Thanks for bringing this up. If flipping is not the best way to start, are there any other options? Is the next best thing to maybe save up a lot more money and end up buying a block of land and putting up some townhouses or apartments?
I understand that it is a lot more difficult to get a loan these days, but not impossible, and there has to be somewhere to start.
Also, what is the difference between Trading Income and CGT?
Thanks.
Trading income – income derived in the course of doing business
CGT – capital gains tax, a one-off profit derived from a capital transaction
May I suggest you have a look at two blogs. They have revolutionised my thinking
1. Mr. Money Mustache
http://www.mrmoneymustache.com/
2. Early Retirement Extreme— a combination of simple living, anticonsumerism, DIY ethics, self-reliance, and applied capitalism
http://earlyretirementextreme.com/
The basic idea is to save as much of your pay packet as quickly as you can and invest. Do this by earning as much as you can but more importantly reducing what you spend. If you are able to save 75% of your income then you could possibly retire in 5 years or less.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ok thanks Terry see we all live and learn.
I was aware a person under the age of 18 couldn't enter into a mortgage agreement but wasn't aware that could take Title of the property.
I was aware they could in certain circumstances enter a Contract but didnt realise that included the purchase of land etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Ok thanks Terry see we all live and learn.I was aware a person under the age of 18 couldn't enter into a mortgage agreement but wasn't aware that could take Title of the property.
I was aware they could in certain circumstances enter a Contract but didnt realise that included the purchase of land etc.
Cheers
Yours in Finance
Found it Richard,
In NSW this is probably the relevant act MINORS (PROPERTY AND CONTRACTS) ACT 1970
eg see s20
http://www.austlii.edu.au/au/legis/nsw/consol_act/maca1970348/s20.htmlTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Beauty thanks Terry i am not sure the same applies in Qld.
Always good to be forever learning.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
My tips here are not specific .. but would help
Get a property that is cheap or a bargain, you will already have a head start.
It should have growth potential
It should have good rental returns
If it has capacity to increase value with a renovation..its even better
Do the maths on your repayments and make sure you can easily afford the repayments or then any shortfall from rent earnings.
If you are going to rent it out work out your out of pocket expense and what you will get back from 1 tax return, what you save in your 1st tax return can be ploughed in into the bank account to take care of property shortfall for future years and increase equity to borrow further
Thats all
Good luck
Hi Freckle,
Once again thanks for your praise. I agree 100% with your post. Start with a basic cosmetic renovation. You make money when you buy not when you sell. So make sure you are patient and you buy very cheap.
Henry Ford said, "I am smart enough to have smarter people around me doing the things I cannot do."
Build trust and relationships with key people that can help you on your property investing journey. Enjoy every moment as the journey is better than the destination. I am more than happy to help anyone with free advice, feel free to add me on Facebook or Skype.
Have a great day.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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