No, You do not own the property until settlement. Have the building insurance set for settlement day… Congratulations anyway!!!!http://www.birchcorp.com.au

Yes, it iis time to make real money with property. Your $15,000 will look insignificant in contrast to what happens after several property cycles…..http://www.birchcorp.com.au

As above, property allowed me to retire at 33. I now give advice on a part time basis. i.e. I work as is required. No 9-5 thank you to property investments. http://www.birchcorp.com.au

Building Insurance as an obvious one, but the I will assume the reno is cosmetic….. Nil insurance required.http://www.birchcorp.com.au

Interest expense used to pay principal is not deductible… call it what you like. I would ask for a private ruling on this one if this was your intention.http://www.birchcorp.com.au

What is the zoning for the area? What are the height restrictions? Can you acquire the neighbouring block? What will a new unit your area sell for? Think before buying what may never be a good development opportunity….http://www.birchcorp.com.au

Asbestos is part of buying a home that has a little age, Out of 9 of my properties, 3 do not have asbestos. So your options are sit on the sideline or accept that this is what people used to build homes prior to the "80's". The value is in the land not the property. The land is what makes you money over the long term. As mentioned above, just take…[Read more]

That is correct, I have just completed an SMSF purchase for myself with a 100% loan. By completing internal lend, you can loan your SMSF what you please. The benefit of this is that you can also loan your SMSF at home-loan interest rates. This is a simple process of drawing up a loan agreement with your SMSF.The investment strategy will require…[Read more]

Now let's look at the real costs,$1500-$2000 is a little light,You will require:1. SMSF (set up may be $200, include set up of Investment strategy, ABN andTFN)2. Corporate Trustee x2- $1100 (ASIC fee is $440 x2 ). I.e. The Bare trust will also require one as per bank instructions and flexibility and so as not to contravene super laws.3. Bare…[Read more]

Refer to part iv(A), the anti – avoidance rules for income tax. This may be a concern when looking at your scheme (i.e. the circularity of money without a purpose). There is a grey area….. proceed with caution.http://www.birchcorp.com.au

This depends on what reason you are selling the property, if for a tax deduction it will come under Part IVA. If you sell the property to your wife because your wife believes it is a good investment and you do not wish to hold the property, I have also known people to sell properties to a trust for asset protection purposes (in both these cases a…[Read more]

It is not about the $1440 in saving. It is about the respect and relationship that is built with your tenant. While they are looking after your investment ($500k property returns $50k p.a. on historical records). You should not worry about the small expense. My reasons for self managing is not dollars, they are for the listed reasons:  f…[Read more]

I use the local paper, For $30 or so I have up to 10 perspective tenants. I had a client last month that used the local community board and McD's and claimed his phone rang hot. http://www.birchcorp.com.au

We have come a long way in this space, I am exchanging on an office purchased for my company by my SMSF today. What a great vehicle for both wealth creation, not to mention a place for your business to occupy. You may also buy a property that you may occupy in retirement. The process is a little complicated, but the help/ guidance from Accou…[Read more]

I self manage 10 properties: I cannot and would never use a managing agent. Several reasons include:1. Selectivity of tenants. I know better than anyone, the type of person or family that would be suitable for my properties. i.e. I know a large family would not be suitable for a particular property due to the small bathroom etc. This stops the…[Read more]

Now put that same $1000 to an IP and do the calc's, that's how you make real dollars!!!!http://www.birchcorp.com.au

I did a re-spray on the tiles in my shower area and bath ten years ago, still perfect today. I was a bit of a sceptic, but have since taken a new outlook. It was a professional group/ company that did this, not DIY.http://www.birchcorp.com.au

No, it is not a business. You can become a property business if you own properties that you manage yourself. There are other requirements that you must also meet within the guidelines of "are you running a business". http://www.birchcorp.com.au

Question, You will never be able to predict the future- I hear you say correct!So if you buy a property today whereby you are not spending beyond your means (i.e. if property crashes you will still be in a position to afford another). Then you do not have to lose sleep over the peak or bottom of the market. Another question, what is the market you…[Read more]

Cyndre,No reading on the above (and definately nothing to do with the banks), it is simply a strategy I use to pay for my insurances throughout my life. At the moment it is saving me approximately $2500 p.a.  Be careful of the FP you use to do this, don't allow them to charge you for the advice.http://www.birchcorp.com.au