You are yet to factor in rental growth, which increases your return on investment.Also if you bought a positive cash flow property then the yield would cover the expenses.You don't need 3% capital gains to cover inflation. If you buy the property then you are probably going to leverage it. Let's say you put in $20,000k and borrow $100,000k. Then…[Read more]

I don't know you, but I trust Richard's judgement and I liked your video. So I also petition for you to be elevated to MOD status.<br /:)” title=”>:)” class=”bbcode_smiley” />Good to hear you are on your third property…very exciting

Is he investing 10% or just giving you 10%?If he is just giving you 10% and doesn't want a portion of the profits (he just wants to give it as a gift), then you can just fill out a stat dec saying that he gave you a non-refundable gift of [insert amount].That way he has a document and there are very few legal complications when it comes to title…[Read more]

Sometimes lenders will only lend 80% LVR because it goes through their business section
For a first deal buying in your own name is sometimes more straightforward and less complicated.

You can create clauses in the contract before you sign it to say that the contract is subject to building/pest inspection or even subject to you obtaining finance. These clauses allow you to get your deposit back if you get a bad inspection.

Get your solicitor to do this for you

Welcome to the forum and let me be the first to congratulate you on looking at investments this early on.

This is a very open ended question as there are hundreds of different ways you could invest. Do you want to go positive cash flow or focus on capital gains?

Do you want to buy locally or in rural areas? Do you want to renovate a property for…[Read more]

A discretionary trust has asset protect. I must admit though I don’t no the difference between a discretionary trust and a discretionary family trust…is there are difference?

With a discretionary trust, having a company as the trustee offers great asset protection in the case of a lawsuit. The trust may be liquidated but all your other assets…[Read more]

True that number 8…my bad. You will not pay Capital Gains Tax on your family home. I know that, it just slipped my mind with all this talk about turning it into an investment.

Sorry about my mistake and thanks for the correction

I wouldn’t sell the family home until you know what you are going to do with the surplus money. Otherwise it tends to disappear on living expenses. Remember by selling your family home you will incur Capital Gains Tax. For that reason it may be better to borrow money to buy the smaller home and then rent out the first home to cover the costs.

Be…[Read more]

I am from the Sutherland Shire and I use PKF Accounting in Caringbah. They have treated me really well.

With PKF you get 2 accountants assigned to you. So if one happens to be on leave then you can contact the other accountant. This has been really helpful for me. They are located in Caringbah so not too far away. It might be worth giving them a…[Read more]

A few more points:

1) A trust can take as long as 2-3 to set up and receive all the necessary paperwork (trust deeds, tax file number, ABN etc)
2) Home loans in the name of a trust usually come under ‘business financing’ with the bank so you will need to go through a different loan application then if you purchased the property in your own…[Read more]

Duckster explained it perfectly. You can claim the total costs (including depreciation) minus the total income.
If your costs are more than your income you can claim the difference on your tax. But if the costs are less than the income you have to pay tax on your earnings.

Always see an accountant for professional advice. Don’t take anything…[Read more]

My mother in law has a granny flat that she wants to rent out. The only problem is that it is too close to the fence line and thus presents a fire hazard (according to the council). It was built years ago before these restrictions came in.

She is a law abiding citizen and thus doesn’t want to rent it out because she wants to obey the law. So if…[Read more]

I/O loans give you more cashflow early on as you don’t have to pay off the principle too. It can mean the difference between a property being positively cash flowed and negatively cash flowed.
I/O loans allow you to purchase more property quicker if the only thing holding you back is the monthly cash flow you can afford.

If someone else is paying…[Read more]

There are many advantages to interest rates rising. Rents go up (and as for your question when should you raise the rent…I would say as soon as possible to cover your costs), prices come down…meaning if you can afford it then it can be a good time to buy.

The interest rates were at historic lows because of the financial crisis. They were…[Read more]

When it comes to property the more properties you have the more growth you are going to receive. If any of your properties are returning a positive cash flow then why not keep them and use the cash flow to help pay off your dream PPOR.

You need to be smart about this. Yes you want a dream home, but you also want to be able to generate a passive…[Read more]

With smaller money I tend to do business ventures. Mainly online stuff, sometimes I will invest the money to buy a product cheap from overseas and sell it on ebay. It is not really investing as it is a fair bit of work, but it is a good way to build up capital.
You are right, putting money in the bank seems like such a waste.
Putting money in an…[Read more]

No I am NOT saying you shouldn’t be paying off your land loan.

Just trying to get the concept over to you that money is a liability and property is an asset. Some people focus so much on paying off debt that they never collect any assets. In the end they might end up with no debt, but they have no assets making them rich. For me, I like to spend…[Read more]

Well welcome pinkboy. I also use this forum as an outlet. Even though most of my friends are finance minded most of them don’t want to talk about property or aren’t really doing anything in property. It is nice to find some like minded people I can chat to.
I also love seeing all the questions and problems people have. Things I didn’t even think…[Read more]

Number 8 is right. You have already done the hard work. You are in the game and you have started generating passive income. There is little sense in going backwards. You don’t want the join those putting all their hopes in winning the lotto.