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Property Investing: The Slight Edge™

Discussion in 'General Property Chat' started by House, 7th Jun, 2016.

  1. House

    House Well-Known Member Premium Member

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    Going through my notes and thought I'd compile a list of the small and not so small things that can help build a solid portfolio and reach your target quicker by maximizing deductions, minimizing tax/expenses and increasing CF.

    • 5 or 10 year IO with 100% offset and divert all income into it
    • Never pay cash for an IP deposit, always borrow
    • Use PAYG variation to increase CF and amount in offset
    • If using LMI, aim for 88% and capitalize
    • Use interest free credit card to pay for all expenses so your cash stayed in the offset for as long as possible
    • When paying bills a lot of the time there is a surcharge for Amex and even Visa/MasterCard. You can use Aus Post BillPay and select pay via PayPal. You can then link your Amex to PayPal which allows you to collect the points, avoid the surcharge and use borrowed money (thanks to @markson)
    • Look at Professional Packages. Costs $300-$400 but loan application fee (~$750) is waived and cheaper IR
    • If P&I, pay fortnightly and as much as you can and not just the minimum
    • Always get a depreciation report, preferably diminishing over Prime Cost
    • Better tax benefits to use LOC from PPOR to pay IP deposit than $'s from offset
    • Scrapping schedule (and depreciation report?) before and after reno
    • Buy insurance through Super to pay premiums with pre-tax $'s
    • Prepay personal income protection insurance for a year before June 30 to receive larger tax deduction
    • If buying shares, borrow by why of equity release
    • Insure everything! Income, involuntary redundancy, TPD, land title etc
    Feel free to add any other tips or strategies that could help :) (Or correct any that may be wrong!)
     
    Last edited: 9th Jun, 2016
    skuzy, Perthguy, Bender12 and 8 others like this.
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Giddy up!

    Don't forget the debt recycling and CGT strategies too!
     
    House likes this.
  3. big max

    big max Well-Known Member

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    On the "insure everything" there's actually a pretty good argument to the contrary (ie that it's best to ensure nothing). This make sense particularly once your portfolio gets to a certain size.
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    especially if your house is on the beach.
     
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  5. House

    House Well-Known Member Premium Member

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    Added!

    What would that contrary argument be?! Didn't think there'd be a situation where it would be preferably not to be insured.

    Thought there'd be a few more investing "hacks" suggested. Don't be shy :p
     
  6. k88k

    k88k Member

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    Hi house, what do you mean by this point?
    • Scrapping schedule (and depreciation report?) before and after Reno
    Scrapping what schedule? Why get rid of the depreciation report and what benefit do u get when u get rid of the report?

    Thanks,
    K
     
  7. Bran

    Bran Well-Known Member

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    Not scrapping the schedule, but obtaining a schedule determining your loss from your demolition
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    In my opinion, one of the quickest and most effective ways to build your portfolio faster is to really buy below market value and then add some value any way possible. It helps to reduce risk on the way in, allows for you to manufacture some equity and then use the equity to jump into your next deal and so on.
     
  9. MsAli

    MsAli Well-Known Member Premium Member

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    @House - how did you manage to add TM to the thread title?
     
  10. Jerry O

    Jerry O Well-Known Member Premium Member

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    its alt + 0153 keyboard shortcut i think.
     
  11. House

    House Well-Known Member Premium Member

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    Ah you got me excited thinking you were sharing a tip! If it's for the iPhone I have an emoji app thing otherwise you can Google the word 'trademark' and copy paste the symbol from Wiki, works just as well.
     
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