Request for advice/services for a cash rich/time poor potential property investor?
- Thread starter Novice100
- Start date
I think a rough ball park figure of your investing budget is quite relevant for people to offer advice.
If the amount is relatively small, say sub 2 mil, then resi investments would be the go. However, if you are really talking 6 mil plus, then other investment vehicles such as comm IP and premium properties may be more applicable.
Also a rough ball park figure of your servicing capabilities - that is, income from other sources - is also very relevant in determining what may best suit you. For instance, if your 5 mil commercial IP is vacant for three years, are you able to hold on or are you forced into a fire sale?
Hang on K, you may be right about dazz being lofty but in this situation he's just saying what e'one else is thinking. There's a current thread about x coll. Plus novice is just asking for trouble and you can see he'll give someone the run around. He'll attract all the wrong types and turn off the decent ones and not even know it. Refer previous threads of other high income earners ...
Novice you need to give yourself some time, do some courses , have a look around, read some stuff and buy a ppor. And get real. Good luck.
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Hey Wattle
Count the green dots. Dazz and I go back a long way!
Still, if he is being nasty to newbies ...... ***** Whammo!!!
(snigger)
Kristine
Count the green dots. Dazz and I go back a long way!
Still, if he is being nasty to newbies ...... ***** Whammo!!!
(snigger)
Kristine
If you are cash rich then your strategy should be the exact reverse of the more common dilemma (cash poor)
Most of these threads are about MAKING money.
You have money, you are fortunate, your goal is NOT TO LOSE IT!!
To this end, you should be investing in solid blue chip areas that keep and retain their value.
NO speculation, No developments, no hassles?. because you have no time and no experience.
Leave that for the experienced, the hopeful or those with delusions of grandeur.
(you will find all of them on the forum).
No new and "up and coming" areas and new builds, because they have no proven track record and you don't need to take the risk so why expose yourself?
Find the areas of solid price retention, preferably newly renovated and buy one. the neg cash flow and the renovated depreciations will help you with your tax bill. Start paying it off like crazy because at the end of the day losing money is a bad idea in the long run.
When it is neutral, do it again.
Your emergency plan…..if the cash flow stops for any number of reasons then sell the neg geared one(s), cut your neg gearing losses and you will still have neutrally geared one(s) left that cost nothing to hold and have you further ahead than most of the population.
Deltaberry says it well.
Most people in your situation are better off making money by not losing it.
Especially if you are time poor.
Remember Buffet. Rule number one is don't lose money.
Most of these threads are about people with schemes and dreams to have extra cash flow. And they are willing to take the risks to get there.
You are already there, why take the risks? You have the luxury of surety even if its a slower route
there will never be a one stop shop that deals in blue chip suburbs,
The setups you refer too are all touting convenience to disguise the fact that the ploys are all speculative.
The best way to ensure that you are getting independent fair service from your bankers/accountants/ buyers agents is to make sure they don't know each other. You are the boss and you pay them.
Remember, Sharks swim in packs. So do spruikers
Cheers
Xactly
Most of these threads are about MAKING money.
You have money, you are fortunate, your goal is NOT TO LOSE IT!!
To this end, you should be investing in solid blue chip areas that keep and retain their value.
NO speculation, No developments, no hassles?. because you have no time and no experience.
Leave that for the experienced, the hopeful or those with delusions of grandeur.
(you will find all of them on the forum).
No new and "up and coming" areas and new builds, because they have no proven track record and you don't need to take the risk so why expose yourself?
Find the areas of solid price retention, preferably newly renovated and buy one. the neg cash flow and the renovated depreciations will help you with your tax bill. Start paying it off like crazy because at the end of the day losing money is a bad idea in the long run.
When it is neutral, do it again.
Your emergency plan…..if the cash flow stops for any number of reasons then sell the neg geared one(s), cut your neg gearing losses and you will still have neutrally geared one(s) left that cost nothing to hold and have you further ahead than most of the population.
Deltaberry says it well.
Most people in your situation are better off making money by not losing it.
Especially if you are time poor.
Remember Buffet. Rule number one is don't lose money.
Most of these threads are about people with schemes and dreams to have extra cash flow. And they are willing to take the risks to get there.
You are already there, why take the risks? You have the luxury of surety even if its a slower route
there will never be a one stop shop that deals in blue chip suburbs,
The setups you refer too are all touting convenience to disguise the fact that the ploys are all speculative.
The best way to ensure that you are getting independent fair service from your bankers/accountants/ buyers agents is to make sure they don't know each other. You are the boss and you pay them.
Remember, Sharks swim in packs. So do spruikers
Cheers
Xactly
Novice,
The good thing is that you have choice but I think you need to more closely define what your goals are and over what term.
Short term issue with paying a high MTR, long term goal of generating retirement income.
If you are cash rich, then you may need to look to another vehicle to hold your assets in which will have a lower MTR than you are currently paying.
Acquiring property using borrowed funds can achieve losses that you can use to offset your personal income but I would want to make sure it was only a temporary position or that the losses did not need large cash resources to continually fund the rent shortfall.
I agree with most others that it is usually prudent to use a range of professionals rather than a one stop shop, you are more likely to get people working for your interests rather than their own.
New properties or recently renovated lend themselves to higher depreciation claims which can assist your tax deductions without needing cash to fund. Solid blue chip areas is a safe long term option, land content, owner desirability etc. but as a general rule of thumb, pay no more than 25% either way of the suburb median price. I would consider multiple IP's rather than 1 or 2 very high priced IPs and in different states to minimise land tax and to reduce cycle risk.
Good luck with it, the more you know, the better chance of achieving what you what to achieve.
The good thing is that you have choice but I think you need to more closely define what your goals are and over what term.
Short term issue with paying a high MTR, long term goal of generating retirement income.
If you are cash rich, then you may need to look to another vehicle to hold your assets in which will have a lower MTR than you are currently paying.
Acquiring property using borrowed funds can achieve losses that you can use to offset your personal income but I would want to make sure it was only a temporary position or that the losses did not need large cash resources to continually fund the rent shortfall.
I agree with most others that it is usually prudent to use a range of professionals rather than a one stop shop, you are more likely to get people working for your interests rather than their own.
New properties or recently renovated lend themselves to higher depreciation claims which can assist your tax deductions without needing cash to fund. Solid blue chip areas is a safe long term option, land content, owner desirability etc. but as a general rule of thumb, pay no more than 25% either way of the suburb median price. I would consider multiple IP's rather than 1 or 2 very high priced IPs and in different states to minimise land tax and to reduce cycle risk.
Good luck with it, the more you know, the better chance of achieving what you what to achieve.
