I dont know ONE single “property investor/ stock investor” that pays the “normal” rate- i personally have ever only pay tax rate below 28-35%…and im not just talking about -ve gearing…

There are plenty of any way to lower your tax, super may work for someone whos 45-50 who can access this fund in 10 years time…but not when your 23….find a better accountant

1. Salary sacrifice
2. PAYG adjustment
3. Insurance Bonds
4. Depreciation
5. -ve
6. Interest in advance
7. Trust
8. Shares Rolling lost
9. Health insurance- Medicare

Just to name a few from the top of my head…May not work for everyone; but sure doesn’t hurt to ask your accountant.

Regards
Michael

To be Honest- your aiming a bit to high…and trust me you would mostly get stuck at property 4-6 because of serviceability and exposure etc…
When ppl say it’s +VE – at 8% yield…that is JUST enough to cover for the mortgage repayment…and not taking in account any vacancy periods.

Slow and steady Wins the race
Also having 20+ properties doesn’t make it any “better” then someone who only has 3-4 quality properties.

Regards
Michael

Hi,

Your strenght: ( from what i can see so far in your post)
1. good income

Weakness:( from what i can see so far in your post)
1. Low deposit

Not a lot of info…but we can work with that

My suggestion is to save up a decent deposit first- around $20-30k and buy in a good and known location where there is sure to be capital growth, it will be negative geared that’s for sure…so why buy a -ve place when you want a 6k passive income in 5 years time you ask???
Because; most +ve properties have low growth, and since your earning a good income of 120k you wont need +ve properties for now…what you need is a “foundation property” as your first IP + tax benefit from the -Ve.

So this is how it would roughly work out( By the way this is how i personally invested- living at home at that time etc)

Year 1
IP 1 – Buy good growth area ( established area), would most likely be -ve; claim the tax benefit + you can afford the lost because of your high income, you wont have this luxury when you move back town.

Year 2 ( will take you some time to save up again)
IP 2- If you have enough deposit- buy another good location property also -ve

Year 3 ( hopefully property 1 has gone up! -)
Draw on equity from Property 1 to fund this next investment– depending on your financial you may want to start going towards +ve properties now
IP 3 – Area with good +ve
Ip4- Area with Good +vE

Year 4-5
Buy what you can afford,
Sell Property 1 or 2 ( if it has gone up by 30% ~ 8% per year)

Of course this advice is general in nature But the whole point is to :
1. Understand the REASON behind each purchase
2. Timing – when to buy a +ve and a -ve to suit YOU GOAL
3. Have a exit strategy.
4. Lastly loan structure is important to achieve what you want…ie if you did a fix rate for say 4 -5year for IP 1 —- you would limit the way you can “draw on the equity” – so Build and find a good team of Professional that is willing to work for YOU.

Regards
Michael

No you wouldn’t

All “interior” renovations dont need approval unless your wanting to add an extra kitchen in.

Regards
Michael

JAYT wrote:

hi there every one who uses this forum. my name is john townsin, i am 21 and currently have 1 investment property in townsville. my main goal is to eventually live of the rent from my investment properties in 9 years time. this would require me to approximately own 8 properties outright. (assuming each one brings in roughly $250/week). i work on the mines in mackay, and am a easy going dude who enjoys a good time with mates. so once again just wanted to introduce my self to every one on this site, and i look forward to being a contribution to the forum topics, and even asking questions when i get stuck at times regarding finance, tax issues, legal issues e.t.c. 
                                 thank you   John Townsin  

Welcome John!

Great to see some young blood join the forum…

Any questions- feel free to shoot away…

Regards
Michael

As jamie mentioned ..goes stright to “STANDARD variable” –important! – meaning it be the standard rate without the discount ( which NOBODYS goes on…) so you will either have to go for

1. A basic variable rate
2. A package rate

Either way; the rates are negotiable,
Which bank is it with?

Regards
Michael

Hi Ahn,

We see an accountant not for them to show us WHERE to buy…but more if we buy what are the negative and positive and should it be more -ve or +ve etc…

Im guessing from your post, this will be your 1st investment?
Personally for me, if i was in your situation i would buy a house not a unit. why?

1. Your living at home anyway- so you would have some sort of financial help..ie sharing the bills etc
2. House will give you a good foundation to grow much quicker financially due to the capital gain
3. Buy in a known area with good growth drivers…so expect to pay the medium price – $400k +
4. buying a unit as your 1st one is ok if your “renting” and not living at home and have a expensive lifestyle etc

RP data , forum and magazines like API has great info about areas to buy for growth.

Regards
Michael

Out of 10 ppl who cross…5 of them will not have any issues at all with crossing and they live a happy life and havea great relationship with their bank…HOWEVER the another 5 suffer and complain about crossing…why?

If you decide you wanted to sell one of your property- all the property that are crossed to that property need to be “uncross” first before you can sell….all good so far; but what happens if the property market is done and all the value has decreased? ( ie today’s market) – you will start paying LMI again…

LMI? that’s ok- 4k? 5k? no problem….
BUT

1. If you have no job OR recently changed – hence why you might be selling??? the LMI provider would reject your application to go above the 80% ..and your stuck back at base 1- yes in this situation the bank would try to work something out…but it’s doesn’t always happen.
Bank – 1 You – 0

Sorry WC, got carry away, had a long week arguing/ dealing with the 19 -20year credit mangers…and it’s only Tuesday lol

It’s ALWAYS a good time to uncross – as long as your property has gone up in value and it goes below the 80% LVR on it’s own merits- then it’s all good.
Cost – $200-$350 ( valuation cost)

It’s a good idea to get a rough valuation first ie RP data/ look at the market and then you can sort of work out if the value has gone up or remained the same etc…

Regards
Michael

Pinkboy it sounds like you havea very interesting mining business- mind sharing what your company does or name etc?
Feel free to PM if you prefer.

I love your drive for business!!

Regards
Michael

Sounds like the Uni lodge…

If your buying the 1bedroom one- 160-180k— expect LVR to be around 50-60%
If it’s the split lvl 2 bedroom one $220K+ — LVR can be achieved at 65-70%

Since this is your 2nd IP, you MAY suit the bill to obtain finance for student accommodation if you have enough equity to back you up. However as a investor myself; having an student accommodation under your belt as your 2nd IP would inhibit your growth later down the track; as it has close to no Capital growth- just pure +ve rental yield.

Also the above LVR are done case by case as well….

it’s still possible to finance them…but def NOT easy!

Regards
Michael