Originally posted by Lizzy:
Hi Jaffa,
There IS something about pictures, WHY? Because our subconscious only works in pictures, and not words, anything we see goes into the subconscious, thats why changing concepts and information into pictures STICKS alot better then words.

Liz Wilson

Hi Liz,

A educational researcher has identified eight (and…[Read more]

Hi Misty,

We use a section 15-15 income tax withholding variation to maximise our cashflow throughout the year. This approach is best used by PAYG income earners.

The process is relatively straightforward but it does pay to leave some slack in the system so that you have some leeway in your favour.

The variation is not an automatic right and as…[Read more]

Hi Mark,

People Unable to Purchase Property by themselves.

That is people who may have an asset but no income or vice versa. I suggested such an artcle as more and more people (especially in the current market) may find it difficult to get started and will need to join forces with someone else to qualify for loans etc.

Tenants in common issues…[Read more]

Hi Wezwaz,

As an aside most ‘financial literacy’ I have read suggests that to determine your capital base needs in retirement you will need 20 X annual income. This allows for a dividend and preservation of the starting capital.

For example someone wanting $50K (before tax) to live on will require $1m capital…[Read more]

Hi Stuart,

I must admit I have only skimmed your articles (you can throw rocks at me if you wish) as I have a good broker who does the hard work for me.

Have you considered;
– a ‘puppies’ article?
– a living off growth article?
– disentangling cross collateralised loans?
– banks capacity to foreclose on properties if you are in default with…[Read more]

Hi Newgen,

What are you on?[biggrin]

As there is a change of ownership on the two titles I would suggest that normal CGT and stamp duty rules would apply.

Finances would need to be rearranged, where appropriate, as the lenders would require mortgage security over the property they financed which would need to have your name on the title…[Read more]

Hi Russ,

Kay has hit the nail on the head.

But have you also considered the need to sell your property – if I remembered correctly you have been trying to sell this for a while so is an extra week or two going to make that much difference.

Maybe meet the buyer half way at 3 weeks.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Hi Jaffa,

You also need to work out how good a text based learner you are. While so much material is presented in written form it doesn’t necessarily mean it is the best way of learning.

Based on your ‘teacher’s’ comment I would suggest you may be better off reading the material and, instead of writing it down and rereading, draw pictures, flow…[Read more]

Hi Steve,

Steve’s book advocates one way to invest in property – I suggest that you read a couple of others that discuss alternative viewpoints. You may well find there is a better way for you – then again you may come back to the Steve Mc way too.

Nonetheless another viewpoint will make you a more balanced investor and more likely to succeed in…[Read more]

Hi Fjfcm,

You can either change your ways or throw everything in a shoebox and give the box to your accountant.

I keep an excel sheet for each of my properties and record the income/expenditure details on the day they arrive in the post. This way the task doesn’t seem to be too onerous.

I also keep Quciken books for my other stuff and all in…[Read more]

Hi Wezwaz,

I assume you mean $300K unencumbered.

I suggest you get in touch with Steve Navra at http://www.navra.com.au – he specialises in doing precisely what you are asking about.

As to whether or not you can do it with only $300K – Steve (or one of his employees) would be the best person to discuss that…[Read more]

Hi Connie,

There is always more than buying property than running the ’11 sec rule’ over it – you need to see what employment prospects are like in the area, towns population, inductry base, infrastructure, economic foundations, long term growth prospects and so on.

It would seem to me that you have done an awful lot of ‘book learning’ and the…[Read more]

Hi Cars,

If there is any rental income earned then the property is classified as a passive asset and as such you cannot defer CGT liability.

For a full explanation I suggest a search on ‘CGT deferral’

Please note I am not an accountant and as such more learned comment than mine needs to be sought out.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Rusty,

It depends on which theory you subscribe to.

A) Put all you eggs in one basket and watch it like crazy. Ie know the area, research it well, choose carefully and work the area hard.

Spread you eggs around many baskets.

Me I am a type B investor and am spreading my risks around the place.

Derek
derekjones1@bigpond.com

Property…[Read more]

Hi Oztexs,

Firstly let me say that you have done exceedingly well at your age.

One key point missing is what are you wanting to achieve over the long term? As such this will largely determine what is the right decision for you.

You haven’t indicated your respective income levels (and you don’t have too) but as you are considering a family in…[Read more]

Hi Marisa,

You will find that the ‘total product’ for low doc and no doc loans have become more comparable to a standard lend as more and more ‘lenders’ add them to their product list.

Initially no docs and low docs were for more ‘unusual’ circumstances and only offered by a limited number of lenders but that too has changed in more recent times…[Read more]

Hi Linda,

(Phew – that sounds much better)

Absolutely no offence taken.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Wilko,

This topic has been raised a few times before so I recommend you do a search. Click on forum boards and there is a search facility just under that.

In short – retirement units are an untested market and as such there growth is problematic – sure Australia’s aging population is proportionally expanding and the retirement village concept…[Read more]

Hi Dandan,

If the agent is that sure ask them to put it in writing and to commit to funding any shortfall – see how good the ‘guarantee’ is.

My guess is they are offering an opinion that the property will rent for $X – it would pay you to ring around a couple of property managers, independent of the selling agent, and see what they say. After…[Read more]

Hi Monopoly,

Some of those Housing Commission areas in Perth have had huge (many above other suburbs) gains in recent years with urban renewal programs in place.

WA government has adopted a policy of spreading housing commission tenants around Perth and as a result the ‘old cheap’ suburbs are now largely being redeveloped in a big…[Read more]