. PM if you are okay for that.

It sounds like it’s time for a US visit. Get over there and talk face to face and sort out the mess before it gets even more out of hand. It is so vital you have good contacts on the ground working for you as you can see, it is not so simple and can cost you big bucks.
I do hope you are able to sort out the mess but don’t give up! Be persistent…[Read more]

We’re doing fix and flips in Phoenix but would say it would be near impossible to get a good renter for round $70k in the Scottsdale area or much of Greater Phoenix. The bottom end of the market has risen due to investor and first home buyer demand and it is now extremely challenging to get purchases across the line round that price. Nett returns…[Read more]

Definitely go legal as this may be your only hope of recouping your lost monies! It’s vital you have good people on the ground when investing abroad.

Each US State has it’s own individual sales tax added to everything (similar to our GST but added on after the purchase) so I guess they add it to rent also!

Go the big builder. We are just at the end of a project in the same Council area and it has been a bit of a nightmare to say the least. It has taken us 2 years and 2 months so far and we are maybe 1-2 months of finishing. PM me if you would like to discuss it further.

Mick

Tracey,

They give us 70% on the block of units and 80% on all of our other properties. We deal with a Business Banker in Business Banking and she’s great. Threats to walk are always helpful I find!!!

I believe about $33 per sq mt is average.

I’d be very careful with Bankwest as I know of a development that went bad after Bankwest called in the loan for no good reason and have sent the developers to the wall. Latest word is they are not alone and a class action has begun with a Senate Enquiry about to happen over what they have been doing!!! These people are well known to us and the…[Read more]

We have a block of 7 units with ANZ on a residential rate (currently 6.36%). Got it by switching all our properties and loans from Westpac who wouldn’t budge but the normal rule is anything of 4 or more will be classed as commercial whether it’s residential or not. Try using the power of negotiation if you have other investments or home loans and…[Read more]

First thing is first, you will need to speak to your accountant for specifics but in reality I doubt you’ll be looking at paying $150k in tax. The way CGT works is that 50% of the CG will be exempt anyway as you’ve held it longer than 12months and the other 50% will simply be added to your income for the financial year it is sold and tax adjusted…[Read more]