Better than losing your PPOR because some tradie fell off you PI roof…

Hello Jenny,Just saw this thread and will have my bum in a seat next week Kevin

I think the point is that Bill would have 10 units and Ted would have 10 units, being a unit trust, and that any profit or debt would be split based on the split of units.

Well thats disapointing!

Just found this from Richard in another thread."Just note that setting up multiple Trusts will not increase your capacity to borrow."Any ideas then on what Steve is talking about in the book, will have to have another read when I get home.  As I said it was eluded to not put forward in detail.

+1 with Richard, I painted my place as it was going to rental but was living in it at the time and accountant tells me it has to be available for rent at the time you incurred the expense in order to be a tax deduction.  Jipped!

Might be a stupid question but how does the bank know whether you live there or not? Could there not be a reason that you had intended to move in there but it becomes unfeasible and you dont?

Do the other 3 majors still accept 95% + LMI?

It makes sense in my head, I'll try and explain.Your wealth (Just in terms of property) = Equity + Cash (+ Debtors but we don't need to complicate it with them).  Now lets assume I have 2mil in property 1mil equity and CF of 100k pa. (Actual figures dont matter just an eg)Also ignoring CG on the PI and Int earned on cash for now.Day 0 I have 1m…[Read more]

Qlds007 wrote:
Sure whatever.Personally i have my portfolio structured that i can live of the rents for the rest of my live and have no need to ever draw on the equity. With a LVR now at 13% over 30+ properties  i expect to have the entire debt paid off in 18 months. Everyone to their own i guess but LOE is not for me.As time goes by i will…[Read more]

Thanks guys, I do agree with you Ryan to aim for 80% or lower to ensure a positive return but at this stage I am 23 and working full time so I would prefer the properties to run slightly negative if it allows me to obtain more sooner and look to lowering the debt %'s a bit later when life becomes a bit more uncertain and I would benefit more from…[Read more]

Provide a means to lock up the bins giving the tenants the key to their bin.

I would also like some advice here, I understand that you are increasing the possibility of negative equity in the short term but as long as you are able to service the debt then wouldn't you be shortening your time in between purchases by looking at 95% + LMI.