I have applied this strategy in my own investing life and I can’t be a stronger proponent. I will never buy again in ATL but that is because I truly HATE the costs of triple taxes, triple holding costs – and that is on very smooth sailing properties…

Hi Emma

What are you referring to when you say triple taxes and triple holding costs?

Cheers

The Aust tenants do not necessarily pay weekly but it is accounted for weekly. Similarly not all rents are direct debits we still have tenants who pay cash or cheque in person. There is also a direct deposit facility that is often used. In various states there is legislation which forces the RE to provide various payment options.

The RE office is…[Read more]

Hi Jan

As Kay has already indicated it is doubtful that you have a case.

As far as trying to evict him because of the lease conditions. I see that these would be judged as harsh and uncontionable and as such you will not succeed but in so doing aggrevate the whole situation even further.

Reading your post I drew the conclusion that you had…[Read more]

Originally posted by JustAllan:
Hi folks… I’m looking for suggestions on what to do with $15,000 cash, while still adding to it for a deposit. I think ING Direct is currently about 5.2% and Companion Credit Union a little more I think – but it’s really still chicken feed – anyone have any other suggestions?

Allan.

Hi allan

Could I…[Read more]

Hi All

Vote for the party that is going to create the most upset and disquite in the economy.

By all means abolish any favourable treatment of GCT, increase stamp duty, apply a land tax to all IP’s.

In the end the smart investor will stand to gain from the oppurtunities that are created as a consequence of the politicians idiocy. The last thing…[Read more]

I am with you PK. In the end its the only way to deal with the situation. I had an ANZ visa card was racking up 150,000+ points pa the received the 5k per month letter haven’t used it since.

Citibank just sent similar letter advicing me I had exceeded my max points for the year (by 20k) and will not receive anymore points until August my…[Read more]

Hi Shar

Iam a bit confused why you are discussing NSW if you are going over to NZ.

Anyway in regard to land tax in NSW the new should actually benefit trust structures. The reason is that the first $400k will be levied at .4% rather than the previous 1.7% a saving of about the 1.3% mark.

It is still to be seen whether the .4% will apply to…[Read more]

Hi kelhutch

I would suggest you go and talk to the council and see what approvals you need to make it an approved improvement.

The next step will be to get plans drawn up and submit them to council to get official response. This may cost up to $1k but in the long term is a worthwhile investment even if you don’t proceed.

The main consideration…[Read more]

Hi glenetti

Absolutely spot on. By not redrawing the money used to pay down your PPOR you are literally using the pile of cash sitting under the bed.

Obviously one needs to invest this money correctly to maintain your safn (sleep at night factor).

Unfortunately the marketiers are starting to get hold of this concept and pushing people to use…[Read more]

Hi jaffasoft

You can try
http://www.strategicwealthmanagement.com.au

or

http://www.chrisbatten.com.au/

and lastly try

http://www.navra.com.au/

Cheers

Hi All

Possibly what is refered to is redrawing the increasing equity to finance the -ve holding cost and also provide defered tax income based on spending the drawdown rather than having a taxable income.

A more detailed explanation can be obtained via Steve Navra. A link that explains some of this is here…[Read more]

There seem to be 2 issues here

1 qld properties with -ve no effort
2 seaside properties with +ve with effort

1) overpaid, with market only just catching up with purchase price.

Look at the market and asses whether there is going to be any CG in the near (2-4 years). If there is going to be any further capital gain does this exceed the loss on…[Read more]

Hi Yack

We have been renting a house to my sister in law since 1996. They have now paid more rent than we paid for the house originally (a long time ago)

No problems so far with the rental payments.

Cheers

Hi All

As a substantial NSW investor I see the change in Land tax as positive for landlords.

I am already paying substantial land tax and although I haven’t sat down the work out the difference I suspect there will be negligable difference under this new regime.

What it has done is leveled the playing field for all other investors (read my…[Read more]

Just wait 2 years and take a look at the stats then.

This will be after the new property investors have had a gut full of bad tenants, the hassles of the paper work, the allure of a shiny new car or any other doodad that takes their fancy and simply no real capital gain which most will be banking on and possibly -ve growth.

They simply don’t…[Read more]

SIS, I don’t particularly agree with the intent to delay the payment of the HECS debt as in the mean time I and every other tax payer is supporting you.

Unfortunately for you life (and the government) has a way of catching up with you. You may or may not be aware but and depreciation on the property is added back for GCT purposes so that any…[Read more]

Hi BooBoo

It makes a difference and its called profit. The bank is out to make a buck and if they can get away with differenciating the business so that you pay more they will try.

Having said that I managed to get St George to do a Portfolio loan for $1mill at %6.5 or there abouts. With no business reporting etc. So basically as a home loan and…[Read more]

I would try and do it through a hybrid trust. This is a discretionary trust that also has units as in a unit trust.

The ability for you to channel the money into a trust will be dependent on whether the trust can become a shareholder of the company without to much CGT problems.

With a hybrid trust the 50k will become the seed funds yoy take out…[Read more]

Hi Booboo

I took the decision some time back to start investing in blocks of units.

The main reason was the land tax bill with my thinking being that a house has very little income to offset the land tax but a block of units will have many rents to offset the saem or nearly the same rated value.

Since then we have purchased 4 blocks, the blocks…[Read more]

Hi brownrabbit

Congrats on your success.

In regard to selling don’t forget to factor in the CGT and other selling costs. In general this will come to about 20-30% of the gains that you have made so when comparing selling to simply raising money against the increased equity you are better off simply getting a loan to provide the money and retain…[Read more]