bns wrote:

For your information we are 30 years old, live in QLD and earn a total of 160k pa (80/80) = DINKS. Our (my) year goal is to have a big enough passive income by age 45 to retire or semi-retire at least. I know it’s ambitious but where there’s a will there’s a way right!?

superAndrew wrote:

4. Put it towards property. Maybe a development.

Hi BNS, not only is there a way, but with the right approach by 45 your net assets should have doubled twice, at least that should be your goal. With your income you are in a great position. IMO PPOR is a very important part of any strategy you should employ. However a few words of warning. You should not be discussing tax strategy on open forums. The commissioner of taxation looks at “intention” when it comes to property. Therefor if your intention is to purchase a PPOR to make money, profit will be taxable. Sounds stupid, because everyone wants to make a CGT-free profit on their home, but that’s the trap, so keep it shut, rather establish irrefutable reasons to purchase a family home. I even advise dropping the use of the acronym which is derived from the tax act. If I was a tax investigator, the comments you’ve made on this site will be noted on your file.. forever! This may sound paranoid, but this advise comes from someone who has been investigated 4 times and seen a number of friends persecuted for acquiring wealth carelessly.
I’m continually bemused by the advice given regarding property investment. The reality is that there are plenty of investments and investment advisers to chose from (as proved by the response to your question). In reality though a good investment property is hard to find, more often than not it has to be created by value adding, which means research and work, a dirty word for many lazy investors. A lazy 8% income return should not be the only goal. Some will advise you to gear this for a 24 to 30% CG return, this makes no sense in a zero growth market. The right goal should be to compound capital. Once you set that goal, the right investment will reveal itself. Remember CG as many sell it, belongs to a dying generation, it is now a lottery, great if it happens, and should be considered a bonus, but shouldn’t form part of any investment strategy… ever.
Cheers
Vando

Stevie2013 wrote:

Hi curious to know if there are any active aussie expats currently investing in the HK market here?
After 7 years in this great & busy city i’m now a HK resident & contemplating using funds here for an investment in the low end market, tuen mun / tsuen wan around the 3 million mark, Im aware of the 3% stamp duty, 30% deposit required & the likely 3% yield however I believe that the prices per square foot for established apartments has a ways to increase & catch up the the high prices that are being paid for new. I also think the Aussie should go lower in the next couple years once the U.S begins increasing rates which obviously would be good to hold an assets here in HK dollars as the currency is pegged to the U.S dollar. Anyway it’s early days & have a lot more research to do but interested in hearing what other experienced investors are currently doing here. Thanks in advance!

Hi Stevie, I was over there for 5 years on and off trading and writing. I bought a unit in Discovery Bay, loved it over there, great facilities, 20mins from plane to front door by bus, great mountain trails and great expat community. I can offer you one piece of advice, try to think and work in one currency. When I was trading there, there was an inverse correlation between the HK (Us currency) and the AU$. Whenever I picked up on one currency I lost on the other, drove me crazy. The trading and banking system tools are the best in the world in my opinion and lucky you, no tax for investors, most tax efficient place on the planet, if it wasn’t for the fact I have family here, I’d be there with you. Enjoy and keep us updated on your game-plan.
Cheers
Vando

investec wrote:

i just get confused a bit …..check it out… does it matter really that your IP is negatively geared or has zero gearing (ie rent equals loan repayments) as the tenant (other people ‘s money) is paying the loan anyways…. and even at the end if hold for lets say 10years and then sell even at the same price as you bought… you still will make money as most of it was paid by the tenant….are we just being greedy here???!!!!!! INVESTEC

Hi, I know accountants that get confused about negative gearing. The best, first and most definitive book on negative gearing was written by a Sydney (Eastwood) RE agent in the early 70s, Don Johnston ‘How to get real estate rich’ its out of print, I can’t even find it on Amazon. It was my golden goose. My apologies but I’m going to capitalize this … NEGATIVE GEARING WAS DESIGNED FOR BULL MARKETS! … So that you could strip out the profits tax free by increasing your loan annually. It worked well right through the 70s and up until the Japanese banking fiasco in early 90s then CRASH. It might still be useful for SOME high tax paying investors … sometimes. The reason it worked was because property didn’t just double or triple, some property rose 1000% in less than 10 years.

magic32 wrote:

Which author/mentor/trainer/coach/speaker etc strategy did you follow for the main property investing strategy that you are currently using?

Magic, Listen up! This is as good as it gets when it comes to mentoring. Study everything there is to know about property especially cycles, cycles and inter-cycles. There is no such thing as a mentor when it comes to investment. I’ve been investing for nearly 50 years, it’s competitive, one deal one buyer! I’ve been screwed so many times because I asked the wrong person the right question and they’ve ducked off and white-anted me. Learn to love the industry and make it your hobby, and become ‘money conscious,’ set goals and put in the hours and the deals will come. Get a job in the industry even and read the capitalist bible “Think and Grow Rich” Napoleon Hill, the father of wealth mentors.
Two things to remember, most people who claim they will make you money have got an angle – even Napoleon Hill got rich selling books. The second is ask the right questions and often that question should be “if it’s so good why aren’t you buying it yourself.”
And finally, the two best deals I ever bought were tired properties owned by RE Agents, go figure.

Hey you tell me about it. What the f… is going on with the banks? Have they got any money at all?
I just had clients with $5m Net property assets, $150,000 income with a $300,000 facility. The NAB knocked them back for a $200,000 increase. Why? I suspect because one of the applicants were over 60. Something very sick here. I think they’re being run by kids that have never bought property, who use poorly constructed computer models based on the GFC.

That’s a great return James, where was it and what type of property was it?
Cheers
Vando