Personally, I’d like to be rich enough to be homeless.

Being able to move to where ever I wanted (in the world), when ever I wanted and not worrying about the need to pay for it. Sure, I’d get sick of it after a while, but it’s still nice to think about.

But being permanently on holiday would require a pretty high passive income. That’s the…[Read more]

Dazzling, wouldn’t (or shouldn’t) it be simple to renew a commercial lease?

If you and the tenant are happy to continue the lease, then you simply take your copy of the old lease, change the dates and rent as applicable, and type it up.

Maybe I am missing something, but if you have already have a lease (that’s been drawn up previously and simply…[Read more]

I would be inclined to take note of each negative comment they throw at you and then find the positive counter argument associated with it.

For example:

Argument: “Don’t get yourself into debt”
Counter: Not all debt is bad. Without some debt (good debt) you’ll never make money.

Argument: “9 out of 10 businesses fail”
Counter: That means 1 out…[Read more]

Originally posted by Still in School:you strategies mentioned above, seemed to be a little risk adverse.. a little to conservative.

with 1 mill, there are plenty of manage funds out there, that return more than 5 or 10% and are secured and guaranted.

Oh sure. Don’t get me wrong – this is the safe PASSIVE option with little risk involved. Kind of…[Read more]

Originally posted by residentialwealth:
To generate a $2,000.00 income per week at 5% you need a cryitical mass of $4,000.000.00 dollars.

any comment ?

Probably about right, I reckon. 5% of $4M = 200K per year. So, that’s about half to supply your income and the other half to “maintain” the capital so that your $2,000 per week stays at a…[Read more]

Originally posted by Ablaz:
But if you invested 1 mill in the stock market thruing off a 10% return that would give a person 100k a year forever.
i would be very happy to live off that.

This is only good with a few additional considerations:

Firstly, your principle would need to grow by the CPI so that the real value of your return doesn’t…[Read more]

How rich would I LIKE to be?

$10,000,000 would be a nice start with an earning potential of around $600K per year.

Basically my idea of “wealth” is that I am always able to increase my capital by at least the CPI each year by spending less than my passive income.

Using the above amount as an example, if CPI was running at 4%, and a decent…[Read more]

This is very similar to a place we were looking at about a year ago. We saw a block of 5 units in Narooma for around the same price ($465K) and were very keen to buy. Kind of a pity really, given the area.

Unfortunately, we came into the negotiations late (only saw the deal after it had generated some interest). Banks being what they are weren’t…[Read more]

D’oh. Meant CGT, not GST.

Yes – you can. I’m doing it at the moment and renting out to different tenants (located in the ACT). Keep in mind that doing so will cause your potential tenant pool to shrink as some people like to “own” the complete block.

You do need to keep in mind that even if you live in one and rent the other out, the whole property might be liable to…[Read more]

Have you tried approaching the neighbours to see if they’d be willing to sell their house to you? Depending on your own situation cash wise, this could be a possibility (assuming they’re willing to sell).

Even if you do pay a little more market value (although by approaching them directly, they wouldn’t have to pay REA fees and could afford to…[Read more]

I think the thing with the 11 second rule is that you look outside the capital cities. Finding a place in Sydney, Canberra or Melbourne that fits the rule would be (I imagine) almost impossible to do in the current climate.

SL, are there foriegn nationals/non-resident rules regarding purchase in the USA? I’ve spoken to a few pals over there who are into property, but as they’re USA residents, they don’t know.

Cheers,
Jon.

Look at it this way – it’s no different a perk than a company car, free parking, discounted travel, etc. As the article says – the RBA still needs to pay FBT on it.

If they didn’t offer these benefits, then chances are they’d have to pay more to their employees in other ways.

quote:
thanks

please tell me what neg gearing

and

11 second rule

means.

Negative gearing is simply writing off any loss you make against your taxable income. For instant, I borrow $100,000 to buy a house. I pay $5,000 in interest, another $2,000 in government charges (rates, etc) and another $1,000 in sundry expenses (allowable taxable…[Read more]

The vacancy rate is quite high, and even real estate agents have seemed a little reluctant to *really* sell the place (once I started asking questions about vacancy rates, expected returns, and getting them to property manage places).

Yes – neither of the IPs I have is -vely geared. Removing negative gearing will only serve to give these a better weekly rental return (as rents will invariably rise – maybe not by a lot, but any extra would be extra $$$ in my pocket).

So, is anyone planning buying the DVD of The Block?

If I’m posted to a location that I don’t expect to live (or want to live) for a few years, then why should I buy?

Even with investment property returning around 10%, some people can make more money (or feel they can make more money) by investing in other strategies (stocks, bonds, etc.)

Also, consider that even if you can afford to buy you own…[Read more]

Rates do include water and sewerage, but at least here in Canberra you can pass the water usage charges onto the tenant.

I guess it really doesn’t matter where the charges are levied, cause your tenant does end up paying for the usage charges in one way or another.

But – it’s just something to keep in mind when comparing your 10.4% return in…[Read more]