Hmm I thought Tassie market was dead. Now you got me thinking. But what are rents like ? I don’t think you can beat Brisbane.

Matt, as a first time investor ? and at your age, I would suggest tread carefully indeed.

Matt, something called risk management, which my ex boss made me never forget was embedded in my mind in a job interview I had many years ago and failed to get. It was one of the questions that came up about a work situation and it never entered my mind…[Read more]

Urm as I understand, the whole point about investing is that you invest to make a profit and increase your net wealth both short and long term. In your situation short term profit appears desirable, so you can pay off your debts. If you pay off your car loan and this delays your investment opportunities, it could take you even longer to…[Read more]

I’m told you need a trust arrangement

Thanx Del, at times I do try. Indeed lets just hope its largely a figment of our imaginations. Richmond I see your point and in part tend to agree. The world can be quite unpredictable sometimes and advice from experts, well we all know where that leaves us at times. Best of luck in property. May it reign surpreme, for now at least.

Well according to the cash flow game, you would maintain the car loan and invest in property or something that generated income. Thus, if that has any credence at all, I wouldn’t be jumping so quick into making such a decision.

It would depend on a range of financial circumstances pertaining to your situation. If you are not into property…[Read more]

On the face of it car loan seems the obvious choice in terms of cash flow analysis. But there may be more to it than that.

Putting it against your home loan may change your equity to debt ratio which may carry more weight with the bank than the car loan, even though its repayment rate is higher. Not sure on this either.

This may be looked upon…[Read more]

I played the CashFlow 101 game and found it was interesting. I played it with the National Property Investors club. Cost me $10 for casual entry, as I’m not a member. It was amusing.

The one thing that I did’ not like so much was the element of luck in involved. I admit luck is in real life, but I just felt it could have had less focus on the…[Read more]

Banks tend to do as they choose anyway. If they really want your business, they will bend over backwards and crawl thorough flaming hoops, whilst reciting the National Anthem. []

Yep I use AON for Landlords Insurance, similar premium to EBMs Rent Cover plus about $240. That said Westpac now offer a cheaper version about $180 pa.

Brendan, difficult to assess ones personal circumstance from here, but is building a bungalow out of the question ? just wondering if the tax department may view this as a separate dwelling and then by making your mother a tenant you could negative gear it ? I’m not sure.

Also you may need to have your mother living inside with you so she can get…[Read more]

I think those rules should be taken with a grain of salt. There are so many other variables that will over ride such simplistic rules. Try using a decent negative gearing calculator. That will give you a better indication of where you stand, becuase it can project your cash flow position into the future several years ahead.

Aahhhh good idea to get those title deeds back ASAP. At least on the roof over your head.

Thanks Terry

Dont trust your spouse ?

Hmmm ….. that’s a worry.

Anyway, I guess as they say if you want something done the way you want, then do it yourself.

On another note, my property is interstate, so I am leaving it all to my agent. I may run the electrical package idea over him with my next property which settles in a few weeks. he may be able…[Read more]

Dont trust your spouse ?

Hmmm ….. that’s a worry.

Anyway, I guess as they say if you want something done the way you want, then do it yourself.

On another note, my property is interstate, so I am leaving it all to my agent. I may run the idea over him with my next property which settles in a few weeks.

cheers.

Just be careful with hidden repair expenses with old positive cashflow IPs. You do the numbers and it looks positive then after you buy, you find out you have to pay for various repairs possibly into the thousands of dollars. This can make such property cash flow negative at times. Conversely, a brand new IP may start out negative, but can…[Read more]

Will sounds like you’re on track to me. Just divert any excess cash flow to pay off your non tax deductible debts first. That’s all I can suggest at this stage.

JohnD interesting ideas.

Do you deal with tenants directly ? or through a real estate agent ? I was just wondering if through agent, how would they react to some of your strategies, such as the TV, stereo, dryer, dishwasher type deal with higher rent agreement and ownership after two years etc..

Sounds like an interesting strategy
spend $1500…[Read more]

Will I have no idea. It may require some research.
cheers,
Dave

Scott,

Can someone inherit your debt on a property ? I mean you could draw down say 90% then sell for a small CG well under market value with a private sale, then get the buyer to pay off your debt to the equivalent amount that you undersold the property for. Hey they both win with less CG tax and less stamp duty. hehe.

Reckon that would be…[Read more]