Have you ever considered a joint property venture to help you get into property or get yourself to the next level?
Many people are having difficulty getting into property or getting to the next level, and some people are considering joint property ventures as a way to get involved in property development. 
In today’s episode, I’ll discuss the pros and cons of getting into a joint property venture.
Later in the episode, I’ll talk to Stuart Wemyss about how the Reserve Bank sets interest rates.
If you’ve ever wondered what the RBA does every month and how it affects banks, this will interest you.
Finally, we’ll hear Ken Raiss answer a question about depreciation. The information he shares should be of interest to you if you’re a property investor.
What to consider before you get into a joint property venture:
Money can change relationships. Don’t proceed with a joint venture if you’re not sure the relationship with a friend or family member can withstand the pressures of investing together.
Put everything in writing before you get started. That includes your goals, each person’s responsibilities, who is contributing what, and how profits will be divided. 
Make sure that not only are you financially capable of taking on the investment, but the people you’re investing with are financially capable as well.
Consider how the venture will affect your credit standing. You’ll get a third of the income, but you’ll be considered liable for the whole mortgage.
Make sure that you’ve documented your exit strategy as well as your entry strategy.
Protect yourself with life insurance and income protection insurance, in case of unforeseen complications.
Property ventures aren’t necessarily a bad idea, and you shouldn’t rule them out. But look at them very carefully before proceeding.
Some of the things I discuss with Stuart Wemyss about how the RBA sets interest rates:
The Reserve Bank’s role in managing inflation and the exchange rate 
Why the Reserve Bank is unlikely to raise interest rates until inflation picks up
How interest rates have changed over the years
How the reserve bank decides what interest rate it’s going to charge
The importance of interest rates when it comes to choosing a lender
Can you still claim depreciation on the purchase of an established property?
There are two types of depreciation: depreciation on the building, and depreciation on the fixtures and fittings 
On an established property, you can claim depreciation on the building, but not the fittings and fixtures
If you do a renovation, you can claim the depreciation on the new cost that you’ve spent upgrading the property
If you buy a new property, you can claim both types of depreciation
If you have multiple earners on the title, you need a different type of depreciation schedule
Links and Resources:
Some of our favourite quotes from the show:
“Like it or not, when money comes into the equation, relationships sometimes change.” Michael Yardney 
“Rainy days can happen, so you may as well own an umbrella.” Michael Yardney
“In the 80s and 90s, I managed to take part in some very, very significant property developments by choosing the right joint venture partners, and now I’m in the position to help my children get into property by partnering with them.” Michael Yardney
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Read more: propertyupdate.com.au