Hi ireland

What about instead of selling extending the loans as lines of credit and accessing the equity.

Your way of ‘cashing in’ you’re up for capital gain tax and selling costs which will come to more than 30% of you profits.

Based on 80% lend you will be 10% ahead money wise and still see any future capital gain come your way.

Off course…[Read more]

Hi Tails

You seem somewhat frustrated by the current market and the difficulty of achieving +ve cash flow.

I think you need to reread your uncles story and draw some inspiration from it. Your uncles way is just one of many different approaches all of which will work because the person that has set his aims will make his approach work.

The +ve…[Read more]

Hi Louise

Its the principal of the clock not the actual clock that matters.

What the clock actually illustrates is the economic cycle and the types of environments that follow on from other environments.

The clock is not an absolute but just an indicator for the type of environments that you need to be aware of.

For example when the stock…[Read more]

Hi Isagold

What you have is time on your side. Yep its positive and your going to make $663 pa this is $633 more than you had.

Whilst you have loans on property the return is generally small, as per your example, in relation to the total amount in gross rent. But in 8-10 years you will see a doubling of the value and on the way see a slight to…[Read more]

The clock is in time the wave (or ripple effect), “grasshopper”, is the knock on that happens from suburb to suburb. As property increases in one suburb the bargain hunters move on to the adjoining suburb with similar amenities and so on. This result in an increase in prices suburb by suburb until suddenly a mania takes hold and the rush is on…[Read more]

Hi Hiu

If the world was this steady then you would never get ahead.

My experience with property is that it increases explosively with a massive increase in value happening in a very short time (say 2years). Then for the next 6 – 8 years nothing much happens capital gain wise.

This investemnt cycle repeats as per the investment clock.

In my…[Read more]

Hi Micheal

I agree with Andrew re the deductions except that the interest is still a cost to your business. As a cost the interest is offset against the income derived from the wrap.

So as a result the net income that you make from your wrap increases your taxable income (Damm!!! LOL)

Cheers

Hi Nick

Apart from the legal requirements in managing tenants the other aspect is the contact/availability. Every person that I know that has/is managing their own properties will get calls at anytime of the day or night as there are no “office” hours. Obviously there can be plusses with this as you find out immediately any serious problems but…[Read more]

Hi Wendy

An american site you might want to have a look at is http://www.creonline.com

Cheers

Congratulation AD.

I can well imagine your elation at this point in time. Why not, as Bruce suggest, share a bottle of champers with your partner as soon enough doing the deal will just become the standard with no reason to celebrate.

Wishing you bigger and better things

Andreas

The other thing that ezypay won’t do is look after the dispursements. Thus only half of the transactions load has been dedicated. I would suggest that you still need some appropriate software yourself to be able to produce loan statemnets etc

I am with Jason on this particularly if more leads are generated through the agent.

Cheers

Edited by -…[Read more]

Hi All

What is a section 32? This may go under another term in NSW which is the only state where I have purchased property.

Cheers

Hi Sooshie

I like your active post on all subjects, certainly keeping it alive and interesting.

My initial reaction to a ” Property Expo” is a pool full of sharks that you are volantarily jumping into. Don’t get me wrong I have been know to approach hyped salesman just to stir them on. With previous “expos” IMHO I have found that these setups…[Read more]

Hi Regina

The other thing you may want to try is get your current PM to contact and list the property with some PM’s that are local to the property. The only thing you then need to watch out for is that the local PM does not dump one of his undisirable tenants on you.

Interesting point that you intend keeping the tenant in place ones you start…[Read more]

Hi Regina

What market are you operating in?

Part of my portfolio is in a low end unit market and found that the fhog really took a lot of tenants out of my market with the vacancy’s throughout the area enormous. Like pages and pages of available properties not just at one agent but every agent in the area.

I have found that the market is just…[Read more]

Hi Steve

Isn’t it interesting how land tax alters between states with no consistency, further illustrating how much of a grab for cash this tax is.

In my example the uv is about $120k thus the $2000 land tax.

The option of the benificial owner in Vic certainly helps the wrapping process.

Would this apply in both the lease/buy and straight…[Read more]

Hi Regina

In NSW a trust does not even get the threshold allowance. Even seperate companies are excluded from getting more than one allowance if there are associated directors.

Cheers

Hi Bris22

This is certainly a variation of the original approach I used. The one point of directing all funds to paying of the mortgage is that you are then not building up a deposit on the next IP. This is OK if your intention is to redraw the capital to use in the purchase of the next property.

The method I used was to ensure enough equity in…[Read more]

Its allways worth phoning a number of solicitors to get a price. They have a scale price but most will deviate from it and save you substantially.

Any solicitor that can’t give you a price, simply avoid.

Cheers

Andreas

ps I manage to get my solicitors cost to about $1000, which covers the conveyancing and mortgage legals, excluding any stamp…[Read more]

Hi Scott

Ensure that you have sufficient insurance to cover mortgages. There are all sorts of insurances available some even pay out if you become incapacitated.

Andreas