What are all the people who quickly accumulated properties using equity doing now?

Thanks Y-man. Is that why lots around here suggest to have balanced portfolio of CG and CF properties?

 

Equity won't help servicing

 

How can ppl pay for the land tax, as I found it tough to pay my large land tax bills these years?

 

Maybe negotiate in your next lease of your properties to get the landlord to pay the land tax .
Do you lease many properties ?


the landlord make me pay land tax?
Land tax is a type of 'outgoing' expense that a landlord may pass on to their tenant who has a lease covered by the Retail Leases Act 1994 (the Act). Outgoings are payments in addition to rent.

A retail tenant and their landlord should negotiate the tenant’s willingness to pay any part of the land tax, and any other liabilities, before the lease is signed.

The agreed land tax payment and how it is calculated should be detailed in the lease and the lessor’s disclosure statement.

Retail leases are different from other business leases because the Act limits the landlord’s ability to recover land tax from their tenant.

It’s important that you get legal advice if your lease says you are liable for some part of outgoing expenses or statutory charges.

 

But is it really possible, because If we pass the land tax to tenant then out weekly rent would be lower as tenant is only paying $400 - land tax portion to me if I ask them to pay land tax as other properties are letting $400 in the markets without asking tenant to pay, or am I missing something

 

@Beano suggestion of passing the land tax onto the tenant doesn't work for residential.

In order to reduce land tax, buy some in each State, as it is State based. Also, the land tax will be more for city properties, as the land value is less.

 

Actually all of our CG properties have had very strong rental price growth over time which means they all became positively geared after about 7 years and they now pay for themselves. Buying well has benefits for both CG and yield if you are patient and you want to build a portfolio slowly rather than quickly.

 

And the one of the other things that has helped over the last 7 years? Falling interest rates.

 

Actually we have owned most of our properties much longer than just the last 7 years.... The very first purchase that my hubby made was when interest rates were circa 17% ... imagine that today!!!

 

Yep, if you could do it at 17% todays rates would seem like a breeze.

 

My first property loan was at about 17% interest but the amount was only 25k which seemed like the weight of the world upon me at the time! I think I paid 90k all up. Not all that long ago really.