god_of_money wrote:
Sorry to disagree with u again RyanYou can borrow up to 70-80% with standard margin loan.There is always pros and cons investing in share market including fully franked dividend, liquidity, etc.Buying bluechips = buying with top management, not the dodgy CF+ve that will get trashed You can start as little as A$500… plus…[Read more]

Lending is quite tight at the moment. So I can understand why they wouldn’t lend more that 90% for a refinancing. Lenders are really trying to lower their risk aren’t they?

I wonder when lending will get easier again?

I doubt they could do it without you knowing, but they could still do it. A discretionary trust is risky when you are in a joint venture as the profits don’t have to be split correctly because the trustee uses their discretion. A unit trust guarantees that the profits are distributed a certain way, which is very reassuring in a joint venture.

If…[Read more]

Don’t stress Wendy,

This happens from time to time. If you have been unhappy with your property manager for a long time it might be time to change. You should interview a few PM’s before choosing one though, to try and lower your chances of getting a dud.

It can pay to go backwards in rent for a short period of time. I wouldn’t be doing it on a…[Read more]

In regards to what businessglobal said. I have just been listening to a talk from Steve where he talks about “The Monopoly Theory”. Where you tie up pieces of land next to each other because it will be worth a lot more down the track due to the development potential. This is kind of like what businessglobal has done by buying large blocks of land.…[Read more]

GeraldineM wrote:
Hi Again Kerrie.Everything Ryan mentions is good advice.  However, I believe you can borrow to leverage into shares. While they may pay some dividends but won't have the stability of the rental return.  Also, you hear a lot about margin calls!  As with property, it would pay to do some research into shares, rather than fo…[Read more]

Interest rates are currently 6-7%. Yes interest rates will go up to maybe 8-9% but this will probably take around 2-3 years. In 2-3 rents will likely be higher than they are today which will help pay for the rising interest rates.
So no they might not be positively cash flowed at 9% today, but in 2-3 years the chances are good that they will…[Read more]

@ Laydo – That sounds like a good call. Hybrid trusts sound like WAY too much effort to be worth it (unless you REALLY know what you are doing). It certainly helps to go to your accountant knowing what you want. I have learned that accountants generally only do what you ask them to. They only answer questions you ask…they rarely offer…[Read more]

Well if you buy land then you will never achieve positive cash flow unless you develop it. You said at the start you wanted to buy land and just let it sit for 5-10 years and let it appreciate. This will take money out of your pocket every week, which you just said you didn’t want. So I am getting a little confused here.

I can find properties…[Read more]

You might want to be a little careful. I think, and I am sure someone will correct me if I am wrong….Richard , that if you refinance your current IP and establish a 95% LVR you will have to pay lender’s insurance again. Then when you buy the new property you will have to pay lender’s insurance on that property also. So that is something to be…[Read more]

@ the crest – The need to do stuff like that is one of the very reasons I avoid investing in units.

The strata fees not only kill any positive cash flow I hope to achieve, but there is so much politics that would waste my time that I try to invest in houses instead. That way I only the land and don’t share ownership with anyone.

@ Sw2772 – How much do you have? I know of properties you can purchase with less than $20,000. Does that suit you? Better yet they are positive cash flow.

I know of a great deal of positive cash flow properties that are positive cash flow upon purchase and BEFORE tax!

Taking tax out of the picture entirely I know of properties that can earn 5-12% cash on cash return. So yes they do exist and in towns of over 8-10k.

PS. I am talking about houses that are 3 Bedrooms, 1 Bathroom. Not units, blocks of…[Read more]

@ Byron – How will you secure financing if you don’t have a job?

@ Sydey – What are your investment goals? How much do you want to make in 10 years?

Thanks for your quick reply. I am looking to invest all over the country, and then do minor renovations spanning about 2-3 weeks.

It would be great for me to be able to go to the property, work out what we need, order it from you guys and have it within 3-5 working days to install as part of the renovation. Would save a lot of wasted time going…[Read more]

Richard where can I read about your background?

Are you currently financially free?

Hehe. I understand.

It is important to keep your trade secrets to yourself. If I ever invest with a Hybrid trust (don’t plan on doing it any time soon) I will come to you

Well I actually already have kids…well I have a kid. Had a daughter one month ago. But kids should never stop anyone investing.

I didn’t start in the real estate industry when I was 18. If I did I would probably own a lot more properties that I do. But I have always been an avid studier of property and I want to be financially free in 4 years…[Read more]

I have never heard of government auctions. But if you can buy houses or land for cheap then that sounds like a great idea.

People tell me all the time that I am stupid for what I invest in. But the numbers don’t lie. If you are making $10,000/year in passive income and the people who say “I would never buy that” are making $0 then who is laughing…[Read more]