Forum Replies Created
Business consultancy/advisory is far more lucrative and with lots of upside potential. FP/MB is a slow grind and growth is glacial by comparison. You can buy into business advisory consultancy types of businesses on a franchise basis. Do your DD as you would with anything though. You should be able to start at around $150k and work up to around $500kpa within 5 years. Depends on what level/size of business you work with.
What sort of consultancy are you talking about here Freckle?
LMI isn’t that big a deal is it? A couple of thousand generally…just pay it and say thanks for the hundreds of thousands you’ve bequeathed to me.
I’m halfway through doing my first renovation. It’s taking a lot, a lot, longer than expected :-) But that’s ok, it’s all good experience.
I have purchased most of what I need I just need to install most of it. I’ll be putting in a kitchen in a few weeks. That will be the first big thing finished so I’ll post some before and after pics once I’ve done that.
There are 2 schools of thought that can be used to answer your first question.
The first is that the proverbial is going to hit the fan shortly in which the best case is a flat line in growth for the next 18 – 24 months, worst case is a decline in prices. I'm no doomsayer, nor am I a fortune teller, but I think if China goes down the gurgler and takes us with it then we'll be closer to the flatline scenario rather than seeing a massive decline. Plus given that you are close to Perth, the train line, Fiona Stanley etc you're looking ok in my books.
The second is that nothing bad is going to happen in which case you're sitting on a veritable gold mine in the longer term. Buy and hold baby.
It's my ppor in wanneroo. The plan was Reno and hold but it's looking more like a sell and repeat scenario at the moment.
I'm trying to do literally everything myself except for the required sparky and plumber. It's slow going because work keeps interfering and this is my first time as well so I'm making it up as I go.
Where's your's?
So Richard, VF is your last resort? It's always seemed like a lot of effort for little reward to me, unless you can put together 135 deals in 3.5 years…
Cheers Benny, that's what I was afraid you were going to say!
Jamie, you're a genius. You've planted the seed in my head that I will be able to reno places full time if my wife returns to work. I'd have to deal with the kids and home chores etc as well, but that's a small price to pay if this can help propel my portfolio at a faster rate.
My biggest question has and still is: where does the deposit for the next property come from? I understand cash is king, whether it be from a vendor finance or a simple cash flow positive property. But the banks won't lend unless you have that 10-20% deposit.
If I'm building a portfolio with simple cash flow positive properties I don't have someone else chipping in to make the deal work. Is it simply a matter of hanging tight until the CF+ builds up enough combined with the equity of the already existing properties for that next property? This just seems a long way off my traditional understanding of purchasing 1 property a year.
I was quoted about $3k for tiling of a similar size bathroom. That's the first quote and needless to say I'll be chasing more quotes.
Are you going to pull all of the old stuff and tiles out yourself? I'm going to do most of the chump work myself so that I can cut down on paying $100/h for unskilled labour.
The initial costs outlayed to bring the property into your name as well as up to scratch to sell, ie renovation costs, are generally capital and are therefore not deductible. If you are running it as a business then these may be tax deductible, but then you will likely be subject to tax at the marginal rate rather than CGT. Not all reno costs are capital in nature though.
Loan repayments will generally be deductible.
You'll need to speak to an accountant about the specifics.
Not strictly the topic of conversation, but why are you doing a Reno using a company name? At a minimum you will need public liability. Beyond that I've no idea.
Forgive me, are we talking options here? I had a brief trawl but didn't find any answer simple or brief enough to satisfy me.
Cheers,
Tom.
What about a granny flat?
I’m under the impression the rules are different if you aren’t actually subdividing. Then perhaps your property would become cash flow positive and pay down your principal if that is what you desire.
Personally I would live there while building if only so that you are close to the action and can see what and when things are happening.
Plus there would be less headaches than if it were tenanted.
What state are you in? I’ve no idea about the other states, but I know in WA you can rent a gf to whomever you so desire. There are limitations about the size though I’m not sure whst they are.
If you are close to the area drive around and look for for sale signs, as well as places that match your criteria. Knock on the door or as wilko said drop a flyer in their letterbox.
I think terry understands your question, he's just putting up his 2 cents on the potential legal issues which could be bigger than the potential upside.
Provided everyone is agreeable and it is well documented legally I would run with shape's suggestion personally, then add in the Reno and refinance Colin suggested.
Not true catalyst, there is an excemption to that rule for accountants although given the light training they have on everything I would not act on accountants advice unless they have a portfolio themselves. Similar to a financial advisor as well.
On the flip side, look at Japan. Many more people than us, very little land and there property prices have been stagnant forever.
Of course their economy is a different kettle of fish to ours and probably accounts for the poor growth, however it does show that it's not just down to supply and demand.
I'd much rather hear stories from familiar people. Makes it more real.
Cheers for the article Richard!
I'm sure you bore no one on this site Richard
I've just emailed you chasing a copy of your interview.
Cheers,
Tom.
