I have done my fair share of US investing.

My 2c is that unless you plan to do this at scale, don’t.

The costs of doing business in the US are high, and dealing with the IRS as a foreigner is horrendous.

Why does investing in the US appeal to you in a way that can’t be done in Aus?

Bye,

– Steve

– Steve

From my perspective, I’d say:

1. Only one person can buy your property; try to define who it will be, and why they will buy

2. Advertise with a rifle, not a shotgun; be targeted in your advertising, the broader it is (shotgun) the…[Read more]

From my perspective, I’d say:

1. Only one person can buy your property; try to define who it will be, and why they will buy

2. Advertise with a rifle, not a shotgun; be targeted in your advertising, the broader it is (shotgun) the…[Read more]

– Steve

– Steve

I hope you are well. It looks like an interesting line up. For those who can’t make it, please come back and add a summary of the key points for each speaker.

Bye,

– Steve

I’ve been made aware of some significant changes in how investment property loans are being handled when the borrowing entity is a trust, and I wanted to pass this on.

Mortgage brokers have been advised that several major lenders are now pulling back from lending to trusts through the broker channel. In many cases they are either d…[Read more]

The things you describe are pretty normal for a residential property manager to charge.

From my experience:

Management: 6 to 10% of rent
Leasing: 1 month’s rent
Inspections: $100 to $200 per inspection

The cost, while important, is incidental to the service. A good manager – one who is diligent, attentive and responsive (proactive not…[Read more]

We have gone live with the first stage of a revamp of the website. It is just the PC version at this time while we get our elements right, with the mobile version to follow. I welcome any feedback about what you like, what you don’t and ideas for what we could do better.

Thanks in advance,

– Steve

I’ll keep this brief: the more complex the deal, the fewer buyers you’ll attract.

Right now I see you’ve got two paths:

Eat Your Own Cooking

If you’re comfortable with the risk, use your own resources — sell or refinance another asset — to generate the cash you need. It’s usually quicker, cheaper, and gives you ful…[Read more]

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

Sam has a $500,000 mortgage on his home.

Scenario 1 – Sam has a mortgage offset account that has $200,000 in it. Sam uses that $200,000 to finance the purchase of an investment property. Is the interest deductible?

No – the money in the offset account is savings, so using it for…[Read more]

Investment property $1m
Loan @ 60%: $600k
Advance repayments: $50k (paid off loan, not offset)
Current loan balance: $550k

Redraw $50k for personal
New loan balance: $600k

Under the example above, $550k would be deductible, whereas $50k would not.

The main point is this:

To…[Read more]

You’re in a solid starting position but before jumping to a strategy, the key is to define your investment objective. What outcome are you aiming for: more cash flow, early retirement, long-term wealth building?

As I teach, “the clarity of your outcome determines the clarity of your input.” Right now, you’re mixing lifestyle and inv…[Read more]

You have two approaches: buy assets and get outcomes; or set outcomes and buy assets.

The former means you get whatever the asset provides. The latter is more strategic and ensures you buy assets that will deliver an outcome that is congruent with your goals. I have always preferred the latter, although when I started investing, I did the…[Read more]

I will send out more information in due course.

– Steve

Long time, no hear! Glad to see you are still patrolling here to keep things safe.

Some thoughts about each option:

1/ I don’t see this working for residential where gross yields are 3% and lower. For commercial it might work, but the cap rate would have to be higher than the interest rate, and then how would you repay the principal.…[Read more]

The question here is does the shoe shape the foot, or does the foot shape the shoe?

I prefer the latter, so I would make a list of what operational requirements are needed, and then set a budget to see what you can source.

ChatGPT might be able to provide some guidance for a checklist. Here’s what my prompt…[Read more]

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

1/ Sometimes council officers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

1/ Sometimes council offers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

Is it legal? That will depend on compliance with planning and building permitting.

Is it financial? That will depend on the cost vs. return.

Is it smart? That’s your call as beauty is in the eye of the beholder. It sounds like a hard way to make money to me re: a lot of aggravation. Also, it sounds like…[Read more]

I don’t see why not, provided it is on an arm’s length basis.

For instance, Z Company P/L can rent from X Unit Trust, notwithstanding they are separate but related entities.

That said, it would be wise for you to speak to your accountant / lawyer about this to ensure the terms are appropriate.

Good luck!

– Steve

First, I would disconnect the cameras so your privacy is not at risk.

Next, was the camera includes in the sale contract as a fixture? If so, I would go back to the lawyer / firm who did the conveyancing and seek their assistance. If not then I’m not sure where you stand.

All the best,

– Steve

In the circumstance you describe the benefit of the tax shield from depreciation does seem marginal, especially if the extra income could justify higher borrowings.

Not everyone has a tax-free beneficiary to distribute to, and hence the depreciation tax shield is more beneficial.

Some time ago I wrote an article on the deception of…[Read more]

Any vendor finance sale will need legal advice and careful structuring to consider stamp duty (will vary by state) and income tax implications.

I haven’t seen a loan in Aus that is assumable, but they may be out there. Typically larger commercial property deals are financed by commercial paper (such as rolling commercial bills), rather than…[Read more]

You have identified an issue in your due diligence, and you are right to want to try to manage and mitigate it.

However, it appears you cannot do as the vendor will not wait.

If it were me, I would go under contract with a general 45 or 60 day due diligence clause and seek to do my own investigations. Perhaps you want to point to…[Read more]

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

This is an interesting question and I would have thought something would be legally possible, I just don’t know how. As it is a legal matter, it is best to seek legal advice. You may also like to look into reverse mortgages (do your due diligence) as a way of unlocking equity.

I imagine there will be taxation consequences of co-owning, and…[Read more]

I’m sad to learn your professional network is telling you something can’t be done when mine time and time again says it can be (and I continue to use and apply it).

I’m not sure how you reconcile that, and I’m over repeating myself over and over and over again on this issue.

If you can’t,  you can’t. If you can, you can.…[Read more]

I’m sad to learn your professional network is telling you something can’t be done when mine time and time again says it can be (and I continue to use and apply it).

I’m not sure how you reconcile that, and I’m over repeating myself over and over and over again on this issue.

If you can’t,  you can’t. If you can, you can.…[Read more]

That’s interesting as I am in the final stages of winding up my USA affairs after investing there since 2009.

The best tip I can give you is to remember that money follows management. Deals might stack up on paper, but unless you have strong, reliable and trustworthy management, you will struggle to put bucks in the bank.

The…[Read more]

That’s interesting as I am in the final stages of winding up my USA affairs after investing there since 2009.

The best tip I can give you is to remember that money follows management. Deals might stack up on paper, but unless you have strong, reliable and trustworthy management, you will struggle to but bucks in the bank.

The…[Read more]

One thing I would be trying to figure out is whether there is demand for such land, and if so, at what price. Pre-sales would…[Read more]

This has not been my experience, nor the experience of all other’s I know.

I will do an update on the matter via a webinar soon.

Remember that the structure only works for +ve cashflow property and you will need to use business bankers. Contact Chris Berry from http://www.PropertyInvestingFinance.com for more assistance.

Bye,

– Steve

Thanks for your post and sorry to read about your situation.

I am confused about the insurance policy. Whose name is it in – yours or the bordy corporate (BC)?

I would expect the BC would ensure for public liability and for structural matters for common areas, but that each owner is responsible for their portion of the building…[Read more]

First of all, the business is its own entity, and if it already has debt then that will count against further borrowings. The business will likely need several years of financial statements and tax returns to support profitable operations, or else will require a…[Read more]

Perhaps your lawyer has a view I haven’t heard before, but my understanding of trusts, companies and corporate law is that trusts separate ownership and control. Can your accountant contact your lawyer to confirm their opinion and perhaps provide you with a summary?

All the best,

– Steve

Perhaps your lawyer has a view I haven’t heard before, but my understanding of trusts, companies and corporate law is that trusts separate ownership and control. Can your accountant contact your lawyer to confirm their opinion and perhaps provide you with a summary?

All the best,

– Steve

What’s the address please? Let me do a little bit of searching.

Do you have any marketing from when you purchased that says the larger land size? Can you demonstrate that you relied on the real estate agent’s representations(perhaps by communication pointing to discussion about land size?)

Most advertising material does come with…[Read more]

What’s the address please? Let me do a little bit of searching.

Do you have any marketing from when you purchased that says the larger land size? Can you demonstrate that you relied on the real estate agent’s representations(perhaps by communication pointing to discussion about land size?)

Most advertising material does come with…[Read more]

I wish I had better news, but the stamp duty laws are pretty tight, and I understand options to purchase are caught in many instances.

I suggest engaging the services of a good property development lawyer to guide you through what might be able to be done, just in case your current legal team haven’t thought of something.

It might…[Read more]

I wish I had better news, but the stamp duty laws are pretty tight, and I understand options to purchase are caught in many instances.

I suggest engaging the services of a good property development lawyer to guide you though what might be able to be done, just in case your current legal team haven’t thought of something.

It might just…[Read more]

Yes, the approach continues to work: for the right investor buying the right property.

You will need to go and get legal advice about the right trust and how to set it up. That will cost several thousand dollars.

I have a resource called ‘Buyer Beware’ that explains all the structures, but it is currently out of print and needs an…[Read more]