Gday @hellworld. Are you on the way to richness already (see, own some properties and didn't buy duds) or have you not yet dipped your toe in?
Welcome lurker ! Where are you at with your ponderings ? Trying to work out if property investment is for you, or already dipped you toe in and trying to work out what you want to do next?
Currently only have the 1 mortgage for my house. I'm in a bit of a weird predicament where I run my own business and therefore try to minimise what I pay myself to reduce tax. Plan is to get something in Footscrazy with my brother, just a older 1 bedroom. I know there's lots of benefits in new but I don't think the bank will lend me that much despite being able to easily afford the payments. sigh. We're waiting until March now to see what happens with the market.
Doesn't everyone on this site, these days? Or; an MB or a BA. We need a few more teachers and nurses and council workers and lolli-pop nannas.
Lots of business owners are in a similar situation @hellworld Be sure to look into the implications of buying with your brother before diving in. If you can finance a purchase solo (you may be surprised), it might make things a bit smoother down the road.
Be careful of going halves with someone on a property. As far as the bank will be concerned, you'll only own half the property but will bear the whole responsibility for the loan. So if your brother doesn't pay his half, the bank will expect you to cough up your money plus his. This is how your liabilities will be viewed when going for subsequent loans or refinances afterwards. Things get much tougher because when determining your ability to service a new loan, they will only give you half the rent credited to your "income" but will consider that you have the entire responsibility for the loan.
A common misconception I find As is the ,,,,,,,,,,,,,,,,,,,'creative accountant" one either has good provable income, as evidenced by the financials, or high expenses and little real income, or a cash based income, which can be a challenge in and of itself there are rare exceptions, but they are rare ta rolf
So you keep your PAYG low to minimise your personal tax....in turn making the company profit higher and then paying tax through the company. I imagine you're doing this to take advantage of the (assumably) lower company tax rate. The flip side is taking a hit on servicability potential.
They're all to busy working to be here! No wonder its so hard to find good help these days,they're all on PC, or playing solitaire or eBay or some bloody thing!
This is pretty much spot on. I am trying to build the businesses wealth while still being concerned about my personal wealth. I am not too concerned about getting in bed with my brother (ha that's sounds creepy). He needs a leg up, so yes I could afford a similar property myself but he is my brother so I want to help him. My mum helped me originally but she can't help him as she is retired
Others will jump in I'm sure, but don't just go partners or 50/50 with him, set up a loan or something that seperates the deal with easy outs. The consensus is things go pear shaped when jumping into bed with siblings... And it is still illegal last time I checked