Author Archives: Dave

What really matters in Property Investing?

Success in pure residential property investment can be achieved by following any number of different approaches but how do you find the right property?
Five of the most important aspects that can set you on the right path for an investment property are:
1. Location; a well quoted necessity, but it needs to be favourable from the perspective of Growth in value, and from the tenant’s perspective, not necessarily yours!
2. Small lot development; the bigger the complex the less special your property and therefore the less appealing to tenants, your bank and future purchasers (not to mention the body corporate fees)
A piece of your own dirt naturally adds to that liveability factor as does a small development or free standing property.
3. No holiday accommodation; while the thought of holidaying at your own property may be appealing and there is the opportunity costs of tenant rent potential foregone, it’s the vacancy rates and sporadic capital growth depending on variable locality appeal that can sink the deal. In addition, an onsite manager may favour other properties they own rather than yours.
4. No guaranteed rental; quite frankly “what is so bad about the property that market forces can’t dictate the rent?
I’ve seen more guarantees broken than I’ve heard of being honoured.
5. No syndicated developments; where a developer finds a builder, a seminar marketer and a mortgage broker to wrap up the whole deal, how many years of your capital gain are you prepared to pay for, just to fund all those sales commissions and builder’s margins?
Long after the spruikers have driven away in the car you funded, you’ll be left to deal with market forces yourself, so it makes sense to buy under the same conditions, not through a conveniently engineered process.

Cheers, and if you know of a family member or friend we can assist, please don’t hesitate to share with them.
Dave Dyson

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Refund or no Tax Refund, is often the question!


Thanks for completing the tax return David, I was hoping for a bigger tax refund but it’s better than having to pay.

With refunds, to a large extent the writing is on the wall by the time we get to this point but, with the various employers you have it is important to make sure they are taking out the right tax.

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Life Insurance & CIMER


One of the common ways to determine how much Life Insurance is enough is through the acronym C.I.M.E.R.

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Transition To Retirement (TTR)


Can you remind me of the advantages of taking the pension payment? I know the pension payment to me is tax free once I’m 60. My understanding is that while I leave it in my Super the earnings get taxed – is this correct? What is the situation if I have the majority of funds as a Pension instead? Are any earning there taxed?

We need to break this down into the simple steps involved in the broader Transition To Retirement (TTR) strategy and its evolution.

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Downsizing for Retirement – Step 1. Spare Cash.


Firstly congratulations on the sale of your house and purchase of your “retirement” home, it’s great to see client’s plans taking shape.

As a couple you have already overcome what I see as the biggest challenge and that is taking the initiative to think about your lifestyle from here on.

Your question as to where the proceeds from your house can be parked pending the completion of your new property may seem a fairly simple one, but we still need to consider the same sort of issues as when we are investing for the longer term in the likes of Super etc.

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How much House is a New Car worth?

house car
That’s it, car sales must be about to go through the roof. I reckon in the last week alone I’ve heard every excuse and more lame justifications to buy a new car than I have for a long time.

Just to add to the pent up post-GFC demand, (and pools of cash sitting on the investment sidelines), it seems there are currently zero% finance offers on every second station break if you haven’t got the financial means. Also, adding to the breathing space created by a return to near historical lows for local home mortgage rates is the new generation of Uni graduates who didn’t experience their spending habits being seriously curtailed by the last 5 years of market turmoil.

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Property in SMSFs, is that really the best option?

SMSF property

Happy to lead you through the pros and cons of property in Self Managed Super Funds (SMSFs).

Appropriate I use that expression “cons” as it is potentially being used by “property sales people” to try to flog their latest offerings in a quiet market place.

What they won’t tell you!:

The only real justification I’ve heard around the traps is to try to minimize Capital Gains Tax (CGT), IF, there is an increase in value of the property you purchase (the ATO/Govt is currently looking at in some way closing a perceived loophole with super pensions here);

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Welcome to 2 Hard Basket!