Forum Replies Created
I can second that!
originally posted by Don and Liz:
The biggest thing I have found to help with confidence is the experience of doing.Once you think you have learned all there is and you try your hand, you discover how and what to put into practice. We had several goes at it, first few times we goofed and then it finally came together. Pitty that we found out afterwards the information that showed it to have been a poor investment. Thankfully we got out of it!
Theory and practice are worlds appart! Once you have a couple of trys under your belt, you’ll know and refine your efforts. I love the chase, my wife loves the solutions; I do the heavy lifting and moving and she does the detailed work – great partnership.
Don’t rush, but be steadfast in your efforts, BUT HAVE A GO![cigar]
It will complement all the theory!Cheers
C@34
Thanx Derek,
I learn every day! Glad I didn’t rely on my logic![blush2]
Cheers
C@34
I used to work for a bank and any teller, sorry Custome Service Officer, that didn’t reffer or open directly an account was councelled.
Having siad that, our focus was on getting info to our managers to follow up on potential business/personal lending leads! So, yes, they do tend to focus on people that have loans as they make the bank money! Surprisingly, non lending customers cost the banks money! Funny that. Unless of corse you have Big Bucks in the bank.
My manager would have no hesitation in closing a customers account if they were $50 or $100k in credit. He wanted loans as they make the money!
Cheers
C@34
hkr,
logic (well mine anyways) would dictate that, as long as you only redrew the portion of the loan that you paid in surplus (as in paid surply is $100 and redraw is $100) the actual IP loan hasn’t changed in any way. therefore nothing changes in relation to Taxability reduction. PLEASE CORRECT ME IF I’M WRONG! It is almost like using an offset account (except you would have paid more fees) – the principle is the same, but the fees wouldn’t be Tax Deducable (I would think).mpgloss,
I would say that is correct. A lot of the professional packages form the banks run along those lines. Most banks, from memory, wanted you to use a LOC, but the setup you describe is similar. I would put the offset account against your PPOR as its interest is NOT Tax decuctible, so you gain the most benefit.[cigar]Cheers
C@34
Wow Pelican – I like your style, hope to be there someday!
I believe it was Jan Sommers that wrote “… it doesn’t matter if you by on a high or a low market, but I aim at buying at or below the median market price and hold for the long term….”
I like that theory (at this stage – I think we all go thru stages of different developments and styles) as I am mainly interested in Buy and Hold. Hopefully I’ll be able to match that with CF+ properties and I shouldn’t have any problems.What return do you average for your 44 IPs, Pelican? If I may ask? I was aiming at 10 to 15 houses bringing in average of $200/ week would be enough for me to live comfortably in retirement! Of corse they’d have to be paid out or mostly paid out!
Just my Dreams….
Cheers
C@34
Well done Ripstar,
You haven’t mentioned anything about the Town where you bought it. Is it declining in population – do you know anything about it? This would be one thing that could turn it into a lemon.
RE: your tennants lease, find out from them what the reason is. It might be that they don’t know where they are at in regards to work or you (are you going to screw up the rent? Chuck them out, etc). See if you can make their stay more comfortable without incurring extra costs.
Examples that spring to mind are things like, if they wanted to have a pet – OK it but have a pet bond and perhaps increase the rent by $5 or $10 a week to cover extra costs; they would like a carport/ washing machine/etc – work out the cost and factor it into the rent and offer it to them (ie: washing machine @$1200/78 weeks isa an extra $15 per week rent). “I could supply you with XYZ but I can’t carry all of the extra costs. I could do it if you’d be willing to pay $ABC extra per week in your rent OR if you’d be interested to sign a new lease agreement for the 78 weeks. Do you want me to go ahead with it? If so, sighn here for a six/ twelve months lease.”
I plucked those numbers out of thin air (78 weeks = 1.5 years) to illustrate my point.
You might be surprised, this could turn into a beaut long term relationship! There was a thread not too long ago (something about buying your tenant presents?) that covered this kind of thing and a lot (from memory) reported success with this strategy. Do a search and have a read, it might solve that problem.Cheers
C@34
Interesting point, though:
A friend told me the expected life of a house is around 50 yrsI must admit that I have never heard this before. How much fact is in that statement? Does any-one know?
I’d have thought that it would be a case-by-case basis. Our PPOR is 25yrs old and I’d hate to think it will only be viable for another 25 or so years (maybe a cyclone will sort all that out for me – get the insurance and rebuild! Dreams…).
Any-one?
Cheers
C@34
I’m with LifeX!
Go the whole job or risk loosing it all.
Attack the statement, NOT the person! Send each other PMs if you want to do that, leave us out of it!
[offtopic]
Cheers
C@34
I didn’t notice, so I’ll check mine.
What version do you have? If it gives you a version..
Shall get back to you.
Cheers
C@34
Hey,
wots it cost?
And why can’t you look this info up yourself, using most if not all of the helpful search hints mentioned on this website?I haven’t used this sort of report, so I wont be able to give you any feedback, but these reports are usually expensive and may not give you that much more than you’d find on the internet. My opinion, and I repeat I haven’t used one of these reports before!
Cheers
C@34
Cheers g. granland,
I am where you once were! This is going into my inspirational folder – yes foundation, it is unreasonable to expect the same CG, but it sure beats sitting there waiting for some-one to drop a million bucks into your lap!
Get up, search hard and do it! If you get knocked down – damn it, just get back up!
Cheers
C@34
We did a number of things:
1.Dissapointment therapy (“No you can’t have that today” – always put a time limit on it!);
2.We joined ASG (australian Scholaship Group) for forced savings for our children (nobody ever puts $5 away a week for their child!). We are saving for High School and Tertiary eduction so it gets a bit hairy at times;
3.We formulated the belief that hand-me-downs together with a few Choice new items make a perfectly good wardrobe. When they become teenagers (and we aren’t loaded by then) we will provide the basics and they can chip-in anything extra to buy “Label” items.
4.Teach them straight off the bat the right way to use your money (a la Richest man in Babylon, etc).SO now that our children are only 4 and 3, we’ve put off planning more – we just enjoy them for now. Gotta love little people! And they are NOT devils, they are angels – some just turn into Ark-Angels and want to take on the whole world!
Hehehe – I love my little Girl! Bless her stubborn,…err… persistent nature…..DO it! The more you put into them, the more you get out of them!
Cheers
C@34
You might get into trouble with licensing on that one.
Not sure though.
Cheers
C@34
How much?
How much is quite expensive? If it allows you to stay at home and not have to work?
WHere is this seminar held?
Cheers
C@34
Nads73,
welcome to the forum!
Know what you’re going thru! All my friends are ‘Not into that sort of thing!’ and ‘why spend so much money? You can’t take it with you you know!’, rarara…..Find positive, investment minded people! They don’t all have to be loaded, but share the same passion as you. Bounce ideas of them and see what happens. Every-one has their own ideas on how to do it best, what to look for and how to measure success. Listen, learn then make up your own ideas! What works for you is what is important.
First of learn all the maths (so you know what you can borrow and how you can repay it without dying of starvation), and keep an eye out for property. Once the maths is under controll, you’ll know your limits and then can work towards finding that deal. I love the chase, then get a bit frigtened (what if I was wrong????????) – but I get over that now. Doing it for the first time (putting in an offer) is another whole different story, but just as exciting. I hope this excitement never goes away – but I can tell you you’ll get smarter and smarter every time you have a go!
Keep your chin up, even if your neck is dirty! Later, when you can stay at home because your houses are paying you enough, your friends and other neigh-sayers will tell you how lucky you have had it! Ask some of our more succesfull investors here – it is common practice amongst friends and family.
Hope that gave you a lift. Keep going.
Cheers
C@34
“right as rain” – ???
“Gay as a post” – appart from being offensive, why are posts gay (is that happy?)
“tight as a fishes bum” – ignor the spelling
the rest are too rude to put in writing!
Cheers
C@34
Hi Gmid,
I’m with g7 on this one! Especially if you’re just starting out and learning. This doesn’t mean you stop looking, of corse, but be carefull – not many seasoned investors (not talking about myself) are buying willy-nilly right now. The message I’m getting from them is to really really look at the numbers, and research, research, research!As to refinancing, look at what you can afford (serviceability and debt ratio) rather than what your equity would let you buy.
If you have trouble with those calculations or don’t know how to do them there is plenty of people here that can assist. All the best and keep on going![cowboy2]
Cheers
C@34
I’m not sure you can get the FHOG AFTER buying a house, especially if you rent it out straight after buying it.
I believe, however, that the FHOG rules mean that you need to have moved into the house withing the first twelve months. So that means you could move in on day 365 of 365 and then you must live there for at least 6 months to still be eligible for the FHOG.
The Tax stuff you mentioned appears OK (I’m NOT an accountant – but it looks logical!).
Like I said up top, I don’t know if you can claim the FHOG AFTER you bought a house. I thought it had to be part of the purchase process – I may be wrong. For your sake I hope I am, be a shame to miss out on it.
About the “still receiving Rent” bit, you’d have to check with an accountant whether that is legal in regards to the FHOG! You may be asked to pay it back, IF you get it in the first place!
Cheers
C@34
Shaztaz,
not to nock your input, but that template appears to be very limited! AND stating the highest price you’re willing to pay right up front – I can’t see how you can buy at the best price or negotiate for a lower price while declaring that; UNLESS you lie!There is also very little (if any at all) room for conditions….
Just my observations.
Cheers
C@34
I believe this was covered in an earlier post.
Steve has a ‘Buyer Beware’ package that has a template in it and is a good educational tool to boot. Other than that, use a Solicitor! WA has forms printed an masse available at any newsagent or you can get them from the REAs. I do believe they are only valid in WA though!Just some ideas to ponder.
Cheers
C@34
