Forum Replies Created
can you explain how the equity is non taxable,
Fortitude valley ("the Valley")has become a pretty trendy area, good night life, I think one and two bedroom apartments will always rent well in that market,
I like the northern suburbs near the bruce highway like Bald Hills, Murrumba downs, Kallangur and mango hill because the highway upgrades in the last few years have made getting to the inner city much quicker and 30mins the other way up the free way and your in the sunshine coast, But I Have also invested near the train line in Petrie and Bray Park.
I don't think you can go wrong in the Bris Vegas market,….
Brisbane has really come of age in the last 8 years, I expect the that brisbane's growth will continue well into the future,
I favour investing in the northern suburbs along the bruce highway and gympie rd, South east areas out as far as redcliffe are also my favourite areas,
I believe that oil is to cheap,
Crude should be trading at around $150 a barrel,
We have a great system of supply and demand, there are so money alternative fuels out there under development that are cash strapped, and people believe them to be to expensive, if oil were trading at $150 a barrel so much investment $$$ would flow into alternatives many technogies would be come alot more viable, such as.
Oil sands mining, oil shale, coal to oil, coal gasification, Biodiesel and ethanol,……and we would make much better use of gas for fuel,
also hybrid technolgy would receive a great boost,…… In the coming years cars that are "plug in" hybrids meaning that the run on petrol/electric and electric batteries that you can charge at will use only about 15% of the fuel that a normal car uses.
I think that the economic effects of peak oil will be short term, the biggest longterm effects of oil that threatin the economy are the enviromental impacts which will come in about 25years
Anyone Intrested in this topic should rent a DVD called "Crude", great australian documentry on the world oil industry.
t
he best way for you to work out the weekly amount is – monthly rent X 12months divided by 52weeks.There is not 4 weeks in a month,… four weeks is 28days, most months have 30days.
this is the same theory behind paying your loan of quicker by making fortnightly pay ments rather than monthly,
if your monthly payment is $1000, but you decide to pay of $500 perfortnight instead you will be much better off because there is only 12 months in the year but there is 26 fortnights in a year,
I don't think you have enough cash flow to support an investment that only returns 5-6% if you can only spare $20 per week.
You have to leave room for an interest rate increase and possiable vacancy,
However,….. Having said that,… have you looked into Interest only loans as a possibilty of freeing up cash flow,
I am not sure about your current position but you can also look at options for cutting back your personal spending to free up more cash for investments,….. you'll be surprised how much can be saved by making a few small changes to the way you spend your money,
I went through a period where I was focused on saving money,… some of the small Changes I made that add up to a whole lot when put together were,
I gave up drinking,….. Gave up take away,…. replaced most main meals with cheaper alternatives such as 2min noodles, baked beans etc,….. If there was a cheaper alternative brand for some thing such as "home brand" I bought it,….. I turned my on demand gas hot water sytem off at night and while I was at work and cut my shower time down which took my gas bill to $63 from $240….. I rode my bike to work,….. If I had to treat myself to a movie or a pizza it was on a tuesday night,…
This kind of thing sounds extreme but the results are amazing and I am still receiving the benefit because all the money I saved went of my homeloan so every dollar I saved also saved me 25Years of interest that I would have been charged if that dollar was spent and not put on my loan,…
Terryw wrote:Wraps take a lot of work for little reward. You will make more money buy and hold – from my experience.Also, most lenders will refuse to lend if they know you are onselling the property on an installment contract. Even if you are using lease options you are supposed to get the lender's permission.
Wraps are to provide more cashflow into your portfolio so you can "buy and hold" more property neg geared growth property.
so by having a few wrap deals you will be able to buy more properties, how is this "little" reward,….
I manage my properties myself,…
it's easy,… i would recomend it if you can keep it stricly business and aren't the type to stress out.
just remember to keep on top of rental incresaes
I think you worded your question wrong,…
I don't think there is any property haters on this site,…. If they were property haters they wouldn't be here.
I love the stock market and the property market which is why I can't believe some people put all there focus into one asset class true investor's invest in a range of investments.
As for picking particle stocks,… there are many factors just like property investing,… some one could quote a fantastic company with great earnings potensial and growth and by xmas it could be worth 10% less than it is today,… does it mean its a bad company,… of coarse not just means it's a good time to buy.
I rarely give stock predictions because of the number of factors involved and people who ask for stock tips are generally uneducated and won't understand if the company you suggest goes down in the short term.
Any way here I go,……. My pick is a company called,.. Agri energy (asx code AAE ). 26cents at the moment I think it should be above 50 cents by xmas.
But please don't anybody by this stock on my thoughts alone.
All of my Property and Business loans are through the CBA,….
Not because the are overly great,… I have threatened to leave many times but every time I threaten to leave they finally come around and match what ever deal I have found else where.
so for now I am with them.
Terryw wrote:Sounds like a lot of hassle for little rewards to me. It can also be difficult to get finance for wraps.what did you mean by this comment
Tryed to download ebooks and the only book I could down load was the capital gains tax ebook,
even when I clicked on other links it just kept giving me the capital gains tax book,…. or it sent me to a page about the secret.
whats happening
I would use a third option being hold property on an interest only loan with an offset account attached,
I would still make the payments as if I were paying it off but I would place the extra funds in the Interest offset account rather than off the priciple of the loan,…. this way I can take the funds out later and use them for personal use ( your private home ). and still retain the maximum amount of your debt as tax deductable debt,
the lower repayments on the interest only loan will also mean you can borrow more than your cash flow would allow you to if you were paying priciple and interest, there by allow you to by more property,
as I have said many times if you have personal debt such as the family home which is not tax deductable,…. why pay off your investment loan with dollars that could go to the non tax deductable loans
If you are hell bent on clearing debt though, put the loan over 25 years so your cash flow as far as the banks are concerned is good,…. but make extra repayment as if it was a 15 year loan. that way you have the best of both worlds,
vyaw2003 wrote:where can i go for resources on renting myself and getting rid of the RealEstate Agent.Can i start up a hostel without any form of a license?
I know of this guy who do it. and i think it was all under the table, he was getting good returns for that."Why pay taxes, the governments wastes the money anyway." Packer
depends whart state you are in,….. Queensland is the RTA (residensial tenancy authority) there web site has a copy of all the basic forms you will need, and lots of other info
Nucopia wrote:
nice tool
but it is not a true reflection of my situation Ho Hum
I think it is a guide more than anything,…. a way to monitor you performance and score your self,..
in what way is it not a reflection of your situation,….
Try to get some unsecured finance under your company name, yes you will pay a slightly higher interest rate but it will free up some equity from your property,….. even if it is only $10k of $20K unsecured every little bit helps,…. most lenders will probally lend up to $50,000 unsecured if you can convince them your business is doing well,
A lender will lend money to your company when you take away all the reasons they can say no for.
To maximise the amount a lender will lend to you,…
– Always Declare every cent of income you recieve,….. In business it is tempting to not declare some "cash" jobs, but for the sake of a bit more spending money you are losing alot of borrowing power because if the income is not on the books then it doesn't exist.
– Don't go over board will claiming deductions that you have used for personal use against the business,…. It might seem like a good idea to claim as much car use, house hold products and other stuff you use through the business so you pay less tax but when the lender looks at your tax return it will look like you are making less money than you really are so they won't lend you as much and your growth will be slowed,
– Write up a business plan for the lender,….. Outline how you plan to grow the business, where you will increase cash flow, how you will be mitigateing business risks, your business stengths, etc.
– keep up to date profit and loss and graph your turn over,….. have visual charts showing your business growing and keep a profit and loss to show your business plan is working month by month,…
conrosco28232 wrote:This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.I just realised what has happend here, the calculation is based on work days so 5days in a week,
so my original calculation is wrong, I can survive for 7.92 years not 5.6 years
I agree with Mackar,…
If you only have 1 or 2 IPs then managing them yourself can be a could way to improve cashflow, when a tenant moves out you can hire a RE to find a new tenant, the biggest factors to watch out for when self managing are,
– you have to maintain a level head and play by the rules,…. alot of people tend to get emotional about their ip and stress about tenant issues so you have to be able to stay rational in all conditions,…. but at the end of the day for most of the year the property managers do nothing.
– keep up with market rent,… it is very easy to when managing yourself to not raise the rent often enough so your rental yeild ends up slipping year by year,
conrosco28232 wrote:This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.if you don't spend all of your income then write if the salary bracket just the amount you need to maintain your life style,
as for the other problem, were alot of your assets held as personal assets suchas car furniture etc. maybe the program classes their value differently.
Scored 2057,….. 5.6 years on a wage 50% higher than I am paying myself now.
Not to shabby since I only started working full time 7 years ago at 18,
Stick to the simple rule of "spend less than you earn",… and invest in income producing and growth assets and you will do fine.
