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my most important tip is for all people whether they are property investors or not. GET YOUR FINANCES IN ORDER! This is simply translated as make sure you spend less that you earn and don’t get caught in the consumer trap. Understand the difference between an asset and a liability and good debt and bad debt. Take financial responsibility for yourself and then hopefully give your children valuable knowledge that they can carry with them through life. It is not good to bury your head in the sand. When you have a true idea of your financial position then investment decisions are informed and backed by hard data. This could be your most powerful tool.
Good luck
Quote:I guess you didn’t read Steve’s book and don’t know what I ‘m talking about.Using the 11 second solution works for both resid and comm properties. Due to your reasons specified the cash on cash return formula would be more accurate after the outgoings payable by the tenant had been determined
Regardsmy understanding is:trusts can be a powerful vehicle for many reasons icluding:
protecting assests if your job includes being a director of a company that has the risk of being sued and therefore directors being personally liable for debtif you already earn a high income and +ve gearing is your chosen investment vehicle then profits made can be distributed to trust members, saving the high income earner tax
Advice on whether to purchase investment properties within a trust should be sought from a professional with particular reference to your own personal situation.
Regardsquote:
From a novice – please remind me what the terms +ve and -ve mean.
+ve: the investment gives you an income, however slight, -ve: you must pay money into the investment and claim as a deduction against tax paid.
Regards