chappell wrote:
i have to agree with ecl.im 21 and looking at properties they must think im a tyer kicker/ dreamer lol some of the looks i get and sometimes they say oh you wouldnt be interested in this and offer that i dont viewit!!!!!!!!!!!!!!!!!!but on that  note i have met some decent re agents and it almost seems unfair (to them)…[Read more]

ume wrote:
so does that mean if i take a 80% LVR loan then i have no access to the 20% i inititually put in? unless i get the property re evaluated later down the track?

That's correct.The Bank will give you access to 80% of the property's value, regardless of what you've already put in..So, if it's worth $300k and you put in $60k deposit, you…[Read more]

fiori wrote:
It looks like I 've got some rusty old minds thinking, good.Aprentices have a right to be paid – but no more or less than anyone else who is studying or in training. As I said previously, at least they DO get paid something, TAFE or Uni students get squat – they usually have to spung off their parents or get a part time job. Some…[Read more]

Buying_Freedom wrote:
I used to own a 2003 BMW that I bought from new and lost $13000 in value in the year and a half that I owned it. I wish I had read The Millionaire Next Door sooner. Upon reading it, I replaced my BMW with a 1995 Daihatsu Charade. I only recently bought a second car, a 1998 Ford Falcon. I prefer having the cheaper cars as I…[Read more]

Tell me about it; we send money back home from the US.When we first arrived here in sept '05, we were getting $1.33 for every US dollar.Now it's $1.13

"fiori wrote:I think apprentices are actually fortunate to get paid anything at all"Sorry F,but that is not very sensible at all.Would you go and work for 40 hours a week; getting up at 5.30am, working in the cold, the heat, crawling around in roof spaces, under floors, in the dust and the mud and stink, being ordered around by the (often)…[Read more]

Done.

If you opt to take the tax return at the end of year, then your weekly cashflow will be whatever is left over after the rent has been paid to you, and the loan interest and the holding costs have been deducted.Some people like to get their tax return paid to them every week. This helps with the cashflow, but many people simply spend it on "stuff".…[Read more]

We have all our IP's in our own names.We are comfortable with that at this point in time.From a taxation aspect, buying in your own names may be better if you have a decent taxable income.But I don't have much knowledge about using a trust for this. I was under thre impression that the main benefit of a trust was for asset protection, but as Terry…[Read more]

Kristine wrote:
Firstly its not on a main rd…its on a side street that is just what 2 prospective tenants said as i asked them for feedback (front fence)as the property has been vacant for 2 months…….bad time over Christmas for a house to be vacant to i guess…with the investment property although its positevly geared i dont have any…[Read more]

To do all the things you listed would be well over $10k. probably closer to $15k.Now that we have a better picture, I would say:1. Fix front fence for safety. 2. Tenants know full well the noise factor etc when moving into houses on main roads so don't worry about that. (don't ever buy one like that again; look for quiet streets and courts).3. Put…[Read more]

That's it; you've got it now.Except you forgot to add the closing costs, and there will be a tax return as well.Do it again and include the closing costs and a hypothetical (but probable) tax return of $2,500 (this is income).This will give you a more accurate C.O.C.The other thing to consider when assessing the success of the investment is the…[Read more]

Agree with Terry.The return on this investment is 6.1%.You cannot add value, you cannot improve it, there are virtually no tax deductions other than the loan, or of you pay cash for it; you can get 7% for cash at ING, and it is on 24 hour at call.Offer them $15k.

MasterREL wrote:
Yes you must know exactly what its like to run a trade business Tell every tradies wife and kids how good they have got it.Yes you can become so rich that no one wants to take on an apprenticeship and work for the massive C.U.B wages you can earn.I'm sick of 9-5 sheeple telling me how much I should be charging when they have no…[Read more]

Worth the money. Do it.You may be able to look at a sample on one of the Qs's websites, but they are basically columns and numbers.

Closing or purchase costs are what you have to pay over and above the price of the property to finalise the deal.A good rule of thumb is to allow 5-6% of the purchase price for this. For eg; $200k property; the closing costs will be around $12k maximum. This covers things like stamp duty, the solicitor's fees, adjustments for rates etc.In normal…[Read more]

We do this now.We have a PM, and they handle everything; all the rates payments, repairs, collect rent etc.It costs 7% of the rent, but is worth it for us to set and forget. It is also a tax deductible expense.All the expenses related to holding the property are tax deductible, the furniture will be depreciable, as is the house if it is built…[Read more]

When you start off, all the numbers are mind-boggling; levels of debt, numbers of tenants etc.As you progress, it all becomes just numbers and equations. The important things to worry about are equations.For example; if you have 10 properties, but the cashflow from the total portfolio is positive, then it won't matter too much if you have a…[Read more]

Steve, thanks for that.I hope you didn't think I was DEMANDING the answer; it was a tongue-in-cheek job.Sorry to here about your wife; I hope she gets well soon.

So, in 3 years you have more than doubled your money, and it provides you with $160 per week of free money.Why would you sell it?Does the "better side of town" have as good a return as this?Pu that extra $160 onto the PPoR.Unless the house is a hazard, and the tenants are complaining every day, leave it as it is.