I have noticed that Arty has been ominously quiet today……….[]

Angelus,

It’s all about asset protection. There are a number of ways to structure your IP activities and as “Billfromoz” suggests, get good legal advice.

Your accountant can develope a structure for you that protects your assets against debt recovery etc. and in most circumstances can deliver tax advantages.

It will always come down to your…[Read more]

Tara,

Be carefull of partnership arrangements. It is better to partner with someone you trust(good friend). Legally you are tied to this person and your personal assets are unprotected.

It would be better for you to have some structure in place before entering into any agreements. Best to see your accountant and/or solicitor.

Good luck.
Milkman

Boneman,

That sounds about right…again it would be better if someone with some legal experience can post a reply.

Milkman.

Yestoo,

As Betty says it all depends on what the market will bear. The tenant is extremely important to you as they are your income. If you raise the rent and they leave, your exposure is greater.

You would probably try to hold the rent as long as possible, if it becomes unbearable either sell…..or do some minor improvements to the house in…[Read more]

Polar Bear,

Man.[]………..that would turn a +ve gearded property into a -ve geared one.[xx(]

Considering the cost, it may be better to manage them ourselves until the portfolio gets too large. But then we may have some leverage with Property Managers….[]

Regards,

Milkman.

Bear,

Your accountant is better at providing the answers about asset protection but it involves setting up trusts and companies so that there is limited/No liability and exposure. Can be expensive to set-up but this should be weighed up against the risks involved.

There is also clauses in loan contracts referring to “ALL Moneys”. This means that…[Read more]

Bear,

Good question…..

On most loan applications there will be a clause that in effect says..”You agree that all the information provided in this application is true and correct”…and you sign it. Almost like a Stat Dec.

I don’t know the legal ramifications to this but it seems that if you lie and are subsequently found out, then the bank…[Read more]

Judith,

You only “Make Money” on a Capital Growth Property when you sell it, you can’t use the money until that happens. Also you have to consider the large Capital Gains tax grab and other fees when you try to sell it. You also have to pick your time to buy and sell.

I was wholly “SOLD” on -ve gearing a month ago, but I realise now that there…[Read more]

Jay,

I purchased “Wealth Guardian” from Steve’s site and it goes through in detail all of your questions.

It does use examples or Case studies to prove the effectiveness but they do stress that advice from your accountant about your own situation is required before proceeding with a purchase.

Each option carries with it “Asset Protection”, “Tax…[Read more]

TeacherK6,

I wouldn’t think that if they were ethical that they could charge you that fee…..

I would be trying to stress to them that you will be purchasing additional properties and if they would like to continue this alliance then the fee should be waived.

I don’t think any of us would mind paying a finders fee if you know they did a fair…[Read more]

Kristine,

It does beat the 11 second rule…..

$15,000 rent p.a = $288 p.w
$288 / 2 * 1000 = $144,230

$15,000 rent p.a. not total for 2 years.
Beats the 11 second rule, worth further investigation.

Milkman

Urgeman,

You are right about the FHOG, it can’t be used for investment properties, can only be used for Owner Occupier.

Your strategy is similar to Steve McKnight where he rented whilst building his own IP portfolio. I suppose that this ensures that he is using his available cash reserves to buy and concentrate on IP’s rather than sinking his…[Read more]

Easy……..

2nd Place………….because you are now in second place and the guy you passed is now in third place.

Regards,

Milkman

I agree with Arty.

The spotter wouldn’t be setting up the deal, only passing on information that is in the public arena anyway. That is where there involvement stops.

It may be different if you set-up a company name and have an ABN to accept payment for the fees.

It would be good to have someone provide some legal advice as I think a lot of the…[Read more]

Suzieq,

You may be able to negotiate a smaller deposit, say $1000 rather than the 10% and negotiate a longer settlement period, in the hope that your situation improves over that time. If it doesn’t you may still have an opporunity to on-sell before settlement. It sounds a bit risky but you never know……..

Wish you the very best of luck.

Arty,

Thanks……..and the cost would probably be tax deductable too….[]

Arty,

If you find a good one (correspondance), can you let us know by posting it?[]

Certainly if it gives you even a limited insight into the industry (other than personal experience) I think it will be worthwhile.

Ciao.

It wouldn’t hurt to have the “Off-the-plan” property inspected prior to settlement as long as there is a clause in the contract that if things were not built as planned you have some recourse. I don’t have any experience with these but if you cant afford the cost then the peace of mind might be worth it.

I would always aim to get a building…[Read more]

Same for me……..I am forever spurting the opportunities of IP’s. My wife is usually my rock and has (thankfully) in the past stopped my from investing in “Get rich Quick” Pyramid schemes.

She understands the concept of buying property but more with a Capital Gains strategy than income. I have tried to explain Steve’s concept but I need another…[Read more]