Forum Replies Created
Thanks terry
Yeah sorry to sound confusing Jamie that’s right, the goal is to eventually own the original ppor currently being rented out and move back there when it’s time to retire, (10 yrs or so) to answer your question no we don’t plan on buying another ppor. My main question is do I utilize the extra $ we have been able to pay into the offset by purchasing another ip or keep paying down the loan?
Hi
I am in a similar situation, purchased ppor 7 yrs ago moved out 2 yrs ago to rent out and moved to company house rent now pays for itself p&i and have $280 owing worth about $550 with about $90 k in offset
. Also brought another one from equity loan of $125 k leaving about $18 in kitty for emergency. Balance of 80% loan from another fi for $355 this one neg geared and putting in a couple of hundred a week @ io
We have no personal debts only a cc that is used to live on and balance paid every month religiously.
Though we need $20k – 40 from offset in the near future for personal useDo I use the $50 in offset to buy another ip or do I keep putting all excess funds approx $2 k per month to offset and then pay off old ppor in about 5 yrs or so, as eventually one day we plan to either move back or use income to start paying off others?
Getting confused about what to do, craig 123 hope you dont mind me asking on your post but these guys gave good comments on yours
Thanks
Hi I live in Moranbah and just posted on fishmeet's topic Are some mining towns too hot?Have a look, if you need any more info let me know.
Hi Fishmeet,I live in Moranbah and things are starting to slow. There has been an influx of investors over the past 6 months and the prices as you are well aware have skyrocketed. There are alot of long term residents (20yrs +) taking the money and leaving town. This is putting more houses on the rental market and unless you have a family member that gets rental subsidy the average blo Joe can't afford $2000 a week .Investors are buying and building in underneath to make a 3 or 4 b/r a 7 b/r for the workers. I know personally of people who have had to leave town because they don't work in the mines and rents have inceased over $1000 a week once leases come up and its more than what they earn so they have no choice but to leave town. (more rentals on the market) I heard yesterday one of the contractors who have 120 rentals in Moranbah will not be renewing any leases due to high rents. Insisting they stay in camps.There is also people starting to petition against the rents and wanting the government to step in to make it affordable. There is now a problem with staffing for the town jobs, if the families continue to leave and no new families are repaced then the wives go with them and they are the ones that staff the retail shops. ANZ is closing at 2 pm due to staff shortages and it is similar all over town. The dentist is closing due to the rent on the shop. Boalywood the shoe shop that has been in Moranbah for 20yrs + is closing as is the clothes shop next door.Signs read we need staff you tell us when you can work! The other problem is the childcare as they too are short staffed and running only 1/4 capacity due to staff so no childcare and mums cant work. It is definately a change of the times and a transition period, just not sure its for the best. Will people want to bring up children in a town full of contractors????
Thought you guys might find this interesting reading. Any thoughts?
http://www.dailymercury.com.au/story/2012/03/02/up-in-arms-over-exorbitant-rent/
Thanks Richard,
I have been looking at options and looking further into figures I don't think it is a good option.
Thanks for your reply
schmoo [4 Posts]
January 23, 2012 – 11:22am
Joined: 09/01/2012
Why would there be 67 properties for rent in Moranbah when there is supposed to be high demand for rental properties? The rental prices are still high.
Hi Schmoo
There are 67 houses for rent because the R/E doesn't take them off the website once taken, there are always multiple applications and there is a shortage here. Ring and speak to one of the R/E agents to get a better indication. Ask them how many are vacant? I bet its more like 7 if that
You would think if they get so much being on commission basis they could do their job!
Thanks Derek and Richard,
I appreciate your comments.
I would like for you to comment further, so can you indicate what is it you need to know and if you wouldn't mind could I PM you so as not to tell the whole world my details
.
I have been considering mining towns as I live in Moranbah and have been kicking myself I didn't buy here 12 months ago as people were telling me not to invest in mining towns and if you do they are much higher risk. Blah blahMissed that opportunity didn't I. An article I was reading said houses have been going up $1k A DAY and they aren't far off.A friend of mine brought a house 271 days ago and just made a $268k profit now she's selling. Didnt even have to go through an agent they are knocking on peoples doors up here asking if they want to sell ,its crazy.
I know first hand that there are exeptions to the rule and you can get massive growth and massive yeild if you are in the right place at the right time. I suppose I am a little peaved with myself that I didn't know better. But that is water under the bridge and I must move forward, I am just worried that I am being blinded by the situation here and don't want to make a wrong decision.I was looking at a new 3 br 2 bath unit for $670k renting at $2100 pw. here in Mbah You know the saying if its too good to be true it usually is,
well I figured that if i have a 5% dep of around $34k and allowing for SD & LMI I would end up with a debt of about $700k
repayments are approx $1100 allow for costs etc there would still be $800 cashflow pw then the good old taxman takes his bit bringing it down to $650 ???? (guessing depending on structure) if I was to put this back into itself it would be owned outright in 10yrs, so a $35k investment will become $1M approx in 10 yrs, but obviously this is a long time in a mining town and of course as long as the rents don't go down there wouldnt be a problem and that is a big issue at the moment up here. In saying that I then do a backflip and ask myself what if????? have I missed the boat there is alot to be made but at what risk? If something unforeseeable happens to coal in the next 10 yrs I could be left with a huge debt thats worth nothing and no one wants to rent. Am I over analysing? Just realised I hadn't added body corps to the equation! This was just a quick look into it and by the time I rang the RE they were all under contract but there will be more. The other thing that concerns me is the amount of investors comimng into the area and can it go down as quick as it went up.? Need that crystal ball again..Being a newbie I still have to learn alot on HOW to find the right property, but at the moment I'm not sure what I am looking for so am going back to the start (or end) and trying to work out my strategy. What is it I need to get what I want in the end. When i know that then I can do some more research on that type of property
Ahhhh I feel like I have two little people on my shoulder one saying go for it and the other saying what if…. .
Our No2 IP was brought through TIC as I wasn't confident enough to do it on my own, but their theory is only buy negative geared etc etc and from reading past forums, Richard knows what I'm talking about, now I find myself questioning their theory and strategy and whether this is going to give me what I want.
Hi Lulu,
No you are not alone, I do the same and jump all over the place. I get an idea in my head and then do the figures and then someone will mention something else and I get all confused, should I buy here or there etc etc
I know its hard but you just sometimes have to go with what you think is best at the time.Remember sometimes the worst thing to do is nothing at all.
Thanks for your thoughts Derek,
In 8 years I want to stop work buy a motorhome($200K + at todays prices) and travel, having a passive income of around $100k
Then when we get sick of that (say about 5 yrs) move back to the house but still have enough to live and maybe go on a few overseas trips.Our no1 IP is actually our PPOR that is being rented out and we plan to own outright (halfway there) that will give us about $400pw (Today) towards our income. while we travel
So I figure I need 1 or 2 properties that will get good capital growth so I am able to sell these and allow for CGT and still have enough to buy a motorhome.
How do I work out how many I will need to give me an income? Allowing for inflation
Do you think this is possible in 8yrs, we are 2 yrs into a 10yr plan having brought our first real IP (no2) last year negative geared but hopefully giving us good capital in Townsville.
So not sure as to stick with trying to get the capital for the moment to be able to give us the longest hold time or whether to start focusing on the CF+ and any capital would be a bonus? As mentioned earlier the mining towns in Bowen Basin or even Hunter Valley? Though holding one of those long term, not sure as a bit more risk.
Thanks Jamie,
Its financial advice I'm after on how to properly structure my portfolio and what to do next.
Then I will start looking for that particular property.There seems to be alot of hype around the Bown Basin mines as CF+ are easy to find with promises of still 20 -30yrs work.
One of my properties is neutral the other negative, should I be looking for a CF+ to balance it out?
If I do should i set up a trust as we are already paying tax and trying to reduce it not pay more.
Or should I be lookin at something like a NRAS and sit on Capital growth with less risk?It's all well and good to get deductions but at the end of the day its still costing money, at some point you need to have the tables turn and historically you give up capital growth for cash flow, they are getting both at the moment, areas like Moranbah Dysart Middlemount., although I wouldn't expect too much more as prices have been going up $1k a day for months, so then your back to counting cashflow, but how sustainable are the rents @$2-3k a week?
Is it the old saying of the bigger they are the harder they fall?
I need a crystal ball……………..anyone?……..a time machine will do if you can't find one………..Thanks
