Jojo i have to admit i did have some silver and gold bullion ( parent’s made me get them 0.o ) …i have to say it’s one of my better performing investment ! close to 35% return when i sold it in Dec 2010 …but it doesn’t have regular income and it’s long term.

Regards
Michael;

1. What uses does this place have? can it be a food out-let? a car yard? a repair shop? a office? etc… this is probably the MOST important question as different use and industry have different “expected return”

2. How does the bank look at this property? is finance easy? …if finance is hard the price should be low or the return should be much…[Read more]

Note: A discretionary trust is far more superior then a unit trust in regards to tax minimisationand capital gain tax- as it provides better control and flexibility..

End of the day you can really make a company ABC pty ltd..and it’s owned by a trust ABC….
Our firm dealt with a case where the couple had a company that was owned by other…[Read more]

Excellent post MR501!! Spot on!

Naremburn123 – If your solo purpose is to renovated and sell within a short period of time …if that time frame is less then 12 month; financially speaking depending on which tax bracket your on; a trust structure can be more beneficially because of the 50% reduction in CGT ( after 12month)

Also company is a lot…[Read more]

what you say is true…and i have taken that in consideration..but on a long term perspective-
1. Your buying at a higher price
2. Depreciation will eventually equalizes

I still stick to my last statement “End of the day depreciation can be “Created” by doing renovations etc if required…also if your on a average-just above average…[Read more]

Was it cross? or high worth client ..service loan without rent??

By the way, are you with NAB for your lender…i currently hold a block of 4×2 in Rockdale and it was with NAB…but they ( 14 month ago) changed their condition to max out at 3 unless i cross….SIGH

Regards
Michael

what i meant was…a lot of brand new properties are hardly positive geared…you be lucky to have a neutral Gearard property.
especially if its a house.

For example:
Brand new

5 Defries ave, Zetland, NSW 2017
http://www.realestate.com.au/property-apartment-nsw-zetland-106677540
Brand new-
$708,000 – 2 bedroom, zetland. – expected rent of $600…[Read more]

Yes you can do it your self…but your going to have a lot of trouble finding a bank that will lend you the money.

Regards
Michael

I would say dont risk it…unless the price is extremely good, you have your finance in place and you choose to go with a different builder.Why?
1. Financing a half finished home is a headace and a pain! you be limited with lenders choice, rates arn’t as good as you would want it…terms aren’t any better
2. You must question WHY didn;t this guy…[Read more]

Great post buddy!!!

I have never been a fan of -VE ….and this confirms it! – “you can’t eat negative gearing or depreciation” ahahh made me laugh!!!

Regards
Michael

A catch 22…this 300k is all you have, so if you invest you risk losing some of this because of bad investment, no tenants, dmg to the property etc…but if you don’t invest you be stuck in one place….so you really need to sit down and work out where your “buffer” is…ie how much do you need to “comfortable” live off IF the investment belly…[Read more]

In general, IP first then PPOR…reason?
1. Say you rent a place to live for $300 a week and you rent out your place for $300 a week…you will still be better off because of the tax deduction it has on your income and another deductions.
2. Increase borrowing capacity compared to PPOR.

Regards
Michael

Jack- yesterday i had dinner with some of the excec from St George Bank – if you have a good long history in this field of work ( 5 years +) a loan can be considered for self employed after 1 full year of trading

Cheers
Michael

Fword- i think you mean one of the advantage of a brand new property..dont know abt the +ve part

tylon020 – one point i must note if you have an redraw for the IP is that …some accountants can be fussy about you placing extra surplus cash into your IP redraw as the SOLO purpose of this redraw should only be for the IP…ie rent etc…
If you start transferring your salary and another incomes into the redraw it can become messy for the…[Read more]

Good post AFL1.

tylon020 – ill make this short, simple and in layman terms:) .

1. Redraw and offset – No real difference in how it works some technical differences but not one that you should worry about…but redraw has less flexibility in that it’s harder to access and shift the money.
2. From your post, i personally would recommended a loan…[Read more]

If this is a brand new listing and the agent havn;t had any “serious” buyers…then it be hard to pull the price down…
On the another hand, if this property been listed for 40+ days i find it’s soooooo much easier to bargain and the agent tend to be more “understanding ”

If you want to see how long a property been listed for go here-…[Read more]

I went to an open house where it was advertised as “$900,000+”
I had a sneak peek on the piece of paper the agent was writing on…he had offers ranging from 620-830k ….ahhah

It was sold for $863k 2 weeks later.

I say offer what would make you “happy” no point buying something and feeling ripped off! dont rush! there are PLENTY of properties…[Read more]

Umm im in the same boat as Ryan – only agree to half.
i would never buy brand new ..there are better ways to obtain the tax benefit then buying brand new…i rather create growth and tax benefit then “buying it”

Buy houses as a first choice for better capital growth – Personal choice, not everyone can afford to buy a house in a “established…[Read more]

Our firm do a lot block of units under one title around Australia on a regular basis, …probably because i have a lot of Asian clients and this seems to be their fort’e.

If they all have internal laundry and in a metro area – NO problem we can do up to 12 under one title- residential rate- up to 7 lenders to choose from ( a Few you have never…[Read more]