I would have to say that it is very simplistic to think that you can sell the fact that a company has a profit of $5.6billion and climbing at a rate of 20% p.a.(not the spin on $3billion), and I should feel comfortable that they are adding real value to the community.I never realised that you didn't include shareholder dividends as clear pro…[Read more]

Firstly, I am not sure why anyone would want to go into an acquisition without an over-estimation on costs, I suppose this is me being conservative and why I do have millions today…….I am not one to argue over $500 here or there, you can take off $10,000 on buy costs and the interest drops by $750. Not much change to the outcome,Depreciation…[Read more]

A large corporation that deals with our community in such a broad way has an ethical and moral obligation. Regardless of the outlay or rate of return, they are taking $5.6Billion from our community, this is not a service but a large withdrawal. Remember, this is not a start out business increasing profits by 20% and having little to no effect on t…[Read more]

I can tell you that STG that I have also had many difficulties with the tardiness and lack of care of STG, (I pre-warn my clients about the time delays faced when STG is involved). For want of a better expression, it sounds like you should go with the better of two evils….http://www.birchcorp.com.au

That was a great effort for a first timer- Congratulations! You will go far in this game. Have fun!http://www.birchcorp.com.au 

Terryw wrote:
Not sure why you want an accountant who operates nearby. These days you can do everything via email with no need to actually go in to see the accountant. Its not like getting a hair cut where you need to be present. Even if you did go in you would only go once or twice a year and the trip is tax deductible.

Why is it that everyone…[Read more]

A unit in Mt Druitt as a good buy?Depreciation as a factor or reason to buy? Definately for the selling agent to market the property as a good buy (refer below to see this is not the case). Good yield? Lets look at this…Buy $230k and rent for $310- Her goes the positive gearing salesman again? Further to the fact that it is not good yield, it i…[Read more]

Property has made me financially free! I grew up in the outer suburbs in Sydney with no cash behind me and  I was on a PAYG income as a teacher. My Wealth was not created from my income or a wealthy up-bringing. Clearly, property investments accounted for my retirement at 34 years (or semi-retirement as most people point out). Now-a-days, work pl…[Read more]

Hi Matt,My best guess is that they won't lift it above the reserve (all things being equal), they have clearly enough margin from the last above reserve rate rises (to think we were all feeling sorry for them facing higher costs). I dropped off my lunch on several occasions to the executive as I thought they were having trouble making ends…[Read more]

Same as above, I like to be pro-active except no API for me. I noticed a post above x2, This is the type of spin I hear from many of my clients that were once direct clients of the bank. As a general rule the bank and its staff who have no idea about property investing guide people into products and encourage some strategies that although th…[Read more]

Hi Anne,I was a local and grew up in the west- Rooty Hill to be exact. I have a very good understnading on the suburbs your are discussing, down to the streets and schools. I would be happy to discuss with you offline.  I am located at Castle Hill- so still around the corner.http://www.birchcorp.com.au

Depreciation is a sales pitch, Yes it does provide increased cash flow but it is the side gig to what you are aiming to achieve. Further, you will often but not always pay a premium for new property (like a car except not a depreciating asset) and this will effectively diminish any gains you are making from your depreciation. LMI is also a side gi…[Read more]

I think you will find some tax avoidance issues here.From original post, I'm not sure you should be worried about cutting losses if you are making gains? Remember tax is only paid on gains. Limiting tax is good with strategies, but avoiding is ………Further, as mentioned above, selling may not be required?http://www.birchcorp.com.au

Where possible, it is much easier if you can do internal lending, the rules laid down by the banks are too rigid and quite often waste your time.http://www.birchcorp.com.au

Negative gearing will not reduce your income for the purposes of family tax assessment, unless you become a property business- this is where things become interesting….http://www.birchcorp.com.au

I am not sure a LOC is most suitable, it is both expensive and has drawbacks in relation to tax deductibility that can otherwise be rectified by a term loan with an offset account…….. Think carefully before acting on this one.

Intrigue wrote:
, if you are lucky and claim all tax benefits effectively the new home will only cost you approx…[Read more]

Hold that thought, be careful what you read……Landlord insurance is: 1. Rent default2. Vandalism3. Theft4. Loss or damage to building and contents5. Loss of tenant6. Liability cover (covered under building insurance).As you can see, there is no need to cover your Mother. I am sure the insurers told you this as their duty of care would not a…[Read more]

Evolve,I appreciate your remarks, thank you for your kind words- very professionally responded. Terryw,For the record, I think you knew this would get me going……… My next post will be on trusts and legal structures as some pay-back (I will have the think of something controversial).http://www.birchcorp.com.au 

I am of the stayz brand. I use stayz for my holiday house leasing. I also have a website that advertises. My experience is that you eventually have regular holiday makers each year at the same period go through your property and can eventually go without the stayz option. I also enjoy the opportunity of talking to the people that go through my…[Read more]

Richard,So you are saying that for average joe this is not an option, unless they are in the business of Vendor financing?http://www.birchcorp.com.au