The ATO goes through phases… sometimes they are lenient, other times they come across heavy handed.

The old rule used to be that when there was an argument that something should / should not be included in your tax return then you were safe from penalties so long as you had a reasonably arguable position. I can't see this applying to shoddy record keeping though.

Personally, I'd rather know my records are as they should be than hoping I don't get audited, and, if I do, relying on the mercy of the happy folks at the ATO.

– Steve

Hey Rick,

James Simango (US Tax Central in Brisbane) is a great help. He's a CPA in the US and also in Australia.

I'll try to do an interview with him on the topic of tax deductions and add in to the US Focus Group resources in the next couple of weeks.

You might also want to check out a book called 'tax wise'. I got it off Amazon. Here's a link:

http://www.amazon.com/Tax-Wise-Business-Ownership-Toby-Mathis/dp/0979786002

Cheers,

– Steve

Hey Stephen,

You must be a nice block with a name like that .

Many people comment that starting out is the hardest part – not only is knowledge an issue, but so too is confidence.

I could go on an on about this topic (in fact… I will be at the upcoming seminars I have just announced), but for a quick answer that I hope points you in the right direction:

1. Many investors buy a property and then make a profit. That is, they buy then strategize. This is a flawed approach.

2. Instead, the first step is to work out your wealth creation goal. That is, what you are trying to achieve from your investing.

3. Once you know your goal, you can then look for a model or investing approach that will get you there. For instance, you may need to buy multiple properties, and 'trade them' as you build your capital. Or else you may have a long term approach and can buy (say) a property every couple of years and achieve your goal if you achieve your growth targets.

4. Once you know what profit you want, and when you want it, you can select the most appropriate investment strategy.

5. Armed with knowledge about the goal you have, the profit outcome you want, and the best strategy to achieve it, your next step is to identify an area you want to invest in, and then ultimately the 'right' property for your needs.

6. Of course, once you have found the property, it's up to you to do your due diligence and then negotiate a price you're happy with.

7. Then, once you've bought it, you should look to apply skill to get above-average growth and income returns.

Phew! That's quite a bit to take in, but it's a quick step-by-step approach which I strongly believe will lead to the most successful investing outcome possible.

If you'd like to know more on this topic, then I suggest you take a look at the seminar series I'll be running soon. The link is provided in the signature tag below.

Cheers,

– Steve

Hey Tugger,

Have you tried doing a good old google search? There are probably a number of templates out there you could access.

– Steve

Got a tax lien redemption today, in fact. $700ish in interest over four redemptions (in one cheque).

I can't fault it thus far, but I do have about 30 liens I have to start foreclosure on. It will be interesting to see what happens.

– Steve

Hi Margaret,

Thanks for the post. It's wise to seek referrals, especially when dealing in a foregin investment market.

I have not personally heard of either group. Perhaps if I could ask you a couple of questions:

a) What are you looking for (by way of service)?
b) What are you prepared to pay for it?

I am not solicitoring business, just interested to hear your expectations. As you outline them, someone else may be able to help you with a recommendation.

Have a super day,

– Steve

Hi Dan,

I think much of the budget pain is yet to be felt, but it will bite when electricity prices increase as welfare payments dip. It will be fascinating to see what happens with the carbon tax, and whether the government brings this in as the carrot to make amends for the welfare reductions.

You can see the political incentive… giving back what was taken away is still perceived as giving.

I agree that there weren't much visionary changes, which is why a lot of people are saying it is an uninspiring budget from a government in its first year. It's fair to say that the budgets in 2012 and 2013 are unlikely to be worse since Laor will want to remain in power.

Thanks for joining in the discussion.

– Steve

Hi team,

Nice to see the discussion about the book.

I guess it is still theoretical to buy 130 properties in 3.5 years. In fact, I am on track to do so buying in the States about 18 months ago.

But, the real questions is not the number of properties you own, but what the portfolio delivers. You may be able to achieve your investment objective owing 5 properties. Or 2. Or even 1 (think office building!).

Indeed, the premise of book is not about owning 130 properties. It is about looking at real estate a different way: cashflow rather than capital gains.

So, to answer your question… could a person on an average income in a full time job own 130 median priced Aussie properties in 3.5 years (based on 2011 values) – and contributing 20% deposits along the way. Yes – but not on a buy and hold basis. They would need to do something creative and have a team behind them. Also, it is unlikely they could all be held at once, but, then again, I never did.

– Steve