gday wirrumbirra, and welcome to property investing. there are heaps of us here in canberra and we try to meet pretty regulary, so keep an eye out. we normally advertise on this sight when and where we are going to meet. we dont really have a mentor, but we do show each other numbers etc to see if we’ve done it right. Melbear is very cluey on…[Read more]

You’re absolutely right about appartments, i have two, and am currently looking into a block of units.
the problems i find are:
usually there’s already a carport, so you cant increase value that way, and if there isnt a carport you have to convince all the other owners to fork out money to have one put in.
usually a snappy repaint, some carpet and…[Read more]

When: September 2003
asking price 220,000
purchased 210,000 (fully furnished)
buy and hold
weekly rent 265 p/w
(in after tax dollars) $74 a week
(neg geared pos cashflow)
of note is that darwin, in last quarter went up 38% in capital growth in the area i bought.

melbear, and pinnit
thanks, i just wanted to bounce some ideas off people here, as for the accountant, he is pretty good. he only calls me a tosser when i think up some hair brained scheme to avoid/reduce tax. nothing wrong with that its just that i dont pay enough tax now to justify spending heaps of money transfering properties into a trust…[Read more]

Thanks mel, as always you are a wealth of information.
ok, the plan now is (subject to the accountant not calling me a tosser)
january – refinance IP in darwin to 80% (leaving me with 24k after loan payed out)
refinance PPOR to 80% in a loc, so i can wait to strike (80% – 38k i owe = 90,000)
24k + 90k = 114k.

i wont rent just yet, so when i get…[Read more]

I understand mel, and i’m sorry if i came across as bullish or anything. i was just remembering what you said once at a meeting, where (if i remember correctly) was to refinance the IP to 80% then use some of the money left over in an account to pay the neg gearing for the year.
anyway,
the other way i was thinking was this:
ip in darwin owe…[Read more]

I havent found any (yet). still looking..
I cant even put you in the right direction as the area’s im looking at (ACT and surrounding districts) will have different needs then the area you are in, sorry about that []
ring RE agents, go to open houses, read news papers, circle properties that meet your criteria, if they dont give the price, ring…[Read more]

Melbear,
i know what your saying, i did that with my place in queanbeyan (though accidently and clumsily).
I guess i am just trying to formulate a plan
which is as follows:
until market correction neg/pos CF IP’s until no more tax to pay.
refinance using melbears theory (throwing some of the equity money into the loan to pay for neg balance)
then…[Read more]

Queanbeyan (NOT Canberra) []

Pinit,
i know i could do that, but the problem is i used the FHOG on it. i was intending on living in it, but was then sent overseas to a couple of warzones for that time. Although i can justify why i couldnt live in it to the ATO, not sure i want to tell them anything unless they ask.
as for running through the numbers… why not!
what do you…[Read more]

i know how you feel. what i do, is i have a map and i circle all towns, suburbs in a 3 hour drive radius. refine your searching to those area’s and the price range you’re looking at. ring real estate agents up (preferably on their mobile) then hit the road. leg work and time is what you will need to find the deals. I havent been able to come up…[Read more]

Thanks for your input.
i have a good accountant who checks my numbers before i buy, i question the accountant all the time. as for how many properties, as much as my equity and cashflow will allow at present. when i refinance next year i will have around 80k left to play with.
i have a secure income stream (i’m a public servant) so thats not…[Read more]

RugbyFan
one more bit of advice that will save you.
GET A GOOD TEAM AROUND YOU!
What i mean is, find a good accountant, solicitor
and mortgage broker. i prefer to use ones that invest in property themselves… why? because they will know the pitfalls you havent even run into yet, they will save you from yourself and will be able to help you along…[Read more]

avoid them like the plague.
its one of henry kayes former partners in discuise
http://www.jenman.com.au/NewsNews1.php?id=175

Peter M
“I am not an accountant but the advice of spending $ 400 on a depreciation schedule sounds ludicrous to me”

if you dont get one done you are ripping yourself off. i had one done on my Ip in darwin, cost me 440 dollars, return for this year 17,000 dollars in depreciation alone.
i dont have an electronic copy of it, but i can show melbear…[Read more]

Melbear,
if you need someone to split halves in the cost in getting there, let me know i will come with you!

I only had about 2000 dollars in the bank when i bought my ip. but i had plenty of equity to use as a 20% deposit. when i made the offer i just told them that i was only going to give them a 1000 dollar holding deposit until funds became available. what ended up happening was, the vendor was a very nasty piece of work and was demanding money for…[Read more]

Aafreen and others:
AVOID BRIDGEPOINT LIKE THE PLAGUE
its henry kayes ex partner in a new company
http://www.jenman.com.au/NewsNews1.php?id=175
see web page for more info.
please please check before you sign up for any seminar. ontop of that 12000 dollars is a lot of money. do steves course for heaps less than that. even de roos in only 3000, and…[Read more]

I’ve found a really good accountant here in canberra who specialises in them.
i rang him to see about puting two properties into a trust now. he said not to bother just yet as i didnt have enough property, i told him that i intended buying more anyway so it was better to do it now. he said we would work it out when i got more IP. not sure if he…[Read more]

I will explain it to you like melbear did for me.
ok you owe 65k with the rent paying it off (neutrally geared)
say its now worth 100k, you refinance and get 80k (80%)
you pay out existing loan
80,000 – 65,000 = 15,000
now your property is neg geared you will have to pay the difference, throw 5,000 in an account to cover the difference (from the…[Read more]