Krusty,

My understanding is that you can get positive cash flow out of a negatively geared property, but obviously not the other way around.

ie. If you claim deductions based on a before tax loss then it is negative geared and you get tax $$ back from the government. If these tax $$ turn the cash flow positive, then you’re +ve CF from -ve…[Read more]

Why not by shares in a listed property portfolio, then you’ve got both bases covered…

But if that’s not what you want to do, maybe you could lend me the money and I’ll give you a gauranteed return, no risk of 3.5% pa fixed for 10 years. That’s more than the yields on real estate at the moment and share dividends are in the same territory and…[Read more]

Rob,

Sarcasm completely wasted… I can see why you want to be a storm trooper when you grow up now too [biggrin]

Its all becoming clear… Bruhahargh <– demonic laugh.

Cheers,
Michael.

Profiteer,

Snap! I put the concept of going money partner on a JV wrap to my wife to earn 20% pa returns and she balked. She reckoned it was a get-rich quick scheme and wouldn’t be in it. I’ve had to revert to the old buy-and-hold strategy to get us started. Maybe once we’ve got the trust in place and a few buy-and-holds I can revisit…[Read more]

Inez and Obiwan,

I like your style and tend to agree with both points of view. I’ve reached the same sobering conclusion that AussieRogue has, and that is that both shares and property are not looking like a good haven for my money right now. Rental yields have even dropped below share dividends and the median price is well above its long term…[Read more]

Sal,

Hang on, there’s a long way to go yet. If you’re looking for real value then Steve Navra’s rental reality is a good start. Given current yields are so crap, you’ll be hard pushed to find a property that meets his criteria though.

Also, spotting the bottom won’t be too hard. The market moves slowly. I reckon a good 2-3 years yet before…[Read more]

Wayne,

Thanks for that! And it shows house prices as flat from 1926 to 1946, only turning north after WWII. Its been a nice period in history with some pretty exciting advancements for humankind, but it is only a very small period of history when all is considered. To think that what we’ve lived through will continue indefinately does not…[Read more]

Skippygirl,

Great post! Makes me feel a hellavu lot better about my situation. At least my wife is in to the investment thing as well as not being a retail consumer. She’s just a “cautious investor” to temper my “gung-ho investor” style. She justs makes sure we do our due diligence in detail, that’s all.

Cheers,
Michael.

Stephs right,

And the quick answer is No. I can’t see any benefit in cross-collaterizing loans. This just gives the lending institution more immediate options in clawing back in the event of default. Best to protect your assets from each other so you can decide which ones to divest in a worst case scenario.

Peter Spann has a whole chapter on…[Read more]

Steph,

Congratulations to you and Paul! Oh, and I promise I’m not stalking you on the forum. [biggrin] Its just, when you ride that “active topics” link and there’s not too many people on, you end up replying to the same people a fair bit for a while.

Anyway, my lovely wife Kay and I are celebrating our 1st anniversary next week too! I’m not…[Read more]

Steph,

I’d think that if you wanted to develop the land at the back then you wouldn’t need detailed plans of the existing residence. You’d need a survey so that you could show the location of the residence on the block, but that’s about it. You’d need this for shadow diagrams and setbacks and the like, but unless you want to modify the existing…[Read more]

I’ve got to agree with Wayne.

I agree that history is one of the best predictors of the future, but it is by no means gauranteed that property will continue the upward spiral that we have witnessed over the post war decades. That growth was triggered by the industrial revolution, followed by the IT revolution and funded by growing global…[Read more]

Wow!

Funny this thread should popu up this morning when I was about to post exactly the same thing anyway!

I went home last night and told my wife how excited I was at the prospect of interest free loans under Derivex and started talking about the implications and numbers. Not only was she “not excited”, she downright tore my head off. In fact…[Read more]

How about the small claims tribunal? Self represent and get it in front of an arbitrator…

Cheers,
Michael.

Robert,

What sort of trouble you talking about? Can’t imagine what trouble you could get in based on advice given that I’ve seen…

That’s a bugger if you’ve turned off email and PM.

???
Michael.

PS, I note the signature is gone too!

Sophie,

Welcome!

I’d think that word of mouth is pretty good for the investment clientelle. If you’ve got a good track record in sourcing superior IPs then the word will get out and people will come to you.

As you’re starting out you should probably look to take out an add in a paper or something similar. I think API magazine might be a bit…[Read more]

Gazza,

I’m with Terry on this one. But as always it comes down to how long you want to hold them for and what your plan is.

If you’re in it for the long term then you can ride out any short-term price fluctuations in the Sydney market. If you’re retiring in 5 years time then now might be the time to sell that fat asset CGT free and put it into…[Read more]

Simon,

Sell me some Derivex would you! I’ve got a mortgage with Gateway CU, std variable at 6.5% with no fees. I’ll check the contract for termination fees, but don’t think there is any.

Its only $180K and I’d have it payed out in under 3 years on principal payments so maybe Derivex doesn’t cut it for me.

But, hey, I’m hoping I’m wrong and…[Read more]

Myydral,

Links no good, you sure that’s it?

Cheers,
Michael.

Doh!

Yes, Derivex not Residex… Just getting my “…ex’s” mixed up.

I’ll wait and see if Simon spots this thread and pitches in.

Thanks,
Michael.