How do Positive geared properties make money in the long run?  Is the idea to keep them forever or to sell them within the 6 year period to avoid CGT?

This is what you want to hang on to if you plan on eventually replacing your income! To sell it CGT free in 6 years you have to be claiming it as your PPOR. And you can only ever have one of these at any one time. Personally I would never sell… Especially if it is putting money in my pocket every week.

I have read a few books on the topic now and in none of them does it say anything more than to ‘HAVE AN EXIT STRATEGY’.  What kind of exit strategy could we have?  Hypothetically, if we had 50 Investment houses and the interest rates went through the roof and every one of our houses overnight became ‘Negative geared properties’, what kind of exit strategy is possible, apart from bankruptcy??

I guess this is where it pays to buy in places that will always be in high demand. So if things get crazy you can always offload them all or a few and hopefully walk away with not too much debt and a lesson well learn't.

– Are we better of using cash as deposits on investment properties or just on the first one, and then the equity on that one to fund our next one, and so on and so on..? Or do we use equity from our PPOR?

You are better off keeping your cash and using your equity. It doesn't matter where the equity comes from as it is it's use that determines whether the loan is tax deductible or not.

Hope this helps a little bit and good luck with it all…. it's exciting isn't it

-Nathan

With investing in general if it sounds too good to be true then it generally is!

Not saying that there aren't some amazing deals and opportunities out there, but they will usually come

from alot of effort searching for them or making them, and not just fall on your lap.

If this has sparked your interest in property investing in Bali, I would say no to this deal, spend a decent amount of time researching about property investing and the Bali property market, and then start looking for a property in Bali. Don't ever let anyone pressure you into buying something, especially something you don't know much about.

Good luck with it all

Cheers,

Nathan

Good day SMSF!

It Obviously was a pretty old magazine to say stocks are a good investment as they aren't exactly doing well at the moment!

I think now is a good time to buy into some good companies at cheap prices that are paying a good dividend yield but only as a long term investment as the market is pretty volatile.

In saying that I enjoy buying small cap mining explorers that can easily double their price on the back of good results!

As for starting just open a commsec account and once you have that you can start buying and selling shares. There is a fair bit of helpful info on their site aswell as the asx site for beginners.

You probably won't get much share info off these forums though as this is a property investing site

-Nathan

Sorry somehow I managed to post twice above ^^^ Does anyone know how to delete a post? I tried Edit but couldn't find anything??

Nice work Engelo the house is coming along nicely!

Do you plan on keeping the house and renting it out at a nice yield or are you planning on selling it?

If you do plan on keeping it are you worried that these vandals won't stop and you will be forever having to change windows?

Or do you think it is more because the property is vacant and should be fine once it is tenanted?

Keep up the good work and videos!

Cheers,

-Nathan

I asked the same thing on the 'new site' thread yesterday. Hopefully it gets bought back.

When I got mine done on a property I didn’t know the build date on, I was told just to leave that bit blank and then they find it out. I guess just if you know then it saves them having to find out.

Your deductions will be any income made from the property minus any expenses like loan repayments. If you expenses are more then your income then this is negative gearing and reduces your taxable income.
Shoot Jamie an email and he will help you out. Doesn’t matter where you live.
I made the mistake of not initially going through a mortgage broker thinking the bank had my interest at heart. I was wrong!

Good luck with it all

Hi Coutts,

Yes it's not recommended as it will show up on you credit rating. Not 100% sure how it works but i'm sure someone else on here will fill you in soon. That is why a good Mortgage broker who understands your goals and investing etc is invaluable. They will be able to find you the best loan that suits you as well being able to give you a rough guide before even going to the banks. There are a few good ones on this site if you browse the threads.

Cheers,
Nathan

Give Jamie (above) a call or shoot him an email. At least you know he is a keen property investor plus I can recommend him personally as a good mortgage broker.

Hope it all works out for you.

Cheers,
Nathan