This sounds as though you are paying the interest on your I.P loans with another LOC Loan and not paying any of the interest on the LOC? Are you paying down the loan on the PPoR as well and not paying down the LOC you use for investment?This is called "capitalising" the interest; the tax deductible interest is allowed to accumulate while you pay…[Read more]

It may work, but I think the Topic would become clogged with ads as it is a free site. Steve would have to start charging to thin out the numbers.Now that's what I call a passive income stream!!Hey, Xenia; I'd let you advertise only your CFP properties for free!

Hi Terry,thanks for that. The ATO not allowing the tax deduction is my concern too.I actually do already have a trust set up which is attached to the company name I have. Neither have been in use for a few years, along with the ABN, although I know for sure it is still active.If I do this using the trust, how will that affect the ability to…[Read more]

All you need to do is compare the resale prices to the original selling prices.Keep in mind that In Melb over the last 5 or 6 years there was a fairly large over-supply problem, and many investors went for the off-the-plan strategy to flip, or get some cap growth before settlement, and many did their dough.The resale prices for that period were…[Read more]

Terryw wrote:
Hi Have a talk to a financial planner regarding which funds. I would be reluctant to name them in case they bomb out. There various sites where you can search past returns. one is http://www.morningstar.com.au I think. Terryw Discover Home Loans Terry@discoverhomeloans.com.au Send an email to get my newsletter.

The Defense rests, your…[Read more]

Always remember that when someone calls you (cold call) they are trying to sell you a product that will make THEM money, and make you spend yours.Thank God for the invention of the answering machine.

Hi Golderneye,sorry to hear your start in our great country has been a bit tough. Hang in there mate.An option may be for your wife to work full time to pay the rent while you be Mr. Mom for a while. Keep your eyes and ears open and jobs always turn up for those who want them.Putting your $200k into an investment that will give you a return that…[Read more]

Thanks for the "heads up" Dinah.Sorry this experience occurred. The good news is it wasn't too expensive and you learned a lot. Better luck with the next one.

It is good to have mentors – this forum is full of them that will help you for free. I am happy to help where I can. I have some mentors; my Mortgage Broker and accountant are part of the team.You will learn all you need to know to begin and with safety by reading many investment books and reading the posts here, and asking questions. You can…[Read more]

Don't kid your self about cars. It is going up in value now, but unless it is a very limited classic edition it will go down in value eventually like most cars do.I remember when the Subaru WRX (I think it was called) was introduced in Aus. They were selling for more second hand because there was no stock of new ones available for several months.…[Read more]

This is very common with off the plan developments. Developers structure contracts to favour themselves.The developer will cancel contracts with the purchasers if they think they can get a higher price on the open market when settlement time comes near. It is called the "sunset clause" in the industry.Read your contract carefully and I think you…[Read more]

Do some research to establish ACTUAL rent for this type of renovated property in the immediate area. Never go on agent's opinions about rent returns.

Quick calculation for you;Assume purchase price of $70kAdd 6% for purchase costs. – $76kAssume interest rate of 7.5% interest only (current market rate) – $107 p/w (not including bank fees)rent – $120 p/wAllow 20% of rent to be eaten up by holding costs, 1 month vacancy – $96 p/w NETT RENT.Initial cashflow =  -$11 per week.These figures don't…[Read more]

The lesson to be learned here is get educated, do your own research and buy directly in to property. Buying through investment companies that source the properties, or providing mezzanine finance at very high interest returns and investing in projects is proven to be dangerous, and it need not be the case.The victims of Westpoint, Fincorp and god…[Read more]

One of my pet hates – cars.It is a financial mistake to ever buy a new car – leased or for cash.When you drive it out the lot you have done up to 20% of the value of it COLD.Many people think they are clever leasing a new car because the repayment interest and the depreciation are tax deductible. They are not clever.Many people lease an expensive…[Read more]

There is no industry standard, and you can make it whatever you like. I would make it 2 weeks. Good work crunching them to 21 days; they hate that.

Go for it Girl!

Depending on the severity of the termite damage, you could still proceed and negotiate a discount. Sometimes the building reports show up damage, but no evidence of termites still in the structure.You would need to get a termite treatment done if you proceed in any case.If in doubt; exit the contract and look for another deal of the century. There…[Read more]

In today's real estate market, it is hard enough to find a pos cashflow property without spending another $5k on a buyer's advocate to find them for you.They can maybe find you one, but you would want to know what the area is like, is there any cap growth prospects, is there any rent demand etc.I saw a property advertised on realestate.com.au a…[Read more]

The buy, reno, sell or use the increased equity idea works well in a boom. You'll find most of the proponents of this strategy made their money during either the last boom or the one before. The reno kings made most of their dough in the early nineties boom when QLD houses were cheap. You need to take this into account as you follow their…[Read more]