I raised this issue previously as I thought it had potential. I think it could work, but it would need to be well organized. We are talking possible several days stay, so discounted airfares, accommodation, food, entertainment ( local pub or club ) hehe! etc would need to be organized. Sort of investors junket tour. Well you could develop…[Read more]

roger doger

Boothy I think you are in a strong position to invest. You could sell your house and find a nice house to rent and try to negotiate a long term lease. Then invest some of your sale proceeds in quality brand new property negatively geared for near neutral cash flow. I suggest inner city brand new flats or units or townhouses. Stay well away from…[Read more]

Yea I see this would definately needed o be handled professionally particularly from a legal standpoint and a risk management standpoint. If that could be successfully achived, I think this concept has powerful potential. Something for the future.

cheers.

not me, but I’m playing CASHFLOW for the first time tonight in Melbourne.

Yea I agree with the call your own shots take your own risks approach, but read widely and do research for a least 4 months. I think I spend 2 hours per night for 4 months 6 days a week, just researching the web for info on Aust property investment. This included anything related to property, tax, quantity surveyors, property valuers, banks,…[Read more]

Terry yes, thanks I do see your quite valid point. Just now wondering if there is a away around this risk, such as some sort of insurance to cover the risk of other syndicate members not meeting their payments. You would definitely need some sort of insurance and some strict lending criteria such as , profession, years in job, salary, etc… This…[Read more]

Dave I very much see your point. I’m just wondering how common this type of thing is and whether its worth being concerned about or whether its just a scenario that can be easily dealt with by correct property waste management planning. Anyway it’s on the first floor and it’s a brand new construction.

My other thought is that well if it was that…[Read more]

man if you can use a calculator an pen and a pad you don’t essentially need software. But these heaps of free property investment calculators on various web sites. it aint that difficult. look at some of the free examples on the net or how the investment balance sheet works. If its viable in year 1 if probably will be viable in year 2 if its brand…[Read more]

interesting one. personal debts need clearing, but it may also depend on if you have equity in an existing property, and what your income cash flow situation is. Also the availability factor of the properties you seek. If you had to act promptly on two properties, I’m wondering if clearing debt completely may leave you a little short for up…[Read more]

hmm? your solicitor shoould send you some stuff but they keep some stuff for you in their files. It may take a few weeks before you get all the relevant docs. Not sure about title they may keep it on file.

Yea its a new block of flats just built. I have siged up for one, but the report says it has a site management plan to contain the soil contamination, like min 30 cm of clay then 30 cm of cement or soil. Must be some nasty stuff under there ! its got lead ans asbestos in it [|)]

It depends. Generally speaking, if you have outstanding debt to pay off such as a home mortgage or personal loan, it may be more tax effective to keep it as an interest only loan until that debt is fully paid off. . i.e. home mortgages and personal loans not being tax deductible offer no tax benefit in maintaining.

That said, it would also…[Read more]

I guess if you can service the debt and allow enough fat in your income for adverse circumstances that lie within the predicted range of scenarios, you are at least reducing you exposure to risk. i.e. if they talk of a property market crash in the order of 20% , can you still afford to hold your properties ?

Interestingly, what effect on rents…[Read more]

what are the rents like is Adelaide ?

Thanx.

Now I understand is taxedate you marginal rate of tax. Anyone care to expand on this ?

Yea Alison I see ur point, High cap gains can easily outweigh holding costs in 1 year. So if you couldn’t handle the costs you could sell and still come out ahead. If you buy quality property, selling would not bee too hard a task.

On the other hand +ve chash flow is also useful if you need the cash. But if you end up having big repairs down…[Read more]

I thought the Tax Office was cracking down on the use of redraw funds for anything other than the purpose the loan was intended for.

I mean can you imagine using part of the redraw to go on a holiday, and whilst claiming the interest incurred on it as a tax deduction ?

Yea interesting ruling. So the Pool and Spa are now part of capital rather than plant and equip, thus included in the building depreciation at 2.5% ?

Yea I will have done my first 2 IPs within a space of three months, but I have extended my finances as a result and am a little exposed. I will just have to juggle bills etc.. best I can, like delaying payment of them etc.. until I get my 15-15 tax sorted out. One is tenanted, the other settles this week. Both will be negative cash flow.…[Read more]