Hi,Welcome to the forum! You might be our youngest member… well done!Some additional thoughts for you:1. Play Kiyosaki's games: Cashflow & Cashflow For Kids2. Read investment and money related books – become a regular at your local library. Kiyosaki's Rich Dad Poor Dad and Clason's Richest Man In Babylon are a great places to start.3. Start…[Read more]

I don't know if they do financial advice as such, but a good authority on property matters in Tassie is Nick Raeburn.His contact details are: Launceston ph 03 6337 5555Website: http://www.raepartners.com.au/contact.htmlIn the least, he may be able to provide you with a referral.If you call him tell him I say hello and let him know I owe him a…[Read more]

Hi,Remember that LMI is insurance for the bank against your repayment default. Even though you pay it, you don't get the benefit. My understanding is that even if you default and the bank claims on LMI, your credit rating will remain trashed.There aren't too many mortgage insurers, and hence the market isn't very competitive. One of the ways the…[Read more]

Hi,It needs a slight rewrite, but negative gearing is explained at:https://www.propertyinvesting.com/strategies/negativegearingCheers,

Hi,ROI is popular among accountants, but I feel it is less useful for property as it does not fully price in borrowing capacity.For example, let's look at this example:Purchase price $200kCash deposit: 20%Closing costs: $5% of purchase price; paid in cashAnnual rent: $12,000Annual cash costs: $15,200 (includes $2,000 of capital loan…[Read more]

Hi,I've heard Daiken is a reliable brand.I don't think you have to provide air conditioning. I would be going back to the tenant and asking them to choose and then increasing the rent by an agreed amount to compensate.Remember the rental multiplier effect. For instance, let's say that you negotiate for the rent to increase by $10 per week. This is…[Read more]

Hi,The cash-on-cash return formula is as follows:(cash received – cash paid) / cash downwhere:cash received: rental and other incomecash paid: all cash costs, including capital loan repayments and excluding depreciationcash down: deposit paid + purchase costs + finance costs etc + initial repairsA quick example for you to try:$200,000 property…[Read more]

Hi,I'm struggling at the moment on a personal level. My wife is quite ill and in hospital, and I have needed to drop everything to look after the children (and mother-in-law). I have very limited time and am trying to help with what little time I have.The best I can do is to write a lengthy answer to this question and offer it in a future…[Read more]

**Sigh**What spend time answering posts where people show no respect and demand action?  Yeah, that's how I'll pick posts to reply to!There's no point convincing people that things can and are done, when they already believe that it can't.The simple fact of the matter is that I never borrowed more than 80% of the purchase price. How? Well I d…[Read more]

Hi again,You might be interested to know that when I first started investing (5/99) I was much in the same boat as you are.I had attended a seminar (in Sydney), heard about +ve cashflow properties, and then came back to Melbourne and started looking as hard as I could. I spent days looking, and there was no realestate.com.au I rang stacks of…[Read more]

Hi,I don't think I'm talking complete crap, as the book is based on my real life examples.However, as you are studying the latest info and world trends, I'd love to hear your thoughts on how you think "studying perfect equilibrium and arbritrage etc etc" relates to the property market.And while I agree that the property boom of 2000 – 2003 caused…[Read more]

Hi Kurt,Happy New Year to you and your family!Welcome to the forum, and all the best with your investing.Cheers,

Hi guys,We are out of stock, and I am in the process of rewriting it as I type. There have been quite a few changes to tax laws of late, least of which are the new tax rates.This has had an impact on investors, although many remain unaware.For example, the changes to marginal tax thresholds have made negative gearing less tax effective.  For…[Read more]

Hi Micman,By management rights, do you mean management rights to a leasehold property?For instance, management rights to run a motel, caravan park, etc? Or perhaps franchise rights?If so, then some tips I would give you include:1. Remember you are buying an income stream, rather than a physical asset. The value in the business that you are…[Read more]

Hi GladysWeber,Welcome to the forum."Have I found a good deal?" is a question that every property investor ought to ask! Sadly, many take the advice about what other people think is a good deal, and wind up with a lemon. I wonder how many people are sitting on a marginal deal while stories of fortunes being made happen around them.To answer your…[Read more]

Interesting post.As an accountant, and an ex-auditor, I've seen first hand enough fortunes sunk to never want to own assets in my own name. There is no perfect structure, but some options are better than others. Individuals pay the highest tax, partnerships are dangerous from a unlimited liability viewpoint, trusts are complicated, companies…[Read more]

Hi and thanks for your post.Certainly, there have been people who have participated in RESULTS who live in remote areas. For them, the distance is another factor they have to overcome in order to achieve success.I would say that joining the mentoring program won't solve your identified problems, in fact, with more education you may be more…[Read more]

Hi,Thanks for your comments about the book, I'm glad you liked it. And welcome to the forum.It's always tricky to pinpoint the time, as much of the analysis is subjective.However, I think we have now come off the massive high in Melbourne's east, and we will now go into a period of general market gains (5% to 10% per annum). I'm not as sure in…[Read more]

Hi,Thanks for your post, and thanks Richard for the answer given.Another option would be to buy the property in your own name, and have your wife co-guarantee the loan. That way her income would be included in determining how much you can afford to borrow, but title is in your name.Since you are -ve gearing, there is limited use to family trusts,…[Read more]

Hi again,Well done on booking your place at the conference. You're going to have a wonderful time. See you there!In the meantime, here's a little synopsis of property development.To begin with, property development is profitable two ways:1. Better Land UseWhile land has perceived value when being used as a backyard (i.e. lifestyle), land becomes…[Read more]