Robert,

The banks won’t let me have less than 20-30% equity so with a portfolio of 2 million now and 4 or 6 million in 15 years time I’ll have about one million left in the bank. That’s if I stop investing and developing now.

OK, so I have found the relevant thread, now Robert, my point was that if living off the equity means I have to sell after 10-15 years, I’ll still have some cash in the bank, let’s say a million or two so whether the interest will be enough for me or I have to use up the capital, I can’t see much problem unless I live to a 100 or more….

…so if I have to sell up at 60 or 65 I’ll be left with a certain amount of cash, now you tell the rest of the story…

[u]Originally posted by The Mortgage Advisor:[/u]
“I saw a person who used it for one year and used most of the funds to invest in additional income producing assets. I do not consider this ‘living’ off equity.”

Let me be a nitpicker…I did not say what proportion I used to invest…I might be leading an expensive lifestyle…[biggrin]

And I’m…[Read more]

A fascinating train of thought from Michael, Robert, Mark and so on…
I’m in a position where I could live off the equity, in fact I did for the last year while at the same time started a new job(business) and bought an IP with the intention to develop it.

A few questions to Robert…
In 10-15 years what will happen to the cashflow (rents) from…[Read more]

surreyhughes, are you in VIC? If you are could you please shed some light on how do you fit land tax into your strategy? Thanks.

As I’m still waiting for my first subdivision application to go through, I’m trying to access some more equitiy and as land is very cheap now and builders deals are getting more and more attractive, I am tempted to to…[Read more]

..as I said I’m still not sure how it works….so I assume that for a 2 million portfolio your land tax is over 15K (1.7% over 175k) which is an expense when calculating your income tax? Although if you live on borrowing against your equity then this is just another cost on top of your interest payments, right? Still short of the more than 50% if…[Read more]

Hi Guys….Michael and all the Others
I’m still relatively new to Victoria. In the last year I’ve learned that property developing here is probably better than my buy & hold strategy that I used in NZ. Through my circumstances I ended up refinancing anyway and bought a property that I’m trying to subdivide. My question would be about land tax as…[Read more]

Thanks for the info….unfortunately the site doesn’t work on my PC.

Tracy, I would look at three things. firstly, what’s the price of a block of land in the development. Secondly, what’s the price of the house if it was built on your land. Thirdly, look at the growth rate in the area/suburb. If the asking price is considerably higher than what it would cost you to buy the land and have the house built for you, and…[Read more]

If any of you are interested in subdividing 75 acres in Kilmore, Victoria, please get in contact with me. I am not the owner or their agent, just got the information through a friend.

I’m thinking of doing the same thing in Victoria. I have two or three properties in mind and won’t rule out a joint venture if anyone is interested. Plus I wonder if anyone has the same problem with this site – that is, I log in “successfully” but when I try to edit my account settings the access will be denied. I’m trying to change my…[Read more]

Thanks Alistair….great advice!

Thanks Simon….I have found out more today about this property. It has potential for up to 8 unit sites (350 m2)….got an estimate of costs too. It works out about $60,000 per unit site and as a bonus you get the 3 brm house….sounds fair to me…unfortunately I am not in the position to buy it so if anyone interested please email me. It’s in a…[Read more]

I have personal bankers in NZ and they usually give me discounts if I ask them nicely.

Just keeping this fresh in the hope that someone will shed some light on it for me….

Thanks a lot….I will do that but what LEP stands for?

Thanks Blanyi, this sounds encouraging…I have two different brokers working on my case and I keep my fingers crossed….

The ATO not only threatened they are actually investigating several cases. It’s in the August API (Australian Property Investor). It doesn’t worry me though as I haven’t yet earn one single dollar in Australia that they could tax LOL…..

This is very useful information, thank you…I might need something like this as my income is coming from overseas, and while I’ll be starting on a salary, it will be commission after a few months.