thanks Terry understood… so perhaps if I updated my findings along the lines of:

– best to utilise “spare cash” to invest outside super to leverage this
– however if one was too risk adverse or lazy to do this (e.g. another property purchase), and you do not need to access it until retirement, then putting into super would be better than just…[Read more]

thanks – although in my little example
– Rental Loan: effective savings 3.15%
– Super: not 9% but 7.65% (which is still quite a bit better)
– Also re Non-Super Investment: to get an equivalent of 7.65% after tax you need to find something ~12% return (noting the 37% tax bracket)

So Super seems to be still the safest bet, but all revolving aro…[Read more]

thanks – although in my little example super
– Rental Loan: effective savings 3.15%
– Super: not 9% but 7.65% (which is still quite a bit better)
– Also re Non-Super Investment: to get an equivalent of 7.65% after tax you need to find something ~12% return (noting the 37% tax bracket)

So Super seems to be still the safest bet, but all rev…[Read more]

so I think I’ve misunderstood super – so the interest the money makes in super, during the accumulation phase, is still taxed and at 15% right?

Hi TerryW
– can I ask if you agreed with my thinking in the original post?
– Re leverage outside, if you got 9% somewhere outside super then this would be taxed hence dropping the effective gain below this => super would still be better – is my logic reasonable here?

thanks TheNewGuy – very interesting, and makes sense too

thanks Benny

so what was the basic idea/approach in terms of how to get property so much cheaper via a bank?

ok – thanks

thanks Terry – by the way what did you mean by your last sentence exactly – couldn't quite understand

so Terry I think you’re kind of agreeing with my bottom line no? Ie for a negatively geared situation there doesn’t seem to be an ideal trust here, ie that distrutes profit/losses & allows negative gearing & addresses the ATO concern.

I just run some figures on Land Tax costs over the next 10 years, and for me it at this stage (2 IP’s only) it doesn’t seem worth it

Also had a chat to someone re trusts:
– Unit Trust: Can’t redirect who profit/loss goes to
– Discretionary: Doesn’t handle negative gearing (i.e. lose it)
– Hybrid: ATO apparently don’t like / lots of hype re this,…[Read more]

thanks – I was more looking to buy & hold, but just can a handle on whether there's a better chance of increasing equity via a house reno versus unit reno, or whether they are both as viable (relative to their cost).  Hopefully this makes sense.

Hey Jason – sounds like great advice – any suggestions for those who are a bit more time poor (re looking) – just limit the search to a particular area, say a few suburbs I’m thinking? By the way are you doing a buy & sell type strategy investor (c.f. buy & hold)? Just wondering if you find that if you do really focus on only purchasing the…[Read more]

bardon wrote:
The last time I heard the housing minister interviewed she categorically stated that Labour supported NG before the election, still do, and it wont change in this term.  She also owns a few IP's.

have any links at all to the statement? 

Adrian and Amber wrote:
We've used POSH by Supertech for several years and are very happy with it. Plus they have a good support system with regular updates. Adrian and Amber http://www.RealEstateDevelopmentClub.com

Does it track the category of your expenses?  for example Quicken seems to let you allocate an expense category, which itself then can…[Read more]

Do you just track expenses in excel, or do you also do:a) tax calculation?b) projections re expenses/balances/net worth?

nordicskier wrote:
The expenses from PM statements as well as any other expenses for the moth are also entered against each property.

Do you actually work out profit/loss for each property, or just an overall profit/loss?