Forum Replies Created
Watch this space! SE QLD has a lot going for it – a rush hour that lasts 30 mins, lower taxes, room to grow, warmer weather, cheaper homes, etc.
And it plays second fiddle to Sydney and Melbourne in the property stakes, but hey – if you want to make money QUICKLY, keep SE QLD in mind in the next boom.
SEQ seems to languish while Syd and Mel are booming – then, almost in an instant, Bne prices go through the roof! The 100% gains made by Syd and Mel happen in 18 months up here (most likely because the investors from the southern states arrive here in droves as their markets peak.
re this comment from MarkPatric – “I don`t pay ANY attention to what daily papers say but today has seen a big turnaround, apparently QLD property will not cool down for 18 months” Yeah, mate, I saw one like that too (approx 6 months back) where it said Bne today is the size Sydney was in 1960. And, according to the article, Bne will be the size of Sydney TODAY by 2020.
Say wha’ ???? If that is even HALF right, Bne has to grow at the rate of Sydney over the last 40 years!
If it is RIGHT, it has to grow at DOUBLE that rate. That is downright scarey!!!The article I read mentioned growth of 100,000 people per year into SEQ (some from Syd/Mel, and some from O/S) – again, if THAT is right, then that is equal to the other figures I’ve seen recently reflecting ALL of Australia’s immigration. The difference being that, as more come into Syd from o/s, an equal number pack up and move to SEQ.
Can it be right? Hell, I don’t know – but I’m happy with most of what I read, and also happy to continue doing ALL of my property deals in Qld. My Nett Worth has EXPLODED over the last 18 months [
]Benny
Hi Luckyone,
“I would like to make sure that before I put these extra costs into our existing mortgage, that they will all be tax deductable.”
Something that always confused me were the words “deductability of interest depends on the original purpose of the loan” (or words to that effect). It had me thinking that if you ever rented out your PPOR, the interest would NOT be deductible.
I have since found this thinking is incorrect, and that, as soon as your PPOR is rented – or available for rent – interest on any remaining mortgage becomes deductible. (The ATO adds the word “generally”, so there might be some circumstances where this does NOT apply). Therefore, I can’t see having separate mortgages are of any benefit. But DO check it out with the usual suspects [
] (i.e. Accountant)Benny
Mitch,
Just to help put things in perspective, any LOAN you are repaying is limiting what a bank will lend you. They tend to use a simple formula – i.e. you earn $40k – 30% goes in tax, 30% can be used for repaying loans, the other 40% is for LIVING !!!
So, keep in mind that only 30% can be used for loans – you are repaying for a car, HECS, debt consol’n, etc – in a word, you won’t have much chance of borrowing anything until these other loans are GONE !!!
And this is why these other posters are saying “Sell your car”, “reduce the debt”, etc. All of these extra’s will count against you when trying to borrow for property.
I made this mistake when arriving in Brisbane some 20 years back. I bought a car FIRST (then, tried to buy a house…. bzzzzt!!!! Wrong move!)
I should have bought the house FIRST, then a car – but, you know how these things are [
]Kill the extra debts, then go for property.
Benny
Well done, Diamond Gus – my suggestion would be to consider purchasing properties that could be reno’ed, or are simply at a discount. Anything that could give Capital Growth instantly by throwing cash at it (an LOC is as good as cash isn’t it?)
Use the LOC to fund them completely, reno them, then refinance after they have been spruced up. Or, if buying at a discount, settle them, do “what’s required” (paint, new kitchen, etc) then refinance – without any Bank clauses re 80% of purchase price holding you back. Banks do penalise us in this way, so keeping them out of the settlement loop should give you more room to move.
At this time, you also choose the best finance out there, and refinance to suit your purposes (70%, 80% or even 90%). A lot depends on just what and where the property is. And depends on YOUR requirements too (do you want +ve cashflow, or growth, or both? and in what proportions)
After refinancing, you repay your LOC, then do it all again (in fact, with over $1m to play with, you could be doing several at once)
Just having access to such a huge chunk of cash should ease your way into many different scenario’s. Half your luck …[
]Benny
]
] (i.e. Accountant)
