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Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of brettc4brettc4
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    @brettc4
    Join Date: 2007
    Post Count: 20
    May 21, 2017 - 5:07 pm

    Hi Benny,

    Benny wrote:

    have you always bought new? Or OTP? And always in Adelaide? Just wondering…..

    I am a bit interested as I hear some saying “Buy new for max depreciation deductions” and it always just seemed to me to be a strange reason to buy new. And if you HAVE always bought new, were they always bought complete rather than OTP?

    This would only be IP number 2. The previous one was new and it was complete. I was hoping to buy complete again.
    Yes, this one would also be in Adelaide – primary rational is to have a property for each of the kids. Diversify later.
    As for new, part of it is depreciation, the other primary reasons are:
    – I think it is easier to find a tenant for a newer house
    – Less maintenance

    I think the 10 different developers for the same property must be something like – the block of land is for sale, whomever owns it had said to a number of House & land developers, whomever can sell a package first, gets the land. I can’t see how else it can be done.

    Cheers,
    Brett

    Profile photo of brettc4brettc4
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    @brettc4
    Join Date: 2007
    Post Count: 20
    September 4, 2015 - 6:54 pm

    To further clarify.

    Whose responsibility is it to ensure the ‘lead-in’ line from the house to the street is connected?

    I thought this was a normal service that would be connected to the street infrastructure just like water and sewage.

    Brett

    Profile photo of brettc4brettc4
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    October 21, 2013 - 8:15 am

    Thanks for the information.

    Wilko, when doing your calculations do you have a template that you follow. Is it something that is available and ensures you do not over look anything? Do you also have ball park figures for all of the different parts of the reno, render, kitchen etc to fit into your calculations, if it is a ball park, how did you come up with it?

    Cheers,

    Brett

    Profile photo of brettc4brettc4
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    Post Count: 20
    February 5, 2008 - 10:51 am

    Thanks for the responses people.  It has given me a number of avenues to persue.

    Cheers,
    Brett

    Profile photo of brettc4brettc4
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    @brettc4
    Join Date: 2007
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    October 4, 2007 - 11:49 am

    Yeah, the old wooden sleepers are on their way to a dump.

    Thanks Marc for the link to the Boral products. I have been looking at the Outback Sleepers, concreate sleepers that use steel posts. I do have a recent Boral pricing guide and I believe the concrete sleepers will be a bit cheaper and since they are coloured and have a texture I am hoping they will end up looking okay.
    If anyone has used the outback Sleepers and have any comments, I would love to hear them.

    Profile photo of brettc4brettc4
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    @brettc4
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    Post Count: 20
    October 1, 2007 - 7:58 am

    Thanks for responding.  Most of them are okay, just always looking for a way to make a little more cash.

    Cheers, Brett

    Profile photo of brettc4brettc4
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    @brettc4
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    May 30, 2007 - 10:26 am

    I am glad others are discussing this as I am trying to come to grips with this. I am currently reading 'More Wealth from Residential Property' by Jan Somers, and her discription of LVR seems to open up a number of possibilities which I believe are also being stated above.

    Here is my situtation:
    Current House Value $300,000. Own outright
    Potential Investment Property $400,000.
    Savings for fees etc $25,000.

    In my case, if I buy the Investment property and take out a mortgage of $400,000.
    My LVR is mortage / (Current house + Investment)
            : $400,000 / (300,000 + 400,000)
            : $400,000 / $700,000
            : 57%

    So from what I have read above, although I am borrowing the entire value of the property, I would not have to pay Mortgage insurance.

    Is that correct??

    Thanks

    Profile photo of brettc4brettc4
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    @brettc4
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    May 14, 2007 - 10:05 am

    Thanks Richard,

    Two follow-up question.

    1. If I take out a line of Credit on a property I have the title for, will the line of credit provider keep the title until such time as I close the line of credit.

    2. If I have a Line of Credit with a maximum value of $100,000 is their a minimum I have to draw from it, or can the balance be '0' either because I haven't drawn any moey, or paid back the outstanding amount?

    Thanks
    Brett

    Profile photo of brettc4brettc4
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    May 13, 2007 - 1:06 am

    What I would like to know is how they work. They do not work as a standard loan, and the I believe the money can be used for anything. So how do you keep investmentmoney away from other spending.

    What sort of proof do you need to retain regarding the use of the funds?

    Is the Line of Credit secured against a single property, multiple properties or nothing?

    Is it feasible to have a Line of Credit taken out on a currently owned property. Use the funds as the deposit and fees for another property. Would the mortgage on the second property also come from the Line of Credit or is it better to get a seperate loan. And in this scenerio, is the interest on the Line of Credit for the Deposit and fees also tax deductible on the second property provided it is an investment property?

    Thanks

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