Agreed. I think you’ll find the majority of high rollers on this forum and in general buy and hold property.

The pay off from flipping a property can be huge but then you need to invest that cash somewhere else that will earn you more than you would have earned had you stayed in the current property. Plus you need to account for exit and…[Read more]

Agreed. I think you’ll find the majority of high rollers on this forum and in general buy and hold property.

The pay off from flipping a property can be huge but then you need to invest that cash somewhere else that will earn you more than you would have earned had you stayed in the current property. Plus you need to account for exit and…[Read more]

Regarding moving the money out of the offset account, you’ll need to weigh up where the funds will be better utilised.

Personally I find that too many people get caught up in trying to preserve the negative gearing position. Sure, negative gearing is a great tax benefit but this shouldn’t be an end goal. It’s a tool to use as part of your…[Read more]

The general consensus from those in the know? Steer clear of rural.

Should you hang onto the property and wait for it to be in the black or sell now at a loss? Only you can decide that, but you’ve held the property for less than a year so unless you were in this to flip the property that’s a very quick turn around.

Can you afford current…[Read more]

I doubt many people would suggest investing rurally at the moment. With the economy as shaky as it is I think most would agree capital cities (as always) are the safest bet.

The question then is are you happy investing in a smaller flat type property with a smaller land component or would you prefer to wait until your deposit is larger and you…[Read more]

This is a very general question and it depends mostly on your situation and what you want. You need to determine what it is that you want first. Do you want a quick and easy buck, more bucks but not so easy or do you want a long term investment?

If you want a quick buck, sell now, pay the capital gains tax and walk away with your cash in…[Read more]

Without knowing the specifics $50k would in most cases cover all costs with a buffer for any unforeseen circumstances

It’s not the cheapest option but I suggest you get in touch with a project manager who deals with subdivisions. It will cost you a chunk, not sure how much, but potentially could save you a whole lot more or even save your deal if you get into strife.

Subdivisions are not the simplest projects for the uninitiated and having a good team on hand is…[Read more]

Sorry are you querying how to raise the funds? Who can raise the funds?

If you’re simply chasing a better rate it may pay for you to consult with your broker about having the banks reprice your loans, or if you don’t have a broker talking direct to the banks.

The banks are very competitive at the moment so you may find that if you suggest you’re leaving them for another lender they may well match the rates or come…[Read more]

Whoa, I wouldn’t worry too much about trying to figure out the exact nuts and bolts of what they’ve worked out. Take it at face value that your rents will probably increase over time as likely will the value of the property.

As the value of the property increases, sure your yield may decrease if your rent doesn’t keep pace. For simplicity sake,…[Read more]

Can you elaborate on the particular situation?

There’s lots of options but at the same time if you’re “exiting” you will no doubt be selling the place…

Jaxon hit the nail on the head. If you don’t have clear goals you could spend the next 10 years spinning your wheels and then you realise that you’re not where you want to be and BOOM your kids are teenagers and are costing you an arm and a leg.

There’s this book titled ‘Values-Based Financial Planning’ by Bill Bachrach. I’m not recommending that…[Read more]

I’ve no idea about the Destiny model. I’m not really a fan of paying for courses when as Richard said your professional advisers should be able to give you the same or similar advice. Any potential properties or ideas you have you can bounce around on forums such as this and to be honest, the guys on here such as Richard and Terry W probably have…[Read more]

Without generalising too much (although this is general advice only) the majority of property investors buy and hold with the exception of the renovate to sell crowd. I have no idea of percentages but this is generally what I come across.

The first thing you need to think about is what your goals are and what you hope to achieve by selling.…[Read more]

An alternative is to refinance and access the cash that way.

If you’re partial to fixed interest rates they have come down a lot over the last 3 years so you could lock in a really competitive rate and access the cash you’re after. Or if you want to throw your dice with the variable rate then you could still refinance to access the cash.

This…[Read more]

It sounds like you’re doing the maths wrong. When Steve says 10% of pre-tax earnings, I assume all he means is 10% of whatever comes in, so really it’s 10% of net income. You’re right that if you use the pre-tax figures to work out your after tax expenses you’ll be in the red :-(

Say for arguments sake you’re earning $100k using the 2014 tax…[Read more]