getting over the bumb of cash flow

[RIC84]

getting over the bump of cash flow

bit of background,

i own my own home which i live in, also have a pair of town houses(semis) on one title currently rented and another house rented,

LVR is at 79% according to very recent bank evaluation, and I am slightly positive geared after all expenses across my small portfolio.

I am married, aged 30, we have single medium income and two children. we have done quite so far considering the limitations a single income puts on lending limitations


If I buy anymore houses in my state I will incur land tax, which will make positive geared opportunities harder to find. I would like to keep purchasing positively geared IP's but I would like to know if anyone else has been able to do this and still manage to get 10+ properties (if so what are the options i could take)or if this is wishful thinking

are trusts or investing in other states my only options if so how best to approach them

 

[JenJen]

Spread your wings. Investing interstate is no big deal if you go about it the right way.

Cheers

Jen

 

[Qlds007]

RIC totally agree nothing wrong with buying interstate.

Land Tax is merely a cost of holding real estate (trust me my Qld land tax bill each year turns me greyer by the week) so if you want to increase your portfolio look at using different structures or entities to move forward.

Up until recently i had all of my properties here in Qld and have now stated to buy in NSW / VIC.

 

[RIC84]

RIC totally agree nothing wrong with buying interstate.

Land Tax is merely a cost of holding real estate (trust me my Qld land tax bill each year turns me greyer by the week) so if you want to increase your portfolio look at using different structures or entities to move forward.

Up until recently i had all of my properties here in Qld and have now stated to buy in NSW / VIC.

so what is the difference in cost you have found operating in another state/s.

I would assume there is a right and wrong way to approach this as the inability on spend lots of time in the area sourcing would make things more changeling as well securing the right property in the first place through to getting the right people to manage it. Or has this been a case of assume that costs will in general higher as cant guarantee best outcome as often- example my networking in my home state has allowed me to get some great under market deals that i would have missed out on if I needed to wait 48-72 hours to view.

or can anyone give an idea of what the costs around a company setup or a trust would look like

 

[jrc77]

or can anyone give an idea of what the costs around a company setup or a trust would look like

Just got quotes from my accountant and a lawyer for setting up a trust in NSW.

From both to setup the trust with corporate trustee is approx $2.5k plus $510 stamp duty.

Additionally there are some extra annual fees - Asic filing fee ($230), a fee to maintain the registered company office (approx $300), tax return will cost extra (suspect at least $500 per year extra). Possibly some extra borrowing expenses (trust deed review fee from the lenders etc).

Regards,

Jason

 

[nhg]

Just got quotes from my accountant and a lawyer for setting up a trust in NSW.

From both to setup the trust with corporate trustee is approx $2.5k plus $510 stamp duty.

Additionally there are some extra annual fees - Asic filing fee ($230), a fee to maintain the registered company office (approx $300), tax return will cost extra (suspect at least $500 per year extra). Possibly some extra borrowing expenses (trust deed review fee from the lenders etc).

Regards,

Jason

Who was that.

I believe TerryW is cheaper and he provides fantastic advice.

 

[impala67]

RIC totally agree nothing wrong with buying interstate.

Land Tax is merely a cost of holding real estate (trust me my Qld land tax bill each year turns me greyer by the week) so if you want to increase your portfolio look at using different structures or entities to move forward.

Up until recently i had all of my properties here in Qld and have now stated to buy in NSW / VIC.

Considering the initial set-up costs and annual fees, do different structures decrease or increase your borrowing capacity depending on the set up?

 

[nhg]

Considering the initial set-up costs and annual fees, do different structures decrease or increase your borrowing capacity depending on the set up?

Yes. How? Best ask a professional.

Also make sure to consult both an accountant and lawyer when setting up a trust. I've had friends set it up themselves thinking themselves amazing to save $2k only to realise they messed it up a few years later.

 

[tobe]

Considering the initial set-up costs and annual fees, do different structures decrease or increase your borrowing capacity depending on the set up?

Yes and no, there are some quirks where company borrowers can be excluded when borrowing next in personal names and vice versa, but this is definately the exception. Most lenders 'see through' structures, or try to....

 

[impala67]

Yes and no, there are some quirks where company borrowers can be excluded when borrowing next in personal names and vice versa, but this is definately the exception. Most lenders 'see through' structures, or try to....

I did read that somewhere previously, and that was the reason I put the question out there.

In some of those "successful investors" stories, there are some people that have had gone down that path and had success with it...however it doesn't seem too common. It would be safe to assume many property investors at some point have to consider different structures. It would be good to see some more people post some of their experiences. Also, Good Thread topic RIC84.