A lot of interesting changes have been taking place in our market place. For example, RBA has reduced the cash rate to a record low at 1.5%… whileas major banks are actually starting to raise rate for property investment loans… At the same time, foreign buyers are pretty much screwed. Not only no bank is willing to lend to them, but also cost of purchasing Australia properties skyrocketed. Craziness didn’t stop there. Victoria state government just announced that they will abolish the stamp duty for 1st home buyers (whose purchase … Continue reading Here’s the million dollar formula for property investment
Recently, I’ve been asked by a lot of people about how to better manage the cashflow in terms of before and after tax situation. In particular, it’s in relation to government tax rebate at the end of financial year. The most frequent question I get asked is: “If my property is running at a loss before tax, I understand I can claim the loss at the end of financial year and therefore get a big pay check from the government. But that means I still need to carry the loss each month … Continue reading Little known way to turn before-tax negative cashflow properties into before-tax positive ones
Yesterday, I had a meeting with my friend Joe who wanted to get into the property market and started his investment journey. As normal, the meeting went pretty well and we had a lot of cool chats about how he could save himself enormous amount of frustration by avoiding the common traps which were normally made by budding investors when they firstly got started. I’ve been doing property consulting for my private clients for almost a decade now. From thousands of conversations I had with my clients, what always amused me was that people always thought the … Continue reading The Great Property Hoax : How most people fail miserably when investing in properties
Today, I want to go back and talk about the fundamentals of your property investment – Cashflow Analysis. Speaking of cashflow, this is probably one of the most overlooked area especially for budding investors. I can’t remember how many times when I chatted with people about their investment properties and realised that all they focused on were growth. It shocked me greatly that most of people I’ve spoken with have never done a thorough cashflow analysis for their investment properties. “Hold on a moment, are you telling me that most … Continue reading How to analyse a property’s fundamentals?
Many investors wonder how they will ever build a property portfolio when they’ve been told they can’t access any more equity by their lender. You would be surprised how many times people come to us with these same questions and don’t realise that often the loans they took out are causing some of the problems and holding them back from building a sizeable portfolio. So how does this happen? The first thing to remember is that banks and your mortgage brokers are not in the business of investing in properties … Continue reading Loan structure – demystified
The real estate that’s worrying the RBA (Hint: Not Residential) Watching the big money part II – this time we’re in the Melbourne CBD. The RBA is worried about a property bubble. “Finally!” I hear the chicken-littles say. “We’ve only been talking about it for 15 years! At last the RBA has come round.” Well, let’s not get too excited little chickies. The RBA’s not worried about residential property. Nope. It’s actually the commercial property market that’s keeping them up at night. That’s the latest insight that Assistant Governor Malcolm … Continue reading Stop Investing in Melbourne CBD
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