Freckle wrote:
Bardon you would make the consummate politician. Whenever we have our little chats I'm reminded of interviews in the past with John Howard and many an interviewer. He was the master at obfuscation and talking around the subject without ever addressing the points raised. 

John would be proud of you.

I though I was being more…[Read more]

Portfolio PI wrote:
I think the Labor governments initiative the ULDA have done their job in doing this. Personally, I doubt an initiative like this would go through, i guess time will tell

Josh, good news, you were right with your view.  I caught up with the messenger yesterday and probed her a little bit deeper on this topic.  She…[Read more]

Freckle wrote:

bardon wrote:

There is a saying that "hydrocarbons beget more hydrocarbons" (unless your a Peak Oiler god bless them) cheaper and more available energy is the very thing that will power the economy along and also produce even more cheaper and abundant energy.  We are seeing the natural progression of energy sources from wood…[Read more]

I have been following this as well and would say at the very least it is pointing to higher yielding suburbs, some under your nose I found.

A very good friend of mine Is a member of the LNP and she says that they are very close now  to introducing rent control legislation in "housing stress areas" this will be like the strict controls on maximum rent and tenant right that they have in Germany. Housing stressareas  is their definition of mining towns where rents are higher than the…[Read more]

Hello Freckle how are things on the darkside?

Freckle wrote:

bardon wrote:
As time goes by there is a lesser chance of a property bust.

How do you figure that? The economies in every major market are in a worse state now than they were before. Underlying fundamentals haven't improved they've gotten worse. 

Busts follow bubble, we haven't…[Read more]

As time goes by there is a lesser chance of a property bust.  Now we have affordability back the same level as ten years ago.  The bears are all giving each other high fives on commodities but that is merely a blip.  Nope cant see any sings of a bust this month.

Terryw wrote:

bardon wrote:
It sounds complicated but its not all the banks do it and its just plain vanilla unit trust, you dont need a financial planner but I would recommend a tax agent though.

Its not just a plain vanilla unit trust either – you would need a special fixed unit trust. If the trust is not classed as fixed the land tax…[Read more]

Okay I understand that's what I thought. In that case Raj cannot increase his borrowings, but also doesn't need to pay stamp duty a simple calc by Raj will show the pros and cons.  Also depended on who is the highest earner of course.

It sounds complicated but its not all the banks do it and its just plain vanilla unit trust, you dont need a financial planner but I would recommend a tax agent though.  Just check if you can refinance the whole amount and get it into your name without incurring stamp duty as Terry W suggested and that would be better way to go, no trust and no…[Read more]

There is a way to do this but it will cost you in terms of stamp duty and setting up a trust.  I have done it successfully with a previous PPR and it works and the ATO have no issue with it as long as you don't live in it.  If you do live in it then you may not be able to negative gear it as there are a few tax rulings on this area.

Assuming that…[Read more]

The reason to maximise and keep your borrowings high are so that when it becomes and investment the interest on that loan is fully tax deductible, this and being I/O will mean that you have a better cash flow on the investment.  You should keep as much of your own cash/savings/capital in separate accounts so that you have it on call and when it is…[Read more]

colmphibbs wrote:

anyone have any advice for me?

would be much apreciated

Colm

Best advice is to get cracking and buy one.

possumpal wrote:
I think you may find that even if they did drop stamp duty house prices would rise as a result effectively leaving purchasers in the same affordability postilion 

This is exactly why I had a brief moment of joy when I read the post headline.

I have done a lot of work in the South Gippsland area over the years which has involved numerous trips through there and adjacent towns when traveling to/from Melbourne.  It has all the hallmarks of an outlying suburb that due to urban sprawls is becoming less of an outlier as time goes by.

If you are going to live in it and then convert it to an…[Read more]

I was looking into some of those suburbs that RP Data claim are cheaper to buy than rent.  Which means they are CF+.  On face value it looks like a good pointer, not that I am buying though.

I have just been through all of this for a sale of a rental of mine in Brisbane.  I know Elwood as well and have a place in Hampton.

I finished the tenant up, done some maintenance, painted all of downstairs and  the kitchen, reoiled front deck, got a the furniture pack and went down the auction route.  Even though I don't like auctions I went…[Read more]

Maximum lending and I/O loan would be my advice.

This has happened to me and the approacher made initial contact via letter.  He introduced himself, enquired whether I would like to discuss potential opportunities and gave his contact details.  As a cold contact it came across as a professional way to commence dialog and I contacted him after receiving his invite and am still in semi…[Read more]

Good stuff there Josh.

I still rue the day that a no good bone idle loan broker talked me out of proceeding with the purchase of a six unit commercial in Emerald, very high yield in 03!