Hellman, I am scared that you see what Packer etc are doing & that this must be right. Just remember that they also go bankrupt but this does not mean it is applicable to everyone in Australia. Yes trust are also used but may not be needed by all. As I previously suggested, speak to an Accountant & Solicitor to see what is appropriate for yourself.

I am with Dazzling. I have my own home & all equity is being used for investing. I had contemplated selling & unleashing the cash but I have two dogs & who wants to rent to someone with two big german shepherds. Besides how much more cash can I get by doing this 20%? Big deal, then I have to pay someone elses house off not to mention the constant…[Read more]

Tommi, do not be driven by fear. If this is the house of your dreams then maybe think about it. But I personally see my house as somewhere to store my junk & sleep at night. Most of my excess cash goes to investing so weigh up whether you want those repayments against what you could otherwise have in terms of investments &/or your own place……[Read more]

Colobok, it really depends on your personal circumstances. You really should speak to an accountant before setting up a company. Alot of things that are written, whether it be by Kiyosaki, De Roos, etc can refer specifically to their country of origin. For example, Kiyosaki will tell you how you get a tax deduction for the interest on your own…[Read more]

I agree with the ressy tenant thing. I have had to take the ressy tenants to thr tribunal twice but my non-ressy tenants I haven’t spoken to since we negotiated the lease in October last year. I am just enjoying seeing the rent go in the bank…[biggrin]

Newcastle Panthers sounds good too. What about set up a company, have the business valued & sell off some shares????

Exactly. Now if more properties were being purchased through the trust maybe I would understand. But given that this is a single income family & Lee has made a point of telling us that he is in the top tax bracket, I don’t see how this transaction will personally benefit him. I only see a CGT & stamp duty issue. Once again, how will this expand…[Read more]

Originally posted by Mortgage Hunter:
It wont? Surely claiming the interest on the home will decrease his tax bill?

Let’s go back a step. The PPOR is to be purchased by a trust. The trust is negative geared NOT the individual. The individual cannot have losses distributed to them for the benefit of a tax deduction.

Sure, but this isn’t going to reduce his taxable income. I also don’t see how that will advance him with regards to his property portfolio

I’m sorry, I have obviously missed the underlying idea here. What is the advantage to yourself. Trust is the one negatively gearing & losses cannot be distributed to the beneficiaries assuming it is a family trust of course. What is the point you are trying to make????

Mine would have to be from having a soft spot for my family & always trying to advance them at the same rate as myself which I have finally realised cannot happen.[juggle] Mistake 1, did not buy a workshop which was going at a good price, right before the boom mind you, because father in law wanted something bigger for a business he was looking to…[Read more]

Fun, I suppose I am no different to the answers already given as to what keeps me motivated. On the flip side though, what takes the motivation out very quickly is when people around me start to put me down & make me think what I am doing is wrong. Once I realised this, my circle of friends changed & although you can’t get rid of family, I just…[Read more]

Hi Jewel,
I used a gentleman by the name of Bruce Jamieson (0438 885 318) to do an inspection for me. He was from Brisbane way but did the inspection in Toowoomba for me for $295.00 (this included travelling) which I thought was quite reasonable. He sent me a fully bound report with a heap of photos of inside, outside, in the roof & also of things…[Read more]

RichLee, it depends on whether the property is positively or negatively geared. You will find negative geared properties on any corner but the challenge is to find yourself one that will make you money. Good luck with your search & make sure you educate yourself along the way.

Thanks for the heads up Resiwealth. Good luck with your pursuit.

Hi Dazzling. Finally a post that might help me analyse as you would. I am struggling to grasp how people are analysing deals compared to myself. If I look at this one as you have posted it & assumed the loan you obtained of $2.39m is at 7%, the rent of $158K still leaves you as negative $9300. Am I missing something? Please don’t take this…[Read more]

Thanks for clarifying that for me Don & Liz. I suppose the next question is then, how much is acceptable to be making per property in terms of positive cashflow? One of the mappers was happy with $1000 per property. When I do my calculations on a property to see if it is worth pursuing, I expect more than $1000. What is everyone’s acceptable level?

Hi Zyleth, I live in NSW but have property in SA. I first had the agent email me as many photos as he could before I did the deal. I went & saw the property just before settlement but everything else such as deposits, contracts etc was done by mail, email or fax. Fortunately I had family in SA so I did a combined holiday & inspection. The problem…[Read more]

I usually use the 5% idea & then surf the net for rentals in the area but all areas are definitely different. I have a property in Willaston SA (Barossa Valley region) with a 3 bedroom house renting at $180/wk & single bedroom granny flat renting at $115/pw but I am struggling to sell for $247,000[blink] It just shows the times we are experiencing…[Read more]

Hi Doogs81. I totally agree with Luci. Before you do anything, do as much research as you can. My husband & I watched the area we were to start investing in for 8 months before taking the plunge not to mention all the money spent on books & seminars. I have seen people start investing during the boom & are now bankrupt. Just because the guy next…[Read more]