According to the theory, buying a $300k property is going to be on the high end of the risk/reward scale. You…[Read more]

That would definitely make life simpler.

This is generally the strategy used by billionaires like Carl Icahn, Warren Buffet, Jack Bogle, David Swensen etc. Albeit more sophisticated models but in essence a huge amount of diversification to optimise this risk/reward profile. This is also quite a common methodology in the US for individuals seeking…[Read more]

My investment horizon is a lot longer than the 5 or so years lenders will generally fix for. I guess I am more interested in a hedge which is not limited to a time frame like this.

To me it makes sense to hold a short position on a government bond at a level which…[Read more]

Quite interesting I must say. To complicate things a little more I have been a non-resident for the past two years while working overseas so this may hinder also. These things seem to stack up negatively and it becomes harder and harder to obtain finance.

Good fun trying though!

I think it might be best to get some structuring advice on this one. Once we have a structure which protects both of our interests then I’ll be able to clearly see the options with regard to future finance.

The majority of my wealth accumulation is coming from property so if the venture compromises this then it may…[Read more]

Another option I thought of would be to buy in to my business partners entity (50% share) which will of course provide me with two years of tax returns.

If this were to occur, would a lender consider 50% of the after tax profits to be my net income? Or is there a more complex way of calculating?

I am currently in PAYG employment however have a good opportunity to partner up with an existing business owner to run a business in my industry. The business is profitable and has been running over two years. This will likely give me higher income with room for further increases.

Whilst I will obtain some advice, I envisage that…[Read more]

In NSW at least I’m pretty sure you need to pay stamp duty when making ownership changes like that which generally negates the benefits.

This is declared at purchase time.

Although…[Read more]

If you can sell your old car also and upgrade to one that suits your needs better for $5k, you’re going to be $45k better off and have a car that suits your needs. In 5 years time you’re going to end up with a not brand-new car anyway so you’d rather be $45k closer to financial freedom.

Once sold, get rid of that $30k…[Read more]

I don't know a huge amount about the criteria but I can only assume that someone with a $500k house/unit mortgage free, $2,000/month passive income for the next 20 years plus $500k in the bank isn't going to be entitled to a whole lot. If the $500k is earning 5% she'd be looking…[Read more]

You would definitely need majority (if not unanimous) agreement from the other lot owners to develop. This would need to be fully…[Read more]

Welcome to the forum.

It's a bit of a tricky one to do a buy and hold in Sydney if you are looking to purchase something else in the near future. Doing so would somewhat stifle your ability to borrow again as your serviceability level would deteriorate with the negative gearing. It'd also be harder for you to save for your next…[Read more]

I think if I had refrained from learning this type of stuff and just left it to a Tax Agent then I would have made…[Read more]

Plant and Capital Works is in the individual property section of the 'Rent' income part. So where you claim all of your normal deductions for each individual property.

There is a LVP section within the Deductions part.

Simon

Good to see that you are thinking about sustainability.

My suggestion for you is to consider being creative with your property investing. If you have bought one property then you know how the purchase works. The next step is for you to learn how a more advanced type of strategy works like a reno or sub-division. Maybe find something…[Read more]

Congrats on getting a potential strategy down in writing – this means you’re motivated to pull the trigger!

Your investment strategy seems sound to me and appears to allow for learning the process along the way i.e. doing a buy and hold prior to jumping straight to a sub-divide and build.

Just a comment on your mortgage proposal…[Read more]

Could someone please elaborate on the Financing issues. Wouldn’t it just be a regular IP loan?

Also, does anyone know where I can get a full list of the consortium’s that sell NRAS properties. I’ve seen a few from doing Google searches but I want to be sure I am aware of all deals available.

And a tax question; if the main part of the…[Read more]

ryan mclean wrote:
You can use a positive cashflow property finding service like CashflowInvestor.com.au It is getting harder and harder to find positive cashflow properties these days, so to have a team of people working to find them for you is a great idea. I don't like property brokers as usually there is an upfront fee of at…[Read more]

Yeah that's…[Read more]