[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 21, 2007 - 2:21 pm

 Passive income streams
income from positive cash flow properties
income from Share dividends.
Income from royalties
income from license agreements
income from tax free annuities
income from business you own but some one else manages for a salary
income generated from owning your own web sites/ domain names 
income from owning a 1900 number
income from owning an SMS 19 number
etc
etc
…
there's lots of ways to generate passive income but by far the  most common is to own positive cash flow properties 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 21, 2007 - 1:17 pm

Wow Doom or Boom which is it ..
Expect to find what you look for and you will more often then not find it.

I have only ever looked for and found  Pos cash flow properties
 they cost very little to buy  return a steady income and are were ever you care to find them.

 
 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 21, 2007 - 12:23 pm

Exellent advice !

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 21, 2007 - 5:28 am

I was in dubbo 2 weeks ago on the drive in to town the  things I observed were .. commecial and industrial developments being built. Plus there was a couple of area's of development for housing as well. talking to the locals i got  impressions  of an optamistic  future for the area from almost every one i spoke with. Banks staff ,employment agency staff, real estate  receptionists, ordinary workers in the Pub the lacal Aboriginal co-op and many store owners as well and on visting the local Library   seeing the D.A's on display there  gave me a good amount of information to think about
 Is Dubbo  a town with  growth potential , and is it a place to find , buy, and hold a positive cash flow I.P ?
maybe yes  and maybe no  it depends on you .
As for me I think its the worst place to buy over priced property and i would not recomend any one do that any were in Aust.

if you think  you found a postive cash flow IP do your due diligence and take it from there thats what should tell… YOU ..if your on the right track…
  any way I thought your looking for positive cash flow not capital gains so is $2 weekly really positive cash flow. ???

good luck in the search

 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 19, 2007 - 3:41 pm

Hi Hannah
 The 2 personal loans have higher interest charges on them of probably around 12:5%p.a  were as the investment home loan should be around 8.07% just a guestamate
   example  cost of personal lone  to  home loan. …12.5% – 8.07% = 4.43% higher .

 So  in a months  time when you pay off the first personal loan, you will have those repayments no longer needed  as extra cash each month.  A good idea would be to add the amount you were paying off the first loan  and add it to the amount you are paying on the  second pesonal loan,(  so you reduce the loan with the the higher interest rate first.) and pay twice the amount or more on the repayment amount  to the second loan. the sooner you wipe off this debt the better. 

  Also ask your lender if you can set up a 100% offset account over the home loan (investment) and put the $8,000 and any income from  investment and all  other income i.e wages  bonuses tax refund ect into this account , so you reduce the interest on the investment loan, pay just the minimum  monthly/weekly amount on the Home loan and maximum amount on the personal loan untill you wipe out the 28k personal loan.
   If you can pay more off the personal loan all the better as getting this loan paid off should be your No 1 Priority !.  When you do wipe it out ..start saving the amount you were paying on the personals loans into the offset and add it to what you should have then accumulated( hopefuly)  and search for your next  positive cash flow IP.
Most offset  accounts come with visa debits A,T.M card and no monthly account Keeping fees and also if you always choose credit when paying FTPOS  and pay bills on line (BPay Inter Net) from the offset account you save a little more.
 
  I think if you wrote on your loan contract that the purpose of the loan was to invest, then you should also be able to offset the interest  from that personal loan on taxes as it was borrowed for an investment not personal use.
Im not an expert and there are many ways to look at this problem, so check with your accountant or a professional investment adviser for more accurate info.

Hope this helps 

 
 

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 19, 2007 - 9:23 am

properties
1st purchased april 04 W.A @ $54,000rents @$150 p.w
2nd purchased april 04 W.A @ $66,000 rents @$160p.w
3rd purchased  april 05 W.A @$22,000 1,200m2 vacant block with water electric and sewer connected
  (I have council approval to put up duplex/Town houses) hope to start on this one in early 08 with 2  detached dwellings
4th purchase 8th june07 N.S.W @$100,000 rents @ $150 p.w
5th settles Aug 07 N.S.W @ 95,000 has tenant in place on long lease @ $130 p.w 

(all of the  above includes settlement costs)

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July 12, 2007 - 1:08 pm

Kinda is about relieving cash flow, we really want our backyard done and its about a 1/4 of the way there. Also we need to put the finishing touches on the inside of the house to.
If your going to sell the house Great idea  maybe …create perceived value ! But; if not  mmmmm 25 year liablity is all your refinancing if you think about it.

ever watch the add with the little girl telling her dad he needs to find $1:10 petrol to justify the drive ?
Genius

  What we will do is use that equity next year to build a large pergola and big shed as this will only add value to the my land, or get a IP. (ive read all of steves books and been a member here for 4 years but I still dont know enough but im learning)
  Dud  doing is what doing does So hope your  not procrastinating.

As for renting it out, I wouldnt do that as I built alot of this home and im not ready for it to be misstreated in any way at all, kinda more sentimental value than money value at the moment.
 if you love the house so much you must love the morgage too its going to be with you for the next 25<30 years so value it.
read the posts again and Steve's books you miss the Ahha's  in every post here and on every page of his books
dont take offence I hope you really think and as you said learn from all thats been written here  because you have been given  a lot of solutions for problems that can get you nearer to paying off your debts, and closer to getting an Ip in the future.

but if all you really want is to get your hands on some cash to make your house/ home more comfortable then
go for it and happy renevations !  I wish you well in home ownership.

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 12, 2007 - 11:34 am

I have a family trust and ABN and buy all my investments in the company name.
When I first  aproached the bank about investing 5 years ago, I had Zero assets and a non taxable pension as income. However  the bank had no problems with the loan being in my name as sole borrower with  the trust/company as the title holder of both properties ( company name on Titles) and as a  garantor  along with my mum who put up her house as collatarol  and garantor for the loan.
 bottom line if you dont have enough income to service the loan and no assets to put up as colatarol the bank is not going to be confident in giving you funds regardless of whos names on the title/loan.
Find more income and maybe find an asset the bank can hold as well. and look for a bank and loans officer who can understand and be creative with your situation.
good luck in  finding  the solutions Im sure if you want this bad enough you will find a way.

[NucopiaMember@nucopiaJoin Date: 2007Post Count: 102]

July 12, 2007 - 10:01 am

Lol
I also had a tenat that complained of problems with the kitchen taps..  among other minor and very trivial  complaints !
 it turned out the rubber washer needed replacing   $3 washer and plummer to replace it..   total bill $110 
I was not impressed. with the tenant or the agent for that one..
I have had hot water systems blow in the past and they get replaced asap but from now on washes get bought and the agent sends the handy man to fix it ! cost now ?  about $15 all in all.
tenants and agents can turn a positive cash flow Ip into a negative cash flow Ip if you dont lay down the rules of engagement from day 1.. 

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July 11, 2007 - 2:53 pm

you say the couple have only been in a few months , then later that 4 inspections have been made in 12 months
???
if you want some one to inspect get your agent friend to give them notice that
  the house is being sold and they will need to allow potential buyers access to inspect the property.
than if they agree have some one you trust do the inspection and find out how many people actualy live there.
mention complience will insure the new owner keeps the rent at the current amount so its in their best interest to be
co-operative etc
apart from this wait for the lease to expire and  serve them notice to quit

as long as your friend gets the rent on time why worry about 1 extra person  ?