Forum Replies Created
My preference, too, is buy and hold! Although perhaps I will make a leap of faith into the development arena – depending on how well I learn!
I simply don’t see the sense in cashing-up when, at some point down the track you have to buy back into the market, but this time the prices are higher than when you sold – so where do your profits go then?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi andymitchell,
Shwing Posted – 29/11/2005 : 12:55:47
Maybe buy one of the cheaper ones also.Now this would be the way to go, IF you have the money! this way one unit is expensive but that is evened out by the lower costing unit (proce everaging – they do it in shares, I believe), subject to rents covering the mortgage you may have put yourselve in a very strong position when the market picks up again!
Just food for thought. Work out the numbers carefully on this idea first before jumping in!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonI love it wilandel!
Most days I am part of the ‘Confident’. My wife (LOL) is obviously one of the ‘Hopeful’ ones while I constantly get to work with the ‘fearful’ ones!
I neeed more chocolate to keep up my energy so that they can keep on feeding off my enthusiasm![sweaty]
Ahh, I love it!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Redwing,
where do I find these figures? Reiwa?Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonSo is it the tennants responsibility or yours?
Building sites are a little different – if YOU are the builder, AUSPROP I’d expect you to be responsible for it, but what if you have bought a House and Land Package? technically it is yours but realistically it isn’t until lockup stage (I am assuming that that will co-incide with settlement).
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonThanx for that krs,
I guess thinking logically, the LOC makes sense. Comparing it to an off-set account (this off course is only valid if you have the money for an off-set!):
1. You’d park your savings/extra equity/ other funds in an off-set, the interest you earn reduces the interest you incurr agains a loan that would be non-deductible;
2. The money in the off-set would be available to you, same as if you had a similar limit in a LOC.
3. Apparently, and I’d have to check, the interest you incurr on a LOC is higher than a standard loan(?!). Of course if you use the money in your off-set account you wont incurr any interest on the money spent, only the off-set proportion that is no longer covered by the out going moneys.So I guess it depends on where you’re at in your investment life. A lot of non-deductible debt would suggest (to me) you’d be better off with the off-set account, negligible non-deductible debt and a LOC would make more sense as it is virtually the same as an interest only.. Hmmmm very interesting…[grad]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edisonkrs,
I have been interested in LOC, but a lot of the discussions here in the past have focused on the higher cost of having one. THe alternative and, as far as I recall, the more cost beneficial product is the 100% Off-set account.
There is also the issue of self control with a line of credit as if it is set up for investing purposes, anything you buy for personal use or consumption wil NOT be Tax Deductible! So For a lot of people it would be an unsuitable product due to their dependance on Doo-dats.My post is more of a query to see if, thru expereince, our more long term investors have used the off-set facility and have found that, perhps the LOC is not as bad as first thought.
We are only in the process of finalising our first IP so we aren’t really there yet for me to worry about a LOC, but for the next IP, should I have aneugh Equity, I’d like to set up a LOC. As usual, collecting experinces from those that have it before I jump into it!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Derek,
wasn’t there a large exodus away from LOC? Reasons given are: higher costs, higher interest, possible lack of discipline would undo the benefits of the LOC? Are you now (or have you never gone away from) advocating LOCs?Is the Off-set structure more beneficial (as in cost reducing, increased savings) when compared to the Off-set structure?
I have recently refinanced, and it was suggested that, unless I have $10k in the off-set account it isn’t worth the extra fees and interest. What is the general feeling about that?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonFlyscreens/security screens, pay for them or don’t….
We are in the process of installying ‘Invisiguard’ screens that look like flyscreen but act like security screen. Keeps the dogs out, the cat and childrne in and the burglars outside with the dogs (two Rottweilers, my little teddies). It is expensive but it reduces my insurance because they are effective security devices AND allow easy fire escapes – with out the keys.
If I can’t afford to do it when our tennant asks for it, then, like our Owner when we were renting di to us, I’d inform the tennant, that, at this stage that wont happen. If they’d like to contribute (ie: pay more rent) to speed up the process, then that’s fine. Otherwise, it’s not going to happen real quick.
This way I’m not saying no and I have planted the seed for higher rent. this discussion is very much like the ‘Do you reward your tennant’ post, though!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Nats12,
is that $200 or $2000? two hundred seesm a bit in my area!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi F3,
I think you might actually loose it, if you do what you suggest – I seem to remember something about the Trust Resettles and, as such starts with a new slate. I’m not 100%, so seek further advice before you do this!Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonC’mon Ozzi C’mon!
wit-chu Cel!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonWould Fredom be able to do a ‘paper refinance’ (as in by shares in the trust – as in with a HDT) to make the loan an investment loan and therefore be tax deductible for him/herself?
The trust could then still use the tax credit for next year or when ever it makes a profit.Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonTruth is, kriscot,
without your wife BY your side you’re going to be fighting not only to learn everything you need to know, but also her attitude, her desires for a bigger ‘Nest’, etc, etc. So if you can’t get her on board then you may have to find another solution!
I fought my wife for nearly two years. The IPs were never big enough, clean enough, this enough, ra-ra-ra. One day something changed and bang she picked it she made it happen at our end (reduced shopping! lower expenses,etc) and now WE are on our way. She is more excited than me, hehe.Do some research and show her the difference in your cashflow with investing and future benefits etc. Look at different options like renting a larger house while renting out your home. that way the loan on your home is tax deductible AND she gets a bigger home for your family. talk to her parents to find out where they stand – perhaps her desire to pay them out is based on the fact that they need the money or want to use it for holiday travel or something.
Steve said in his book, find the problem and solve it! If all win who will be unhappy?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonAre you able to put up your formulae for calculating these returns? I know that there is a great variety of calculations by different people; some include depreciation, some don’t; some calculate it over the purchase price others only include the deposit (where does the repayments fit into this????).
I’d just love to know, for myself how to best judge the return of our first IP!
I had thought it would be all the money you earn (rental income & CG), divided by all the money you put in (Deposit, fees & Charges, interest/ loan payments, PM fees, etc).
Can any-one elucidate?!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonBeing your Girlfriends parents might make a difference! How serious is the relationship? I don’t mean to pry but does she consider you a “Keeper” (and vice versa)? If her parents don’t see your relationship as serious enough they might not want to saddle you two with a mortgage that will put extra strain on your relationship ….
Sorry for the Doom-n-gloom…
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi stargrasper74
I like the idea tabled by:
serkan Posted – 07/11/2005 : 03:36:16
Another whole different idea is, why not have them transfer the house to you? And you can pay them the direct amount without many middle men.?Cheers,
SerkanJust do yourself a favour and set up a legal contract, that, if the parents agree to this sale and you get the finance, that you will get the place properly valued (as Simon said:
They will attempt to convince the sellers that they are better selling it on the open market.Their appraisals are also not valuations – just an opinion of what they think they can sell the property for.
and then you pay them out. If they wish to try on the open market to get more money you may be able to buy it anyway using, say the FHOG. This night be the win-win for the parents and you, they get to help you get into your own home and they can still go and buy what they want.
Just make sure you have a contract of sale that specifies every-ones obligations.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHehehe, yes, the two pearls of the North West!
If you time it right, you can have your CF+ AND CG all in one.
We’ve just used our CG of $70K to finish of our reno and refinance to make our life easier. It is such a relief not to have to add balance to “Store Cards” or “Personal Loans”! Love it when the liabilities side of the equation only has one or two items in it!Back to Mining Towns – I have only researched Hedland so There are a number of options I would choose, the biggest thing to look out for, though, is major re-work or mine opening or closing! You get in on the right side of those and tour coking with gas.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonSorry to be so slo, but … what are you saying here:
Dr.X Posted – 07/11/2005 : 14:55:41Would you give 2 weeks rent and 10% to a “caretaker” and also allow them to rent it for under market value so that they can tick it off their list and move on with the next one!
I am keend to discover what you mean by this! As we are soon to take posession of an investment debt (first IP) this info couldbe of great benefit!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Tools,
I used Mailwasher too – same program it seems as I too had this problem. Nothing I did fixed it (I’m not computer wizz) I tried to delete it completely and download it again, but in the end I got rid of it as my ISP lets me look at my emails on their website before I down load them.See if your ISP offers the same! Westnet and Telstra do – I’m sure they aren’t the only ones.
Sorry I couldn’t help any more.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edison
