Hi Richard, I assume I can find out more baout Discretionary trusts if I google it. Can you still claim tax deductions etc if you set up a discretionary trust? What happens if you have already purchased three IPs? Can they be transferred to the trust?

Sorry to hijack your post Aqualife, I would also like to know the best way to structure my investments, particulalry after comeing out backwards from a divorce.

cheers
Sonya

My concern is who is going to be renting these properties? My understanding of Peru  (from ex-husband who is Peruvian) is that it is a country that has a lot of corrupt people in government and positions of power as well as many, many poor people who are unlikely to be able to pay a rent that will allow you to make a profit on your investment. Also as most peopl know it is hard enough dealing with tradesmen in  Australia trying to coordinate everyone to get the job finished on time and on budget. Do you speak Spanish? How are you going to communicate with the people invovled in this development, how much control would you have in the whole process? I wouldn't touch this 'deal' with a barge pole.

Sorry to dampen your enthusiasm but I can't see this as a good investment.

Cheers

Sonya

HI,

have you thought about getting your accountant to lodge a tax variation ( I can't remember the correct title) that will increase your week to week cashflow rather than receiving a lump sum come tax time?

Large regional areas can often provide better cashflow, although they may not provide a great capital growth return. Also look at buying in another state so that you avoid paying land tax which varies from state to state. This is a state rather than a feral (oops typo although may still fit this context) federal tax.

cheers

Sonya

Hi

I haven't bought anything for christmas for my tenants, one has only been in the property for a month. However, my other tenant has been in my first IP since i purchased it and i bought them some movie tickets about two months ago as a 'thank you' for being good tenants who have been completely trouble free for the last two years.

cheers
Sonya

HI rachie, Another idea that I have seen is people renting out a room, or in your case their garage to people who need storage, perhaps while travelling overseas for 3 or 6 months. I know if you have a self storage unit that the person who rents the unit gets their own contents insurance as insurance for their property. They hen have a lock and the only access to the contents of the garage. This may be an option for someone you know. YOu could make enquiries with self storage places to find out what they would charge if you wanted to store your possessions and then chrage a slightly cheaper rate.

As far as advertising goes you could put notices up at local shopping centres, the railway like you suggested as well as letting friends and family know that you have the space available if they are planning to travel etc.

Just a thought to increase your cashflow

cheers

Sonya

Hi,

i have bought cashflow positive properties in large regional areas, some investors prefer to only buy in cities, but I am happy wih the returns I am getting on my properties.

Perhaps get a property manager in to have a look at your property and to give you some information regrading how much it would rent for as is. Is the property 3 mins walk or 3 mins drive to the train station? The reason I am asking is with so many garages if it is only 3mins walk perhaps you could rent one or two  of the garages to people who commute and want somewhere secure to park their car. That is if the garages have their own entrances, may even work if they have a common entrance.

With regards to the stamp duty question I don't know the answer to this question, however I aim to always buy and hold property. you lsoe too much money in stamp duty, agent's fees, capital gains taxes etc when you sell and buy again.

good luck

Sonya

I would be putting as much money as possible into your offset account to reduce the interest that you are paying on the PPOR. Is the offset a 100% offset? Also have you thought about refinancing your loan on the IP? I have just refinanced two IP loans that were at slightly higher interest rates to yours down to 5.29%. my loan repayments for both are now less than what I was paying for one!!

By paying your money into the offset it means that when you come to buy a new PPOR then you can use the money in the offset account instead of redrawing the loan. Perhaps Richard can confirm this, but I think that means that when the time comes you can claim all the interest payments on the loan for your second propert., If you redrew the money from the loan at a later date you would not be able to claim that mony because the loan would be for a PPOR not an investment property.

I hope this makes sense

cheers

Sonya

Lower Blue Mountains, great fresh air, excellent bushwalks, country town feel but close enough to 'the big smoke!'

cheers

Sonya

Can I ask why you are not using your line of credit to pay your deposit? With  $140K available you would have a sizeable deposit for one or more properties, well above the 20% usually required as a deposit. cheers  Sonya

Hi Loosenut,

In response to your question regarding books to read, head to your local library and see what they have on the shelf. I have found that Australian authors are better to read as  the information that they provide is relevant to Australia as opposed to the US or UK. I personally like Margaret Lomas as she writes things in a clear and concise way and addresses the various ways of structuring loans as well as providing information regarding calculating borrowing costs, depreciation allowances, tax deductions and so on. Good luck,

cheers

Sonya