A couple of clarifying points;

The latest newsletter refers to total purchases of ‘just over 7000 properties’ – certainly not 9000.

Strategy is not rocket science – just proven over a long period of time. Given 30% of members are repeat purchasers something must be working. One of the strengths, from a members perspective, is the multi faceted…[Read more]

Originally posted by richter:
10 year’ish end goal – to have $3M property portfolio that will double next growth, sell 30% of properties to pay off remaining and then have the rents as income for rest of life. Is this a feasible way to go.

A comment on the strategy – very Jan Somers. Not a problem just check the remaining rents will be…[Read more]

Hi Redwing,

The book did not contain anything new for me – but then I am up to my eye balls in the information anyway. For a first time investor or someone who wants another piece of reading material – you would have to ask them for their comment.

Penguin Chick – Club fees are explicitly state as an answer to question 22 on the most frequently…[Read more]

Hi all,

It seems as if ‘steady’ has opened up a can of worms.

There are a few qualification required here.

Steve Navra is not participating in a scheme of tax avoidance – he has a private ruling from the ATO verifying the legitimacy of the approach he uses. Steve will also, as part of his service, arrange for a similar ruling on your behalf as…[Read more]

I believe a few people use a software packgae called ‘Devfeas’ to do feasibility studies on their property developments.

Look at http://www.devfeas.com.au

If your ‘would be’ partners are first timers it may be that the step you are ready to take (based on your previous experiences) is just too big a leap for them at the beginning of their investment…[Read more]

HI Benali,

I appreciate the question was directed at Depreciator – but using the examples given you cannot avoid CGT.

By living in the property for some time only reduces some of your CGT liabilities as any gains made while the property was an IP will be taxed either using an apportining approach or through the valuation method.

You also need…[Read more]

Hi Tony,

You can also try the following website;

http://www.realestate.com.au/cgi-bin/rsearch?a=loan&t=res

It gives you opportunity to play around with all sorts of figures and permutations.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi BA,

So if I reduce my tax by, for sake of discussion, $2000/annum and hold a property that grows in value by more than that – I have saved tax while still making money.

There are other ways to make money in property investment besides cashflow.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Pct,

Welcome to the forum – there are some other recommended readings found on a ‘sticky’ in the heads up section.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Eric,

Why not do both?

Use the surplus cash to pay down some non-deductible debt and then set up a line of credit/equity loan to do the renos.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Originally posted by richardsydney1234:
Also you can only make money and pay tax or lose money then save tax.

That is not strictly correct – I save a bit (a little bit too I might add) on tax and make my money through growth.

Jason,

You will find that if you ask some questions then you could well find that people here are more than willing to…[Read more]

Hi BA,

Try this link for some more discussion about the relative merits of various books.

https://www.propertyinvesting.com/forum/topic/6845.html

Will now lock this thread in an effort to keep all ‘book’ discussions in the one place.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Peter,

Just had a quick read of the NSW Office of Fair Trading website and the tone of their document indicates that deposits are not ‘fixed’ in NSW either.

http://www.fairtrading.nsw.gov.au/realestaterenting/buyingselling/buyingprocess.html#Exchanging%20contracts

In particular these two lines;

Once you have made an offer on a property,…[Read more]

Hi Robbie,

Welcome to Australia and also to the forum.

Are you wanting to buy a property to live in or as an investment. This is an important piece of information as your needs will be slightly different.

If you are wanting something to live in I would suggest find an area that you are personally comfortable with and rent a property in the area…[Read more]

Hi Bigfella,

You can claim the interest on the deposit from the time that interest was incurred.

Even though the investment is yet to earn an income the purpose of the loan is to purchase an investment – so costs are claimable. Just be aware that not all accountants are aware of the Steele case and will refer back to the ‘it hasn’t earn’t any…[Read more]

Hi Bigfella,

Line of credit accounts can be problematic from a taxation point of view.

There is a certain attractiveness to mixing personal and investment expenses which leads to major difficulties at tax time. Any repayments made are apportioned across both private and investment expenses rather than the tax payer being able to designate…[Read more]

Hi Martine,

Would also recommend you invest ~$100 in Dale Gatherum Goss’ ‘Trust Magic’ – get the information direct and in a clear concise manner.

http://www.gatherumgoss.com

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Originally posted by Still in School:
though after doing further research, my research and talking to locals is, that the property market is being driven up by investors,

Sounds like a ‘cashflow property’ induced bubble SIS – who is going to be left holding the asset when the bubble deflates?

In larger, more stable and sustainable, areas there…[Read more]

Hi Lisa,

Many ‘experts’ would argue that the house will perform better for you in the long term. However this is a somewhat simplistic view as the key ingredient is the value of the land upon which the property sits so in effect you can have either.

There are some key matters that you will need to consider before choosing whether or not a house…[Read more]

Hi Carmen,

In addition to the ‘hidden costs’ mentioned previously you will also need to check to see whether or not you can secure finance at 80%. Lenders tend to treat ‘retirement villages’ as a riskier proposition and you may find you need to contribute more equity or cash than would otherwise be the case.

The capital growth market is as yet…[Read more]