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melbear
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@melbear
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May 10, 2004 - 6:10 am
As for books you could/should read, check out Leigh’s list:
https://www.propertyinvesting.com/forum/topic/6845.html
Cheers
Mel
melbear
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May 10, 2004 - 6:06 am
Hi Steve
I like the idea of showing the Date joined, and perhaps the location of people? Although I note the date joined can be somewhat irrelevant as it actually denotes the date the person signed up for the newsletter – which I did, and didn’t know there was a forum for at least a couple of months…
Cheers
Mel
melbear
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May 10, 2004 - 6:01 am
I don’t know if it’s the same author, but I picked up a book called Speed Mathematics from Dymocks a while ago – in/near the finance/business section. It’s pretty good too, but like anything of that nature, you do need to work with it a bit until it comes naturally – like typing, speed reading etc.
Now if only there was a way that you could ‘program’ yourself in 10 minutes……….
Cheers
Mel
melbear
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May 9, 2004 - 12:22 pm
If you have a DIY super fund, and your employer won’t pay into it (only if you’re not a public servant), then talk to the fund. You can arrange something like a payment from that fund every couple of months into yours. Don’t know how it works, but know it does.
Robo, for extra tax deductions (not the only reason to invest though!), but a newish property that has a lot of depreciation in it. Pay all your extra money into your PPOR until it’s paid off (borrow 100% + costs for IP), and you should get a nice tax deduction.
Cheers
Mel
melbear
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May 9, 2004 - 11:38 am
James, if this house used to be your PPOR, remember that you have a 6 year window before you will pay any CGT if you sell (provided you don’t buy another residence to live in in the meantime of course).
On this basis, I would rent it out, and use it as the sprinboard into further investments. You have equity that you could access to buy another one, and presumably the rent should cover the mortgage you have left, so your first CF+ IP.[]
Cheers
Mel
melbear
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May 9, 2004 - 11:18 am
Or asking parents for a loan of cash, or a loan of their equity for a short time until you pay it back……
Some people have even been known to get a personal loan to cover their deposit…..
Cheers
Mel
melbear
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May 9, 2004 - 11:17 am
Hiphop
I think your goal is realistic but at a stretch, which is good. It means you’ll have to think of creative ways to make the money, and work hard for it.
Your savings rate is pretty good, so if you can find CF+ places, you will save deposits for 2nd and 3rd properties quicker than the first. As Steve also pointed out, find investment partners. Half of something is better than all of nothing. What about your Mum? Does she own her place? Maybe you could do a deal with her, and you both could win?
Initially, interest only will help you to save up for the next lot of deposits. After you have a few properties, then maybe switch to P&I if that’s what you want to do, to pay them off. If you pay off the houses, you will find that you actually would need less of them to reach your $50K, as you will be paying less interest, and therefore receiving more cash per week etc. etc.
Aim for the stars. That way, you might only reach the mountain. But if you aimed for the mountain, you might trip over and fall flat on your face []
Cheers
Mel
melbear
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May 9, 2004 - 11:11 am
Hi Super Fund
Your plan must be doable as I remember reading a post from Aceyducey that says he does the same thing.
What you cannot do is have the house owned by a UNIT trust, and claim negative gearing benefits.
To me it sounds like quite a reasonable plan – although if all you want is the borrowings, then you could ‘loan’ your property as security to the Trust to borrow it’s money, which achieves the same purpose.
Cheers
Mel
melbear
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May 9, 2004 - 8:31 am
Russ, could you maybe hire a truck, and help her move to her new place? I think Kiyosaki or John Burley did that once?
Maybe do a deal where you sign contracts, but don’t pay ANY money until place is completely clean and rented? Yes, you might pay a bit more than you wanted, but it might be worth it in the end – especially if there isn’t any holding cost to you whilst you are ‘renovating’….
Cheers
Mel
melbear
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May 9, 2004 - 8:10 am
Hi kenzhang
I think you have to be a resident (maybe a citizen?) to qualify for the pension?
Having said that, the criteria is age based. Kicks in at 65 for males. It’s also asset and means tested. The pension only gives you about $15K (I think, it’s not a whole lot anyway).
If you earn other income, your pension gets reduced at a certain level until it cuts out altogether. Same same for an assets test, if you have too many assets, you will not qualify as well.
I think the centrelink website should have more exact info…
http://www.centrelink.gov.au
Cheers
Mel
melbear
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May 9, 2004 - 7:56 am
Sooshie, I wasn’t sure that we were ‘allowed’ to answer the question [cap].
Native, I could make a guess and say that Steve and Dave earned/saved the money from their accounting, but that won’t really help you.
What you need to do (in my opinion) is to look to see how you could come up with the deposits to go ahead with the strategy. Admittedly, the prices are more expensive than (presumably – I have not seen the info, merely heard bits and pieces about the strategy) when it was written, so deposits will be higher.
Maybe to start with you could only buy 2 properties per year, but I think once you get started, it’s a bit of a momentum thing, that you will get more in rents, and still be saving the same amount from your job, and may be able to redraw some equity (which goes against the paying them off thing I guess, but necessary if you wish to buy more and can’t save to keep up!) etc. etc.
Cheers
Mel
melbear
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May 9, 2004 - 7:31 am
Acey, would you not be better discussing the business with an existing franchisee?
That way you will get info on the exact opportunity you are looking at? perhaps see if you can find an ‘ex’ owner also, to see what they think of the franchisor as well as the business?
Sorry can’t help – wanted to buy the Subway in Tuggeranong, but the owner looks like selling to his sister who has been managing it for a few years now.
Cheers
Mel
melbear
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May 9, 2004 - 7:21 am
Acey, did you get the Agent to accept credit card for deposit, or did you have to make a cash advance?
We tried putting the deposit on the card before, but were told that the agents don’t take credit cards….
Cheers
Mel
melbear
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May 9, 2004 - 7:10 am
I’ve had two major eye surgeries in the past eight years, and I think that’s the only reason I’ve used private health cover.
If I was public, the waiting list would probably have been the same, but the actual surgery would have been performed by the registrar, with my Dr ‘observing’. I think I was more than happy to pay the extra $1500 or so that Medibank didn’t cover to have my guy do the op, with the registrar ‘assisting’.
I didn’t realise that you could ‘pay per use’ and get the doctor of your choice – or have I read that wrong Sue?
Cheers
Mel
melbear
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May 9, 2004 - 6:58 am
Purchase price $ 190,000
Stampduty $ 6,000
Solicitor’s fees $ 1,000
Repairs $ 20,000
interest say 6 mths X 7% $ 7,000
Total cost $ 224,000
Originally posted by Pisces:
So what was your reason for buying it Cobra at that price ? A long term hold for capital gain ?
Contemplating doing a wrap ?
Am I looking at this example in the wrong manner ?
Ever heard of buying a property to rent out Pisces? ‘Instant’ (ish) equity of at least $16K (more because the interest will be offset by rental), and a rental potential higher than that of the initial purchase price. If you can reno it in a couple months max, and get tenants in, you’re not even paying the full six months interest.
Don’t be one dimensional when looking at the deal….
Cheers
Mel
melbear
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May 9, 2004 - 6:27 am
Hey Glenetti, thanks for posting this stuff. It’s fascinating to learn how ‘the other half’ live….
Your friends/family that left should maybe have done a bit more research on good tax areas before they went there. Not sure about Canada, but if you believe Kiyosaki, Allen et al, there are many loopholes in the States to carry on business paying little tax…..
Cheers
Mel
melbear
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May 9, 2004 - 1:37 am
I agree with you there Muppet.
Cheers
Mel
melbear
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May 9, 2004 - 1:11 am
A Message from Robert Kiyosaki
“The apparent real estate slump is good news and I am kind of hoping the same will happen here in the US.
This is just like the dotcoms – the time is near where there is going to be blood on the streets. This is the time for the true investor. The losers will start losing and the real investors will start winning.
Taxes scare off the little guys. Taxes are inconsequential – they are a minor part of the reason to invest. A true investor doesn’t worry about taxes. They take advantage of a falling market and make their money then!”
Robert Kiyosaki
Author of bestseller Rich Dad Poor Dad
Cheers
Mel
melbear
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May 9, 2004 - 12:37 am
Westan, I don’t see the kids as a problem![blink] Who said you’re going to let them in the car anyway?[cigar] It’s far too valuable to share with them…..
Cheers
Mel
melbear
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May 9, 2004 - 12:27 am
Jack
How come it’s leasehold? I assume you’re talking Sydney or Melbourne? Or is it NZ where this is common?
Do you have to pay an annual fee for the lease?
5) You should, depending on reason for rebuilding. If collapse, you might just take your insurance money and run. It would be up to the Body Corporate I would guess…
Cheers
Mel