Seeking your Advice

Hi There,

Assuming no existing debt and has a decent amount of deposit, with that income, he can start his investing journey as soon as possible. Before doing all that though, I suggest the following things:

1) educate yourself – forums like this one is a good start. ask questions, read more about it and then come back with more specific questions. Some good books are highly recommended. Do a search in the forum and you will find a lot of people sharing books, magazines and other resources that has changed their way of thinking for the better.
2) investing for tax purposes is not really a good plan. it might help you for a short period of time but property investing is not all about tax benefits.
3) start with the end goal in mind and be specific with your goals. You mentioned that he wanted to grow a property portfolio and be financially free, what is financial independence for you? is 70k a year passive income your goal or is it 150k a year? from here, you will formulate your own strategy on how to get to your goal. very important too is to set a timeframe for your goals.

Regarding your questions,
1) paying less tax does not make really make u grow assets. It will help u save faster as u will get more after-tax dollars that you can then use as a deposit to buy properties. this is really not a good strategy. as u read more about property investing, this view will change.
2) I do not know any good tax accountant in WA. accountants are not the only ones though that you should be focusing on for advice. u also need a good finance person on your side that will tell u how much u can afford and will structure your finances to suit your goals. a good buyer’s agent too can help in your search for good properties for your strategy, this will cost you though to employ them. u can also consider going to meetups and just mingle around like minded people around your area.

So yeah, read.. ask… research…

Cheers!

Thanks for the post. I agree with PHP. A good investment should definitely be about growth and yield, with tax saving as a potential byproduct of participating rather than the reason to do it.

Negative gearing (when your income is less than expenses) is one way to reduce taxable income, along with depreciation benefits (the physical building & fittings get older they depreciate in value) to add to the deductions.

A lot of property marketers sell new property to meet this brief, and quite often translates to being either houses located out in the sticks, or inner city apartments. Either means the growth prospects or yield outcomes are loooong term. Generic ‘buy and hold’ for tax returns as a strategy, is a pretty old school approach to market…

Earning good money as a day job, along with the stress involved, suggests he would look to make the most of this potential – sooner rather than later. Creating a plan with a defined outcome and time frame might be a better initial move, as this would spell out the most suitable investment for his goals, rather than his tax return.

• This reply was modified 10 years, 1 month ago by  Richard.

Richard wrote:

Earning good money as a day job, along with the stress involved, suggests he would look to make the most of this potential – sooner rather than later. Creating a plan with a defined outcome and time frame might be a better initial move, as this would spell out the most suitable investment for his goals, rather than his tax return.

Exactly! :) Good advice Richard.

Hi Hiiph,
Welcome to this place. Has your brother also registered with us? There have already been some great answers posted – kudos to the posters *applause*

I figured your brother might also get some benefit from this link :-

https://www.propertyinvesting.com/forums/general-property/4349450

It endeavours to group together a lot of “early learnings” for newer investors (saves a lot of searching). I hope it is of benefit to him,

Benny

Good point blackhotel. Properties with strong capital growth is really what makes you wealthy. This speeds up the property accumulation phase and you can potentially reap the rewards in a shorter amount of time.

Also consider diversifying your portfolio, analyse if investing all your money in one high priced property is the way to go for you or if investing in 3 mid price properties will achieve a better result. Again, each person’s circumstances is different so take all that into consideration when formulating your strategy.

Cheers!

the forum will be more than welcome to help. kudos to you for actually signing up and posting a question. some people will normally be too shy to even post a question. u gotta start somewhere. and this is a good start for you. :)