Hi kylesbm,

Great post and advice!

Thanks for lending your opinion and welcome to the posting community. Hope to read more from you in the future.

Warm regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Call me old-fashioned, but this is a question you’d want to have answered before you bought, right?

What if you can’t develop and instead you’re left with the property and it’s -ve cashflow?

My advice:

1. Go to the council asap and work out what’s possible.

2. Compare that with what’s financially feasible.

3. Understand that professional…[Read more]

Hi,

Failing a post of help here, I suggest you contact WA property investment groups and ask who they use.

One thing to remember is that trust law is 90% impacted by federal rather than state based laws since the biggest issue is usually pertaining to tax law much more than State based legislation.

Still, it’s goo to get some local advice -…[Read more]

Hi,

The key is to find reasons why/how it will rather than be resolved that it won’t.

The idea is that, provided (1) you had access to unlimited finance, (2) you could meet the cost of additional borrowing from profits, and (3) the properties were +ve cashflow, you could continue to buy because you’d always be making profits.

The problem is…[Read more]

Hi,

Seek professional advice at tax time, but I’d be confident you could mount a reasonable argument saying that the costs were incurred in obtaining assessable income, especially since you have gone on to buy elsewhere.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Very hard to say David as you only you know your investing plan.

If you are after +ve cashflow then buying the property would seem to push you further away from your goal. On the other hand, provided the market keeps appreciating then maybe it would be a good capital gains asset.

One thing I would say though is that investing to save tax…[Read more]

Hi,

Tony’s formula works for him, Terry’s formula works for him, my formula works for me.

The question is… what’s your formula and how will it work for you?

As I understand it, Tony made his up from scratch… you can too.

Great to seek some advice though and thanks to Terry for providing guidance.

Cheers,

Steve…[Read more]

Hi,

It’s not complicated… find a deal and then find someone who wants to buy the details from you. Given the substantial number of people who can’t find +ve cashflow properties, you should be doing OK quite quickly.

Ah, but don’t advertise on the forum here as (except in special cases that have pre-approval) it’s against the…[Read more]

Hi,

quote:but sorry to be the party pooper. The 11 second solution was only good when interest rates were at 5%. Now that they arent and if you are using interest rates of 7% you need to find a property with a gross yield of 14% to be positive cash flow.

Bollocks. Actually, the 11 Second Solution was created when interest rates where higher…[Read more]

Hi,

The best I’ve seen in Oz is ten year fixed interest rates.

What I do is know at what interest rate I can lock in my positive cashflow and still earn a good return. That way I can monitor what happens and be proactive rather than reactive.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

*sigh*

When you know what to look for deals are everywhere. Sadly, though, people don’t know what they don’t know.

These words often fall on deaf ears, but… opportunities are everywhere. The key is to (1) find a region you want to invest in; and then (2) look for problems.

Good luck.

Steve McKnight

**********
Remember that success…[Read more]

Hi,

I think that perhaps you echo a sentiment that a lot of people feel after reading the book.

Yep – it’s pretty hard, yet there are a number of factors that will time and time again prove that deals are out there. They are (in no particular order):

1. I believe the best way to make money in property is to find problems and solve them. As we…[Read more]

Hi,

I think that the claim:

quote:The long property boom in Australia is at an end and the blame is being heaped on one man’s shoulders: Henry Kaye…

is about as accurate as:

quote:ABC News, Australia’s main network television channel

*sigh*

Apart from Alan Kohler insights, the rest of the article is hype and lacking in substance.

Where is…[Read more]

Hi Ben,

Thanks for your post and welcome to the forum!

quote: 1. Am I missing something as far as getting the best return on this property? It is a 2 bdrm + a 1 bdrm with seperate leases. Sorry if there isn’t enough info here as I don’t really know what other info would be helpful. It’s not completely dedicated as an investment property as I…

[Read more]

Hi Swampy30,

My moto is buy the problem, not the solution.

Thanks for your post!

Merry Xmas,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

I’ve looked at them at various times and found that they would be negatively geared on the basis of an 80% lend.

They are properties that would be better suited for investors seeking capital gains returns and not wanting the usual hassles of tenants.

For cashflow investors, the deposit required to make them +ve cashflow would mean that the…[Read more]

Hi,

Generally speaking, the cost of the asset includes anything related to its purchase plus costs associated getting it into a location and condition for use.

As such labour associated with hooking up an airconditioner in a rental property would need to be added to the purchase price and depreciated.

Nb: You can claim a deduction for expenses…[Read more]

Hi Vegemite,

I’d recommend paying an accountant to flesh out your options with you.

Depending on your situation, you might be able to gain some tax advanges by paying a dividend rather than taking it as a salary.

I think you really need some advice because:

1. It is not wise to operate a business and act as a trustee in the one company.
2. As…[Read more]

Hi,

If you’re an Australian investor then you will also need to have a plan about how you expatriate your profits.

Double-tax treaties can be complicated, and it is best to go into complex issues with some sound advice first.

As for the area… I think that it is good to do your research from home, but before you buy it is wise to visit the…[Read more]

Hi,

Doing things like this to access tax benefits is not a sustainable way to invest.

The points made by mortgage hunter are well made… indeed, this looks like a scheme which is only entered into for the purposes of minimising tax – and as such, if ever questioned, is likely to attract the ire of the tax authorities.

Personally, if you do…[Read more]