Forum Replies Created
Hi Alf,
I was assuming the 350K was cash and not equity. If it’s equity then my answer doesn’t count.
BTW, did you see my response to one of your other posts (about your lender)?C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Michael,
I took the liberty of faxing your 12 questions to a few(5) REA’s to gauge their response and answers. Only 1 sent back answers to all the questions, 1 answered about 50% and the others I’m still waiting on. The questions are excellent for evaluating the different REA’s.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Claudine,
Have you thought about refinancing your current properties and putting some of the 350K into them to make them +cashflow? Would 50K into each one be enough to make them +ve? This would still leave you with 250K to use as deposits on others or to even buy 2-3 outright. There are a lot of people saying they want to buy many homes, but how many do you actually need before you’re happy with the passive income you receive. Also unless you spend a lot of time o/s and know the countries well that you want to invest in be very carefull.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
I disagree with “and I’ve always thought, if you don’t like your boss, then you need to change jobs.” I think it’s better to change the boss and keep the job you like.
Also don’t worry about people who criticize the amount of posts you do. I’ve found your answers very helpfull, well 99% that is.
Crashy it’s good to see you’re back.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel
I lived and worked in the US. 90% of the time the question was “What’s your line of work/occupation/speciality” Then again I was mainly in NY at NYUMd. This why I also asked where he/she did their fellowship. I don’t want to offend anyone but the posting lacked a certain credibility to it.
Also why our “sad NZ cousins too”? Are you refering to the rugby?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Alf,
I had a similar situation to yours. I have also previously refinanced before at a lower interest rate with no costs. My original manager and his replacement where on the ball and investor friendly. Along comes this new guy who disagrees with nearly everything the others have said and starts stoneballing my plans. Let him know that you are going to write a letter or telephone the lender explaining that his incompetence is the reason for you wanting to break costs and take your investing elsewhere. If their serious about you as a customer their attitude and his will change.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Shaunwalker,
This may have already been covered in another post by *Steve* thus the reason for no activity.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
The question wasn’t about security. The disadvantages of a PPOR is the interest on the loan isn’t a taxable deduction. You take a PPOR and change it to an IP, then refinance the original loan so it is now a taxable deduction and after 1 week change the IP back to a PPOR to make it free of CGT if you decide to sell later. How would the ATO decide if it is free of CGT and would the loan now be considered a taxable deduction? There have been plenty of discussions about how long you can rent out a PPOR before it is CGT (6Y), but I couldn’t find how to make the loan a taxable deduction.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi J,
I’ve been o/s for toooo long. Tooo many countries with strange languages. I’m surprised you get free transfers. I’ve known a few people who have been question on there source of o/s income by the ATO, not long after large transfers have been made. I don’t know the exact reporting proceedure, but believe it is compulsory. Is the 30AUD single transfer or per month? Depending on the time you spend o/s the rising dollar can have many benefits. This is mainly if you derive income from various countries. Your friends are sending a car to OZ and if they resell and send the money back then it’s good. High dollar, imports in, OZ dollars out.
BTW, what do you miss most from OZ? I miss the open speed limits of the NT. Some of these countries have 30Kmh speed limits om major roads.C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Jake,
Maybe SIS will build two empires. One property and the other as Australia’s largest mortgage broker. At least he is seeking alternative methods to financial freedom and not putting all his eggs in one basket.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel,
Scenario 1 change a PPOR into an IP, borrow the money against the IP and then decide to move back in and claim it again as your PPOR after say 1 week. What is the ATO view in this area. Especially on B&H properties that are never sold.C2
“Is it true the more you owe the more you grow until the bank steps in?”Buying in the sense of time and not money is the best way to educate yourself. Borrow books from libraries.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi All,
I’ve had problems with this copy and paste scenario as well. I wanted to copy my own post and thread and wasn’t able to do so.
PeterM
I also have some problem with (very few) attachments to emails. I can open them but not print. Can you save these on to your comp and then print or can’t access at all?C2
“Is it true the more you owe the more you grow until the bank steps in?”Jake,
In My Humble Opinion(IMHO)
Anyone out there have some free time to make a list of acronyms for the newbies or just add some that you know?
Investment Property
Primary Place Of Residence
Capital Gains Tax
Line Of Credit
By The WayWho’s next?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi J
It depends on the bank and the country. Lloyds who do same day transfers at about 30AUD a pop, has a 10K single transfer and 50K for the month. The trick is you can open multiple accounts and have that directed to one account to by pass this reporting.
Left Hand drive vehicles are being phased out as imports unless in the classic or veterans class. This is also under review.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Mel and Bryce,
If you read my post you would have noticed I asked him what part of the States he was from. His terminology for his occupation gave that part a way, but the word job is not common in the States. So a little confusing.
Jmskim,
What is your approximate time frame before you become a partner? Where did you do your fellowship? As you’re from DC, do you know J. Chase?
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Jmskim,
What type of physician are you and where in the states are you located? I would presume you would look more to investing back home (US) before venturing into foregn investments(AUS).
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Dan,
My suggesting is to take each country as it comes. Do your homework and if your happy with the situation there try it. I recently spent 40 minutes in a REA’s office in a foreign country cashed up and ready to buy. They spent 30 minutes explaining to me that foreigners don’t buy property let alone IP’s. I left shaking my head and no deal was done. One of the banks in this country only wanted a minimun of 60% deposit before they would lend. The Australian finance system is one of the easiest in the world to get around when buying property. Try to find an Australian bank in the country you want to invest in or an international bank fron the UK or states. If you plan on living in the country and then decide to move back to OZ you may be asked to refinance with another lender. There are investors in nearly every country making money through real estate, so why can’t you? Finally, never risk what you can’t afford to lose.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi First timer,
When doing your reno’s you might consider living in them at the time of doing the reno. Although if your doimg a full paint job then give your self a day or 2 for the fumes to clear. If you plan a long term reno then rent out your current place at the same time. There are some REA’s that keep short term tenants on their books. Normally their contractors that do work in rural areas and then return every 2-3 months for 1-4 weeks.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Sebastian,
My favourite hobby is how to get o/s income into Australia with minimal tax going to the ATO.
Terry is right about the 10K limit on each trip. I never come back to OZ alone. The problem is where to exchange the money and get a good price or where to buy OZ dollars before you come.
Also have you checked out the option of being declared a non taxable resident living o/s. If you do this make sure you have good medical insurance in case you get sick in OZ.
Mel is also right about credit cards. The exchange rate needs to be timed perfectly or you can lose a fair bit. Also some banks will report transactions that total more than 50K per month.
Also check out the option of buying gold certificates at USD and exchanging them at the Perth mint. My understanding is that there is a loop hole here, but I haven’t gone down this particular road myself.
Finally, a long term option (takes 1 year) depending on which country you buy in can be bringing in imported cars. You need to own the car for a year before bringing it into OZ. The loop hole is that you don’t actually have to live in the country you buy the car from. Your mum can buy the cars for family members if they want whilst o/s and then get the equivilant in AUD on her return.
Hi Mel,
What is also funny is that in most countries they ask you are you carrying drugs or weapons. In OZ it’s fruit and plants. Well it was before 9/11.C2
“Is it true the more you owe the more you grow until the bank steps in?”
