I can only tell you Spock that I had 10 very tough years in building up my business. Several times I did not think I would pull through and at one stage only my wife inheriting some money kept us afloat. Seven of those ten years we were on a health care card and my employees and subbies were making more money than us.

Half the roofing companies…[Read more]

Good on you Anne.

I would certainly advise you to read Steve McKnight’s latest book (0-260 properties in 7 years) and probably his 2nd as well (1mio in properties in one year)

In both he describes people who were exactly in your position and decided to sell. I know it is not very anti this forum where everybody encourages to use the equity in…[Read more]

I think the biggest mistake is:

NOT ENOUGH DUE DILIGENCE

I guess that comprises a whole lot of issues.
– Build your foundation (reading and posting in this forum is a good start).
– Build your investment team (accountant, mortgage broker, valuer, building inspector, land broker, real estate agent?, surveyor?, property manager, trades people,…[Read more]

You definetly want to eliminate any ‘personal’ interest on your home loan.

I do not know if you have to sell off your investment properties to achieve that (you did not give the value and loans on those).

There may be other ways to achieve that. How long would it take to pay off your home loan if you refinanced and had all income paying off…[Read more]

Was the building inspection a condition on the contract? Eg is it a clause to terminate the contract?

If yes, I think you have to make a decision. Do you still think the property is a good buy as per offer? If not I would either offer a price that is attractive to you or pull out. If you think the price is good, you can still try to negotiate…[Read more]

I think if you have ideas on how to make the existing properties positive cf, I would go with that. You gain experience and it is always good to do something for your parents.

Another upside is that they are probably very willing to give you some starting capital if they see that their investment is making more money.

And the money really does…[Read more]

I forgot to mention that you definetly want to contact a good accountant to confirm this. We are not licensed financial advisors or accountants.

Why don’t you tell him that 1/2 is not enough, you want at least 1/3 or 1/4 of the money.

Kylie,

If you look on your posts, there is a small rubbish bin in the grey bar under your name. It allows you to delete the post.

I believe that you are not correct on the PPor Marc.

Check out the ATO website:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36878.htm&pc=001/002/026/016/003&mnu=9278&mfp=001/002&st=&cy=1

It states there:
To obtain full exemption from capital gains tax:

* the dwelling must have been your home for the whole period you owned it
*…[Read more]

Welcome Kim,

no question is too dumb. The only thing that p..sses me off on this forum is people trying to sell there service without contributing.

I am in the Adelaide Hills. Feel free to contact me on PM.

Ruroshin,

I think if you try to sublet and use a PM to do it you will be skating on waferthin ice.

My advise either do it yourself and keep complete control of the situation or leave your fingers away form it.

Gooc luck

I cannot tell you what to do. You have to figure that out for yourself.

But yes my opionion is that in the moment you are better off looking for cf+ deals or short term profits rather than long term capital gains.

I personally do not think that we will have any major growth in the near future.

Good Luck

No, but maybe if you share your problem we can give you ideas on possible solutions

Normally I would suggest to use a straight forward interest only loan on your IP.

Equity loans can be used on your home loan. They allow you flexibility in accessing funds, eg for deposits, closing costs, etc.

However you have to be careful. If they are not set up right, you cannot tax deduct the interest, even so you are using the money for…[Read more]

I think it is important to talk to a accountant and mortgage broker about this. You have to be able to clearly demonstrate that you used your loan on your PPoR for an investment.

You may have to restructure your loan to achieve this.

But in general you will be better off by first reducing your home loan.

Good Luck

Jonohug,

I am not sure that you understand the difference between a real estate agent and a buyer’s agent.
The first works for the vendor, and has as such (at least in theory) the vendor’s interest in mind.

A buyer’s agent works for the buyer and looks for properties according to the terms that the buyers specifies. If he is any good, he will…[Read more]

You can definetly secure a construction loan against the value of the final project. The bank will lend you up to construction cost or 80% of the market value, whichever is less.

Their only issue will be servicablility. Even if you intent to sell them at the end of the construction process, apply with the intention of renting them out. You can…[Read more]

Only the interest is ever tax deductible.

With an IO & Offset you can reduce your interest when your money is idle, but have instant access when needed for the next deal.

P&I loans limit your further investment strategies. Once you paid any money off the principle it is gone for this loan. In order to redraw you would need a completely new…

Hi Dan,

welcome to the forum. I had two initial reactions to your post:

– renovated but structural problems. Structural problems cost a lot of money but do not add much to the PERCEIVED value of a property.

– 5% yield is not great and definetly not cashflow positive.

Both points hint in the same direction for me. Sell now. Besides the…[Read more]