Hi there – we have a place that we rent out by the room. Is working OK, but you do need to have the time (and energy) to do more work (ie: maintenance, gardening, sorting out household "issues" etc). We manage it ourselves, so priority if doing this is not only to have it somewhere where people want to rent by the room, but also somewhere close to…[Read more]

Many thanks for all the advice. We will definitely get a solicitor to look at what we draft.best wishes,Carlin

Whatever you do in regards to researching the SA market, do NOT rely on articles in the local rag, The Advertiser. This paper is so far in bed with the real estate industry it's not funny. As soon as I read (yet another) article about how high rental demand is and/or how the market's starting to boom again, I know the market's actually slowing…[Read more]

We've got ourselves cross collaterised badly with our PPOR and 3IPs. We didn't have enough to fund deposits so didn't see any other way to be able to purchase. Elkam, I didn't know we could have increased the loan on our PPOR and used that money as a deposit for the first IP. Is that a common way of avoiding cross collaterising?Anyway…I thought…[Read more]

We have a PPOR and three IPs, all on interest-only, var rate loans.
We are looking at setting up an offset account to simplify our currently complex network of accounts and loans.
We’ve got a split loan on our PPOR, and are thinking of attaching an offset account to the variable portion. We then want to have the monthly deductions for our 3 IPS…[Read more]

I think just before Christmas is a great time to put out offers. There are people who just want to start the new year fresh, so do the research – and I don’t just mean knowing the area inside out.

Find out how long the place has been on the market, has it gone to auction, if so what price did it get passed in at, what’s the vendor’s situation…[Read more]

Hi again,

Forgot to mention (in case it makes a difference) – we’re in SA and we’ve been married for 3 years.

thanks,
Carlin

Thanks Terry. Just want to check I’ve got this right –

Assume you had a PPOR with alot of equity, and the outstanding home mortgage was set up with a principal and interest loan with offset account.

Could you therefore pay the minimum amount required into the mortgage, and make extra payments into the offset account (thereby reducing interest…[Read more]

Hi there,

We’re managed to cross-collaterise to the hilt with the one lender. Serviceability not an issue, but want to undo the knot we’ve tied. But only way to borrow from another lender with next property we buy(without swinging loans on current properties across) is to come up with sufficient deposit for a stand-alone loan.

That’s what I find…[Read more]

My two cents worth – personally, I’m a big believer in karma and the old adage that what goes around comes around.
Treat others as you would like them to treat you, and you can’t go wrong – with them or with your conscience. And often you can get the results just by really understanding what’s going to make the deal work for the other side.
You…[Read more]

Thanks Cata.

Yes, the ability to transfer funds into a super fund is all the more attractive now that Costello has agreed to give us all our super money tax-free after 60 (though by the time we’re 60, of-course, the !!!***$$ rules might have changed).

Now need an accountant who not only understands structuring for property investing but also has…[Read more]

Thanks Cata.

Yes, the ability to transfer funds into a super fund is all the more attractive now that Costello has agreed to give us all our super money tax-free after 60 (though by the time we’re 60, of-course, the !!!***$$ rules might have changed).

Now need an accountant who not only understands structuring for property investing but also has…[Read more]

Redwing – yes, that probably does sum up the main objective, tho given that we’re DINKS the income can only be distributed between we two.
Have had a recommendation of an accountant, so will be calling him tomorrow.

Terry – Has the situation changed? A previous post of yours from July 1, 2004 (see below) suggested that some banks wouldn’t lend to…[Read more]

Many thanks Paul. Looks like an excellent resource.

Hi All,

Many thanks for the responses. I have read Wealth Guardian and How to legally reduce your tax (the latter was the one where they’re pushing their Property Investor Trusts). Before anyone labels me as the epitome of analysis paralysis, I assure you we ARE going to act, and in the near future! It’s just that I had the impressio…[Read more]

Many many thanks! I’ve started a “negotiating tips” file. I’m sure this info is helping many other investors who, like me, are just starting out.

When you read about successful property investors one of the things they all have in common is that they bought well. It seems essential to buy at wholesale, not retail, prices if you want to build a…[Read more]

Well, I went on to that Bantacs site, and read the bit about hybrid trusts.

However, the writer (Bantac’s accountant Julia Hartman) suggests that salary sacrifice is “another and cheaper method of achieving the same result”.

We’re then encouraged to buy Bantac’s $150 “rental property salry sacrifice kit”.

So – does anyone know how salary…[Read more]

Thanks very much for your advice Terry and Redwing.

Redwing – surely if you send money to beneficiaries of a trust that’s not illegal tax avoidance.

Terry – that alternate trust set up sounds great! I’m setting up another meeting with the accountant ASAP and if he hasn’t heard of this then we’re going elsewhere.

thanks again,
Carlin

I just say I’m flexible and the price I’ll pay depends on the results of some number crunching.

This way they understand that I’m not emotional about the place – it’s all just sums to me.

Hi again,

We want to keep our PPOR loan with the current lender, and move the two investment property loans to a new (more investor-friendly) lender.

Do I need to organise for the valuations to be done, or will the new lender (who we are yet to choose) do that? And who pays for these valuations?

Also – Terry – I’m not sure what you mean by “a…[Read more]