[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

July 4, 2011 - 4:48 am

bjsaust, that's a very smart idea alright. Will be implementing it when I start buying as I'm sure it's great to have that 'piece of mind' in the offset. Would you ever use the money for another IP deposit instead or do you prefer a buffer being in place for every property? And if you don't mind me asking, how much do you usually set aside?

Jamie, pulled out the May edition to look for your article… a lot of it had been highlighted! Your strategy of buying below market value, doing a small reno and then using the newly created equity to invest elsewhere is exactly what I intend to do. That approach plus using LMI would defintitely help increase the numbers, especially as I'm looking to scale the property rungs very quickly but, of course, equally as cautiously

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

July 3, 2011 - 7:56 am

Cheers for the post Jamie. Thought it would have received more response considering LMI can be a great tool for increasing your portfolio numbers.

Would you recommend utilizing LMI as a basis for a beginners property investing strategy? When I first read about it it sounded like a great way to quickly increase the number of properties you can buy and as long as there’s enough of a cash buffer to ensure the loan isn’t defaulted at any time.

Is there an industry standard for the cost of LMI or does it differ from bank to bank and their perceived level of the applicants risk? I’ve only seen $6k/year being mentioned as a cost and this seems like a pretty small (tax deductible) expense considering you could be receiving capital growth from 2 properties instead of 1.

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

July 1, 2011 - 5:28 am

Here's what you're looking for;

http://www.homeloanexperts.com.au/non-resident-home-loans/work-visa-loan/

Just moved to Kensington, Sydney.

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

July 1, 2011 - 3:08 am

Hi Mike,

I’m currently on a student visa which will soon become a temporary resident type visa while I apply for full PR. I recently asked ANZ if I’m able to apply for a mortgage or large personal loan but they said I’d have to wait until I achieve full residency status before they would even consider it.

You may be in a much better position with your business visa, decent wage and already owning an IP so it would be worth setting up a meeting with your banks financial advisor to find out what they’re able to do for you.

I have 3 friends on the same visa but 2 of them lost their jobs due to cutbacks and had to leave Aus so I think this type of unforeseeable circumstance highly affects the banks decision to loan to non-residents.

If the banks say no, there’s always other companies that may be more willing to help you out but of course this usually comes at more of cost to you.
Let me know how you go either way.

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

July 1, 2011 - 2:06 am

No problem Chris. I’ll happily send you some books if you’re struggling. If you don’t mind a lot of highlighting and underlining, PM your address and I’ll send a list of what I have. As long as I get them back when you’re finished I won’t mind forwarding them. Although will have to pester some friends for the ones they’ve forgotten to return!

Lomas and DeRoos are next on my list as they’re always highly recommended on the forums. There’s so much to learn and absorb that you’ll be dreaming about property… Or maybe that’s just me!

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 30, 2011 - 1:51 pm

Hi Chris,

Just finished reading Michael Yardney's book 'What Every Property Investor Needs To Know About Finance, Tax and the Law' and it pretty much covers all the questions you asked. I highly recommend buying it as it would definitely be an invaluable learning tool for grasping the fundamentals of property investing. It's also written in plain English so quite an easy read too.

After reading McKnight's books, I was all set to hunt for postively geared properties only but when I finished reading Yardney's book and grasping the concept of how negative gearing can really help accelerate your rate of acquiring IP's, I will be implementing this method into my PI business strategy.

As Jamie said, there are more creative ways that can also help gain equity over a short period of time. Nathan Birch seems to be a master of this, check out his Youtube channel for some impressive reno's and figures. He's still making massive profits and creating positively geared IP's when many people believe this has become exceptionally difficult due to the current market conditions.

Regards,
Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 20, 2011 - 1:55 pm

I did see a professional videocamera at every session so I'm hoping it isn't just audio as I'd be very disappointed after paying $650 for all the sessions.People like Marty Ayles etc need to be visually recorded in order to convey their energy and enthusiasm.

Will find out next week what I paid for… finger's crossed it's not just a whole load of audio tapes!

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 18, 2011 - 2:48 pm

Hey Andy,

Just have to say that your blog caught me off guard, wasn't expecting such a funny read! Favourite quote- "Nothing says quality like a piece of miss-matched, ripped, green shade cloth hanging off your balcony, and you just know that the owner of this wonderfully crappy looking house has been watching Better Home and Gardens for styling cues." Hilarious!

Will have to read the rest tomorrow as it seems like it'll be an informative read, especially with your active investing experience behind it. Out of interest, did you end up buying a business after being inspired by the Rich Dad book? 

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 17, 2011 - 12:17 pm

I talked to a few of the RESULTS people at the seminar and they were so helpful, informative and willing to share their experiences with everyone. I met with Brendan and he reaffirmed my thoughts that this would definitely suit me.

My main weaknesses are being too independent, not knowing enough about the more specific details of IP transactions and not knowing anybody in Aus with IP's so the course would help with regard to all those aspects. I'm sure the motivation, encouragement and advice would in itself be worth the cost price.

I didn't sign up this year but will definitely do so next year as that's when I'll be making my first IP purchase and think it'll suit me better then. As Wisepearl said, the money spent on it should save you more from not making mistakes then if you went at it alone.

I did receive an email yesterday regarding the 2011 intake and something about saving $3.5k on the usual price but it's nowhere to be found. I do know that the enrolment for this year ends very and the intake is only once a year so better hurry!

Warm regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 15, 2011 - 9:43 am

Hi Orks,

Where abouts are you considering investing? I'm in a similar position with regards to a significant amount of disposable cash and was thinking of investing in the U.S. too as I can just buy a house outright and not have to deal with banks, mortgages etc. There's a lot of info just on the forums here about the best places to invest (maybe too much!) and how to go about it.

Obviously it's a great time for investors to buy but I have heard there is a tremendous amount of hassle involved so still unsure as it would be my first foray into property but I can imagine in the long term it would definitely pay off. There was an article on Somersoft.com that detailed the negatives of a members experience over the last 2 years or so and it did seem quite a challenge, even more so from another country.

I know someone who bought a house in Missouri for US$33k and after all expenses, he gets US$650 deposited into his bank account every month. The house will pay itself off after 6 or so years and can only increase in value during this time. This is something that may be worth the hassle and considering you can buy a house in the U.S. for what is usually just a deposit in Aus, it's a great deal.

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 13, 2011 - 2:02 am

Looks like a great find alright. Especially with the Bundaberg airplane being part of the deal!
You say there's 'existing rights' for the property and it sounds like you're expecting the council to possibly have an issue with this. Did you buy the place before confirming with them? Or is it likely that they'll go with what you have planned? Frequently hear of dealing with councils as being one of the biggest headaches with reno's etc so wondering if you have your own way of approaching them to ensure they are more helpful with your plans?

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 1, 2011 - 1:48 pm

Thanks Bluegrass for mentioning the NRAS, my 'learn something new every day' goal was fulfilled within 2mins of logging on. Seems like an interesting avenue to engage in, especially as there's always demand for affordable housing. Will look into in more detail.
Cheers for the Property Tool Analysis spreadsheet too, I'm sure it will prove invaluable in the the near future

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 1, 2011 - 2:18 am

Hi Emma,

I aksed the same type of questions to my tax agent and he said it's really only if the courses are 100% relevant to the current activities of income generation/profit- if you're currently doing a development, it should be tax deductible to attend a developing course, whereas if you're planning on developing it probably wouldn't be.

"Self-education expenses can be claimed provided the study is directly related to either maintaining or improving your current occupational skills or it is likely to increase your income from your current employment.  If the study is to obtain new qualifications in a different field the expense will not be allowable." (cpaaccountants.com.au)

It really is dependent on individual circumstances but as you already own a few IP's and a course like RESULTS, as you said, is directly aimed at increasing income from investing, it should be tax deductible.

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

June 1, 2011 - 1:22 am

This will be my first time attending any sort of property seminar so really looking forward to it and it's the first step in a more proactive approach. It'll be a very intense 3 days but I'm sure it will benefit me immensely.

From reading many forum posts, it sounds like the a lot of those attending are as educated as the speakers! I read a few comments about last years event and it got mainly positive reviews (aside from some of the speakers surreptitiously creating a buzz just to sell their product at the end of the talk).

As a friend dropped out and I have yet to find a replacement, looks like I'll be going alone. Unless someone wants to join me? The reward for such a sacrifice is a free ticket!

Also, is anybody thinking of going to the Trump/Kiyosaki/Robbins event in Sept?( http://www.nationalachieverscongress.com.au/event.html). $200 seems pretty reasonable to see such big names live.

And Nathan, I agree with MattNZ about thinking of being a speaker at the next event. Would be great to see some young and successful talent such as yourself sharing ideas and different methods.

Regards,

Derek

[ScottsdaleParticipant@scottsdaleJoin Date: 2011Post Count: 63]

April 9, 2011 - 9:33 am

I’m in a similar enough situation to the OP and have been contemplating the many different options available for investing. As I am not an Australian resident, I am slightly disadvantaged when it comes to getting a loan or buying a property so I put $200k in a term deposit account for 1 year at 6.5% and kept $45k to buy shares and a decent car. I only work part-time but any spare time I have is usually filled by reading about the property market, learning about the stock market and educating myself about taxes etc. I hope the knowledge gained in the next year will help me make far better investments decisions so I can start building a decent investment portfolio.
You should of course seek professional advice from your bank, financial planner etc or find yourself a mentor to guide you in the right direction.
Whatever you do with it, I hope it proves to be a success for you. And of course would like to be updated some time in the future.

Derek