Hi Paul,

This is definitely a ‘how long is a piece of string’ question – the answer will vary from person to person.

My intent is to never sell (well maybe not never but you get the idea) and the only reason I would sell would be if I had to due to some cataclysmic event or I could put the money to work somewhere else (pay off PPOR or No 3 on…[Read more]

Hi Mini,

Welcome to the hard part. As the old Chinese proverb goes the first step in the journey of a thousand miles is the hardest (I hope that wasn’t misquoted )

Reading the books is the easy part as you haven’t taken any risks as yet (apart from buying the books).

As you have already indicated there are many, many diferent strategies and…[Read more]

Hi Penguin,

Many (all?) property managers will charge you a letting free when they first set up the lease with the new tenant. In some instances they will also endeavour to charge a full letting free for a lease renewal.

In W.A. it is fairly common practice for the property managers to collect the equivalent of one weeks rent from you and…[Read more]

Hi mky,

Land tax can be avoid for only so long. Sooner or later (in some states very very soon) you reach the threshold at which land tax applies.

To a certain extent you can distribute the ownership of your properties across different states to delay the onset of land tax.

Be aware that land tax is a levy imposed on the unimproved value of…[Read more]

Hi Paul,

I would certainled go with ‘use the equity’ approach rather than save the money. This way you can leverage the lowering debt and increasing value of your home into an investment portfolio – this approach puts paid to the myth that you need cash for a deposit.

Imagine buying a $200K property.

You will need approximately $52K for…[Read more]

Hi Dean,

Whether or not you start negotiations will largely depend on how this property fits into the grand scheme of things.

I tend to think that being a riverside property that this may end up being your family’s preferred ‘home’ and as such you bought with a long term occupancy in mind.

Bear in mind riverside land in Perth isn’t being made…[Read more]

Hi Kay,

You’re spot on and that is why I monitor the market movements and will only contract a valuation if my research shows it to be worth it – after all there is no sense throwing away money when I could use it more effectively somewhere else.

At the end of the day if what you are doing works – then why fix…[Read more]

Hi Tycoon,

You may like to visit Michael Yardneys website – he is Melbourne based at http://www.metropole.com.au

There is another person Peter Combden (sp?) – might be worth doing a google search. Peter also had an ad in the recent API.

PS – haven’t done either course though.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM…[Read more]

Hi Kay,

I prefer to monitor market movements every 6-12 months (certainly in todays – or is that last years? – market) so that I can contract a new valuation when my research shows it will be ‘worth it’.

This way I can maximise my line of credit facility so that all systems are ‘go’ should I see something that matches my criteria.

This approach…[Read more]

Hi Tony,

You are asking specialised questions and I therefore suggest you do a browse through the ATO website for some more definitive answers.

http://www.ato.gov.au and do a search on the very questions you are asking.

Derek
derekjones1@bigond.com

Read my comments? Think I can help you? PM or email me.

Hi Taz,

Scott said “Of course, to make what they advocate work you do need to be able to acquire property at the right price, and I’d say that’s getting tougher these days.”

I would add and ensure you do not overcapitalise for the local area – no doubt this is a key message in the seminar.

Derek
derekjones1@bigpond.com

Read my comments?…[Read more]

Hi Penguin,

Property management fees are higher than Queensland – 8.5% w/o GST is not unusual and then there is a little pocket in Perth that charges 9.5% for a management fee.

Letting fees vary considerably from one week to 9% (yes you read correctly) 9% – needless to say these guys get very little business from people I know.

Strata…[Read more]

Hi Redwing,

He must have made it – I noticed an ad in the weekend papers.

Derek

derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Snapdogg,

Maybe your wife has heard of these stories.

http://todaytonight.com.au/stories/904184.html

Derek

derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

HI Ez,

I couldn’t remember whether or not your program included tax deductions in is hence the reason for not posting your details here.

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Missy,

I would ask the agent for an ‘offer to buy form’ fill all the details out but leave the price to last. I would be very surprised if a written offer isn’t presented.

You may well get the contact details off the offer form (assuming an absentee land owner) and if the agent doesn’t present the offer or it is rejected do not be afraid to…[Read more]

Hi Staffreid,

I suggest you search this forum for posts by Julia – she is an accountant in the area and may suit your needs. Then give her firm a call and see what you think.

Also look at http://www.bantacs.com.au

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Wormit,

Ian Somers has such a program that calculates your cashflow situation after tax deductions called PIA. It is available for ~$250 and includes some approximations for depreciation allowances too.

It is downloadable at http://www.somersoft.com and there is a trial version (albeit fixed numbers) for you to play with to see what it can…[Read more]

Hi Andy,

Dale’s Trust Magic is a good investment at ~$100.

I will email you copy of the contents pages so you can see the depth & breadth of detail. Book is available at http://www.gatherumgoss.com

Derek
derekjones1@bigpond.com

Read my comments? Think I can help you? PM or email me.

Hi Servant,

It is also possible to create a tenants in common situation with someone else who may have access to a ‘deposit’. Obviously these sorts of arrangements need careful consideration and a frank and open conversation about your respective aims and aspirations – if your goals are very different chances are you will fail. On the otherhand a…[Read more]