Hi all, thanks for reading and for any advise givin !
I'm 26 I have one property in Qld that i rent out and am looking at getting a second !
The Qld property run's at a loss but has built about 80 k in equity as i bought a few year's back, i would be using that equity to put toward's my next investment as i don't have a lot saved at this stage , tax time does help to cover rates and other expences though.A bit of background; I have a fairly good income as i work in the mines and have little expences at the moment apart from adding to the rent to morgage gap.
I'm thinking about these two idea's
1. A unit around the chermside, kedron, zillmere area's im thinking this will most deffinately be running at a loss but thinking long term 5-10 years for capital growth,
2. A house in the mining town i work at Moranbah or the neighbouring town Dysart ! these house's are being sold with lease's already in place with big weekly return's and even bigger annual !
so here are some of the thing's im interested in your feedback.
1. What do you think house prices will do in the Moranbah, Dysart town's as far as capital over the next 5-10 year's ?
2. Is having a property positively geared a bad thing ? I understand you pay tax but it's money earned.
3. Is intrest only loans the way to go for investment property ?
4. I briefly spoke to my bank about what i am wanting to do, they had no problem with the brisbane idea but wheren't to keen on the mining town idea, the loan would be considered on application for that, the bank also mentioned that my current place and the investment would be takin as security should i be worried about this ? or is it just nessasary to get the loan ?
thank's again for any advise I'm sure ill have more to ask soon
steve.. stop promoting your stupid advertisement
Intersting GOM 7 posts from our friend steve and 6 of them are self promoting.
The last one relates to wanting to find a property investing club presumably to sell his wares there.
Richard Taylor | Australia's leading private lender
Hi Mark
Looks like you're on your way and asking the right questions.
If you're seeking finance, I suggest you look for the Finance Brokers on this Forum who have heaps of postings – they have obviously been here a while and contributed heaps and helped lots of people, and they're still here.My experience with Banks is they have not been pro-active and don't tend to suggest their best options for you, rather your best options for them, unless you ask all the right questions, like "show me 5 ways of financing this". But still better off with a broker.
There is no substitute for doing your homework until you know an area and values very well, and know exactly what you're looking for. That way you can specialise, and become more proficient in that niche much faster, like 2 brm units, or villas or 3 brm houses in one or 2 suburbs.
Mining has risks, so property investment dependant on mining shares that risk. If China goes slow, and or the mines cut back, property demand & prices go soft, vacancy rate increases, no buyers on the way down as they say. Or, you might have a 10 year mining window, who knows. I like more solid investments coz I know them better, and there are less risks.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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Mark, your post makes some interesting reading. You will be surprised to find out how much we share in common. Thumbs up to this forum. I work and live in Moranabah too. I am researching Brisbane 's northern suburbs too, Chermside, Zillmere etc. I think we should arrange to catch up and share a few ideas.
Hello all. New to this forum..
I have a question, funny enough. Not sure if I am in the correct area?
I have a rental property currently running a positive cash flow scenario.
I am currently looking at purchasing another property.All well so far… my question is that the property that I am going to purchase (using equity from my rental) is the property that i will be living in. (currently living with inlaws).
Is there any way of maximising tax benefits etc from this scenario ie tax deductions etc..
It would be sensible for me I know to move back to my rental as the mortgage is very minimal and then rent the newly purchased property to obtain maximum tax benefits
If someone could point me in the right direction as to weather there is way of maximising financial gain through loans/property that would be great.
Cheers
CheHi Che
Ok sounds like your current loan was set up as a principal & interest loan and therefore has been paid down over time.
This is where the problem lies and I would have recommended an interest only loan ideally with a 100% offset account.Yes to maximise your Tax deductions you could look to move into the current IP and then look at selling this to a Trust structure to enable you to buy your new property. Unfortunately you will trigger a stamp duty payment but in the long term could be worth while.
Just make sure you dont cross collateralise the 2 loans using your equity in the current property merely to fund the deposit and acqusition costs and the new loan can be standalone.
Richard Taylor | Australia's leading private lender
Cheers Richard.
Yes my loan was a principal and interest loan.
My only trouble is that I am not able to move into my IP due to size issues. (Too small with the kids).
The house that I am about to purchase is to live in myself…
Is it fair to assume that there is nothing I can do financially (line of credit, refinance etc) to maximise returns and minimise tax with this senario.
If this is the case what kind of loan would you recommend for my position.
Cheers
CheHi Che
It is difficult to give you advice without all of the available information.
It still maybe worth selling the property into a Trust or if the property is owned jointly transferring it to the other party but hard oen to call without extra info.
Regretfully refinance or using a LOC wont help you in maximising some of the Tax deductions.
Make sure you dont cross collateralise the 2 loans as i mentioned earlier and split them so you have flexibility.
If you want to give me a little more info be happy to work the numbers out for you.
Richard Taylor | Australia's leading private lender
Hello
Fantastic help and information, cheers.
I have been doing some research into the trust property side of things to see if it is a viable proposition.
The property is jointly owned. I have thought about transferring ownership to my wife but I am not sure if this will impact my borrowing power…
I am in South Australia and am looking for a competant property financial advisor. Are you aware of any that you can recommend in my neck of the woods.
I feel that I have to see someone in person to get a good grip on things.Thanks again for all your help.
Cheers and have a good evening.
CheHi Che
Sorry cant suggest anyone in SA.
Richard Taylor | Australia's leading private lender
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