For Building Inspectors, try ringing Archicentre, or do a google search for building inspectors in your area, or find a few in the white pages and ring them.Keep in mind that these guys are ususally busy and might not get to do your inspection for several days.Also, get a copy of the Section 32 (or Contract of Sale) and take it to the Solicitor to…[Read more]

Once it happens to a high ranking cabinet member it will all stop. Until then….

Absolutely doondoon.If the unit is newer (built after 1987) there will be good depreciation for the tax returns as well. Talk to a good accountant about your strategy there.

Positive Cashflow AFTER TAX differs from POSITIVE GEARING (sometimes called positive cashflow) this way:Positive Gearing is where the rent is more than the total holding costs of the property. The profit is pre-tax so the profit is taxable. The holding costs are tax deductible and can be used to minimise the tax bill, but normally there is not…[Read more]

Hi Primer,you can convert the existing PPoR into an I.P (we are doing it while in the USA), but after you do this, the money you borrow from your existing PPOR to buy the new PPoR CANNOT be claimed as a tax deduction.The ATO looks at the PURPOSE of the loan when assessing the tax deductibilty of it, so you would not be eligible for any tax breaks…[Read more]

The first thing to do is never buy a neg geared property. Anyone can do that. You will find that many investors only ever buy one or two properties because of the cashflow drain, and many more sell their I.P's either to realise a profit, or because the drain is too hard and never buy again.It is better to buy less properties, but buy only…[Read more]

Cheap is relative.There are plenty of cheap places to buy in Aus, but many are not worth looking at due to other factors.I would be more concerned about the numbers:What is the rent demand and return, the vacancy rates, the prospects for cap growth (job opportunities, infrastructure, population growth), outgoings (if there was a building), can you…[Read more]

I have to agree with Tyson ;the whole point of investing is to make money, get rich, retire from the rat race and save the world with your riches (at least that's my goal). No-one ever went broke making a profit. You are in a better position than about 95% of the world population;You are high income earners,You have an I.P,It is a pos cashflow…[Read more]

I witness the "dumbing down" of society every day over here. The problem is; over here it's perpetrated by the Govt and Media (via the Govt and special interest groups). Scary place. Land of the brave; Home of the free – not.

Devo, you're outta line. Instead of saying CRAP, you should be asking; "how did you do it and can you help me do it?"I know a guy in L.A who owns 30 apartment buildings. He employs 2 full-time realtors just to look for properties for him.Just because you haven't done it doesn't mean it hasn't been done.

If youj buy and never sell there is no such thing as a downturn.

Become a big fish in your own pond first.

With $800k you could potentially buy about 15 or 16 x $200k properties with a 20% deposit and costs and borrow the rest. Or, buy about 6 or 8 of them, put in a bigger deposit and have them all pos geared anyway. Of course; servicability may be an issue, but you can see my point.The rent returns on properties of that price range are very often f…[Read more]

If the $28k Personal Loan was used for investment with the Family, wouldn't it be a tax deductible loan?In the event that it isn't, I would be hacking away at that loan as hard as possible as the longer the Loan exists, the more (bad) interest you will be forced to pay – wasted money.Put the $8k in the Personal Loan in my view.There is an argument…[Read more]

James,Don't get him (Foundation) started on the data and stats! He IS the king.

Apart from the obvious nightmares that go with building a house from scratch, there is no rule that says it will be a bad investment. Building a house can be a stressful time.The depreciation on a new building is excellent, so the tax returns will be good from that respect and this is one of the more overlooked aspects of property investing. If…[Read more]

To buy a good, profitable and well priced business requires good knowledge of businesses to start with. If you have never run a business, or have never bought one, then you must deal with or through a suitable accountant.Any business you find for sale can be scrutinised by your accountant. He/she can evaluate the figures presented, assess the…[Read more]

A few things to consider:To me, selling the I.P now, especially if you can get another $50 p/w rent, is killing the cashcow . This extra $50 (less management fees) would be useful towards either paying off more of your PPoR mortgage, more into your super, or more off the I.P loan. In my opinion the most expensive money you have right now would be…[Read more]

Hey crashy,agent stories…don't get me started.Actually, I did remember one good one; the second PPoR I owned was sold by auction through Hocking Stuart of Blackburn (Melb). I interviewed 4 agents, the young agent we decided to go with was very enthusiastic, professional (painfully so actually) and organised. He kept us informed – good and…[Read more]

I think everyone on this forum is doing/has done it the way you are; going without, saving hard and planning for wealth creation.The rest are all signing up for another store card or a new plasma (or both).As an "old" bloke of 46, I can say that I've been there and done that (not the mines – the "going without" part), and I didn't start until a…[Read more]