Crunch some numbers! Will 10 to 20% of bank value spent on reno's add more than that to the property when finished? It will certainly help lift your rent? From what I understand you can depreciate the work and get a new valuation spending that sort of $$ which may give more instant equity? Try and stay at 10% if you can and  work with creative p…[Read more]

I understand freeing up funds to use elsewhere eg non deductable debt which I presume is your PPD. How though is using debt to pay debt turn neg into positive cashflow on an IP? Also by freeing up money that may be used to service another IP what of the equity being tapped into if you were going to leverage off that? I've read about IP's funding…[Read more]

Tenants also like feeling secure screens on doors a must for me. Also if you can afford it aircon, it may sound like alot but tenants will pay more for aircon, its actually not that expensive just shop around. If the place is old mind you better check the board to make sure theres enough amps!

Thankyou for your comments, food for thought!

Good on ya buddy thats the only way to save when building! All the best!

Hey Paul Just wanted to know if $150k was for the house complete? That figure sounds alot less than the norm unless your owner building which I have just finished and came in higher than that. If it is higher it of course changes the figures especially your outlay each month.Cheers

Thanks maree, do you know if renovations done are deductable? Or can be depreciated?

Why a cash deposit trakka? Sorry if this is basic stuff, I know it must be to you and many who have been there, but I'm learning as I go and although I am a bit imbarrassed not knowing these things I'd still rather ask?When you talk of cross-collateralising, is that for asset protection?From what I've read if you are not a trust but have many…[Read more]

Your right that is a thing of beauty! I must admit I had to read it a couple of times for it to sink in!When you went back to the vendor and asked for more at 9% you mentioned 12% that would have been through a lender?I have just signed for my first IP and it is a lot less $$ wise than your one you've detailed. Did you work your way up to the 500k…[Read more]

Thanks terry very insightful. Just finished with my accountant she suggested a family dicretionary trust. In her opinion hybrid is frowned upon by ATO and new laws have come in  and according to her they will become a thing of the past! What I meant by sole trader was in a partnership my income is split, if I decide to be a sole trader I will…[Read more]

Your right, a little money and time spent could save thousands in the future!I have just finished owner building and being a tradie have a fairly good idea of costs involved in reno's. When you talk about being ripped off on purchase or rent can you please elabourate? Or are you talking about not seeing the property in person?

Thanks for the advice. No's sold 120 last 12 mths days on market 55. Understand about glitzy places and dumps! In this area $250k and under need work. 4 agencies have 2/3% vacancy rate, all have said under $300 a week go within the week. One said 300 rentals on their books 1 available at that price. Veiwing comparable properties are'nt an option…[Read more]

trakka wrote:
My personal favourite strategy is to have both  by manufacturing growth and increasing rental return after purchase. True, it's not easy, but if you look at enough properties and if you even find one per year, you'll be on the road to wealth. I do believe the commercial arena provides more opportunities for using this strategy, an…[Read more]