[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 17, 2012 - 12:21 am

Could you make use of low-doc loans if you have a bad credit rating?

The millionaire next door book says 'invest' not save… 20% of your income as a minimum as a rule of thumb. I'm at around 40%, everyone is different and has different priorities.

If you have trouble saving, perhaps a place to start is long-term deposits, other wise buy some shares and keep it, reinvest the dividends to buy more shares, etc.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 17, 2012 - 12:01 am

How would that work out of curiousity? Some colleagues of mine are farmers and after hearing the ROI, unless your a large corporation seeking a steady yet small return or an individual who has had the farmland for decades, it is too pricey to buy in and make profitable.

It's more a lifestyle choice rather than a good ROI. Would that minimal profit not limit the land value?

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 16, 2012 - 11:28 pm

Share your expertise by replying to comments, blogs, on sites like this. Eventually you'll build up a reputation as knowing about the US market.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 16, 2012 - 1:31 am

Alex SC wrote:

jayhinrichs wrote:

PS any one getting private messages on this site from the Nigerian and Phillipina spammers… Looking for your information in exchange for transferrring millions of dollars into your bank accounts?? I am waiting for 7.5 million to be transferred into my account anytime now… All I have to do is give them all my personal information JLH

Yup got the same message. I get about one of of those a week to my email. Now getting them on forums

You mean she doesn't love me and want to share her $7.5M with me?

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 6:45 am

emptyvessel wrote:

Have read almost all her books and found them to be the most down-to-earth, comprehensive and balanced of the many others I have read.

Completely agree, I find her books the most easy to follow and realistic. No out-there tricks, just a basic strategy which I feel continue to apply regardless of market conditions.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 4:54 am

Currently building on a slope.

Be sure to check with your local council, the one I'm working with will NOT allow pumps or detention basins.
I am forced to either build up the ground level (limited to 500mm, this will require a retaining wall and drainage works) or purchase an easment (my preferred method, which will cost me approximately 15k including pipework).

I will probably avoid purchasing sloped land in the future unless I can get a really good price on the property, just not worth the headaches.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 3:56 am

Is this theoretical rent?

– what about rental agent fees? Usually 7-8%/week of rent.
– insurance of $200? does this include house and tenant insurance?
– what if tenant moves out, or repairs are required? that will be an extra weeks rent to the agent/repairs.
– how old is the building, once it is rented, you will be able to back-claim depreciation to 3 years (someone correct me if i'm wrong).

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 3:30 am

Oh, just make sure not to push yourself far beyond your means, stay within your comfort level. I recently met a lady who was retired at 30, by 35 she was broke when her husband started a new cash-flow consuming business and all their money was tied up in non-liquid assets.

They had to sell it all.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 3:26 am

Holding over a longer period of time means you will have a higher chance of hitting the booms, property is a long term investment.

If your property is positive cash-flow (is this through depreciation or is the rent itself covering all expenses?). Will the extra cash the property is making not be useful to help pay down your mortgage while still depreciating the interest repayments (if your directing income into your PPOR – talk to an accountant about that, theres rules against doing too much of that from what i've read)? 

You may want to look at how to best structure your loan, interest and principal isn't (at least for me) the best way to utilise your cash.

My personal opinion is keep, especially since the market is at it's lowest (unless you can use the cash to best capitalise elsewhere). Then again, if you can get a great price for it… wouldn't hurt either :p

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 11, 2012 - 2:33 am

Hmm, depends on your goals are.

Here's a short story about my parents which has shaped the way I feel about it personally.

• 1992 Purchased PPOR (Blacktown, NSW) for $120k
• 2001 Paid off mortgage on PPOR (Blacktown, NSW)
• 2002 Sold PPOR (Blacktown, NSW) for $135k
• 2002 Purchased PPOR (Cherrybrook, NSW) for $300k
• 2007 Purchased IP (McGrath Hill, NSW) for $300k
• 2012 Current values:

–           (Blacktown, NSW)                $550k

–           (Cherrybrook, NSW)             $750k

–           (McGrath Hill, NSW)             $400k

If they had kept the first property (positive geared) they would have been better off by 300k (by first impressions).If they had structured their loan properly (off-set) and understood property investment, they could have leveraged and exponentially grown their portfolio (huge theoretical losses).However if they really needed the money at that time to purchase the second property (which they didn’t) it would have made sense. Do you need the money? Can you do without for sometime?

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 10, 2012 - 9:04 pm

Attempted a construction job and spent money on designing a place that was sustainable both economically and I guess health/socially?.

Hallways 1m as opposed to 0.8 or 0.9m provides a feeling of space and openness, bedrooms 3*4m or 4*5m provides privacy as opposed to 2.7m wide, two living areas (seperate dining and living room) to give social environment, higher cielings etc. All gives a feeling of openness that facilitates mental wellbeing.

Long story short, too expensive using any sort of material, would have sent me broke, could barely make the figures stack up using smaller rooms etc.

It is hard, if anyone has a way please let me know. Started researching organisations like Habitat for Humanity to see how they build so cheaply… free labour was the only way they pulled it off from what I could tell.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 10, 2012 - 4:25 am

Hi,

First question is why a trust? Trusts are fairly pricey to set-up and run. What if instead you keep it under your own name or wifes name (perhaps split the expense between the two), and purchase in different states, you will avoid land tax and can deduct any losses against your income.

Will your wife earn more money in the future?, Will you earn less? These are things to consider when determining how to split the house ownership. A few of these points are covered in Margaret Lomas' books.

TerryW would be the best person to talk to about trusts on this site. He is very knowledgable on these matters.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 10, 2012 - 12:12 am

Ford Falcon 2008, bought for $17,000, which was upsetting, as I felt I was throwing away a deposit on another property.

Granted it has served me well, put over 60,000km on it last year.Have seen some people spend serious cash on cars, a colleague of mine just spent $160k on two new cars (all on loan of course). Boggles the mind.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 6:30 am

You can look at stats using id.com.au

Learnt about it at – believe it or not – a library information session on finding out about ethnicity or something…

You can compile the data on their site (it's an option) and choose what information you want, over what years, etc, you can export it as an excel and turn it into a graph.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 6:28 am

Thanks for that, I didn't know about that site

how about this, useful?
http://www.yourinvestmentpropertymag.com.au/research/

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 6:03 am

Detailed.
http://home.id.com.au/id-community/public-resources

Less detailed, easier to navigate.
http://www.myrp.com.au/n/free-suburb-profile-report/myrp-410

You can also look in the back of Property magazines, Australian Property magazine, Your Investment Property magazine, etc. for rental rates, stock, etc. I think on their websites too.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 4:12 am

Thanks guys!!!

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 4:11 am

Oh i see,

Yeah, facing that issue now, tenant in another property is 5 weeks behind, agent was taking them to tribunal next week. Feels cold, though I get what your saying.

Worked something out with them however, they are paying current rent and are slowly making up lost rent. (Win-Win?)

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 5, 2012 - 3:35 am

Hi Derek, thanks for the reply!

No attachment, just trying to learn from this experience, have already place offers in for other places and currently focused on a construction project.

Tho in all honesty, $330k (total costs) for 2 properties on 1 title with a rental return of $600 and the potential to place a granny flat at $400k (total) with a rental return of $800 is still upseting to let go of :p

Actually quite amusing, nobody has seen the owner in 2 weeks now, it's like he vanished off the face of the earth.

[NHGMember@nhgJoin Date: 2010Post Count: 198]

April 4, 2012 - 8:45 pm

Talked with the drainage boys at work (I work in construction and use to work as an engineer in the drainage department) they think $3000 will cover smaller 65-150mm pipe. Anything larger will be about $100/ for materials and instal.

Another issue is they expect me to allow a easement across my land which is fine, however I have a shed at the end which would be directly on the last stretch of easement into the next property. Curious if I can put a clause that the neighbor will need to move the shed at their cost f they decide to develop in the future.