Originally posted by elbows:
Have you bought positively geared property recently quigles?

Yes, in upper New York State, since you ask. It’s not an easy market. Friends of mine have, in the last two months, bought positive cashflow properties in Karratha and Kalgoorlie, one got a steal in Western Sydney and I put up a property for sale with over…[Read more]

The following should be confirmed with a lawyer.

1. You can’t get the easement off the title without the agreement of the beneficiary of the easement, and it doesn’t sound like that will happen any time soon.

2. You are entitled to have one, two or 127 gates, providing that the specific terms of the easement do not prevent this.

3. You can’t…[Read more]

Sorry to hear you say that, elbows. Sitting on your …er, hands… will not get you any exercise, especially mental exercise, the most valuable kind.

WHY aren’t you going out and looking for deals you can make into +CF? Or investing in Kalgoorlie? Or Karratha?

Obviously your money and your call – but ask what you could be doing with your…[Read more]

Be careful in jumping down Lisa’s throat before you’ve read the message clearly. In my lexicon, ROI is NET return (i.e. if sh’e picking 30 to 40% gross returns) then a net return, given the expenses over there, of 15 to 20% (before income tax and interest) isn’t too shabby.

Of course,that also depends on the condition of the property, the actual…[Read more]

Originally posted by kay henry:
A Subaru Impreza RX is my current car- I love it Unpretentious and yet, so smooth. First car was a Hillman Hunter- awww.

Dunno why people want to spend hundreds of k’s on a house and drive around in a car that makes them look like a hillbilly, though. I thought investing in RE is supposed to make our lifestyles…[Read more]

Dazzling, my reading of the question was about structure rather than total numbers of properties that a person should own, in whatever capacity.

I think most property savvy accountants these days would answer “None in either name”. You put +CF properties into a discretionary trust, and get both asset protection and tax advantages, you put -CF…[Read more]

Ferry one son to hockey, send other son off to an all day frisbee (er, sorry “Ultimate Disc”) competition. Pick up hockey son and friend, take them to a live theatre show. Walk some dogs for a friend. Come home, more son’s friends, help wife cook muffins and Anzacs for the kids. Watch a video with her then put her to bed (still afternoon).…[Read more]

given that you have the REA valuation and the valuer’s valuation, if the REA refuses to agree to his own valuation you may have cause for action against the valuer. This should be politely pointed out to the head of the valuation firm. In the mean time, don’t change the offer you were going to make, but think of reasons for the land agent why…[Read more]

We were a two car family – a 91 laser TX3, $5000 in 2003, and a 94 Ford ($13000 in about ’97) station wagon which we use to transport families, tools, you name it. I just wrapped the laser around a tree, total write-off and I’m back on the buses and the pushbike, depending on the weather. I’ll think about another car another time.

This doesn’t…[Read more]

OK elbows, let’s do some numbers first.

Assume all up it costs you $5000 in taxes, fees, stamp duty etc to close so you pay $120,000. Assume also that you have the house occupied 48 weeks a year (8% vacancy, I’m being cautious on your behalf) and finally assume that you’ll lose 20% of your rent in maintenance, land tax, agent’s fees and similar…[Read more]

This thread is pressing a few of my buttons.

Let’s get down to basics – I think two important questions are being raised here:

1) Is the message in the books mentioned (and others by implication) valid?

2) Are the stories in the books cold fact, romanticised recollections or parables? And does it matter?

For the first, I would have to say…[Read more]

Know why you’re doing what you’re doing

This doesn’t contradict the advice above about starting, by the way.

When we renovated some flats, we figured that we could reliably increase the rent by a minimum of $5 per week. That equated to $250 per year, allowing for vacancies which was enough at 6.5% interest to afford a breakeven budget of $4000…[Read more]

I’ve met the reno kings and Geoff was a long time and very useful contributor on another forum.

I’ve also met one of the people featured in the book. Like Michael says, she’s real, but not typical.

So good on you for asking the question, but the answer is, based on a small sample that yes, tehy are real.

My 18 year old is at home and pays rent. He’s also on a compulsory savings program (6% of gross salary into super at work and 10% of gross salary invested with us) while he saves a deposit for his first IP. He works in a job for 20 hours a week and has 3/4 of a full time load at uni.

We’re content to go down that path for a while – we see him…[Read more]

You’re being pressured.

Time to apply some in reverse. Note to the vendor that the cracks concern you as does the roff (and it should, it may be structural – read Steve’s advice about building inspections).

If the rest of the deal makes sense, consider offering subject to a satisfactory building inspection – if it fails the inspection, deal off…[Read more]

Wrapping is a business, rather than passive income. It can generate a lot of cashflow but requires effort and dedication, plus appropriate market conditions.

All real estate transactions involve a lot of money. A good lawyer and a good accountant are essential team members.

Allow me to take a different tack to the essentially geographic responses you have had. The CF+ deals are in your head, which is were your maximum leverage exists. Subdivisions, new uses for old properties, developments, wraps (or in SA lease options) – the list is endless. don’t look foor properties on a platter, that went out with the 90’s.…[Read more]

As with all gurus, there’s a bit of picking and choosing that needs to be done.

It’s partly a case of “horses for courses” – you need a specialist in what interests YOU – and partly a case of caveat emptor. Not everything is as, it may seem – not suggesting misrepresentation, just possibly mismatched expectations.

Good thread, nonetheless – I…[Read more]

Just to be safe, you’d better let your tenant know if you are not registered for GST, otherwise they may be illegally claiming an input credit from the ATO.

Be careful, as your husband is right – it it all goes pearshaped, your home is collateral too and may be claimed by the bank.

Family and business are a poor mix, in my personal opinion.

Get them to save a deposit, or if they are desperate to start, look at how they can raise the cash themselves. Instead of mortgaging your future, spend $30 and…[Read more]