Forum Replies Created
You effectively have a contract with the ex to raise your children between you. Just as you don’t always like the people you work with sometimes you just have to work with them. I would not move without his permission and consultation with the children.
There are more important things in life than money.
Assuming all are cool with the idea. negative gearing will be added to your income when the CSA calculates your Child support BUT negative gearing on things other than residential property are not added back into your income.
I would look very closely at Positive gearing or or investments other than residential.
I wish my wife had have moved away. Then i would have been able to settle quickly. and the financial strain and lack of support would have brought her back to town. I love my kids and I’m so glad I am am a big part of their lives.
I would rather be broke and have them than rich without them.
The financial cost of her sending them back to me for holidays would have brought her undone.
Best of luckThere are no tax advantages for buying a block of land. If you pay just a few extra bucks for something with a rentable house on it you will have a better chance of getting your loan because usually 80% of the rent is added to your income, for affordability.
The difference between what it earns and what it cost is deducted from your taxable income for tax purposes. even if it isn't rented. It only has to be available for rent.Knock it down when you feel like it and build your new house.
Mortgage ezy have just dropped the rate they are charging me to 6.64% I think it's a bit rude given that when I took out the loan in November 2007 they had the same rate as pacific mortgage who will now lend at 5.92% I'M NOT HAPPY.
Teh guy who sold me the loan said the rate would go up and down in line with RBA movements. CRAP. What I'd like to know is how a man can tell what he is going to be paying. Clearly the advertised rate means nothing.I like the way you think Damon.
I bought a property in a little West Australian town 2 and a half years ago because the price hadn’t moved for 13 years and I couldn’t see how prices could stay so low for much longer, given you could get a 10% grose rental return at the time.
When I picked up the local paper there were 3 rental properies avilable.
When I told the real estate agent that I expected prices to go up at 20% per year for 3 years he laughed at me.Now I’m selling because I can’t see that it can go much higher if rental return is 3% and building is going on at a hectic pace around it’s perimeter.
I don’t believe in cycles.
Things happen for a reason..
sometimes that reason is people folowing the heard and thinking that this growth or this downturn will last forever.
That’s not a good reason
I have no sympathy for people who mortgage themseves to the max in boom.
I did it once and it hurt like hell, but I learned so much it was worth it.
asabove
I like to look at thinsgs on the bright side.
higher interes rates should mean more barganing power when hunting for property.
My pundit view is that they won’t stay high for long.
world wide interest rates are low and historically fixed interest is rarely better than variable.asabove
I have a friend who has a Defence force house and he is thrilled with the setup.
Doesn’t stack up to me. When I crunch the numbers he appears to be bleeding from the hip.asabove
asabove
Excelent Question.
I have allways been a fan of borrowing 100% on positve geared property.
this to me is a no brainer but they are pretty thin on the ground at the moment and I am looking for alternatives.
Hope to read replies.asabove
I work it your way dreamer
I bought a property in Geraldton 2 years ago After years of research I figured the place was way under valued and prices could not stay as low as they were.
I am a divorced man with kids so saving for a deposit was imposible.
I found a place that was returning 8% and bought it for 120,000.
It was almost cashflow neutral.
The trick is that I borrowed absolutly everything.
Deposit and leagals on a credit card at 11% the other 95% on an investment loan. even all outgoings have been borrowed.
If I sold now it would go for around 220,000
but the consequences of unloading now would be a rather large bonus for the ex.
It’s now totally self supporting.
The numbers look like this
Purchase Price 120,000
Legals and borrowing costs 4,100
Rent – outgoings 5,000
Total Borrowings 129,100
Current value – selling costs 212,000
Capital gain 82,900The way I look at it any return on no money down is an infinite return on your investment.
But I must admit it’s not all skill.
I expected the price to go up but I had no idea it would go up so fast.asabove
