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In 2004 my accountants fees were $5,400. from a big city guy, so in 2005 I went to another in the suburbs who works from home and my fees were $1,400. for the same amount of work.
Like everything else, it pays to shop around.Hi Lisa,
Do you mean a “line of credit”? over a property you own.I am an early retiree, with no real income, so I am making it from my capital and renovations.
Must admit after about 15 renos in the last 2 years I am growing tired of the manual labour. Now I would like to move into new homes and have a builder build them for me.
I’m not complaining about the reno profits of about $30,000 each house, but it’s getting tiring, being constantly dirty, dusty, having to break your back when you are tired etc.Would like to hear more about your finance set up.
Thanks
Yesfella (Allan)Find pensioners who you can have a written agreement with, who for a couple of thousand dollars a year, ( by paying their electricity, telephone, water bills and a cash bonus at Xmas time) will let you get a loan and put their names on the deeds to a property. They are rent payers and one property does not put their pension at risk.
You will find them as regulars at the local bowling club or pub.
Result, less tax commitments and no CGT. I know a bloke who actually does this in Brisbane.I consistently get returns of 8.5% by buying, renovating, holding, renting it out and refinancing in large provincial cities.
I borrow at about 7% on low doc loans, interest only, 20% ingoing and by refinancing after renovating I can get back out about half of what I put in. A year or two later I refinance again and so get all my invested dollars back. Its such a great feeling to have an investment property making money and wealth for you, that owes you nothing financially.
Each property has to have a twist. Either excellent position, home with seperate granny flat, 4 or 5 bedrooms, maybe ensuite and walk in robe, corner block, outdoor living area etc. It also must be 600M2 or more with a 20M frontage, so in the future it may be a duplex site that I can develop.
Hope this helps some of the newies.Either offer new tenants cheap rent, or approach the ruffie and ask if any of his friends want to rent. In both cases you are gonna get cheap rental returns.
Hi,
The local municipal council will sell you this info for about $25.No shares for me.
Someone else controls my destiny.
Also, these big public companies…all the cars…all the lunches..all the first class business trips, all the overpaid executives.
My overheads are just ME.
You never get the real profit.
Yes, I have had shares, lost some money and made some money.
But, relate to this, I have 8 IP’s, never vacant more than 2 weeks, the rent goes straight into my bank account.
And every year I get about 10% rise in equity, just for sitting back and doing nothing.
I want to sleep at night and know that even in the next few years, I’ll know what my income will be, and approx how much my properties will rise in value. AH, Ah,.
PROPERTY LIFE IS GOODToo much trouble getting loans with a Trust.
I opted for my own name. Still OK tax wise.
After, I buy a property, my solicitor and accountant form an agreement with myself and my trust. Works great.
Suggest you pay for some good advice.I always use interest only, low doc loans, as a line of credit.
The interest is all tax deductable. However, if you use P&I, as your principle is paid back to the lender, your tax liability goes up.
I never want to own my properties, as I will loose my tax advantage. Eventually, my properties double in value, by experiance over the last 7 years, then I sell one or two and payout some loans, then go and buy again.
I live on borrowings, no tax payable on loans. As inflation makes the value of my homes go up and I see some valuable equity in them, I borrow to put in my pocket.
Maybe, one day I will tire of all this, sell some, pay some out and just lie in the sun collecting flies.
Ask your accountant about this action.
