Guys, just cos it doesn’t meet the 11ss doesn’t mean it will be negative. It could be neutral.

Martine, you have done really well with your purchases, and your strategy seems fine by me. To work out if it will be CF-, CF+ or neutral, work out your interest costs, rates, etc. etc. and subtract them from the rent. That will tell you where you…[Read more]

Anne, if you own the first outright, and earn $100pw, and borrow all for the second, and earn $85pw, your total rent is $185pw.

I doubt your interest costs on the new purchase of (approx) $85K would be $185pw. So you would be in front, and would still have your $40K for further investing, and also ‘sleep money’ to cover you if anything drastic…[Read more]

Kiwi, all (both) my LOCs are only .1% above the standard rate. If you get .5% off the standard rate anyway, you still do quite well.

I agree with Terry re the structuring too.

Nick Moustacas http://www.strategicwealthmanagement.com.au is in Sydney somewhere!

Cheers
Mel

That’s good to know. thanks guys. I’m not years late, but certainly won’t meet the deadline of end of this month for last years return!

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Mel

Hey shaun, more than 1 year = 12 months + any number of days []

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Mel

Love the commentary Rags.

What you should probably do is contact an insurance company (or a broker), and tell them you’ve just bought a house, it’s current value is $x, but you will be renovating. Ask them how often and how much it would be to up the insurance policy every month or so as you do the work, or if you should insure it for the future…[Read more]

She did in another post guys. Including pictures []

Cheers
Mel

Actually, on second thoughts, I think that there might be a basis in that for commercial properties, but not residential, and I think they have to be owned in your own name to get this benefit.

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Mel

Hey Terry, those prices sound good.

the accountant we’ve just sacked charges $200+ per property.

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Mel

Never heard that one. Can’t believe it either, that sounds like the government is not clawing back all the money that they can. If you get confirmation either way, it would be good to know.

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Mel

Battz, for creative financing, I would seriously look at ‘Creating Wealth’ ($24.95 from Dymocks) by Robert Allen – the author also of Nothing Down (From Dymocks.com.au – Nothing Down:How to Buy Real Estate with Little or No Money Down (Revised ed) – $49.95 No Money down for the 90’s)

Not readily available in bookstores, but easy to order in.

Cheers
Mel

That’s great Bec. I’ve always found him to be really helpful also, and am surprised that he is so accessible.

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Mel

James, I haven’t, but I think PG has.

Nick M gets some mighty good comments on the Somersoft forum, and I would have no hesitation going to see him if I was in Sydney.

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Mel

I see that one of the States (either ACT or NSW I think) is wanting to offer scholarships to fellas only to try to get more blokes into the profession.

Looks like the parliament is not going to exempt them from the anti discrimination laws though so it won’t get through.

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Mel

Well done Simon! Being a Moderator has certainly spurred your posts on! Doing well at it too!

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Mel

We’re talking about ironing covers, not dart boards guys!! []

Some of those firies from those calendars they make would be good.

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Mel

Only 75.2 []

With about 50 misses altogether.[]

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Mel

Hey Muppet

It’s a beautiful location though! []

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Mel

Guru, you need to drive past some building sites, take down the names of the agents, and call them, and see what else they have got.

You may find that there are one or two agents that sell lots of OTP properties.

Cheers
Mel

Saj, perhaps you could buy cheaper properties than what you are looking at. That way your 5% that you have may easily turn into 20 or 30%.

Talk to Westan – he’s currently living in NZ, and finds pos properties all the time.

Cheers
Mel