Starting Over – the ex got the 90%

I think the first thing is to work out a plan as to where you want to go. One of my favorite quotes is measure twice cut once in other words consider your plans carefully before taking action.

We have placed clients directly into development projects which gives they the option of making a cash return or keeping a property at close to cost

In terms of Commercial vs Residential that's a long discussion because there are so many types of commercial property some which is good some terrible. For instance if you buy a factory the value is based on the rental return.  Now lets keep it simple the rent is $25,000 a year and it is returning 10% that would mean that the value would be around $250,000. Now what happens if you lose the tenant and cannot replace them or if you do the rent drops to $15000 a year. What is the property worth?  Now because the bank see's this as risky they might only lend 60%.

Now if you were buying a supermarket then the bank would lend a much higher percentage depending on the age of the building length of the lease.

So it is a complex issue. 

There are a lot of pros with commercial properties however based on the information (albeit limited) I don't think a commercial property would suit you more than a resi property. Your age is a sweet spot for SMSF purchase however you need to understand the limitations associated with the purchase.

If you are looking for a positive geared property then an SMSF loan may be suitable (particularly if you are not counting the deposit portion). Which state/city are you currently looking at?

Hello Donavan,

I'd advise you to purchase Steve's most recent book, advertised on here. It has quite a different take from the first 2. It's also an easy read – devoured mine over 2 nights!!

Good luck,

Kara

There are good buys in Sydney but a bit over your price range. I am seeing a lot of investor activity in parts of Brisbane close to the CBD however they are slightly negative to neutral geared. There are also some good geared properties in VIC – a few of the investors on the forum have recently purchased in Cranbourne due to the strong yields.

Having said that – I am very familiar with the Sydney market but have limited knowledge of the Melbourne market. Talk to agents, BA's and plenty of people to get an idea of the area. As a general rule of thumb my belief is that CG chases yields. 

Regards

Shahin

Hi Donavan,

"From 0 to 130 Properties in 3.5 Years" was Steve's First Book, and a must read before "0 to 260". You should be able to find copies of it very easily at most book stores – I even managed to purchase my copy from the local Big W.

As Kara mentioned, Steve's new book, "From 0 to Financial Freedom: How to do it Today", is a really quick read and has a great flowchart that you can use to help decide which property investment strategies are most suited to your situation and goals. You can pick up an ebook copy of it from Amazon for $5, or it's $12.95 in most good bookstores – I've seen it at the local QBD.

Good luck!

Kevin.

The divorce laws generally are very unfair.

In many cases the men are left without there children and often do not have any money to live on.