Forum Replies Created
- redwing Posted – 02/01/2006 : 08:32:20
I must be tired..Why has Calvin got the 27.5k Loan..is it for when he is ready to buy an IP?
The other Loan $168k is P&I
(7% @ 25 yrs is $273.79 p/wk or $1,187.39 p/mth)PPoR is $260k for arguments sake when completed and total loans are $168+27.5k =$195.5K
LVR = 75%
EQUITY= $64.5kNah, you’re spot on! Although the initial valuation has been only $220K and I am looking for something more once we get revalued after the end of our current reno stage. Around the corner is a 3×1 fully fenced, not in great condition, but it was valued at $250K so I am hopefull.
Derek Posted – 02/01/2006 : 10:01:35
Hi Redwing,Calvin has an IP in Nollamara (from memory)
Right also, and the $27.5K is the deposit for the IP in Nollamara. I ummd and Ahhhd but my wife was ready to committ to it and I had not seen that before. Looking into it there was nothing that showed up as bad and even though it isn’t an outstanding performer, it got us started. I have my wife’s support and that means a lot. [strum]
Time for sleep, hope that helped.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Hi Colin,
1. Don’t know, I wasn’t there when it was tilled. The girls opf the house did that section, and I think they may have been a bit slack! I did a whole shovel depth, but they have begrudgingly admitted tio not have reached the same depth. Aha!
2.All burried things have been removed, to 0.5 of a shovels depth!
3. the area is around a mature Mango tree (sorry, should have mentioned this earlier). Other than that, nothing obvious.
4.Part of it is our main access (on foot, wheelbarow, etc) to the back yard. We had a bobcat remove the top layer (approx 2 to 4 inches) – can;t be exact – it is a bobcat! Other than that, nothing again.
5.Possible, but not during the 12 months of our ownership!
6.Nothing was brought to that spot, BUT when we brought in the flat plate compactor, it did compact the neatest (for want of a better word – the soil was nice and smooth) other parts of the yard were either too dry or too wet – go figure.
7. I wont touch this point! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! I love my mother in law! [inlove][inlove][inlove]There is a chance that the soil is more loamy (Spelling??) slightly clay. I saw a long time on Landline that there is a product that’ll break down the clay and make the soil more water absorbing…… any ideas?
The water is literally sitting there, and I have been apying more attention and I don’t think that the rest of the water runs off to this area! It is the water sprincled onto it that remains there. SO I’m starting to change my thoughts towards the soild not absorbind the water!
I hope that helps you more….Your help has been fantastic and I appreciate the effort you have put into your posts!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Cheers Guys,
estimated value of our PPOR should, when finished, br close to 250 maybe 270K. We have big back yard and now it’ll be finished and fully self-maintaining (except the lawn mowing).
We got 220K for the unfinished product so finished all nice’n’pretty should come in at the expected prices above. Other houses, not as nice and fresh as ours got that much, so , as long as the market trend doesn’t change when we have it re-valued, we should benefit from our efforts.All I need now is a good paying job to keep the momentum going and we might just get IP#2 before the end of 2006!
I’m pumped![suave3]We currently put all our income (wages and rent) into our offset account which is linked to our home loan and buy as much as possible on credit card (requires discipline) and sweep the cc on the due date. This way we maximise our inroads into the home loan thereby paying it down much quicker.But as I indicated in an earlier paragraph we are rethinking this and looking at the benefits of I/O on our home loan.
Derek, the off-set account would have cost me another 0.15% in interest and our MB suggested that unless we had a balance of 10K or so in it it wasn’t really worth it. And, at this stage, we wont! so we didn’t go with the off-set, but it is definitely on the cards very soon!
I do like the idea of the I/O for a PPOR though, just not quite there yet to be able to sleep at night (SANF). Give me time, I’ll get there.Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
hehehe, just came back into the door from my Bus round (jog #2) and had some time to think about what was said earlier.
I love the way my subconcious is working! Wish the rest of my brain worked that well, hehe, anyway the reason for our current setup is that the $168K is for the PPOR, plus payout of our Personal loan, plus some minor imporvements on our home while the $27.5K is a deposit on an IP.
The idea is that the non-deductible debt ($168K) is to be paid of as quickly as possible thereby reducing the debt fast. While the Tax deductible debt ($27.5K) can remain as is (I/O) to further the increased debt reduction of the nondeductible loan. I don’t know why this had escaped my mind (doesn’t say much for my mind!), but that is the plan.Now if I combine that with your suggestion, turn the PPOR loan into an I/O in say 12 months, that would allow us to buy something in the vicinity of $225K. Any improvements on that amount?
Hmmm, food for thought! [headphone] …listening to Stay Alive, the remix…
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Stop it Derek! – you making me look bad! LOL
I might have to go away and think this whole thing thru a lot more! I must admit I’m feeling a litle foolish right about now.
The 27.5K is fixed for three years so I’d have to look into seeing if it is worth it. Damn it ……[grrr]
Not at you, just at my own stoopidity.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Originally posted by Zyleth:@ Calvin
Thanks for the info, although I don’t think I am 100% clear on the mathamatics behind your response. If I am spending $370 pw on rent a week (damn sydney [glum]) and get a +cf house earning me a little extra a week, how does this compare to owning my own house with hopefully lower repayments than $370 and then using the equity in the PPoR to then buy +cf investments???
I have been wondering about this theory for a while so I am interested to see how it all comes together (maths has never been my strong point [biggrin])
I think I might just put that idea on hold while I increase my investment portfolio (although I am always happy to hear ideas that will get me both [biggrin]).I did get a spanner thown in the works today. I contacted a morgage broker to see what sort of money I could borrow. Because of the 2 dependants and single income I am only able to borrow around $250k. This is going to greatly reduce my house hunting ability in sydney I think [glum]
Big Z,
the maths isn’t that complicated, if you pay $370/ week on rent = NO TAX DEDUCTION!
if you pay $370/week on your Mortgage = NO TAX DEDUCTION!
BUT
if you buy an IP adn the mortgage is $370/week ALL bank fees and charges related to the investment as well as the interest accrued on the mortgage IS TAX DEDUCTIBLE! Meanwhile you rent a house and pay (up to $370/week) =NO TAX DEDUCTION!
However your cashlfow now looks a little different:
$ 370 going out for rent – no change here!
$370 going out to pay the mortgage – oops your down $370!
$370 coming in as rental income – woohoo back in neutral teritory!
Now your Taxable income is bigger therefore you’ll pay more Tax – oops loosing money again!
Now all the interest you pay, the fees and charges + Depreciation all come back to you at the end of the Financila year!Now I have over simplified this, but any good Mortgage broker/ Accountant will show you how this will apply to your case. Depreciation Schedules are done by professionals and you’ll find all of them represented here on this forum!
Even if you come out neutrally geared (income = expenses) you will be in front in the long run!Now about you waiting for equity to grow, from all of the posts I have read RE: NSW, you wont see any CG in the near future as the market is going thru a slow down (correction if you will) and itll take some time for the market to pick up again – just be aware of that!
All honesty, read, read some more, learn all that you can and in the mean time save a deposit ,together with the $20K from your family (that’s $20K more than most of us had!) you’ll be in a prime position to buy when you come accross THE property.I did get a spanner thown in the works today. I contacted a morgage broker to see what sort of money I could borrow. Because of the 2 dependants and single income I am only able to borrow around $250k. This is going to greatly reduce my house hunting ability in sydney I thinkAny chance your wife can pick up some work – even if you only use it to save for a deposit? This’ll greatly asssit in fast tracking your investment progress!
Hope this has helped some?! See what you think.[biggrin]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
redwing Posted – 30/12/2005 : 16:46:00
Funnily enough John T Reed promotes his own books whilst giving the majority of others a hard time..…souinds like a friend/ brother of Neil J…??
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Hi Derek & redwing
I honestly never considered your alternative! Bit surprising actually, thought I had it all figured out! [baaa]
I would prefer, for the moment, to pay down the Principle. Depending on how things go, say in the next 12 months, I might very well reconsider as it is a powerful argument you have put forward.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
monopoly man Posted – 22/12/2005 : 20:17:36
hi all. I’ve never had to refinance before and i’m a little hazy on all the ins and outs. My current situation is this. I have $195 000 left owing on a loan that started at $206 000. My current fortnightly repayments are $600. Is it possible to get another loan for the amount owing [$195 000] and thus reduce my fortnightly payments?Hi mm,
I have just re-financed for that amount and my monthly repayments are $1151.11 (which becomes $531.28 per fortnight). this consists on one I/O loan of $27.5K and a standard variabl rate P/I(negotiated down) of $168K. Both loans are over 30 years with the I/O loan being fixed for 3yrs.Hope that helped. BTW I am making $1200/month payments on the P/I loan on a fortnightly basis to get ahead faster! This way, the estimated pay-out time for the P/I loan is 18 years. [thumbsup2]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
I guess that it is the initial impression after having been a member for so long that the change seems confrontational.
I felt that too when I started and made the suggestion that the RESULTS forums be collapsible so I wouldn’t have to scroll past them all the time. It has happened, to some extent and I believe that Steve is trying to sort out all the buggs, it just takes a little bit of time.
Meanwhile, I share and learn despite the RESULTS crew and things haven’t really slowed down for me. Now, I’m over it (“… have build a bridge…” haha).
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
New Zealandese
No one bothered to translate the book into American even though the U.S. is by far its main market. He uses the word “property†to mean real estate, “gearing†for leverage, “requisition†for eminent domain, etc. The most egregious example, which is extremely misleading, is his use of the word “rent†when he means net operating income. The sort of laymen he targets are likely to think “rent†means rent, not the amount left over after you pay your operating expenses.I came accross this part of the BS meter about Rolf De Roos. Funny, but I always took rent to be rent and NOT the part left over after all the expenses were taken out……how silly of me! [cigar]
Other than that, it is interesting to read about some of the gurus that I have heard about – get a different picture, more wholy rounded.
Great post Redwing!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Thanx DD –
great working example! Simple but effective!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Colin et all,
it was suggested to me to “use diluted dishwashing liquid” in the areas where the water tends to sit, rather than be absorbed by the ground. The idea is to create a situation where the soil then becomes more receptive to the water allowing it to be absorbed thereby stopping the water from pooling and, hence, the algea would die. phew, what a sentence! must remember to breath
As I am now weary of so called ‘Experts’, I wanted to gain your insight. It does appear that the water IS NOT being absorbed! [angry2]
So, any ideas on that issue?Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
[evil4] Know any knuckle-dragging-club-weilding goons looking for some fun??[satan]
One of my friends neighbour bought and spread sugar all over the yard of the person they didn’t like, with interesting results, hehehe. NOT that I am advocating this sort of thing.
Hey, if the tennants are refusing to pay the rent, does that make them squatters?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
gamay Posted – 28/12/2005 : 23:22:37
Contract is under his name for another 6 months as well as 4 weeks bondForgive my naiivety, but does this not give you the legal right to charge him the rent until another tennant is found that can pay the rent???
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Originally posted by Zyleth:
They don’t see any point in us paying for someone elses IP while trying to get our own. The would prefer us to be paying off our own home then get our investement portfolio going.Aaaahhhh, they are from the ‘Old country’!? [bonjour]
First of all, if you buy, you only need to stay in it for 6 months within the first year to be elligible for the FHOG!! [party]
Second of all, do they know that you can improve your Tax situation with an investment property? Effectively giving you more ‘bang’ for your buck’ ?? So they don’t understand that a PPOR takes money OUT of your cashflow (as it is NOT Tax deductible debt and then especially since you are a one income family, IN NSW, no less) and that you’d be better off with an investment property that’ll put money back into your cashflow (even after Tax)????? [hmm] [hmmm] [jealous]Interesting….
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
DLPP Posted – 27/12/2005 : 18:18:01
I have been reading a bit on this lately and will be putting my own together. When I am finished I will post it up on the site or a link or something.I’d appreciate that, together with the blue print of Redwings post, I should find enough motivation and focus to really get something happening next (2006) year.
Waiting expectantly……[exhappy]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Awesome post Redwing!
Love it [thumbsupanim] [thumbsupanim]!
Funny how simple it really is – unless you don’t know how to do it. For me, that was very succinct (more so than any other I have heard!) and will replace the New Years Resolution.
Happy New Year!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Hi Sue,
no nothing like that in Hedland, I’m afraid, but I have bought my own Ph Kit (I am trying to get into Bonsai, but no-one told me it would take soooo long!) [biggrin]
I’ll try the pH test together with the other suggestions.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Cheers for your input Colin,
W ehave already backed of our watering regime, but we wanted to follow the istructions of the Turf farm to ensure that we are doing the right thing.
Living in Hedland, were we are currently ejoying a balmy 47 degrees [hmmm], we are watching very carefully to ensure that our lawn doen’t die! the temperature alone allows us to see where the lawn is drying out and dying before our eyes! Look at the lawn in the morning and an hour or so later the same patch has gone a funny kind of grey-green and tomorrow it is all grey! Freaky haw fast it happens.
As for preparation, we weeded, then we turned the soil over (and threw in Dynamic lifter) then we flattened it by raking, levelling it as best as we could. It was recommended to us to get a roller or a flat plat compactor (running on low) to lightly compact the dirt . Then we re-levelled snd put doen some more Dynamic lifter before we rolled out the Lawn. Retic went in first, though. The lawn took to it like a fish to water and all things went well untill the grubs hatched from their eggs (or crystalis or what ever it is called) so we poisoned (did this twice as we must have missed some first time round).
As you’ve mentioned, there is a low point in the garden and the water runns off to that point. This is where the algea is found. My next plan of attack is to split the sprincler system so that the higher ground will be watered more and the lower part less (as the water runs that way any way). As the lawn needs to be 6 months or older before I can use the Weed and feed I’ll have some time to wait.
Thank you for your advice, I know this’ll take some time and I believe that adding dirt (clean dirt) to level the ground after mowing will assist in the long run. another will be the weed’n’feed and to use the liquid that allows the water to accept the water more easily and lets it sink into the ground faster.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
