If I were to setup a business it’d probably have to be a Property Management Business that focuses on maximizing landlord’s rent, and then getting a commission from that rather than renting it myself first, and then sub-leasing. However, before setting up a…[Read more]

So the best way to deal with this is to have a clause in the contract that states that the landlord will pay up to 137KL per year, and any excess is to be paid by the tenant?

This is the formula provided in some of Steve's seminars:

Price = Annual Rent / Yield

Instead of offering a lower rent, it was suggested to offer a rent free period

64. Tenant must not install fixtures etc. without consent

(1) A tenant must not, without the landlord's consent-

   (a)  install any fixtures on the rented premises; or

   (b)  make any alteration, renovation or addition to the rented…[Read more]

Usually with PPR you can claim 50% CGT if you have held the property for at least 1 year

However, renting out spare bedrooms, may mean that the property is no longer considered 100% PPR

And this could mean you may not be able to claim 50% CGT on the…[Read more]

No lost opportunity cost either as SMSF provides the freedom for me to invest in Steve's USA Commercial Property Fund as well as in Silver

Probably just need to setup my account to allow purchase of global shares and I'll be very happy

When it comes to renting out a property it is essential to get it right from the start

Once a tenant moves into a property it can be quite difficult to evict them as the Residential Tenancy Act works more in the favor of tenants

bullet46 wrote:

Do I need to get a contract/agreement done up to cover myself?

Definitely! Without…[Read more]

I think he had some sort of 'subject to' clause

Maybe you could discuss this with a real estate agent?

Residential properties usually require you to be able to service the loan, and thus will place more emphasis on your income and expenses. Some things to note:

If the entity you are purchasing it is not making sufficient income, you may be able to go as guarantor

Some lenders will consider…[Read more]

The AUS$ is not increasing in value or purchasing power, but relative to the US$ appears to be strengthening due to the US$ weakening

I believe the concept many need to grasp is that all fiat currencies are designed to lose purchasing power over time, but the rate at which these currencies depreciate will vary

If your SMS buys art, generally you cannot use it privately

Don't Buy Wine as an SMSF investment…[Read more]

Have you issued a breach notice yet?

"Hi David,

Thanks again for your interest in the Passive Income (USA Commercial Property) Fund.

I'm writing with a quick reminder about this Friday's (30th November) 5pm cut off. This is the deadline you need to meet to completed your Fund paperwork and / or payment and still receive the 50% contribution…[Read more]

At this stage you should still be able to invest in the USA Commercial Property Fund but probably won't get the contribution discount.

http://www.passiveincomefund.com/video-webinars.html

Probably don't want to charge too low, but also don't want to charge too high .

Need to find some middle ground

Ballarat Share Accommodation are charging $190-$250 per week for each room, and it looks like they are in fairly high demand, so I'm thinking maybe $150 per week.

Just have a few questions:

Would it be OK for me to use…[Read more]

This is my first time doing this, and its a good learning experience for me.

My neighbour came in to help me setup some bedroom furniture today and she was quite impressed, and thought charging $135 per week and including all utility bills, internet, appliances, utensils and furniture seemed a bit…[Read more]

Couches were bought from colleague's garage sale, but I'm still undecided about whether to replace them with black leather couch, or whether reupholstering them might a more cost effective solution or to just leave alone

I dropped by the council today on my way from Target and I was told that I did not need council permission unless the room had more than 4 people (not sure if I heard this correctly or whether they meant house) but either this shouldn't be an issue since there will only be 3 people living at the property – maybe I…[Read more]

Will come in quite handy when it comes to filtering through potential tenants to sublease rooms to 

Here is an article with useful ideas related to this topic

You could also consider enrolling in the the RESULTS program with your own personal mentor

Not going to bother telling us a bit about yourself?

What I have learnt is that agreements should be made on paper, rather than made verbally, so that there is no misunderstanding from either side, and there is something to refer back to in an event of a dispute.

That's a lot of money, and if I won that much I probably wouldn't want the world to know about it…

Not that I would, since I've never spent a dime on lottery tickets

Based on the information provided on the above property, the maximum I would pay is $88,000

As Jamie and Shahin mentioned, whether you should fix interest rates or not will depend on your property strategy,  personal circumstances…[Read more]

Demand is limited to a smaller market such as investors, students, young professionals etc

Supply is expected to outstrip demand according to BIS Shrapnel’s Inner Melbourne Apartments 2012 to 2019 report

Personally I would not buy an inner 1 bedroom apartment in Melbourne for…[Read more]

For capital gains in commercial properties you would need to find a way to increase income and/or find a better use for the property

Isn't it very time consuming and costly to move homes so many times?

E.g. if you want $50,000 in passive income, and can 8% yielding assets, you would need $625,000 by the date you want to retire whether that be 10, 20, 30, 40 years from now

You can then determine what strategy would suit you best based on your circumstances and preferences

Thanks for the elaboration Engelo, and good on you for stepping out of your comfort zone to venture into another continent

Please keep us updated on how you progress with your adventure

Here is an audio file that Steve shared with us a few months ago:

The Strangest Secret, Earl Nightingale

Sadly I don't know how to do the quoting thing. Xdrew I understand what you say with respect to the AUD being a safe haven. You mention 'it remains at an abnormal high'. Are you saying you dont expect the AUD to drop anytime soon or rather it is abnormal and thus should return to…[Read more]

I believe Silver is better than other traded commodities because of its unique properties that make it hard to substitute:

Most reflective metal

Greatest conductor of heat and electricity

Strongly resists corrosion and oxidation

Second most malleable and…[Read more]

According to the ATO website, you are able to claim interest expenses from investment properties, but not from your PPOR

http://www.ato.gov.au/individuals/content.aspx?doc=/content/00113233.htm

For this…[Read more]