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December 31, 2010 - 11:29 am

thanks Michael. If you don't mine asking you… you got 4 or more properties which put in 5% of savvy IP investor ?

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December 31, 2010 - 9:34 am

Thanks…I already knows those sites which give you some relevant info about the suburb. But, I looking for more stats data that I could use (e.g.,  demographic changes, what drives the population increased, etc).

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December 31, 2010 - 9:29 am

the crystal ball called http://www.residex.com.au …you should be paying more attention to stats data for long term investment such as IP

Guess where the baby boomers are heading right now?????/ Beach side !!! Guess what's the CG in  for Manly and Bondi in 5 years into the future? 46% and 22% that's more that enough to put a deposit for another IP.

I agree, you loose money if you buy in peak market then sell in bust market hence that's what probably happened….if you can hold on the market will regain hence CG will come back as it is right now because the trend in population is everyone want's to leave near the beach hence the demand for unit near beach side increases which out strip supply, basic economic hence pushes the price UP…that's what we are seeing right now.

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December 31, 2010 - 8:36 am

Hi Evernat

It real depends if you after for CG or positive cash flow? Only you can answer this question.

Let's put into perspective: If you are after for CG then, using research material (e.g. http://www.residex.com.au) helps you find a suburb that has enjoyed strong CG in years. CG help you to built wealth but you have to balance your portfolio because you can only buy one or two negative geared IP before your bank would say NO MORE.

On the other hand, investing for positive cash flow regional area is  mostly the place to find them but they are not that easy to find either.

Personally, if this is your first investment property to purchase, I would invest it in a high CG suburb, then use its increased equity for your next deposit for your investment property 2 which is probably in regional area – positive cash flow – to balance your portfolio so you can continue to borrow from your bank.

BTW, Mt Druitt has CG of -5.32 five years into the future hence you might enjoy a short time growth but since you look for long term, I would avoid this suburb. In the event of the market dip during the downturn which is every 7-10 years, i would select those suburbs have history of high growth, because during bust market, their CG slowdown but unlikely they go negative.

Cheers Leo

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December 31, 2010 - 7:16 am

Hello Richard,

Often sited from reading materials, consult your tax accountant to help you restructure your investment portfolio to minimise your tax payment including enables you to continue to borrow from the banks with a balance portfolio.

Did not even though about my mortgage broker who could assist me about structuring my portfolio so I can continue to purchase IP.

Wouldn't a savvy tax accountant  help you to structure your portfolio well hence help you to purchase your IP in the right name either personally or under trust hence help you to minimise your tax payment including enables you to continue to borrow from the banks if your portfolio are well balance through well structured portfolio?

Thanks, Leo

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December 31, 2010 - 6:35 am

Hi Tony,

Could  you please kindly forward me the report for "Blacktown & Quakers Hill", Sydney" area

My email address is  "[email protected]"

Thank you very much
Leo

[DHCPMember@dhcpJoin Date: 2010Post Count: 190]

December 31, 2010 - 6:28 am

Hi Den,

Since capital growth is the catalyst for building wealth, I'll be buying my first negative geared investment property in 2011 (of course i'll be spending most of my time in market research (e.g. capital growth, population growth etc). With negative gearing, mine as well take advantage of "off setting" tax deduction from my salary. The problem with negative gearing is it will limit your borrowing capacity after two purchased negative geared properties because banks would will start to look you at a risk investor, therefore I need to balance my portfolio with a positive geared property to offset my negative geared property hence this allows me to continue to borrow from the bank using my increased equity from the negative geared property.

My question are as follows:

• I'll use my name to purchase my first negative geared property investment to take advantage of  tax offset from my salary…i'm cool with that. But, fast track into the future (i.e. 4-5 years), when the negative geared property starts to show positive cash flow hence it will increase my taxable income hence this will put me in a higher tax bracket hence i will be paying more tax which I try to minimise. What's should I do then to minimise my tax payment? Not a lot?
• When I purchase my 2nd property which is positive cashflow (of course this is not easy to find and requires tons of research hours), should I purchase this property using a DISCRENATIONARY TRUST account for asset protection including minimising tax payment since it will be asset generating cashflow.
  

Hence, I need a savvy tax account to help me to structure my portfolio correctly before It will be too late and could cost me more money in the future to undo my basic mistakes that could be avoided in the first place.

I hope i'm making sense here (just read only thus far 10 real estate investment property books but would attend some seminars in 2011 in property investment to continue to educate my self.

Regards, Leo