Theres always ways to protect yourself but its a mater of being intelligent and making the best choices without being too analytical.

If you were in a position where one could sue you or spouse take your asses unwillingforly, you could always attach 2nd mortgages and cavaets to assit in retaining equities.

If I had time again, I would make greater use of trusts, however they do slow the finance process and purchasing up as LVR is lower in many circumstances.

Each individual is different and should consider their own investing goals.

As for lease periods its all dependant of the area.

If in a 1 horse town 2-3 years is good. If for example in sydney or melb i would want short as possible.

I never sign any of my tenants now days on more then a 3 month lease when they move in, one might ask why? Because I have control over rents. In the old market there was too many properties not enough people therefore long leases looked attractive, but if your locked in you cant raise rents at your call. Tenant will stay if they want security. If I look back I have had rents go up on some of my properties by $100+pw over a period of 12 months. Some properties I have had tenants cause ethical issues with me (lying over stuff they have broken obviously etc..) and I have terminated their leases just to have 12 people come through the next day and rent for $50-80pw more. In these cases, who is doing who a favour?

Be careful when locking yourself in when the odds are against you.

Whats the chance of market goingbackwards? well we will need to see massive levels of construction, and a decline in immigration, which neither I see happening anytime soon. Due to economy growth and due to constrction finance is at depressing levels, therefore great times ahead on rents, expecially that renting will become a cheaper option as interest rates increase.

This is my opinion as you have asked for views but DYOR, and goodluck.

Nath.

Try http://www.rightgroup.com.au $10 entry and its like fortnightly investor meetings with topic of the week.

Disclaimer, I am affiliated with this group, not as spam, but just for those interested. It is not a selling session either.

LOL

As steve once said on his Cd, he doesnt buy properties from the glossy brochures…

I dont see value where the developer and marketing company have sucked every last cent.

Just be careful, I would rather come along a couple of years time when the developer gets in trouble and pick up his remainding stock at a 50% discount.

Recently done this on 4 sites, one being about 1/3 of the initial sales prices. Crazy stuff.

But try buy under value, thats where the money is.

Horses for courses…

I would buy for both CG and CF in each purcchase. Buying 10-20% under market value with 8-10% yield, means it wont impede on your lifestyle, and you will be able to pull your capital out and redeploy into the next purchase.

You can buy properties in sydney 2 bed units for $160k renting for $270pw+

Houses $240k rent for $350pw.

Studios aint bread and butter so would only buy a 1 bedder if i was nicking it for very very cheap.

Yep,

These guys spend lots of $$ on research so follow the big guys.

I wouldnt touch it, I would have to get it for 1/2 that price to consider it…

Carpet,

Its cheaper, timber gets scratched and damaged, and carpet gives the house that new car feeling for little outlay.

Food for thought.