Kinks, I think high flyer has misinterpreted the 50 propertis bit.

TerryW said that they returned $2000pa AFTER expenses – which includes interest and rates etc. So the 50 houses are definitely not all paid off. And to have the $2Million, that would be houses valued at only $40K each. Talk about wanting to put off one scenario, to push another!!

However, I do agree with the fact that the houses ‘should’ double in 10 years, so the borrowing concept is possible. HOwever, if you start off today with 1 house at $100K, which returns to you $2000 per year after expenses, in 10 years, the rent will have gone up, but your interest costs wouldn’t have changed all that much (unless rates rise dramatically etc.).

So, perhaps in 10 years, you are earning $4000 per year from this property. Already you are down to needing only 25 such properties…..

I think you really need to sit down, and realistically work out what you can afford to purchase now, and how much it will return.

As you are only young, and on a good wage, in my opinion you could probably afford to purchase growth properties, that may require a little input from you each week – if you get depreciation, you could in fact get more tax return than it costs you, thus ‘making’ money. With growth properties, in 10 years, you might need to sell maybe 1 or 2 to pay off all debt, and then you might find that 5 or 6 properties will give you the lifestyle you want.

Cheers
Mel

Geo mate, it’s in Opinionated!

https://www.propertyinvesting.com/forum/topic/5255.html

Cheers
Mel

Another little birdie told me that there was another forum member who may get a mention in the article…..

Cheers
Mel

Richard, if you make it a Put and Call Option I’ve found once the vendors understand it they are generally ok…..

Cheers
Mel

Hey Simon

Short answer. Nope, as ACT has also increased stamp duty concession (up to only $270K though).

Will be interesting to see what happens…

Cheers
Mel

Hi Goldie

It doesn’t really matter if individual houses are positive or negative. I would look at the overall portfolio, and try to ensure that is where you want it to be (either CF+ or neg gearing to save tax).

Cheers
Mel

Hi Michael

Why don’t you list your parents as beneficiaries (subject to any Centrelink tests as mentioned above, you don’t want to mess with pensions).

This way, there are more than just you as beneficiary (and you DON’T actually have to distribute any funds to them, that’s why it’s discretionary), and so there should be no problems you being the sole trustee.

Cheers
Mel

Hey George

That’s a bit of a bugger![] I’m in a somewhat similar situation. My (now ex) partner and I have bought quite a few properties in joint names (d’oh, didn’t have those trusts in place!), and when we did set up companies and trusts (I made sure they were SEPARATE) we’re directors of each other’s company.

There are serious problems at the moment, and I needed him to sign some urgent papers as a director of my company yesterday, which he agreed to in the morning, but by the afternoon he was AWOL. I believe he’d got drunk and gone to bed, but it’s really frustrating and an absolute pain in the a###. I have to tread softly until the end of the month (more papers for him to sign), and then bam – he’s out of there…..

Cheers
Mel

Hi SMTM

I’m intrigued by this comment. How does your wife’s accountant work that out (maybe you should both go find a new accountant – that you agree on[thumbsupanim]). Whilst ever you have kids who are over 18 and studying, or working for lowish income, you will have a benefit in being able to distribute to them. Also, if your kids have any kids etc. etc. To me, it also saves a whole heck of a lot of hassle in transferring assets on your demise, saves transfers with bank, possibly having to pay out loans etc. etc.

Cheers
Mel

Jim Rohn gets an extremely positive write up from Tony Robbins – I think Tony first learned from Jim Rohn himself.

Personally, I have attended the majority of Tony’s seminars, and found them inspiring. The other good aspect was the groups you meet there, that you continue to meet afterward so you can all inspire each other to strive for more.

Personal Power II I believe is a 30 day program, whereas Get the Edge is a 7 or 10 day program. The one I bought threw in the first 7 days (I think) of PPII, so you get a taste for that as well anyway.

Tony’s seminars were the best investment in myself I have ever made, and have so helped me on my investing journey, as 80% of what you do is in your mind.

Cheers
Mel