Investment - Commercial - residential property

[JBmurc]

Take a hard look at the listed property trusts. In my opinion as a property investor of many years in residential, commercial- industrial these things are hard to beat. Don't overlook the PIE status.

Yes but i don't think the bank will loan me anywhere the amount of funds to buy LPT ...I've already got 150k loaned into the ASX

ANZ bank only values their own shares @ 5%-10% I'd say LPT be much the same ...stupid I know but thats the banks they just love bricks n mortar Vs paper assets etc

I'm basically looking for extra income from loaned funds in the property market ...so very low amount of my own free Capital ....but instead use homes Equity

[fungus pudding]

Yes but i don't think the bank will loan me anywhere the amount of funds to buy LPT ...I've already got 150k loaned into the ASX

ANZ bank only values their own shares @ 5%-10% LVR I'd say LPT be much the same ...stupid I know but thats the banks they just love bricks n mortar Vs paper assets etc

I understand that. LPTs have borrowed anyway so there's some gearing. I sold off a commercial bldg. and stuck a fair chunk into LPTs dribbled in over a few years. The benefits to someone who doesn't want to borrow anymore and is just looking for somewhere to dump the excess, are immense. After cutting my teeth in the 60s with residential including student houses (I'm in Dunedin) I got out of that and turned to commercial. Much much easier, but certainly can have its ups and downs, with bankruptcies, vacancies etc. I've had'em all! Your tax comments confuse me. Why company tax? And GST is paid in addition to rent by tenant - they don't care as it's an input claim for them, and it's an advantage to you because you can keep your loan a tiny bit lower while you accumulate the IRDs money (or do what I do and run an online bonus bond account to holdthe funds till due to pay out - never done any good, but it's not my money). One bit of advice Forget about being an absentee residential landlord - particularly with students. Believe me - I know!!
Anyway, good luck.