All of our properties are held within family trusts and are cash flow neutral – slightly positive, so we don't have to sell. I was thinking of paying down the smallest and using the rent to help pay down our PPOR or fund other expenses while I'm off work. As my income will be reduced the tax shouldn't be too bad 0 -15% as this years tax rates have…[Read more]

Hi,We renovate houses and rent them out as our investment strategy and we've had problems with fibro cement. Fibro cement pre 1985 is classed as asbestos and the company who hire us our skips ( large bins) will not allow us to place it in the bins. A lot of tradies won't go near it either. You'll also need to be very careful if it gets damaged as…[Read more]

We use a trust with a corporate trustee for our business and separate trusts with myself and my husband as trustees for our properties. If you are investing in Vic please be aware that if your trust has gross income of 75,000 or more the trustee will need to be registered for GST. This is why we keep 2 – 3 properties per trust. We intend to keep…[Read more]

Forgot to mention, Mark has been our accountant for our Business ( Bakery) for the past 6 years. He maximises your deductions and does everything he can for the benefit of his clients.

Hi,If  you happen to come to Bendigo, our accountant Mark Hernan is fantastic. He will set up your structures in the most cost effective way, suitable to your circumstances. ex. We were going to do what Chan & Naylor said and have separate trusts for each property with a corporate trustee in each, at a cost of thousands of dollars in set up fees a…[Read more]

Hi,Thankyou for the info. I found the lease forms on consumer affairs web site. They look the same as our agent uses for the leases through them. We got a rent estimate from an agent and he said $180p/w as the house is a bit run down. We intend to renovate while we live there, do we need to adjust the rent on completion of the reno or would we do…[Read more]

I have robert's books:Rich Dad Poor Dad, CASHFLOW QUADRANT,  Rich Dad's Guide to investing,  Rich Dad's Prophecy, Retire Young Retire rich,  Who Took My Money?,  Increase Your Financial IQ, Rich Dad's Conspiracy Of Th Rich, and Donald Trump & Robert Kiyosaki Why We Want Yu To Be Rich.I have found them to be very informative and very easy to rea…[Read more]

number 8 wrote:
Amsaini is correct, you could have effectively done the same thing with minimum deposit and put the rest in a offset account. Where possible, Never ever place your own funds in an IP or you PPOR for that mattter. The negative cashflow as mentioned above is not a big issue as it will become positive in due course (rent today is…[Read more]

Hi,If I was in your situation I'd consider opening a self managed super fund and rolling over all of your superanuation into it. You can purchase properties in a self managed super fud, either outright – if you have enough cash, or by setting up a unit trust and taking out a loan with a bank. The benefit to doing this, considering your age, would…[Read more]

jlia wrote:
Hi,I am new to this forum and hoping all you experienced investors can help me. I recently converted my PPOR (a unit in Adelaide) into an investment property and am renting elsewhere. I am keen to purchase my next investment property and was presuming this wouldn't be too difficult as I bought the unit 2 years ago and thought I would…[Read more]

Banks will always give you a conservative valuation if you are wishing to re-finance. They have to do this, I guess it's so that the bank will get their money back if you can't make the payments and they have to sell the property. If they give a low valuation then the bank isn't exposed to much risk. They look at where the property is in relation…[Read more]

jacqui_03 wrote:
Hi littleaussie,What are some of the areas you have purchased in regional centres? If your buying properties for $150k are these ex-housing commission properties? As you are buying in the lower end of the market do you have issues with attracting good tenants? Jacqui

Hi Jacquie,We have properties in Maryborough and Maldon.  (…[Read more]

devo76 wrote:
One 10 cm scratch. That sounds like heaven to me. Have a read of my thread on the other forum. Polished floors scratched scuffed and stained painted walls scuffed scratched etc kitchen so dirty had to use oven cleaner on everything shower black BLACK approved for 4 people but had 11 in their. Smoke smell is crazy. Windows filthy…[Read more]

Hi,I spoke to Terri Scheer customer service when I was arranging the insurance. I explained my situation at the time and they said that foorboards are covered in their policy as part of the building. (In my situation, the floorboards had gouges taken out of them, as well as scratches)Thanks for your comments though as I'll double check that what I…[Read more]

I can relate to what you're saying. So many times people say to me that what I'm doing is risky, or  that's not going to work, or " don't do that you'll end up bankrupt" etc….But at the end of the day, it's my life,  investing is exciting and I love it and I'm gonna keep doing it!!I sound like a 16 year old rebelling against my parents… h…[Read more]

Hi,Go to http://www.firsthome.gov.auI'm not sure what State you're in but in Vic it appears that it would be ok as long a the purchases were completed before you marry and moved in together, and you kept your principal places of residence separate. They class spouses as Married or defacto couples which currently you are neither.I couldn't find any info…[Read more]

If your loans are cross col. and you want to refinance to draw out any equity, the bank will need to do a valuation on all of the properties securing the loan. They charge you for all of the valuations.If you have separate loans you can choose which one you want to refinance, only paying for one valuation.

You can use the same bank but make sure you insist on separate loans over each property. Trying to uncross loans is very expensive.

There are good and bad points to consider when using a trust and when the property is held in your name.I. Your land tax threshold is lower when using a trust. In Victoria the landtax threshould is only $25,000 in a trust but it is $275,000 when in your own name. This will vary from state to state.2. When using a trust there is no capital gains…[Read more]

Positive geared properties are still around. Have a look in larger regional areas with a population of at least 7000. Make sure that the town has more than one industry. Check that there are schools and hospitals in the area and good public transport to and from major regional centers and capital cities. Prices are lower in regional areas in…[Read more]