Being able to move to where ever I wanted (in the world), when ever I wanted and not worrying about the need to pay for it. Sure, I’d get sick of it after a while, but it’s still nice to think about.

But being permanently on holiday would require a pretty high passive income. That’s the…[Read more]

If you and the tenant are happy to continue the lease, then you simply take your copy of the old lease, change the dates and rent as applicable, and type it up.

Maybe I am missing something, but if you have already have a lease (that’s been drawn up previously and simply…[Read more]

For example:

Argument: “Don’t get yourself into debt”
Counter: Not all debt is bad. Without some debt (good debt) you’ll never make money.

Argument: “9 out of 10 businesses fail”
Counter: That means 1 out…[Read more]

with 1 mill, there are plenty of manage funds out there, that return more than 5 or 10% and are secured and guaranted.

Oh sure. Don’t get me wrong – this is the safe PASSIVE option with little risk involved. Kind of…[Read more]

any comment ?

Probably about right, I reckon. 5% of $4M = 200K per year. So, that’s about half to supply your income and the other half to “maintain” the capital so that your $2,000 per week stays at a…[Read more]

This is only good with a few additional considerations:

Firstly, your principle would need to grow by the CPI so that the real value of your return doesn’t…[Read more]

$10,000,000 would be a nice start with an earning potential of around $600K per year.

Basically my idea of “wealth” is that I am always able to increase my capital by at least the CPI each year by spending less than my passive income.

Using the above amount as an example, if CPI was running at 4%, and a decent…[Read more]

Unfortunately, we came into the negotiations late (only saw the deal after it had generated some interest). Banks being what they are weren’t…[Read more]

You do need to keep in mind that even if you live in one and rent the other out, the whole property might be liable to…[Read more]

Even if you do pay a little more market value (although by approaching them directly, they wouldn’t have to pay REA fees and could afford to…[Read more]

Cheers,
Jon.

If they didn’t offer these benefits, then chances are they’d have to pay more to their employees in other ways.

quote:
thanks

please tell me what neg gearing

and

11 second rule

means.

Negative gearing is simply writing off any loss you make against your taxable income. For instant, I borrow $100,000 to buy a house. I pay $5,000 in interest, another $2,000 in government charges (rates, etc) and another $1,000 in sundry expenses (allowable taxable…[Read more]

Even with investment property returning around 10%, some people can make more money (or feel they can make more money) by investing in other strategies (stocks, bonds, etc.)

Also, consider that even if you can afford to buy you own…[Read more]

I guess it really doesn’t matter where the charges are levied, cause your tenant does end up paying for the usage charges in one way or another.

But – it’s just something to keep in mind when comparing your 10.4% return in…[Read more]

As an example, my brother bought a place for $80K a few months ago (owner occupied). He is paying just under $1600 per year for rates. The basic rate seems to be around 2.4% of the UV every six…[Read more]

But when we looked at it, it had no kitchen. It was just a one bedroom unit (similar to a motel room).

So – our thoughts were what do we do…[Read more]

That way you’ll get people calling & they will have no idea where you are. Besides, you can use the excuse that the place is rented and…[Read more]

I did some looking around, but was not really confident enough to do the deal (and wasn’t sure about buying a place in a country where I wasn’t allowed to live).

Interesting thing was there…[Read more]

Cheers,
Jon.

What sort of return (and outlay) are you looking at and how did you manage to do the finance? I’d really love to invest in London, but prices seem crazy (and rents not up to the point where…[Read more]

I still owe a reasonable amount on my PPOR, so I’m going to work to get that down to zero before doing the same thing on my IPs.

I figure that given I can’t claim tax deductions on my PPOR, I might as well be using the principle to completely…[Read more]

quote:Yes, lenders will reduce the LVR if loan sizes start getting over $400k/$500k (or $700k in your case). It appears that you have the properties all under one loan. Not a good idea. How about trying to split the loans (thereby each individual loan is less than $700k (or $500k depending on policy) and mortgage insurance should only kick in if…

[Read more]

Both have shown good capital growth (the cash negative one has had a 28% increase in roughly 9 months and the…[Read more]

As for the floods, it’s really only around the centre of town near the Fitzroy river where it’s a problem.…[Read more]

While rates may continue to stay low, I think locking in isn’t a bad idea at the moment as I don’t see them going much below 6%.

As an example, I have $100K equity in a home worth $300K. I buy an IP “zero down” for $200K. Now I have $100K in property worth $500K (80%).

Now, for me to borrow more money, I need to look at going above 80% borrowing and therefore need to look at taking out…[Read more]