在澳大利亚 Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int
I just want to know if you all take your accountant's advice seriously when it comes to property investment. Our accountant is a CA, he is also my husband's brother and he seems to think we are stupid. We ask him for tax advice but he also puts his 2 cents in for property (which he has none of as yet) and it seems that he just repeats the same things as other accountants who have obviously been attending the same work-funded seminars as each other. My mother's accountant told her to warn us that we should be buying in the city also.
We wanted to buy "cheap" investment properties as we did not want to put all of our eggs in one basket, we are on single income and we are expecting our third child, he has been telling us we need to buy an expensive house really close to the city and that we will never be rich because we do not take risks...
With the extremely high cost of property by the city centre we figured that if everything does go to hell, we stand to lose more money spending up big than if we buy something that is easily affordable for us and easily affordable for tenants. We bought coastal instead, 10 mins drive from our home, one street back from the beach in an area where all of the beach shacks are being knocked down, subdivided and replaced with townhouses. We bought a relatively modern free standing villa. Do you see any faults in our strategy like our accountant does? He says that nobody wants to live there! Well I have already proved him wrong by securing tenants within 2 days of owning the place.
Do you do things against the advice of your accountant or do you take their word for it that they are property experts?
mandimoo said: ↑
I just want to know if you all take your accountant's advice seriously when it comes to property investment. Our accountant is a CA, he is also my husband's brother and he seems to think we are stupid. We ask him for tax advice but he also puts his 2 cents in for property (which he has none of as yet)Click to expand...I stopped reading there. Just tell him to do your accounting and keep opinions which are outside his field of expertise to himself.
I definitely feel like saying that, if only he weren't my brother in law!
He has a point though. Properties near the CBD will always be the first to go up. This has been proven time and time again. But ultimately whatever you purchase is your decision, and yours alone.
mandimoo said: ↑
I just want to know if you all take your accountant's advice seriously when it comes to property investment.Click to expand...
Our accountant isn't qualified to say diddly squat when it comes to making real decisions about investing in property.
All he's qualified to do is tally up the score after the game has finished. He's never played the game, and doesn't want to get into the rules of the game, nor the detailed tactics.
I get the feeling mandimoo that the only reason this treatment is happening is that your brother in law either ;
(a) is clearly superior to you both as an investor, or
(b) sees himself as superior to both you and your husband.
Which one is it ?? If it's (a)...perhaps you'd better listen. If it's (b) run him off and get someone who is better than you.
mandimoo said: ↑
Do you do things against the advice of your accountant or do you take their word for it that they are property experts?Click to expand...
The exact opposite. He's been our accountant for 11 years now, and written down the score about pretty much everything we've done, risen out of the mire of mediocrity and into something a tad larger. He doesn't know how we did it, and at the start 'advised us' that what we were doing was unconventional and therefore risky.
This year, he retrospectively congratulated us on proving to him that our risky system actually works and has stood the test of time....much to his surprise.
Without batting an eyelid, he then requested us to sign a piece of paper, on the threat of not being able to continue to be our accountant, which was written by the solicitor representing their wormy collective accounting practices.....that he takes no responsibility for any accounting advice, nor any investment decisions flowing thereafter.
Officially, his group all want to bury their heads in the sand and say "nothing to do with me". What's the end result ??
- Charge like chartered accountants.
- Act like bookkeepers.
- Carry responsibilities like secretaries.
Mandimoo - you and the hubby run your show. The BIL is there to assist you as the hired help. Rip that steering wheel out of his hands and kick his @$$ back into the passengers seat where all accountants belong.
mandimoo said: ↑
We wanted to buy "cheap" investment properties as we did not want to put all of our eggs in one basket, we are on single income and we are expecting our third child, he has been telling us we need to buy an expensive house really close to the city and that we will never be rich because we do not take risks...Click to expand...As per Jan Somers book, you are better off buying multiple everyday houses that the majority of people can afford rather then an expensive house close to the cbd which would be highly negative geared on a small deposit.
There are so many people willing to give their advice, I prefer to take advice from people who have achieved what you are after.
mandimoo said: ↑
With the extremely high cost of property by the city centre we figured that if everything does go to hell, we stand to lose more money spending up big than if we buy something that is easily affordable for us and easily affordable for tenants.Click to expand...I would agree with Arron, your brother in law has a point- if everything goes to hell - the CBD properties would be the last to go, just look at the GFC- 2007- property in out-west ( Sydney) belly flopped...
But as you mentioned, it's his opinion ... you choose what you want to absorb + the decision comes down to you and what your comfortable with.
lol at Dazz, thus far we have just put up with him taking the **** out of us and our ideas at every chance that he gets. He is a very arrogant man, always has been. I complain about him to my husband and he says to just wait a few years and we can get revenge by saying "I told you so" when we achieve the desired result I am confident that we have made sound decisions as I put literally years of research and thought into it and grew up in a 'real estatey' family myself (dad sales rep, step-mother RE company owner, mother owned multiple properties) who think that we have chosen well.
I think I would be more likely to listen to an accountant who put their money where their mouth is.
Mick C that could surely happen, but with much smaller repayments we should be able to afford to ride out any market crashes or big interest rate hikes. For some reason if we were forced to sell I do not see how house prices could drop back to pre-boom prices when salaries have risen so much, if they did, we should still stand to lose much less $000's from our 300k beachside property than from a 600k inner city property. Well that is my reasoning anyway!
The IP we bought is still in metro Perth and easily accessible to the CBD by public transport, so it isn't in a country town or something although it is not in the 10km radius that my BIL is always talking about.
Follow your gut instinct and take responsibility for your own decisions.
If you can see value in what you are buying go for it. I often speak to professionals and listen to what they say and ask some more questions to find out if they are parroting something they have heard or something they have personally learnt.
mandimoo said: ↑
lol at Dazz, thus far we have just put up with him taking the **** out of us and our ideas at every chance that he gets. He is a very arrogant man, always has been.Click to expand...I would seriously be seeing another accountant. He might be your husband's brother but if he is slagging off at you and your ideas every chance he gets and is arrogant, why on earth don't you politely move your business elsewhere.
Maybe tell him you are doing your own return and get somebody else to do it.
Are you worried about hurting his feelings by taking your business elsewhere? If so, why is it okay for him to say hurtful things about your choices?
I know it would be hard. Hubby's sister is an accountant and does the returns for his late father's estate. She calls us up and speaks to us like we are strangers, requesting this and that. If it was up to me I'd get somebody else to do it. But it is not up to me.
Wylie, we accept his arrogance because he is a freebie haha Although this year we did our taxes ourselves. It doesn't matter to him whether we are asking his advice or not, we could be at a birthday dinner and he will still give his 'educated opinion'!
Dw- i know what you mean...My first IP i bought in 2004 was $700k- and all my relovs was telling me that's too expensive etc..and that with 700k i could buy 2 Ip in outwest ..
7 years later- it's worth ~1.3M...and their "$300k property" is worth $450...
Everyone looks at property differently and have different strategy-comes down to what ever your comfortable with; as your the one who's going to be paying off the mortgage
Surprised your BIL who Doesn;t own any IP is giving you advice on IP investing lol...Stick to accounting...
I agree accountants should keep their mouths shut when giving advice about someone else's business. If they are discussing asset protection, tax mitigation strategies, etc then fine but what audacity to tell someone how to do something. I can't stand accountants who think because they do the accounts for a business they are suddenly qualified to run any sort of business. Thank God many people ignore their accountants as many are totally incompetent stuffy vest wearing sloths who should sometimes stick with what they are good at and butt out of their client's affairs unless they ask for their opinion.
very funny dazz..
Let me guess rockingham...its like a game I play..yep property nerd!
lol nice guess, im impressed