Hi Justin,

It would really depend on whose “portfolio package” it is, and just what it entails.   A bunch of years back, I took a portfolio package with one of the big 4, and found out afterward (my dd was shameful !!) that it was charging me a higher rate than Standard Variable so I unwound a lot of it.  It had other benefits, but the ov…[Read more]

Hi Justin,

It would really depend on whose “portfolio package” it is, and just what it entails.   A bunch of years back, I took a portfolio package with one of the big 4, and found out afterward (my dd was shameful !!) that it was charging me a higher rate than Standard Variable so I unwound a lot of it.  It had other benefits, but the ov…[Read more]

Hi Mehmet,

That’s a very clearly stated situation – well done.   As you say, there are Pros and Cons to be considered, but despite that, we may be able to point you forward somewhat.  I’ll start by saying that to me, option A looks the better choice.  Here’s why – it is a link to an earlier post on here that asks “Should I buy my own home, or an…[Read more]

Hi Justin,

There’s a lot to learn, eh?  Good that you are asking before doing.  The earlier topic you started – https://www.propertyinvesting.com/topic/5070041-structures-for-larger-positively-geared-portfolio/ – only touched on the subject of “how” to structure things, and Steve’s new offering in that space is still a wee way off.

BUT, if you r…[Read more]

Hi John,

That’s an interesting post.  Reads a lot like an advertisement, but largely the truth.  One part I disagree with though is this comment from you:-

Regular wear and tear must be fixed before you move out.

That is an unusual phrase to me.  Fair wear and tear is a normal part of any tenancy and those costs would surely be borne by the la…[Read more]

Hi John,

That’s an interesting post.  Reads a lot like an advertisement, but largely the truth.  The one piece missing though, is the cost of such a bond clean as it might be even more expensive than the bond that we are trying to claim back – is that so, or no?

How about providing us all with a quick “ball park estimate” of such a bond clean f…[Read more]

Hi Justin,

Great question, and it looks like you have had a couple of great answers too.   When things just “don’t sound right” I always like to ponder WHY someone might say something like this to you.

So, as we know that the answers from Steve and Terry are correct, WHY would someone else who sounds successful (100+ properties?) advise YOU to b…[Read more]

Hi Sammy,

I agree with “Home Buyer” above on several points.  Main thing to consider is that some brand new homes can be poorly built and doomed to be money pits, while many really old homes were built very well and have stood the test of time, so there is no quick answer really.

For sure, always get a Building Inspection before committing to a…[Read more]

Hi Hoppy,

After reading the other replies and thinking further about your excellent situation, I’m wondering if it might be beneficial to pay out one or two of the seven IPs.  I’m thinking there of keeping flexible ahead of possible troubled times.  e.g. Have you heard about “bail in laws” that I’ve been hearing about for about a year now – w…[Read more]

Hi Hoppy,

After reading the other replies and thinking further about your excellent situation, I’m wondering if it might be beneficial to pay out one or two of the seven IPs.  I’m thinking there of keeping flexible ahead of possible troubled times.  e.g. Have you heard about “bail in laws” that I’ve been hearing about for about a year now – w…[Read more]

Hi Hoppy,

Wow, your are doing way better than I first thought (and I was impressed then!!)

…..with the offsets we have them filled to the entire value of the Principal amount for each property

So your total P&I payments are paying down the principal amounts, eh?  How cool.  Based on that, and after hearing Terryw’s thoughts re tax on further l…[Read more]

Hi Hoppy,

Wow, your are doing way better than I first thought (and I was impressed then!!)

…..with the offsets we have them filled to the entire value of the Principal amount for each property

So your total P&I payments are paying down the principal amounts, eh?  How cool.  Based on that, and after hearing Terryw’s thoughts re tax on f…[Read more]

Hi HoppyM,

  Is there a downside to paying back the IP Principal in the interim or better to continue saving?

Sounds like you are in good shape !!   Well done.   Re “paying back IP principal”, it sounds like you are already set up to do just that.

Or, are you considering moving any extra savings in the Offsets to pay down the mortgages even more…[Read more]

Hi Nick,

Welcome aboard – this is one good place to start.  I personally found that the Internet led me to meet with many others who are doing what I wanted to do then (i.e. invest in property).   Today the forums have declined somewhat as Facebook and other social networks have tended to attract a “Now” clientele.  Steve has such a site too – g…[Read more]

Hi Nick,

Welcome aboard – this is one good place to start.  I personally found that the Internet led me to meet with many others who are doing what I wanted to do then (i.e. invest in property).   Today the forums have declined somewhat as Facebook and other social networks have tended to attract a “Now” clientele.  Steve has such a site too – g…[Read more]

Well, it pops up now and then – a question re the creating and/or using of a Trust to invest in property.  These are such an unusual beast that the average Joe knows little about, so we are dependent on having advisers who know them (and all their wrinkles) from front to back.

The link below brought a question from a poster, then a reply or two…[Read more]

Well, it pops up now and then – a question re the creating and/or using of a Trust to invest in property.  These are such an unusual beast that the average Joe knows little about, so we are dependent on having advisers who know them (and all their wrinkles) from front to back.

The link below brought a question from a poster, then a reply or two…[Read more]

Hi Terry,

Thank you for such a full explanation of what can be a confusing subject for many (myself included).  Thanks to Steve too, and to those who have proposed the questions that led to this learning.  Good stuff,

Benny

Hi rliwanen,

“I hope you wouldn’t mind if I seek further clarification.”   Indeed, that is why we are here, so feel free.  We don’t learn to ride a bike the first time we are on it, but we get there with a bit of help !!

Benny