I’d make it a family trust. Then the security could be offered, with contracts to protect the trust etc. etc.

Sounds like it could work, and if Mum and Dad are selling anyway, why not sell to the trust and keep it protected from then on.

Cheers
Mel

Thanks Muppet

I’m a bit in the same situation, so I bought the Cashflow 101 e game. Now I play against the computer, and have learnt heaps that way. It’s also quicker too!!

I’ll have to look into Kieran’s game.

Cheers
Mel

Towlie, how come? My friend has a property with them, and hasn’t had any problems?

Cheers
Mel

kay, if you’re making these improvements, you’re not necessarily doing it while you have a tenant, and upping their rent. If you do it on settlement, or between tenants, then you can ask a higher rent, so effectively your tenants ARE going to that place that has all the ‘features’ to begin with.

I agree that there’s only so much you can squeeze out of them as well – if you try to up the rent for every improvement, then you could well be ‘over limit’ and find you won’t get a tenant at all at the higher price.

Cheers
Mel

The Investors Club is a good place to learn from – although again they are focussed on negative gearing, perhaps moving a little more towards neutral now – but they also ‘sell’ their own properties. Everything they do is ‘free’ until you see the big chunk of cash they get at settlement from the developer.

They also have lots of good stories about properties that have massively increased in value, but we bought three in one year, and one year later we were lucky if they had increased by $5-10K each. We obviously didn’t get ‘let in’ on the best deals!!!

Cheers
Mel

Michael R

Thanks for your info. I was not suggesting that anybody who earns AUD buys in the US, merely that toystory consider it as he/she must be earning USD and living in the US.

If I were to invest overseas, it would be NZ, and it would have been 3 years ago, but I was chicken then, and still a bit chicken now to broaden my horizons.

Cheers
Mel

Gmh454 you are right. I apologise. The trust will in fact profit, as there are no interest costs for it to pay. So it will distribute the profit (rent-all expenses) to the unit holder, who will then claim both his interest costs, and the income, and will in fact come up with a loss (if a negative geared property – I can’t see why you would use the hybrid option otherwise).

This in fact does allow you to utilise the benefits of negative gearing through a trust, which was my point, although I obviously messed up when typing it.

Cheers
Mel

mopsy, the land tax is calculated on the land value only of the IPs. I’m thinking your friend must have quite a few to be hit with that high a fee.

To understand it, would be best to check out the state gov’s website which should explain it better than I can not having had that problem.

Cheers
Mel

SIS, I don’t think that the government will push the banks to do this. The banks would certainly tell the gov to get back to governing, and leave them to banking.

It has to come down to the bosses at the banks assessing the commercial viability. At the moment, I think they’re still quite happy to take bigger payments earlier, rather than spread them out over a longer period. And they’re still lending money.

I guess it will boil down to when they’ve got money to lend, and no takers cos of the cost – then they might look at ways to encourage people to get in, 40 year loans may be one way.

Cheers
Mel

SIS, Dolf de Roos said it at his seminar a couple of weeks back, so I guess it is.

I doubt Aust will follow suit in a hurry. We don’t offer fixed loans for 25 years, so haven’t caught up to them in that respect yet.[]

Cheers
Mel