Which way Forward

[WebBoard]

From: Mike S


Hi I am after a little assistance if it is available from any guru's out there??

I Have 2 IP's in Brisbane $185,000 &$145,000
Total rental is $415PW ($21,580PA)
I owe K50,000 total.
I earn around $180,000 PA
I am 40Yrs old.

I am contemplating buying more IP's.

Could anyone perhaps assist with a sound strategy to take me forward and set up an ongoing viable portfolio that produces Cap Gains and increased equity with an eventual revenue stream from the rents.

I look forward to receiving assistance if it is available.

 

[WebBoard]

Reply: 1
From: Cameron James


Why not use the basic Buy & Hold
strategy

revalue Ip's

Use increased equity from existing
IP's(capitol gains) as deposit for new IP.

Buy new IP with 100% finance with
prospects of good capitol gains as close
to being positivley geared as possible. It
helps if you buy under market value to
gain instant equity and become closer to
your next purchase.

revalue in ?mnths time.

Start agin.

The long term strategy is to control
enough properties by continually buying
untill the pasive income builds up to the
point that you are financially free.
Negativley geared properties become
positive over time.

Issues relating to this strategy you should
look into are:
• The use of Interest only loans to
enhance cash flow aspects and tax
deductions
• Serviceability, as you already have two
properties this may become an issue
soon.

There are numerous posts on these
issues on this forum, have a dig around.
You probably know all this already having
purchased 2 Ip's previousely. A bit of a
recap doesn't hurt though does it!

Sorry for being sparse on the detail side
but there are some great books you can
read for a better understanding if you
need it(ie.Jan Somers).


Cam.

 

[WebBoard]

Reply: 1.1
From: Mike S


Thanks for the assistance Cam.

Is there any specific reading you are aware of that relates to the "Buy &
Hold" strategy you could recommend.?



----- Original Message -----
From: "propertyforum Listmanager" <[email protected]>
To: <Recipients of 'propertyforum' suppressed>
Sent: Sunday, April 15, 2001 1:07 PM
Subject: Which way Forward


> From: "C J" <[email protected]>
>
> Why not use the basic Buy & Hold
> strategy
>
> revalue Ip's
>
> Use increased equity from existing
> IP's(capitol gains) as deposit for new IP.
>
> Buy new IP with 100% finance with
> prospects of good capitol gains as close
> to being positivley geared as possible. It
> helps if you buy under market value to
> gain instant equity and become closer to
> your next purchase.
>
> revalue in ?mnths time.
>
> Start agin.
>
> The long term strategy is to control
> enough properties by continually buying
> untill the pasive income builds up to the
> point that you are financially free.
> Negativley geared properties become
> positive over time.
>
> Issues relating to this strategy you should
> look into are:
> . The use of Interest only loans to
> enhance cash flow aspects and tax
> deductions
> . Serviceability, as you already have two
> properties this may become an issue
> soon.
>
> There are numerous posts on these
> issues on this forum, have a dig around.
> You probably know all this already having
> purchased 2 Ip's previousely. A bit of a
> recap doesn't hurt though does it!
>
> Sorry for being sparse on the detail side
> but there are some great books you can
> read for a better understanding if you
> need it(ie.Jan Somers).
>
>
> Cam.
>
>
>
> To reply: mailto[email protected]
> To start a new topic: mailto[email protected]
> To login: http://bne003w.webcentral.com.au:80/~wb013
>

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Mike

Please sit down with a fee for service planner that is not averse to property or someone that you trust, on 180 k a year you should be free very very quickly.

If you do not know wich way to go I can refer you to a planner that does.

Ta

Rolf