Hi Richard,

Just wondering what makes you say that the loan from a $369,000 property would be more than $550/week. If you have just a 5% deposit and a 95% loan ($350.550) at 8% (which to my knowledge is higher than lenders at the moment, but seems to be where interest rates are heading) then your weekly I/O repayments will be around…[Read more]

These are things that I found helpful when I first went to buy a property. I am a bit confused whether you want to know steps for things to do before starting up a company, or steps of things to do before buying a property.

The structure I use is a discretionary trust with a NON trading company as the trustee. This is because the directors of a…[Read more]

Hey oo3c,

I was listening to Steve McKnight the other day (so this comes from his mouth not my experience) and he said that you want to buy structurally sound ugly properties. He said (I think more as a rule of thumb than anything) that if you can’t see it, then it doesn’t add as much value as it costs. For example, restumping, fixing termite…[Read more]

CG – Capital Gains
CF – Cash Flow

Hey Chriscarman,

Just wanted to thank you for bringing this up. I have been in contact with the moderator and this has really helped me understand how best to go about using this forum. I have official learned my lesson, so thanks for bringing it into the light.

Hopefully now we can move on and get on with helping each other out.

Ryan

DWolfe wrote:
He has seen the light!!!Don't worry Ryan. many people have their hearts in the right place, they just don't understand that the comments they make can be seen in a negative light too. If you stick to genuine posts (maybe a few LESS posts) then people will see that you are genuine in your intentions. The idea is to help when you can…[Read more]

As far as I have been told by the banks and mortgage brokers it would be extremely difficult to secure an interest only loan for 25-30 years. Usually banks do interest only loans with a term of 5 years, after which you are required to renew your loan. You can renew at interest only, or it might (in 5 year time) be affordable for you to do…[Read more]

The risk you run in on-selling the property is that you cannot sell it before settlement, which means you will have to settle and buy the property. If this happens then you will eventually need bank approval for the whole loan, otherwise you will risk losing your 5%.

I haven’t done any off the plan stuff yet, but for all I have read and seen…[Read more]

Dan42 wrote:
A trust can claim the depreciation, and it just adds to the carried forward losses. With increases in rents, one day the trust property will be (I hope) making profits. The prior years losses offset any profits before any distribution is required, and any tax payable. So you end up getting the benefit of the losses, just not in the…[Read more]

Hey Snowy,

Thanks for the helpful advice. I probably won’t run one this year, but I am definately thinking of running one in the not so distant future…once I have built up my contacts and have been able to network a lot more. I am still really new to the forum and still getting to know all of the members.

I have friends that I know would be…[Read more]

I check my populations by using wikipedia because it gathers information from the previous census (which was 2006). It says Moree has a population of 8083

I wouldn’t run away just because it has a declining population. As far as I am aware the declining population has a lot to do with the drought. THose areas have been in drought for the past 10…[Read more]

But it was Warren Buffet who coined the phrase “Diversification is protection against ignorance”.

I would assume that Buffet has a focused diversified portfolio. By that I mean, he would have a team of people working for him. Each team would be focused on making money in one area. But he would have a lot of teams.

I guess the question is, would…[Read more]

The comments from everyone have been really helpful. As a new Dad I am trying to get my head wrapped around this concept. I have always loved investing and I think it has put me in a great position for life. I want my kids also to be in that great position also (no matter what they decide to do vocationally).

There seems to be a fine line you…[Read more]

I guess i’ll just try to be good from now on, thus avoiding any future reprimand. Sorry everyone

Fair call Plummer. I have a few bodge posts floating around out there (for which I officially apologise). So how can I delete the ones that are spammy? Because I have found that after posts are like a day old I can’t edit or delete them.

I have been reprimanded and I want to set things straight…but how can I do that without being able to delete…[Read more]

Maybe he was talking about me, but I am not doing anything wrong. I am not a spammer. I am learning so much from being in this forum and I am enjoying the community. I plan on sticking around for a while.

I do enjoy playing Monopoly and that would be a great fun way to teach kids about investing. Also I own Robert Kiyosaki’s game CashFlow 101 which teaches you about becoming financially free. There is a CashFlow for kids which I am definately going to invest in to teach my kids.

They say the best way to learn is by doing, and the second best way…[Read more]

Chris,

People are allowed to use signatures at the end of their posts (like mine). But as long as they are using the forum to contribute then most people don’t have any problems with it. My signature is small compared to some, but I use this forum to gather information and form an active part of the community…I’m not here to spam.

In fact I…[Read more]

I do like the idea of teaching kids delayed gratification early on. It is definately a good skill to have. Thanks for your input.

I would take a drive around the neighborhood and look at different townhouses. Take photos of ones that you like so you can present them to your architect when the time comes.

Google is always a good place to start. Searching for things like “townhouse designs” or as sonyasai said “townhouse floor plans”. I am sure you will be able to find some…[Read more]