Terryw wrote:
If your friend is sole director is can be good asset protection for you is the business goes under, but risky for you as you won't have control of the company. He could transfer money or have the company enter into contracts etc

Ok so once again I will need to weigh up the risks vs benefits. Unless there is a another way to…[Read more]

Hi Terry,
Thanks for the information. I would love to have someone with your knowledge and experience to talk to here in Perth. But i'm getting the feeling you may seriously be the most qualified guy in Australia Unless you know someone over here?

I agree that having my business partner as the director might be the way to go – he owns no…[Read more]

Terryw wrote:
Short answer = nope.

If you are sued you could lose all your assets.

But to reduce the chances of you getting sued, you could set up the business in a limited liability company.
There may be a few things you could do to further encumber your property so that you have little equity. Would need careful planning and would be costly…[Read more]

fredo, my colleague just went through this exact situation. He avoided paying stamp duty because if you separate through the family court it is not applicable.

"By recording the agreement or outcome in an Order or Agreement, then stamp duty is usually waived on real properties being transferred as between partners/spouses."

He also avoided…[Read more]

Hi Brmiau,
I like your attitude my friend, if you can write down your plan and run a cash flow analysis and the numbers add up – why not!

You should probably budget for interest rate rises when doing your calculations. It looks like rates were up to 8% just 5 years ago.

I look forward to sinking my teeth into the new book. I have just finished "0 to 260" and am interested to see how your strategy has changed since then.

I felt like most of that book had the tone of "things aren't going so well, interest rates are high, be conservative with debt"

Look forward to the market update in Perth!

Hi Jamie,
Much thanks for the detailed explanation.

I have heard people saying to avoid "cross collatorisation" of your loans/properties.

Does your strategy use cross collatorisation because you are securing the finance of one property against another?

Thanks for the replies guys. 

100% borrowing could be an option. I imagine it attracts quite a high LMI. Where would you find a property for $120K, I would certainly like to know!

The other suggestion – Tapping into equity. Can anyone give me a simple explanation of how I could do this? 

if I borrowed more money against the property, I could…[Read more]

The only way your going to find an exact figure is to create a cash flow analysis spreadsheet. There's a few free ones out there on the net you could try using.

You might be able to do this in a quick formula, although some of the values might simply be a guess.

e.g. assuming $450K loan, $520 per week rent, 5% interest rate, $3000 average per…[Read more]

Go visit as many home opens as you can. I attended 3-4 home opens on each Saturday and Sunday in my target area.

It really gives you a good idea about the demand in the suburb and who your competing against. And it will help you identify a good deal when you fine one. If you like a property, go visit the next home open to see turn-out and ask if…[Read more]

I don't really understand what you mean by "get the interest earnt on your initial 10% deposit"

As far as I know, you cannot claim interest on your deposit.. unless you BORROW your deposit!

I wish this were true, because I am just dropping 50K of my hard earned savings on a deposit for my first house.

I imagine if you have other investment…[Read more]

Hi Jenny,
I believe the 20K was included in the LVR calculation in this occasion.

Thanks Shahin, Tom and Grant for your responses. It is extremely helpful to have input straight from the professionals. I could not have survived without this forum.

Based on your responses and my careful consideration, I have decided to drop the credit card feature (which co-incidently came with a $20K LOC loan). My reasoning for this is because…[Read more]

Hi Shahin,
Thanks for the feedback. I didnt think it was the best rate out there.

Perhaps it was due to the contract nature of my work (mining company making $130K, I move around a bit but I have been here for around 1.5 years now). Other lenders perhaps didnt want to take the risk on me?

Fixing for 1or2 years was the suggestion of the mortgage…[Read more]

I am new to this, but if I had that situation, I would try looking at developing triplex and renting them out. Here are approximate numbers if you built in an area near me:
land 900sqm – $500K
building costs $600K
Deposit: $220K
Rental yield for each: $450p/w
Total yearly rental income for 3: $67,500
Holding cost: $44,000p/a
Net cash flow after…[Read more]

Hi Tom,
I had a feeling that might be the case.

Oh well. Thought I better ask just in case!!

Thanks.

Thank you Nathan. Can you please explain why this is relevant to my situation?

You cannot make this choice for the period before a dwelling first becomes your main residence.

To me, it sound like this would apply If you wanted to sell the property and claim CGT exemption before you ever move into it

Hi Nathan. Thanks for your input!

Technically an IP can be treated as your PPOR for up to 6 years after you move out.
http://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

My problem is that I'm not sure if I can treat this as my PPOR in the first place.

Hi Richard.

I am quite sure that I am able to claim FHOG benefits. Sorry, I should rephrase my question:

Can I treat this home as my PPOR for CGT purposes?

The property is located in Perth, WA.
Thanks