Tails,

First of all i dont appreciate your patronising tone!

quote:

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Scottie, it doesnt matter if you have a high income or not a tax deduction is a tax deduction

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If I only pay 14,500in tax then once i buy more than 1 property my net income is reduced.ie ican only claim a deduction on the tax i pay once my loss is higher than my tax payable there is no benifit only A reduction in my net cash flow!

Now as for me saying you are making up figures.
You are SPECULATING on future figures.(predicted capital growth)

You want case studies here are the figures ;
PROPERTY 1:
COST: $85,000
RETURN: $190/WEEK
VACANCY RATE:<1 week/year (over 5 years)
MAINTAINANCE COSTS: 257/year (ave over last 5 years)
RATES:$1160.70/year
MAINT NEEDED: $0

PROPERTY 2
COST: approx 70k (still under negotiation)
RETURN: 190/week
VACANCY RATE: <1 week /year (3 years records)
MAINTAINANCE COSTS: 42/ year (over 3 years it does need some work)
RATES: 1184.90/ year
MAINT NEEDED: $10,570.00 (quoted)
RENTAL POTENTIAL AFTER WORK: $210/week (based on similar flats close by)

Tails you do the sums , if you know how.

Also as i stated before my bank will finance an almost unlimited number of these properties, how many $500k plus neg geared properties do you think they would fund for me?

You want the answer? 1(I earn approx 65k not bad for a dumb arse like myself!) thats all my income would safely fund (according to the same bank that will infinitely lend on dumps as you put it.)

I’ve looked at ALL my options im taking the one that will mean that in 5 years (probably sooner) i wont have to work fulltime .

Tails do your home work before you make yourself look like even more of a goose than you already do.

You are intitled to express your views but please put some substance behind them!

Regards
Scott.

PS; do you know what infinite means (do the sums for 100 or 200 properties and see what happens)

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

By the way ‘Tommo1’
HERE HERE ![8D]

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

pault277,
please correct me if my figures are wrong.
Making an $8k loss pa per property sounds fine as long as you have the high income to make use of the tax advantages.this also maintains the assumption that you want to keep working indefinately to maintain this income. how many of these properties would the bank finance? Where would you find the deposits?
Yes I am biased toward positive cash flow properties, for a number of reasons;
1:they dont take away from my day to day income (they add to it)
2:my bank will lend almost infinitely on investmens properties that return higher than 7.4% gross.(I work on 10.4%.As widely disscussed on this forum )
3:In the off chance of a long vacancy(I would only consider properties with a good tenancy record)having a small part of my portfolio vacant is much more appealing than say 50% if I owned 2 of your high end propertes.
4:I’m relying on documented FACTS to calculate my returns, NOT speculation based on what (at present) is a strong market. Do you really believe the figures you’ve quoted are sustainable long term, soon those properties will become unaffordable and gains in those area will flatten out .(they have already started.)ANY capital gain is a bonus to me as I do not allow for capital galns when i do my calcs.
5:I allow a p&i loan over 25 years so that i own the property in the end.I do not calculate based on interest only to minimise the hole it makes in my pocket(and maximise my tax advantage),therefore only owning the capital gain on that property.
Tails think about it logically it does make sense.
And please stop bagging those who want to use this method of wealth creation , it’s not a get rich scheme, its much harder than I first thought! But now that my months of researh and long drives have started paying off it’s becomming very rewarding.
best wishes,
Scott.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”-anon

In my opinion a good tenant is a person who carries themself with self respect and pride. This sort of person will not only be proud of theirself for who they are , but also their home (rented or otherwise) and thier dealings with other people (eg landlords). Those who have no self respect (bad tenants) tend to treat others, and their property the same way.
These are my observations anyway, how you distnguish these people when letting a property is a bit harder!
Scott S

Hi Leigh,
In answer to your qwestion I feel Brisbane is at a differnt point on the boom bust cycle.
With property becomming unaffordable in the cities of Sydney and Melbourne home buyers and investors alike have flocked to south east QLD, causing steady growth which is spreading further from the cbd.
The -ve geared hirise market, in which I find my self employed(construction)has taken off . This is great for me, but I wouldnt touch one of these propertys with a ten foot pole as even though rental demand is high at the moment for these propertys I feel there will still be a glut of unrentable -ve geared units within 2 years.
In the lower end especially the outer suburbs I feel that there is enourmous growth yet to be realised. This is only my opinion based on my limited research. Any input would be appreciated, also will the downturn (that I feel is comming) in the hirise market, affect the whole of the brisbane property market or will the demand for suburban houses sustain the market?
hope Ive been of some help or will sitmulate someone who can be to guide us both.

Regards
Scott