Me too!

Type cashflowcapital.com into the search box in the top right hand corner of the screen and you will see several posts about them.

Liz,I just did a quick check on r/e.com.au and found 103 properties for sale in Clifton Springs, with 17 available rentals. No doubt there are many more, but the agents don't put every property on the site.The cheapest property for sale listed was $209k.Look at this one: Property No. 103314511 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103…[Read more]

If the property was built after 1987 you can claim 100% of the building cost at 2.5% for 40 years. There are different "depreciable lives" for the fixtures and fittings.

I have to agree with the other guys,a cap gain like you've had without doing much work is nothing to sneeze at.Of course; it would e better if you had a pos cashflow or at least neutral or very small neg cashflow to put the icing on the cake.As the two properties are so new, have you had a Depreciation Schedule prepared for each one? This costs…[Read more]

Hi Sean,(good name – my son is Sean). To answer the questions:1. As you probably know, the rent returns Australia wide at present are not that great. Many people are finding good returns in rural areas, but the problem is cap growth may not be great. We haven't been looking seriously since moving to the USA; as we are currently in a deal we did…[Read more]

Further to Tyson's post;I've read all R.K's books, and Tyson is right; they are more mindset and concepts – not so much nuts and bolts, but the mindset shift is probably the biggest factor. They will change you from a consumer to an investor.I now look at people driving around in $50k cars knowing they are leased or on h.p, and I think "that's…[Read more]

You can get a L.O.C with more than one sub-account.  The day-to-day use is in one, and all rent, personal income and expenses for both property and personal get paid from here (it is a good idea to have your property manager pay all I.P expenses on you behalf from the rent, and send you the invoices with your statements).We actually live off the…[Read more]

Hey Ini,Units can still be a good investment (we bought one for $105k in 2003 that has doubled in value) and when you are beginning investing and price/finance is an issue, then the cheaper option of units will still get your foot in the door. The neg side is the body corp fees and the inability to change a lot to add value, but you can still add…[Read more]

Using your PPoR as an I.P while you rent another place for yourself may be a better option. You can access up to 80% of the equity for investing, but of course, these funds are borrowed and will attract interest.The interest is tax deductible, but will have an impact on the cashflow from your new investments.By keeping the PPoR you will save a lot…[Read more]

Factoring in rate rises to you numbers before you buy will cushion the blow of every rate rise that occurs. If you only ever buy cashflow positive or neutral properties (harder to do these days) and keep practicing active debt reduction as you go, you are covering any risk or impact of rate rises.Also, the interest on your I.P is tax deductible,…[Read more]

Even though you are going to manage it yourself, you are still bound by the Tenancy Act. Make sure you get a tenancy agreement set up to cover both parties.Think hard about this option as the cost of a good manager is tax deductible – worth every cent.

Have you signed a 'sale authority' at any stage with your managing agent?Unless you have signed a 'sale authority' with the r/e agent that is still binding, or allows them to keep a commission if you sell to a buyer that they have introduced even after the sale authority has expired, then the tenants are not the managing r/e agents' client.You can…[Read more]

Commissions are negotiable. The going rates when they first quote you are around 2.5-3.5%.Offer them whatever you want, structure your commission payment however you want.Offer them a flat fee, with a bonus above a certain fugure if they achieve it,Offer them a sliding percentage based on the result.Offer them 1%. (probably a bit low, but you…[Read more]

Hey Simon,you are experienced in both property and shares;what's your take on the big contest, taking away the mitigating factor of risk?You know my feelings on this issue; I prefer the safety versus risk of property to shares.You don't see it that way; in your opinion, what is/has been the best return for your money? Are you nervous about the…[Read more]

YAY!!I'm loving this thread.To answer Odenska's question about management:we use ABEL in Frangers. They have been great, and the fee is 6%.Speak to Norelle, tell her Marc Erard sent you. She loves me.

I agree with Chris.Education on finance and the real estate markets is crucial. Start now and never stop.If you have a lot of comsumer debt (other than your home loan) it is not adviseable to go into property investing until this is cut out.The reason why is that to be a property investor requires very good money management habits/practises, and…[Read more]

crashy wrote:

L.A Aussie wrote:
and in this last week their portfolio has dropped 20% in value

bolony! market has dropped about 6% in the last week

Their share portfolio has dropped 20%.They didn't tell me what markets or what shares they were in.Was 6% "across the board"?

Maybe if you can't find a pos cashflow property using a buyer's agent you could source one yourself. Anyone can buy a neg cashflow property; they're everywhere at the moment. Make sure you get a Depreciation Schedule on the one about to be completed to help with the tax returns and improve the cashflow.I'd wait until you have this one settled,…[Read more]

Yep; start small, make it positive cashflow, have a nice experience to kick you off.Then do it about 10 more times.Or, when you get giong; start looking to bigger deals.